REG - Angling Direct PLC - Half Year Results
08/10/2024 07:00
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RNS Number : 2589H Angling Direct PLC 08 October 2024
8 October 2024
Angling Direct PLC
('Angling Direct', the 'Company' or the 'Group')
Half Year Results
Continued strategic progress alongside revenue and margin growth, trading in
line with FY25 market expectations
Angling Direct PLC (AIM: ANG), the leading omni-channel specialist fishing
tackle and equipment retailer, is pleased to announce its unaudited financial
results for the six months ended 31 July 2024 (H1 FY25).
£m H1 FY25 H1 FY24 % Change
Revenue 45.8 43.3 +5.6%
UK retail store sales 26.4 24.4 +8.4%
UK online sales 17.0 16.5 +2.8%
Total UK sales 43.5 40.9 +6.2%
European sales 2.4 2.4 0.0%
Gross profit 16.8 15.2 +10.6%
Gross margin % 36.7% 35.1% +160bps
Adj. EBITDA(1) 2.8 2.4 +16.9%
UK Adj. EBITDA 3.2 2.9 +12.7%
European Adj. EBITDA (0.5) (0.5) +7.7%
Profit before tax 2.3 1.7 +35.7%
Basic EPS 2.24p 1.71p +31.0%
Net cash & cash equivalents at period end 17.0 17.6 -3.8%
Financial highlights:
· Group revenue increased by 5.6% to £45.8m
· UK sales grew 6.2% to £43.5m, +7.6% during key Q2 trading period
· UK retail store estate delivered sustained strong growth, with total store
sales increasing by 8.4%, largely driven by new stores acquired and opened
· Like-for-like store sales increased by 1.8%(2) underpinned by improved
customer footfall and ATV
· UK online sales grew 2.8% with increasing unique customer numbers and
transactions growth
· In Europe, overall sales were flat at £2.4m, within this positive progress in
Germany
· Gross margin increased by 160 bps, driven in part by a higher mix in sales
from own brand products
· Adj. EBITDA grew by 16.9% to £2.8m
· Adj. EBITDA margin increased by 50 bps to 6.0%, benefitting from operating
leverage
· Profit before tax increased 35.7%, +28.1% on a pre interest income basis
· Operating cashflow of £4.9m (HY24: £5.5m)
· Strong balance sheet with Group net cash of £17.0m at 31 July 2024 (31 July
2023: £17.6m) underpinning UK M&A and strategic opportunities
Operational highlights:
· Annualised the launch of MyAD with membership increasing 50% in the first half
to over 330k members (31 January 2024: 220k). This has proven to drive better
customer loyalty and engagement, with over 75% of UK revenues now transacted
through MyAD
· Completed three UK acquisitions of existing retail businesses alongside
opening two new UK retail catchments, scaling the UK store footprint to 52
stores
· Higher margin own brand gross profits grew by 40%, leveraged through new
ranges, everyday pricing, and improved sourcing and buying. This growth came
through both the demand for our entry level "Discover" Brand as well as
further progress on the established Advanta Brand
· Secured a new UK logistics facility in the West Midlands to support further
scale roll out of own brand ambitions beyond FY25
· Opened first store in Europe in Utrecht, The Netherlands, to trial European
omni-channel model
Current trading and outlook
· The Company remains focused on delivering its medium-term financial
objectives(3) with good progress made against these during H1 FY25
· Strong trading in the last key seasonal trading weeks in the two months to 30
September 2024, with Group revenues increasing 19.8% on the same period last
year
· Post the period end, the Group agreed terms with a third-party logistics
operator in Europe to service customer fulfillment in this region
· The Board remains confident in the long-term prospects for the Group,
underpinned by its leading UK omni-channel proposition and strong balance
sheet which reinforces the Group's decision to continue to invest in its home
market to support the long-term strategy alongside continued prudent European
investment
· Overall, a combination of continued UK sales momentum and pursuing a
profitable European growth strategy means the Group is well placed to deliver
revenue and Adj. EBITDA in line with market expectations for FY25(4)
Steve Crowe, CEO of Angling Direct, said:
"We have delivered significant progress in the first half and I would like to
thank the team for their continued dedication and hard work. We successfully
completed three acquisitions and increased our UK store estate to 52 while
also opening our first European store, in Utrecht, the Netherlands. Online
sales continued to increase and our focus on availability during peak season
resulted in the UK online business taking greater share of the higher ticket
item market. The Group's loyalty and repeat purchase membership club, MyAD,
gathered further momentum in the UK, increasing member numbers by 50% to over
330,000 in the first half. Over 75% of Angling Direct's UK revenues are now
transacted through MyAD, providing greater insights into customer behaviours
and buying patterns and driving loyalty.
"Looking forward, I am pleased that the strong trading has continued into the
second half with revenue in the first two months increasing 19.8% on the same
period last year. The solid foundations that we have established ensure that
the Group is well placed to take advantage of the significant growth
opportunities available in the UK, alongside prudent and controlled expansion
in Europe which will significantly grow our addressable market and support our
longer term growth ambitions.
"The Board is fully focused on the options available for deployment of surplus
capital and these continue to develop as opportunities present themselves. We
will continue to actively manage the key aspects of both our balance sheet and
wider growth strategy for the business, having regard to our overarching
objective of maximising shareholder returns."
1 Adjusted EBITDA figures are presented on a Pre IFRS 16 and Pre IFRS 2 basis
unless otherwise stated.
(2) Excluding the Reading store which hasn't materially traded in the comparative
period after it suffered a fire in the first week of February 2023. Total like
for like stores grew 2.6% including Reading.
