14 May 2024
Angling
Direct PLC
('Angling
Direct', the 'Company' or the 'Group')
Final
Results
Innovation and resilience driving continued sales growth
across UK & Europe
Angling Direct PLC
(AIM: ANG), the leading omni-channel specialist
fishing tackle and equipment retailer, is pleased to announce its
financial results for the twelve months ended 31 January 2024
(FY24).
£m
|
FY24
|
FY23
|
% Change
|
Revenue
|
81.7
|
74.1
|
10.2%
|
Retail store sales
|
44.4
|
41.3
|
7.6%
|
UK online sales
|
32.9
|
29.71
|
11.1%
|
Total UK sales
|
77.4
|
71.0
|
9.0%
|
European Online sales
|
4.3
|
3.1
|
36.3%
|
Gross profit
|
28.5
|
25.8
|
10.5%
|
Gross margin %
|
34.9%
|
34.8%
|
10bps
|
EBITDA (pre IFRS 16)
|
2.7
|
2.2
|
21.0%
|
EBITDA (post IFRS 16)
Profit before tax
|
5.3
1.5
|
4.6
0.7
|
16.7%
126.8%
|
Basic EPS
|
1.58p
|
0.70p
|
125.7%
|
Financial
highlights
·
|
Group revenue increased by 10.2% to £81.7m,
including record UK sales of £77.4m
|
·
|
Retail store sales increased 7.6% against FY23
(£41.3m) as the store rollout strategy continued with two new
stores opened in FY24
|
·
|
Like-for-like store sales increased by
3.1%2 underpinned by improved conversion
|
·
|
UK online sales grew 11.1%, driven by average
basket increases, representing a return to growth and a significant
increase on pre-Covid levels
|
·
|
In Europe, online sales grew 36.3% with our key
European territories of Germany, France and the Netherlands growing
40% year-on-year
|
·
|
Gross margin increased to 34.9% with progress
in both the UK and Europe driven by ranging and own brand
progression, offsetting increased levels of store theft
|
·
|
Group EBITDA (Pre IFRS 16) grew 21.0% to
£2.7m
|
·
|
Positive operating cashflow of £6.5m with a
strengthened balance sheet and a net cash (pre-IFRS16) position of
£15.8m as at 31 January 2024 (31 January 2023: £14.1m)
|
·
|
Well-positioned to manage ongoing consumer
headwinds and capture further market share in the UK and
Europe
|
Operational
highlights
·
|
Launched MyAD proposition, a UK omni-channel
customer loyalty club, the cornerstone for our ambition to become
Europe's largest fishing club, gained a membership of over 220k
members at the period end
|
·
|
Ongoing development of own brand offer through
Advanta and Discover, increasing their gross profit by
16.0%
|
·
|
Progressed UK store rollout, opening two new
stores in Cardiff and Goole, reaching a total network of 47 UK
sites at year end
|
·
|
Engaged over 27,000 new and lapsed participants
to angling as a pastime through continued support of the Angling
Trust as lead sponsor for the "Get Fishing" campaign
|
Current
trading and outlook
·
|
Total Q1 FY25 sales increased 4.0%, achieving
growth in the UK and Europe
|
·
|
In the UK, acquired two existing store
catchments and opened one further new catchment in Q1
FY25
|
·
|
Successfully opened first European store in
Utrecht, the Netherlands, while maintaining a considered and
prudent approach to ongoing European investment
|
·
|
The changing UK competitive landscape creates a
significant opportunity for further growth, and the
Board is actively seeking and engaging in opportunities to deploy
capital, take market share and reduce surplus liquidity to improve
return on capital employed
|
·
|
Resilient Q1 trading against an uncertain
consumer landscape and sub-optimal weather conditions: focus on
protecting operating margins, cost control and successfully
optimising stock levels ahead of the key summer
season
|
·
|
The Board remains mindful of the macroeconomic
headwinds facing the market and has confidence that its experienced
management team and agile business model position the Company well
to navigate and succeed in the period ahead while delivering
against its medium-term objectives
|
Medium-term
financial objectives
We are pleased to set out our medium-term
financial objectives reflecting our growth plans for the business
as follows:
·
|
UK business generating £100m annual revenues
with a pre-IFRS16 EBITDA in excess of £6m3
|
·
|
Moving the European business through the early
stages of development to break-even
|
·
|
Deployment of surplus capital to accelerate
growth beyond our medium-term targets, including selective M&A,
with investment weighted towards the UK business
|
1
Includes £0.1m of third party marketplace income
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.
