21 February
2024
Angling Direct plc
("Angling
Direct" or the "Company" or
the "Group")
Full Year Trading Update and Notice of
Results
Angling Direct plc (AIM: ANG), the leading
omni-channel specialist fishing tackle and equipment retailer,
provides the following unaudited trading update in relation to the
financial year ended 31 January 2024 ("FY24"), ahead of announcing
its Final Results on 14 May 2024. The Board expects to report
overall trading for FY24 in line with market
expectations1.
Financial
Highlights
£m
|
FY 2024
|
FY 2023
|
Change
|
Revenue
|
81.7
|
74.1
|
10.2%
|
|
|
|
|
UK
sales
|
77.4
|
71.0
|
9.0%
|
|
|
|
|
Retail store
sales
|
44.4
|
41.3
|
7.6%
|
|
|
|
|
Online
sales
|
37.2
|
32.8
|
13.5%
|
|
|
|
|
|
UK Online
sales
|
32.9
|
29.6
|
11.1%
|
|
European
Online sales
|
4.3
|
3.1
|
36.3%
|
Since the Company's last update on 24 October
2023, trading has been robust despite the challenging consumer
landscape and disruption to fishing caused by named storm events in
the final few weeks of FY24, with the Company delivering a 10.2%
increase in revenue to £81.7m (FY23: £74.1m).
Resilient UK store sales (up 7.6% to £44.4m)
were underpinned by stronger conversion and new store openings
(Cardiff in February and Goole in April), increasing the Group's
store footprint from 45 to 47. These new stores, alongside those
stores opened in FY23, contributed £3.6m of sales in the year. Like
for like store sales were £40.7m2, representing 3.1%
growth and demonstrating strength against FY23 where the growth
rate was flat.
Total online sales increased 13.5% to £37.2m
(FY23: £32.8m) driven in part by a 36.3% increase in European
online sales to £4.3m, as the Company executes on its strategy of
developing its European business proposition and increasing its
market share in this jurisdiction. UK online sales increased by
11.1%, driven by strong average transaction value growth and
reflecting increasing engagement in the Company's loyalty and
repeat purchase membership model, MyAD. The programme surpassed
220,000 members at the period end after launching in
June.
Management has continued to optimise stock
investment, driving down underlying working capital requirements.
The robust trading performance and associated cash conversion has
enabled the Group to continue its store roll out strategy. This has
delivered an increased net cash position at 31 January 2024 of
£15.8m (31 January 2023: £14.1m).
Steve Crowe,
CEO of Angling Direct, commented:
"Angling Direct has continued to gain market
share in the UK and Europe, and we believe there are significant
further growth opportunities in both markets. The Group will
continue to invest in its digital and physical footprint in the UK
to capture further market share growth, leveraging its strong
balance sheet to ensure it is competitively placed as consumer
confidence returns. Since the period end, the UK business has
completed one small footprint store acquisition in Crewe and opened
one new store in Cannock, alongside committing substantial capital
investment to an automated customer order packaging solution for
the UK distribution centre.
"The European market creates a significantly
larger addressable market, but remains highly competitive, driven
by even more intense price competition. Despite this, the Group
delivered strong growth, whilst retaining pricing discipline,
leading to further market share gains, which provides the Board
with confidence that its European strategy remains appropriate. The
Group's prudent investment strategy will be maintained to ensure it
is well positioned once markets and consumer confidence stabilise.
In January 2024 we committed to our first European store in Utrecht
in The Netherlands. The store is scheduled to open during the
spring fishing season.
"As we progress into FY25, macro expectations
for economic growth and consumer spend both remain unpredictable.
Alongside other retail businesses, we also face cost increases from
higher than anticipated wage and business rates related cost
inflation and are mindful of the possibility for supply chain
disruption, although we have observed no material impact on stock
availability to date. The Group's strong pipeline of investment
opportunities, coupled with its robust balance sheet and prudent
focus on cost control, provides the Board with the confidence that
the Group remains well-positioned to navigate these challenges and
achieve further growth through this financial year."
1 Angling Direct believes that
current market expectations for the year ended 31 January 2024 are
revenues of £83.0 million and pre-IFRS 16 EBITDA of £2.7
million.
2 Excluding the Reading store
which hasn't materially traded in the period after it suffered a
fire in the first week of February. Total like for like stores grew
1.1% including Reading.
For further
information please contact:
Angling Direct
plc
|
via FTI
Consulting
|
Steven Crowe, Chief Executive Officer
Sam Copeman, Chief Financial Officer
|
|
Singer Capital
Markets - NOMAD and Broker
|
+44 (0) 20 7496
3000
|
Peter Steel
Alex Bond
Tom Salvesen
James Todd
|
|
FTI Consulting
- Financial PR
|
+44 (0) 20 3727
1000
|
Alex Beagley
Eleanor Purdon
Hannah Butler
|
anglingdirect@fticonsulting.com
|
|
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 approximately 50 UK retail stores,
as well as through its leading digital platform
(www.anglingdirect.co.uk)
and the MyAD Fishing Club app. The Company has three further native
language websites in its key European territories
(www.anglingdirect.de, .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 its 450
colleagues contribute to the Company's ethos of care for the wider
community and the environment (www.anglingdirect.co.uk/sustainability).
Angling Direct currently sells over 25,000 fishing tackle products
from industry leading brands alongside its own brands 'Advanta',
and entry level offering 'Discover'.