(3) The Company's medium-term financial objectives were published in the Company's
FY24 Preliminary Results announcement on 14 May 2024 and comprise: 1. UK
business generating £100m annual revenues; 2. An Adjusted EBITDA in excess of
£6m; 3. Moving the European business through the early stages of development
to break-even; and 4. Deployment of surplus capital to accelerate growth
beyond our medium-term targets, including selective M&A, with investment
weighted towards the UK business.
(4) Angling Direct believes that consensus market expectations for the year ending
31 January 2025 are for revenues of £88.4 million and pre-IFRS 16 EBITDA of
£3.15 million.
Investor Meet Company presentation - 14 October 2024
Steve Crowe (CEO) and Sam Copeman (CFO) will provide a live presentation via
the Investor Meet Company platform at 11.00 a.m. BST on 14 October. The
presentation is open to all existing and potential shareholders. Questions can
be submitted pre-event via the Investor Meet Company platform up until 9.00
a.m. the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free via the following
link: https://www.investormeetcompany.com/angling-direct-plc/register-investor
(http://www.investormeetcompany.com/angling-direct-plc/register-investor) .
Investors who already follow Angling Direct on the platform will automatically
be invited.
For further information please contact:
Angling Direct PLC +44 (0) 1603 258 658
Steven Crowe, Chief Executive Officer
Sam Copeman, Chief Financial Officer
Singer Capital Markets - NOMAD and Broker +44 (0) 20 7496 3000
Peter Steel
Tom Salvesen
Alex Bond
James Todd
FTI Consulting - Financial PR +44 (0) 20 3727 1000
Alex Beagley anglingdirect@fticonsulting.com (mailto:anglingdirect@fticonsulting.com)
Matthew Young
Hannah Butler
About Angling Direct
Angling Direct is the leading omni-channel specialist fishing tackle retailer
in the UK, with an established and growing presence in Europe. Headquartered
in Norfolk UK, the Company sells fishing tackle products and related equipment
through its network of in excess of 50 UK retail stores, as well as through
its leading digital platform (www.anglingdirect.co.uk
(https://eu-west-1.protection.sophos.com?d=anglingdirect.co.uk&u=aHR0cDovL3d3dy5hbmdsaW5nZGlyZWN0LmNvLnVrLw==&i=NWZmMzFiMDlmNTYxZTYwZGYyODQyMzUz&t=K2FWYTRxeDV6cWRxd2I5dVpOODk5dnFObVU2U2p5WElLNndSM01SaStUcz0=&h=704002e0ebe140b99f9f3842770cb87e&s=AVNPUEhUT0NFTkNSWVBUSVapg934Yb5nAolTQ9o0CeldsCYWuT9YetF_pLFbutVHOzk4kq9BEj_vGoYOcSbmh2Q)
) and the MyAD Fishing Club app. The Company has three further native language
websites in its key European territories (www.anglingdirect.de,
(https://eu-west-1.protection.sophos.com?d=anglingdirect.de&u=d3d3LmFuZ2xpbmdkaXJlY3QuZGU=&i=NWZmMzFiMDlmNTYxZTYwZGYyODQyMzUz&t=VVRndGRoM1kvaFpNWnRpMzZ0M3NsT2I1NFdGTEp6ZllkYnFBaFFZb2FNWT0=&h=704002e0ebe140b99f9f3842770cb87e&s=AVNPUEhUT0NFTkNSWVBUSVapg934Yb5nAolTQ9o0CeldsCYWuT9YetF_pLFbutVHOzk4kq9BEj_vGoYOcSbmh2Q)
.fr, .nl), with orders fulfilled by its international distribution centre in
The Netherlands.
Angling Direct's purpose is to inspire everyone to get out and enjoy an
exceptional fishing experience, regardless of background or ability, in the
great outdoors. Angling Direct's active digital channels and over 500
colleagues contribute to the Company's ethos of care for the wider community
and the environment (www.anglingdirect.co.uk/sustainability
(https://eu-west-1.protection.sophos.com?d=anglingdirect.co.uk&u=aHR0cDovL3d3dy5hbmdsaW5nZGlyZWN0LmNvLnVrL3N1c3RhaW5hYmlsaXR5&i=NWZmMzFiMDlmNTYxZTYwZGYyODQyMzUz&t=a25La0pYblhuR0diWS9OWVhUTEJtSjRiNmhCdktRWnNiUG9ibXlUMjNuTT0=&h=704002e0ebe140b99f9f3842770cb87e&s=AVNPUEhUT0NFTkNSWVBUSVapg934Yb5nAolTQ9o0CeldsCYWuT9YetF_pLFbutVHOzk4kq9BEj_vGoYOcSbmh2Q)
). Angling Direct currently sells over 25,000 fishing tackle products from
industry leading brands alongside its own brands 'Advanta', and entry level
offering 'Discover'.
Delivering against our strategy - Building Europe's largest fishing club
Angling Direct is the UK's largest scale omni-channel fishing tackle retailer
and the Group holds a leading position in this attractive market. The Group's
published medium-term objectives, as introduced in May 2024 and commented on
in further detail below, are as follows:
1. UK business on a flightpath to revenue of £100m
2. UK business on a flightpath to >£6m Adj EBITDA
3. Development of a sustainable European business
4. Creating Europe's largest fishing club, MyAD, and leveraging its value
5. Deployment of surplus liquidity to further grow the business beyond the
medium-term objectives
6. Angling retail's largest responsible employer
The Board is confident that delivery of our strategy and medium-term
objectives will further differentiate us from our competitors and unlock the
unique opportunity we see ahead, generating long-term sustainable value for
all stakeholders.