3
Pre IFRS 2
Steve Crowe,
CEO of Angling Direct, said:
"The last
twelve months have seen Angling Direct further expand its market
share and grow sales, despite the continued industry headwinds.
Supported by our omni-channel business model, we are pleased to
have achieved record UK revenues of £77.4m and delivered growth
across our markets. This stellar performance reflects the
dedication and exceptional customer service provided by Angling
Direct colleagues.
Throughout
the period, we have made good progress against our strategic
objectives. Through a prudent and considered investment strategy,
we have continued our store rollout plans in the UK and, for the
first time, into mainland Europe. The opening of our store in
Utrecht marks a significant milestone for Angling Direct, and we
are pleased that our European customers can now participate in the
full omni-channel proposition.
Now with over
220,000 members since launch in June 2022, our MyAD customer
proposition bridges the gap between our physical stores and online
offering, unlocking further marketing efficiencies across the
business and giving our customers access to differentiated pricing,
targeted offers and promotions. I am excited by the significant
progress since the launch of MyAD and the opportunity this creates
to build Europe's largest and most engaging fishing club,
harnessing the passion of a thriving angling
community.
The Board
remains optimistic about the long-term growth prospects of the
Group, and despite the challenges we have seen in consumer
confidence, inflation, and sub-optimal weather, the angling market
remains resilient. We are excited to set out our medium term
objectives which outline our strategy of continued growth both in
the UK and Europe in the years ahead. Our core objectives remain in
place, and I am confident that with our agile business model and
strong fundamentals, we are well positioned to navigate the period
ahead as we fully capitalise on the significant opportunities
available to us. Angling Direct has a compelling product and
service offering for our passionate and loyal customer base, and it
is with these foundations that I remain optimistic in the Group's
outlook."
Investor Meet Company presentation - 20 May
2024
Management will provide a live
presentation via the Investor Meet Company platform at 11.00 a.m.
BST on 20 May. The presentation is open to all existing and
potential shareholders. Questions can be submitted pre-event via
your Investor Meet Company dashboard 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 to meet
Angling Direct plc via:
https://www.investormeetcompany.com/angling-direct-plc/register-investor.
Investors who already follow Angling Direct on the Investor Meet
Company 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, Alex Bond, James
Todd (Corporate Finance)
Tom Salvesen (Corporate
Broking)
|
|
FTI
Consulting - Financial PR
|
+44
(0) 20 3727 1000
|
Alex Beagley
Eleanor Purdon
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 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'.
Chairman's
Statement
Introduction
I am delighted to present my first
Chair's statement having moved from my Chief Executive role in June
2023 following the Annual General Meeting. Angling Direct has once
again achieved record sales, winning new customers attracted by the
continued development of a market leading, contemporary,
omni-channel consumer proposition. We are pleased to have achieved
this performance despite ongoing pressure on consumer discretionary
spend in a sustained inflationary environment.
Amid strong signs that fishing
tackle markets in both the UK and Europe continue to consolidate,
Angling Direct maintains its strategy of appropriately and
prudently investing where the opportunity exists to increase market
share. We remain focused on our strong purpose of 'Getting Everyone
Fishing', as we believe everyone should have the opportunity to get
out by the waterside and experience the proven wellbeing benefits
of angling.
Staying true to our rigorous
investment criteria, we progressed our UK store roll-out with the
opening of two new stores in the year.
We maintained our considered and
prudent approach to investing in our European business, with our
focus on improving trading margins and operational efficiencies,
while also achieving good growth and share gain in the key
territories of this large and attractive market.
Digitally, the launch of MyAD, our
new omni-channel customer loyalty scheme, exceeded our expectations
with over 220,000 customer sign ups in its first year. MyAD is
unique in our market, allowing customers to access a range of
benefits and content, including differentiated pricing as well as
increasingly targeted offers and promotions. We have made
considerable effort to introduce and leverage retail AI technology
into several areas of our offering including paid advertising,
product recommendations and customer services.
Finally, I am delighted that we have
our strong executive leadership team in place, as Steve Crowe,
previously CFO, replaced me as CEO in June 2023 and Sam Copeman
joined as the Group's new CFO in June, working alongside Steve. The
Board is very pleased with how well Steve and Sam have transitioned
into their new roles and look forward to them leading the Company
through its next exciting phase of profitable growth.