1. UK business on a flightpath to revenue of £100m
The UK business delivered revenue of £43.5m, growing 6.2% against H1 FY24,
with Q2 FY25 being particularly strong at 7.6%. Pleasingly, despite a soft
start in Q1 FY25, our stores and the digital channel showed positive
progression in H1 FY25. The growth was delivered in both channels through
increasing customer numbers as our omni-channel model, underpinned by MyAD and
our price promise, continued to increase its reach and gain traction in a
consolidating market.
UK Retail Stores
Total store sales in the period increased 8.4% to £26.4m (H1 FY24: £24.4m).
Like-for-like store sales grew by 1.8% (excluding Reading, which didn't
materially trade in the prior year period due to a fire in February 2023).
Recent new stores (opened since January 2023 - Cardiff, Goole, Cannock,
Walsall, Crewe, Newark and Shrewsbury) contributed £1.7m of sales in the
period with our UK estate increasing to 52 stores overall.
During the period, we saw an increase in footfall and customer numbers across
both our established and new spaces. This has been driven by the success of
our MyAD loyalty and repeat purchase membership club, alongside the increased
use of merchandising technology, growing demand for our in-store services and
our valued assisted selling model.
In line with our medium-term objectives of delivering a UK retail stores
portfolio with annual sales in excess of £60m, we continued to invest in new
UK retail stores. This investment, for the first time since 2019, included the
acquisitions of three businesses which allows us to enter attractive
catchments and scale earnings faster than our traditional "green field"
approach. These opportunities have arisen as the pace of consolidation in the
market increases against the backdrop of single site operators' costs
increasing ahead of sales, and the need for investment in technology and
working capital to mitigate these challenges.
We continue to actively identify opportunities within attractive catchments
across the UK, including traditional scale opportunities (greenfield and
acquisition) now complemented by smaller catchment areas where we can deploy a
smaller store footprint with a margin intense range model. Both Crewe and
Walsall represent our first conscious investments in smaller store formats
and their performance since opening has been in line with our internal
plans. We continue to make progress with a trial "store in store" concept
representing a further opportunity to accelerate the reduced footprint format.
Outside of new space, we continue to evaluate our store refresh and roll back
concepts across the existing estate to drive further like for like sales.
Three store refreshes are scheduled for the second half of FY25.
UK Online
UK online sales grew by 2.8% to £17.0m (H1 FY24: £16.5m) as our MyAD and
everyday low-price propositions, alongside our focus on availability during
peak season, resulted in the UK online business continuing to take greater
share of the higher ticket item market.
As part of our drive to grow market share and customer loyalty, we continue to
invest in contemporary digital infrastructure and customer marketing, further
increasing our competitive moat. These investments delivered increased
customer numbers, alongside improved conversion (+c120 bps) despite the more
challenging consumer landscape for higher ticket items.
Utilising a more data led approach to our digital marketing continues to prove
a clear differentiator and source of competitive advantage. Our YouTube
channel subscribers at 31 July surpassed 75,000 with views of c.800,000 in the
month of July alone, 16x greater than our next largest omni-channel
competitor. Alongside this our social media reach, in particular TikTok and
Instagram, continues to scale with our total social followers increasing 17%
since 31 July 2023.
Leveraging store footfall to offer customers our broader digital range is a
clear opportunity. During H1 FY25 we have built the technology to offer
customers in store access to our full range delivered next day to home or the
store of their choice. The technology is being trialled in an increasing
number of stores with the full launch across the estate scheduled in FY26.
2. UK business on a flightpath to >£6m EBITDA
UK Trading
The UK business increased Adj. EBITDA by 12.7% to £3.2m, exceeding sales
growth by c.2 times, with the business able to balance cost investment and
revenue growth to deliver earnings aligned to the medium-term ambition.
A key component of delivering the UK profitability ambitions requires further
progress on our gross margin. During the period our increasingly sophisticated
and agile ranging, buying and pricing practices have increased the gross
margin +150 bps, with overall UK margin + 160 bps to 37.1%.
Higher margin own brand gross profit grew by c40% (third party brands c8%),
playing an increasingly pivotal role in the overall UK gross margin profile.
Stock availability within own brand ranges remains at good levels and provides
a strong platform to develop this further in H2 FY25.
Alongside our growing scale, we have continued to deepen our relationships
with key suppliers, increasingly allowing us to secure stock at favourable
trade terms while giving supplier partners surety of volume and cashflow. In
conjunction with this, we have continued the sale of physical and digital
space to join up with our MyAD strategy and these revenues increased 100% in
the period.
The team has successfully secured new distribution capacity located in
Wednesbury (West Midlands) to serve as the Group's own brand storage and
logistics operation. With the increasing reputation and demand of our own
brand offer, the need for increased space and more frequent store
replenishment capability is critical. The team has worked hard to deliver this
ambition and the project is substantially advanced, with go live for picking
own brand replenishment from the new facility scheduled for Q3 FY25.
Our technology deployment in the second half is focused on operational
efficiency improvements to reduce the exposure of the business to any further
above inflationary increases of the living wage in FY26 and beyond.
UK Retail Stores
Following our investment in footfall counting technology in Q4 FY22, we have
deployed customer targeted colleague working rotas and store opening hours,
which have gone some way towards mitigating significant inflationary pressures
from the c.10% increase in the living wage in April 2024. We continue to
investigate further deployment model changes, with a view to mitigating future
living wage increases. These include, for example, trialling two digital shelf
edge labelling solutions as one potential strategy alongside handheld digital
technologies to support store colleagues with in-store tasks
In H2 FY24 the business observed increasing levels of product theft from its
stores. In response, further operational measures were deployed. These
measures have abated some of the impact on earnings with the year-on-year UK
retail stores gross margin improving by +20 bps in H1 FY25 as a result and
providing a strong platform to leverage further gains in the second half of
the year.
UK Online
The online business balanced revenue progression and an increasingly volatile
paid advertising landscape against further cost investment in some retail AI
and pricing technologies as a mitigatory measure. Alongside this, we have
implemented new AI technologies into the customer service journey and continue
to trial new digital checkout payment propositions. We have made strong
progress in ensuring earnings delivery has kept pace with revenue progression
while at the same time selectively investing to deliver further progress in H2
and beyond.
3. Development of a sustainable European business
The European opportunity for medium term market share growth remains clear in
an addressable market within Germany, the Netherlands and France over three
times that of the UK. During the period the European digital trading landscape
remained challenging with significant pressure on both customer price and paid
advertising costs. Management therefore concentrated on optimising trading
in our key target territories of Germany and the Netherlands. This approach
provides a clear focus on controlled expansion in order to protect margins and
reduce trading losses from the digital business ahead of any further material
capital deployment in Europe.
In the period, the Group made strong progress against a number of like for
like European KPIs including:
· Gross margins advancing +160 bps to 29%;
· Operating margins +440 bps to -9.5%; and
· Adj. EBITDA losses reduced 20% to £0.4m with an associated 360 bps
improvement in the EBITDA margin.
In May 2024 we opened our first European store in Utrecht, the Netherlands.
Revenues continue to scale alongside improved footfall and we are focusing on
trading as nimbly as possible to learn at pace and maximise the profit
opportunity.
During the period we have been in discussion with a third-party logistics
operator to service our European customer fulfilment, enabling our European
business to access labour and carriage rates which reflect the third party's
greater economies of scale. This agreement will also enable the European
business to reduce property costs and provides greater flexibility on property
space requirements in FY26 and beyond.
4. Creating Europe's largest fishing club, MyAD and leveraging its value
Thirteen months from launch, MyAD had attracted over 330k members by 31 July
2024, growing 50% through H1 (220k at 31 January 2024). The proposition
provides access to everyday deals, 'money can't buy' prizes, special MyAD
bundles and monthly free prize giveaways, which continues to resonate well and
attract new customers. Alongside this, we launched the MyAD Choice awards in
H1 FY25 which allows customers to vote for products across a number of
categories. We then share the results with suppliers to leverage the exposure
of these products which has proven to be engaging for customers and value
accretive for suppliers.
Outside of this, we continue to work on the planned H2 delivery of
personalised offers to customers based on data and behaviours. The
annualisation of MyAD has enabled the business to see year on year customer
behaviours, in particular around frequency, average basket and buying
patterns. Over 75% of our UK revenues are now transacted through MyAD, with
approximately one third of our MyAD customers being an omni-channel customer,
one third digital only with the remaining third store only. We are
increasingly confident that our deepening and unique insights into anglers'
needs and preferences will drive improved performance in revenues and
operations through growing levels of loyalty, repeat purchasing and better
ability to engage with our customer base.
5. Deployment of surplus liquidity to further grow the business beyond
the medium-term objectives
We have a strong balance sheet which allows us to remain focused on deploying
surplus capital into accelerating the growth of the UK business. The
significant opportunity to scale the UK store roll out programme is clear and
we continue to develop existing greenfield sites, develop our store
acquisition pipeline and develop our 'store in store' programme to ensure that
we are best positioned to fully capitalise on the opportunities available to
us in the market.
Outside of store growth, during the period we have committed further capital
to secure the Group's new own brand distribution facility, as well as further
investment in the UK automated packaging project for the UK online business
which is due to go live in Q4 FY25.
There is a distinct opportunity for the Group to further scale investment in
owned brands and we will continue to actively develop this pipeline both
organically and inorganically.
The Board is fully focused on the options available for deployment of surplus
capital and these continue to develop as opportunities present themselves. We
will continue to actively manage the key aspects of both our balance sheet and
wider growth strategy for the business, having regard to our overarching
objective of maximising shareholder returns.
6. Angling retail's largest responsible employer
We remain fully committed to acting responsibly and sustainably within our
environment and communities. We continue to be the employer of choice for an
increasing number of anglers with our colleague count increasing to over 500
for the first time.
We continue to develop our approach to sustainability and have focused on
reducing our waste sent to landfill and reducing plastic packaging within our
own brand ranges in the period. We continue to support our fishing line
recycling programme to source recycling bins for fisheries from suppliers and
have introduced recycling points in our new retail stores.
Protecting the environment is core to everything we do and we remain focused
on leveraging our size and scale to increase our environmental impact. Our
angler engagement programme, through our collaboration with the Angling Trust,
is helping fishing clubs gain knowledge and access to testing water quality in
their locality, alongside some of the work our colleagues have been doing on
river litter picks and the benefits to water quality and fisheries. We have
also continued our work with the Pike Anglers Club of Great Britain to
discourage warm water pike fishing to help reduce stress impact for pike
during the warmer months when oxygen levels are lower in the water.
We continue to support Tackling Minds, a Community Interest Company focused on
positively supporting those with mental health issues and rehabilitation
through access to angling and blue spaces. Our support comes through the sale
of their merchandise in some of our key trading locations with all proceeds
returned to Tackling Minds alongside associated donations.