Financial overview
The Group achieved a record revenue
of £81.7m in the financial year to 31 January 2024 (2023: £74.1m,
up 10.2%).
Store sales increased by 7.6% to
£44.4m (2023 £41.3m) and online sales increased by 13.5% to £37.2m
from £32.8m. Within this, UK online sales increased by 11.1% to
£32.9m, achieving a return to growth. Significantly, UK online
sales are now 62.8% above
pre-Covid levels, illustrating the advancements we have made in
that area of our business.
As a result of our continuing focus
on realising operational efficiencies, and despite a number of
headwinds facing the broader market, the Group delivered pre-IFRS
16 EBITDA of £2.7m (2023: £2.2m) and a pre-tax profit of £1.5m
(2023: £0.7m). The Group ended the year with a strong balance sheet
and net cash of £15.8m as at 31 January 2024 (2023:
£14.1m).
People & community
One of our strong founding
principles is that we should help improve the angling experience
for everyone who engages with us. Our continued focus on 'Getting
Everyone Fishing' is important to everyone at Angling Direct as we
want to ensure that the Group has a positive impact on the
sustainable health of angling as a pastime with all the associated
benefits for our employees, suppliers, shareholders, local
communities, and the environment.
Our success is in no small way due
to the dedication and enthusiasm of our superb colleagues who share
our vision and are passionate in delivering the very best
experience to our angling community. Our outstanding colleagues are
key to all we do, and we endeavour to support them with our
ambition to be the best employer in our sector, not only in terms
of reward but also in caring for wellbeing and
fulfilment.
We continue to support the Angling
Trust as lead sponsors for the "Get Fishing" campaign, which last
year engaged over 27,000 new participants.
We endorse the wide-ranging evidence
that fishing can be a great way to improve all round wellbeing and
we support bodies set up to encourage and enable those with
disabilities, of any kind, to benefit from fishing. We have been
particularly focused on supporting Tackling Minds, a rapidly
growing Community Interest Company focused on using fishing to help
improve mental health.
Looking ahead
Since the year end, we have opened 3
stores in the UK and our first European store, being a mix of new
stores as well as acquiring, smaller footprint existing fishing
tackle stores in new catchments. This takes our total to 50 UK
stores and one European store, with further UK openings in the
pipeline through the year.
I am particularly pleased that we
have opened our first store in Utrecht, the Netherlands, following
the establishment of our European distribution centre which
commenced deliveries in March 2022. The opening of this store is a
significant milestone for Angling Direct, enabling our European
customers to participate in the full Angling Direct omni-channel
proposition. We know from our experience in the UK that our
physical stores and amazing colleagues act as great ambassadors for
our brand, and we expect the new store to complement our digital
business within the EU.
For Angling Direct the last four years have
seen a period of significant growth and a return to profitability.
After a huge amount of organisational change, we are now firmly
embedded as the clear UK market leader and have established a
growing strategic presence within key markets in Europe. For
consumers, the challenging economic environment will continue into
this year, and we are not immune to greater than anticipated UK
government policy driven cost inflation.
However, our strength lies in being laser
focused on providing the very best for our customers, in the most
cost-efficient way. Whilst rates of market consolidation are
difficult to forecast, we anticipate that
opportunities will arise for those businesses, such as Angling Direct, that are
prepared and capable of seizing and delivering upon them.
With our strong balance sheet
and experienced management team, we
are well placed and ready to progress our growth
strategy by capitalising on
such opportunities, benefiting our colleagues, our
shareholders, the angling community, the wider society and, not
least, the environment.
Board changes
Following my move to Chair and the
aforementioned CEO and CFO changes in the year, I would like to
offer my heartfelt thanks to our founder, Martyn Page, who stepped
down from his role as Non-Executive Chairman to become a
Non-Executive Director. As a Board and on behalf of the Group, we
are delighted that Martyn has remained on the Board, continuing to
offer wisdom and guidance, in turn helping the business to stay
firmly on course with our strategic aims, our beliefs, purpose and
culture. There were no other Non-Executive Director changes in the
year, providing continuity to the board.
The current year has already got off
to an exciting start and we look forward to updating shareholders
on strategic progress as we continue to grow our market share in
the UK and Europe, both in store and online.