It is more important than ever to ensure we rigorously scrutinise any
incremental organisational risk and investment, whilst ensuring we
appropriately plan and resource for future share growth in our consolidating
markets. In the period, we have deployed the new major release of our ERP
platform alongside improving our flexibility and resilience by moving our key
technology to being cloud hosted. Outside of this our appetite for
increasingly contemporary technology and deployment within the business
increases and the Board continues to review the opportunities and associated
risks this represents.
Current trading and Outlook
Following a strong performance in H1, Angling Direct has seen the positive
momentum continue into August and September with current trading ahead of the
H1 FY25 run rate. As such, the Board remains confident in delivering continued
revenue and earnings growth while remaining laser focused on progressing
against the stated medium-term objectives.
The UK angling market remains resilient and is benefiting from increasing
consolidation, with good demand for a compelling product offering alongside
quality service. Our customer loyalty programme, MyAD, has proven successful
to date and will further help to meet the needs of our customers while
simultaneously driving loyalty and repeat purchase. We will continue our
investment in the UK in our people, technology, physical estate and brands in
order to support further organic growth. This will be augmented by investment
in selective acquisitions which complement the existing business and
accelerate our ambitions.
In Europe, the competitive landscape remains tough and achieving profitable
digital customer acquisition growth has proven challenging. However, selective
bricks and mortar investment remains a realistic target to deliver value
within these markets to leverage existing investments already made. The Group
will continue to invest to drive market share and consolidation, where prudent
to do so, and review operational flexibility and performance to ensure it is
well positioned as consumer pricing and markets stabilise.
The Board would like to acknowledge and thank all members of the Angling
Direct team for their efforts and we look forward to sharing continued success
in the future.
Consolidated statements of profit or loss and other comprehensive income
For the period ended 31 July 2024
Unaudited six months ended 31 July Audited
year ended
31 January
Note 2024 2023 2024
£'000 £'000 £'000
Revenue from contracts with customers 4 (#_ArvNote_TOC) 45,838 43,341 81,657
Cost of sales of goods (29,031) (28,149) (53,153)
Gross profit 16,807 15,192 28,504
Other income 17 111 205
Interest revenue calculated using the effective interest method 309 140 494
Expenses
Administrative expenses (12,764) (11,820) (23,728)
Distribution expenses (1,719) (1,656) (3,458)
Finance costs (315) (246) (500)
Profit before income tax expense 2,335 1,721 1,517
Income tax expense 6 (#_AitNote_TOC) (601) (400) (299)
Profit after income tax expense for the period attributable to the owners of 1,734 1,321 1,218
Angling Direct PLC
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation (68) (81) (96)
Other comprehensive income for the period, net of tax (68) (81) (96)
Total comprehensive income for the period attributable to the owners of 1,666 1,240 1,122
Angling Direct PLC
Pence Pence Pence
Basic earnings 15 2.24 1.71 1.58
Diluted earnings 15 2.22 1.69 1.57
Consolidated statements of financial position
As at 31 July 2024
Unaudited six months ended 31 July Audited
year ended
31 January
Note 2024 2023 2024
£'000 £'000 £'000
Non-current assets
Intangibles 7 (#_NaiNote_TOC) 6,315 6,007 6,052
Property, plant and equipment 8 (#_NaaNote_TOC) 9,674 7,916 8,675
Right-of-use assets 9 (#_NauNote_TOC) 12,822 11,150 11,237
Total non-current assets 28,811 25,073 25,964
Current assets
Inventories 21,899 20,013 16,974
Trade and other receivables 770 751 403
Prepayments 875 763 811
Cash and cash equivalents 16,955 17,624 15,765
Total current assets 40,499 39,151 33,953
Current liabilities
Trade and other payables 10 (#_ClpNote_TOC) 12,697 11,702 6,976
Contract liabilities 518 481 790
Lease liabilities 2,059 1,809 1,809
Derivative financial instruments 14 32 9
Income tax 235 315 32
Total current liabilities 15,523 14,339 9,616
Net current assets 24,976 24,812 24,337
Total assets less current liabilities 53,787 49,885 50,301
Non-current liabilities
Lease liabilities 11,071 9,583 9,754
Restoration provision 914 840 851
Deferred tax 1,569 910 1,171
Total non-current liabilities 13,554 11,333 11,776
Net assets 40,233 38,552 38,525
Equity
Share capital 11 (#_EqcNote_TOC) 773 773 773
Share premium 31,037 31,037 31,037
Reserves 593 543 619
Retained profits 7,830 6,199 6,096
Total equity 40,233 38,552 38,525
Consolidated statements of changes in equity
For the period ended 31 July 2024
Share Share Retained Total equity
premium
capital account Reserves profits
Unaudited six months ended 31 July £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2024 773 31,037 619 6,096 38,525
Profit after income tax expense for the period - - - 1,734 1,734
Other comprehensive income for the period, net of tax - - (68) - (68)
Total comprehensive income for the period - - (68) 1,734 1,666
Transactions with owners in their capacity as owners:
Share-based payments - - 42 - 42
Balance at 31 July 2024 773 31,037 593 7,830 40,233
Share Share premium Retained Total equity
capital account Reserves profits
Audited year ended 31 January £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2023 773 31,037 602 4,878 37,290
Profit after income tax expense for the period - - - 1,218 1,218
Other comprehensive income for the period, net of tax - - (96) - (96)
Total comprehensive income for the period - - (96) 1,218 1,122
Transactions with owners in their capacity as owners:
Share-based payments - - 113 - 113
Balance at 31 January 2024 773 31,037 619 6,096 38,525
Consolidated statements of cash flows
For the period ended 31 July 2024
Unaudited six months ended 31 July Audited
year ended
31 January
Note 2024 2023 2024
£'000 £'000 £'000
Cash flows from operating activities
Profit before income tax expense for the period 2,335 1,721 1,517
Adjustments for:
Depreciation and amortisation 1,973 1,787 3,796
Share-based payments 42 22 113
Net movement in provisions 17 16 30
Net variance in derivative liabilities 5 (19) (42)
Interest received (309) (140) (494)
Interest and other finance costs 298 230 512
4,361 3,617 5,432
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables (364) (300) 49
(Increase)/decrease in inventories (4,431) (2,252) 910
Increase in prepayments (63) (162) (206)
Increase in trade and other payables 5,621 4,893 171
(Decrease)/increase in contract liabilities (272) (246) 63
4,852 5,550 6,419
Interest received 309 140 494
Interest and other finance costs (298) (230) (512)
Income taxes (paid)/refunded - - 79
Net cash from operating activities 4,863 5,460 6,480
Cash flows from investing activities
Payment for purchase of business, net of cash acquired (740) - -
Payments for property, plant and equipment 8 (#_NaaNote_TOC) (1,535) (1,012) (2,595)
Payments for intangibles 7 (#_NaiNote_TOC) (232) (116) (332)
Net cash used in investing activities (2,507) (1,128) (2,927)
Cash flows from financing activities
Repayment of lease liabilities (1,086) (885) (1,835)
Net cash used in financing activities (1,086) (885) (1,835)
Net increase in cash and cash equivalents 1,270 3,447 1,718
Cash and cash equivalents at the beginning of the financial period 15,765 14,127 14,127
Effects of exchange rate changes on cash and cash equivalents (80) 50 (80)
Cash and cash equivalents at the end of the financial period 16,955 17,624 15,765
Notes to the consolidated financial statements
31 July 2024
Note 1. General information
The financial statements cover Angling Direct PLC as a Group consisting of
Angling Direct PLC ('Company' or 'parent entity') and the entities it
controlled at the end of, or during, the half-year (collectively referred to
in these financial statements as the 'Group'). The financial statements are
presented in British Pound Sterling ('GBP'), which is Angling Direct PLC's
functional and presentation currency.
Angling Direct PLC is a listed public company limited by shares incorporated
under the Companies Act 2006, listed on the AIM (Alternative Investment
Market), a sub-market of the London Stock Exchange. The Company is
incorporated and domiciled in England and Wales within the United Kingdom. The
registered number of the Company is 05151321. Its registered office and
principal place of business is:
2d Wendover Road,
Rackheath Industrial Estate
Rackheath
Norwich
Norfolk
NR13 6LH
The principal activity of the Group is the sale of fishing tackle through its
websites and stores. The Group's business model is designed to generate growth
by providing excellent customer service, expert advice and ensuring product
lines include a complete range of premium equipment. Customers range from the
casual hobbyist through to the professional angler.
The financial statements were authorised for issue, in accordance with a
resolution of Directors, on 12 October 2024. The Directors have the power to
amend and reissue the financial statements.
Note 2. Significant accounting policies
These financial statements for the interim half-year reporting period ended 31
July 2024 have been prepared in accordance with the AIM Rules for Companies,
International Accounting Standard IAS 34 'Interim Financial Reporting' and the
Companies Act for for-profit oriented entities.
These interim financial statements do not include all the notes of the type
normally included in annual financial statements. Accordingly, these financial
statements are to be read in conjunction with the annual report for the year
ended 31 January 2024 and any public announcements made by the Company during
the interim reporting period.
The interim consolidated financial information has been prepared on a
going-concern basis.
The principal accounting policies adopted are consistent with those set out on
pages 68 to 94 of the consolidated financial statements of Angling Direct PLC
for the year ending 31 January 2024, except for taxation which has been
accounted for as described in note 6.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and
Interpretations issued by the International Accounting Standards Board that
are mandatory for the current reporting period. There was no impact on the
adoption of these new or amended Accounting Standards and Interpretations on
the financial performance or position of the Group during the financial
half-year ended 31 July 2024 and is not expected to have an impact for the
full financial year ending 31 January 2025.
Any new or amended Accounting Standards or Interpretations that are not yet
mandatory have not been early adopted.
Note 3. Segmental reporting
Segment information is presented in respect of the Group's operating segments,
based on the Group's management and internal reporting structure, and
monitored by the Group's Chief Operating Decision Maker (CODM).
Segment results, assets and liabilities include items directly attributable to
a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly own brand stock in transit from the
manufacturers, group cash and cash equivalents, taxation related assets and
liabilities, centralised support functions salary and premises costs, and
government grant income.
Operating segments
Management has made a judgement that there are three operating segments
(Stores, UK Online and Europe Online). The business operated predominantly in
the UK, also operating three native language web sites for Germany, France and
the Netherlands, being the European segment.
Each of these operating segments is managed separately as each segment
requires different specialisms, marketing approaches and resources. Head
Office includes costs relating to the employees, property and other overhead
costs associated with the centralised support functions.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and
amortisation) pre IFRS 16 and IFRS 2 ("Adjusted EBITDA"). The accounting
policies adopted for internal reporting to the CODM are consistent with those
adopted in the financial statements, save for IFRS 16 and IFRS 2. A full
reconciliation of pre IFRS 16 and IFRS 2 EBITDA to post IFRS 16 and IFRS 2
EBITDA performance is provided to the CODM.
The information reported to the CODM is on a monthly basis.
At 31 July 2024, £ 27,767,000 of non-current assets are located in the UK (31
July 2023 £24,167,000) and £ 1,044,000 of non-current assets are located in
the Netherlands (31 July 2023 £906,000).
Operating segment information
Stores UK Europe Head Total
Online
Office
31 July 2024 £'000 £'000 £'000 £'000 £'000
Revenue 26,422 17,001 2,415 - 45,838
Profit/(loss) before income tax 3,369 1,902 (479) (2,457) 2,335
EBITDA post IFRS 16 and IFRS 2 5,004 2,206 (321) (2,575) 4,314
Total assets 33,746 8,392 1,962 25,210 69,310
Total liabilities (15,190) (9,760) (1,495) (2,632) (29,077)
EBITDA Reconciliation
Profit/(loss) before income tax 3,369 1,902 (479) (2,457) 2,335
Less: Interest income - - - (309) (309)
Add: Interest expense 263 21 19 12 315
Add: Depreciation and amortisation 1,372 283 139 179 1,973
EBITDA post IFRS 16 and IFRS 2 5,004 2,206 (321) (2,575) 4,314
Less: Costs relating to IFRS 16 lease liabilities (1,195) (126) (134) (133) (1,588)
Add: Costs relating to IFRS 2 share-based payments - - - 42 42
Adjusted EBITDA 3,809 2,080 (455) (2,666) 2,768
Stores UK Europe Head Total
Online
Office
31 July 2023 £'000 £'000 £'000 £'000 £'000
Revenue 24,382 16,545 2,414 - 43,341
Profit/(loss) before income tax 2,974 1,838 (518) (2,573) 1,721
EBITDA post IFRS 16 and IFRS 2 4,482 2,107 (382) (2,593) 3,614
Total assets 19,662 7,435 4,013 33,114 64,224
Total liabilities (7,574) (4,725) (1,224) (12,149) (25,672)
EBITDA Reconciliation
Profit/(loss) before income tax 2,974 1,838 (518) (2,573) 1,721
Less: Interest income - - - (140) (140)
Add: Interest expense 222 21 15 (12) 246
Add: Depreciation and amortisation 1,286 248 121 132 1,787
EBITDA post IFRS 16 and IFRS 2 4,482 2,107 (382) (2,593) 3,614
Less: Costs relating to IFRS 16 lease liabilities (959) (84) (111) (115) (1,269)
Add: Costs relating to IFRS 2 share based payments - - - 22 22
Adjusted EBITDA 3,523 2,023 (493) (2,686) 2,367
Note 4. Revenue from contracts with customers
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Unaudited Audited
year ended
six months ended 31 July
31 January
2024 2023 2024
£'000 £'000 £'000
Route to market
Retail store sales 26,499 24,382 44,438
E-commerce 19,339 18,959 37,219
45,838 43,341 81,657
Geographical regions
United Kingdom 43,423 40,927 77,371
Europe and Rest of the World 2,415 2,414 4,286
45,838 43,341 81,657
Timing of revenue recognition
Goods transferred at a point in time 45,838 43,341 81,657
Note 5. EBITDA reconciliation (earnings before interest, taxation,
depreciation and amortisation)
The Directors believe that adjusted profit provides additional useful
information for shareholders on performance. This is used for internal
performance analysis. This measure is not defined by IFRS and is not intended
to be a substitute for, or superior to, IFRS measurements of profit. The
following table is provided to show the comparative earnings before interest,
tax, depreciation and amortisation ('EBITDA') after adjusting for rents,
dilapidation charges and associated legal costs, where applicable, relating to
IFRS 16 lease liabilities, and adjusting for IFRS 2 share-based payments.
Unaudited Audited
year ended
six months
31 January
ended 31 July
2024 2023 2024
EBITDA reconciliation £'000 £'000 £'000
Profit before income tax expense post IFRS 16 and IFRS 2 2,335 1,721 1,517
Less: Interest income (309) (140) (494)
Add: Interest expense 315 246 500
Add: Depreciation and amortisation 1,973 1,787 3,796
EBITDA post IFRS 16 and IFRS 2 4,314 3,614 5,319
Less: Costs relating to IFRS 16 lease liabilities (1,588) (1,269) (2,628)
Add: Costs relating to IFRS 2 share-based payments 42 22 113
Adjusted EBITDA 2,768 2,367 2,804
Note 6. Income tax expense
The tax charge for the six months ended 31 July 2024 is recognised based on
management's estimate of the weighted average annual effective tax rate
expected for the full financial year, adjusted for the tax impact of any
discrete items arising in the period. Deferred tax balances are calculated
using tax rates that have been enacted or substantively enacted by the balance
sheet date and that are expected to apply in the period when the liability is
settled or the asset realised.
Note 7. Intangibles
Unaudited Audited
year ended
six months ended 31 July
31 January
2024 2023 2024
£'000 £'000 £'000
Non-current assets
Goodwill - at cost 6,015 5,802 5,802
Less: Impairment (182) (182) (182)
5,833 5,620 5,620
Software - at cost 2,283 1,835 2,052
Less: Accumulated amortisation (1,801) (1,448) (1,620)
482 387 432
6,315 6,007 6,052
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Goodwill Software Total
Unaudited six months ended 31 July £'000 £'000 £'000
Balance at 1 February 2024 5,620 432 6,052
Additions - 232 232
Additions through business combinations * 213 - 213
Amortisation expense - (182) (182)
Balance at 31 July 2024 5,833 482 6,315
* During the period the Group has acquired the following:
● In Crewe, the following two transactions were consolidated on to a single
site:
- On 8 February 2024, the business and assets of HF Angling Limited (a company
registered in England and Wales) for consideration of £0.21m. The business
comprised of a single angling retail store in Crewe, UK.
- On 9 February 2024, the specific assets of Fink Foods Limited (a company
registered in England and Wales) for consideration of £0.04m. The assets were
acquired from a single angling retail store in Crewe, UK.
● In Walsall, on 22 April 2024, the specific assets of Allen's Fishing Tackle
Limited (a company registered in England and Wales) for consideration of
£0.07m. The assets were acquired from a single angling retail store in
Walsall, UK.
● In Shrewsbury, on 24 July 2024, the business and assets of Total Angling
Limited (a company registered in England and Wales) for consideration of
£0.43m. The business comprised of a single angling retail store in
Shrewsbury, UK.
The following summarises the total assets acquired through business
combinations in the six months ended 31 July 2024:
Fair value of assets acquired 2024
£'000
Property, plant and equipment 65
Inventories 468
Contract liabilities (6)
Total identifiable assets 527
Goodwill 213
Total consideration 740
Goodwill arising from the acquisitions consists largely of the synergies and
economies of scale expected from combining the operations of Angling Direct
and the businesses acquired.
Goodwill and intangible assets recognised in the year relating to business
combinations are not expected to be deductible for tax purposes.
The Directors do not consider any individual in-year acquisition to be
material to the Group and therefore have not disclosed these.
Note 8. Property, plant and equipment
Unaudited Audited
year ended
six months ended 31 July
31 January
2024 2023 2024
£'000 £'000 £'000
Non-current assets
Land and buildings improvements - at cost 1,002 1,002 1,002
Less: Accumulated depreciation (357) (347) (352)
645 655 650
Plant and equipment - at cost 12,754 10,096 11,116
Less: Accumulated depreciation (4,186) (3,325) (3,607)
8,568 6,771 7,509
Motor vehicles - at cost 44 15 9
Less: Accumulated depreciation (10) (13) (8)
34 2 1
Computer equipment - at cost 1,444 1,363 1,432
Less: Accumulated depreciation (1,017) (875) (917)
427 488 515
9,674 7,916 8,675
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and Plant and Motor Computer
buildings
improvements equipment vehicles equipment Total
Unaudited six months ended 31 July £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2024 650 7,509 1 515 8,675
Additions - 1,643 35 12 1,690
Exchange differences - (4) - - (4)
Depreciation expense (5) (580) (2) (100) (687)
Balance at 31 July 2024 645 8,568 34 427 9,674
Note 9. Right-of-use assets
Unaudited Audited
year ended
six months ended 31 July
31 January
2024 2023 2024
£'000 £'000 £'000
Non-current assets
Land and buildings - right-of-use 21,292 19,964 21,089
Less: Accumulated depreciation (8,594) (8,984) (10,017)
12,698 10,980 11,072
Plant and equipment - right-of-use 80 80 80
Less: Accumulated depreciation (66) (59) (63)
14 21 17
Motor vehicles - right-of-use 269 467 510
Less: Accumulated depreciation (164) (329) (370)
105 138 140
Computer equipment - right-of-use 59 59 59
Less: Accumulated depreciation (54) (48) (51)
5 11 8
12,822 11,150 11,237
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and Plant and Motor Computer
buildings equipment vehicles equipment Total
Unaudited six months ended 31 July £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2024 11,072 17 140 8 11,237
Additions 2,701 - - - 2,701
Exchange differences (12) - - - (12)
Depreciation expense (1,063) (3) (35) (3) (1,104)
Balance at 31 July 2024 12,698 14 105 5 12,822
Note 10. Trade and other payables
Unaudited Audited
year ended
six months ended 31 July
31 January
2024 2023 2024
£'000 £'000 £'000
Current liabilities
Trade payables 8,729 8,023 4,503
Accrued expenses 1,499 1,287 1,107
Refund liabilities 49 56 32
Social security and other taxes 1,458 1,141 367
Other payables 962 1,195 967
12,697 11,702 6,976
Contract liabilities has been reported separately on the Statement of
financial position. This was previously reported in other payables.
Note 11. Share capital
Unaudited six months ended 31 July
2024 2023 2024 2023
Shares Shares £'000 £'000
Ordinary shares of £0.01 each - fully paid 77,267,304 77,267,304 773 773
Note 12. Dividends
There were no dividends paid, recommended or declared during the current or
previous financial period.
Note 13. Contingent liabilities
The Group had no material contingent liabilities as at 31 July 2024, 31
January 2024 and 31 July 2023.
Note 14. Earnings per share
Unaudited Audited
year ended
six months ended 31 July
31 January
2024 2023 2024
£'000 £'000 £'000
Profit after income tax attributable to the owners of Angling Direct PLC 1,732 1,321 1,218
Number of shares Number of shares Number of shares
Weighted average number of ordinary shares used in calculating basic earnings 77,267,304 77,267,304 77,267,304
per share
Adjustments for calculation of diluted earnings per share: 612,946 851,266 515,516
Options over ordinary shares
Weighted average number of ordinary shares used in calculating diluted 77,880,250 78,118,570 77,782,820
earnings per share
Pence Pence Pence
Basic earnings per share 2.24 1.71 1.58
Diluted earnings per share 2.22 1.69 1.57
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