Yours sincerely,
___________________________
Andy Torrance
Non-Executive Chairman
13 May 2024
Chief Executive's
Review
'Focused on our clear purpose to inspire everyone to get out
and enjoy an exceptional fishing experience, we are building
Europe's most engaging fishing club through MyAD. Despite industry
headwinds, we have taken market share and built further innovation
and resilience into our business.'
Building Europe's Biggest Fishing Club
We have a strategy to become
Europe's largest fishing club by inspiring and delighting
increasing numbers of customers, focusing on sustainable profitable
growth and enhancing local fishing communities. This will
generate sustainable value for all stakeholders as we create a
better world for anglers, fisheries, supply partners and all those
who love the pastime. We are now the largest, and most trusted
fishing retailer in the UK, and we continue to take share in a
substantial retail category, underpinning resilience and further
growth potential in our revenues.
The recent launch of our MyAD
proposition brings together our complete offer under one banner,
bridging the gap between our physical stores and our digital
offering. MyAD launched in June 2023 as an omni-channel customer
loyalty scheme, the cornerstone to building Europe's largest
fishing club. MyAD reached a membership in excess of 220,000 at the
period end. This unified positioning will significantly enhance our
marketing efficiency and effectiveness across the business. The
proposition has allowed us to harvest, for example, early stage
insights on cross-channel customer behaviour and the impact of
targeted customer offers and promotions. This gives us confidence
around the development roadmap for MyAD in the coming year. It has
reinforced our belief in the strategic benefits this can provide
for Angling Direct and our partners, as well as our valued
members.
We are the only UK angling business
which has successfully brought together digital and retail services
at scale, operating as the UK's market leading business with record
in year UK revenues of £77.4m representing 9.0% growth and mid-teen
UK market share.
Our European ambitions remain
strong, with attractive addressable markets that are approximately
three times the size of the UK market. We have made risk
appropriate steps to trial an omni channel offer in the coming year
in the Netherlands, with the signing of a retail lease in January
2024, in an existing angling catchment and the store now trading.
The digital business continues to take share across all its key
markets, balancing growth and profitability to ensure that, as
markets recalibrate, Angling Direct is well placed to deliver value
for all stakeholders.
As the UK market leader with a
purpose of 'Getting Everyone Fishing', Angling Direct is uniquely
placed to deliver further profitable growth both within the UK and
the significant European fishing tackle markets as people of all
backgrounds discover the restorative pleasure, challenge and
wellbeing benefits of angling.
Omnichannel seamlessly connected for the
customer
Our network of stores, across 47 UK
sites at the period end, gives us scale and reach that brings us
closer to anglers and enables us to offer greater flexibility and
convenience than our competitors, under one consistent operating
platform and brand. We will continue to invest in the opportunity
for new angling stores in the UK, rolling out at pace in attractive
catchments, particularly where we observe the need for an
increasingly contemporary retail offer. During the year, we
established two new catchments for the UK business (opening stores
in Cardiff in February and Goole in April), and we continue to seek
out new catchments which present the opportunity to deliver
scalable revenues and accretive returns.
In our UK stores, we continued to
optimise operating processes against the backdrop of increasing
colleague and premises costs. We achieved stronger customer
conversion (up 250 bps to 61.4%) through digital price and
promotion labelling deployment, and continued refinement of store
colleague hours against customer footfall intensity windows.
Further work on a digitised central returns model also commenced in
Q4.
We remain committed to utilising
innovative contemporary digital technologies as part of providing
our customers with market leading advice, engagement, service and
inspiration. Our in-house web development team has continued to
progressively deploy our digital customer journey functionality, to
improve speed and resilience, alongside improved onsite search
relevance. Q4 saw the team deploy new AI retail technology to drive
improved product recommendations and subsequent conversion into the
customer journey, seamlessly integrated with our digital paid
marketing campaigns.
We will continue to leverage our
category authority and expertise to lead choice, innovation and
value, making it easier for anglers to access the best products and
services. Our ongoing development of our own brand offer through
the Advanta and the new entry level Discover brands provides a key
area of competitive advantage and supply resilience. We will
continue to focus on cash generation from these brands, positioning
them where supply partners' alternative products have margins which
undervalues their products or there is inconsistency of supply. Own
brands gross profit grew 16.0% in FY24, with further substantial
headroom for development in the coming year.
Consumer headwinds and inflationary
cost pressures for suppliers and competitors have made trading
conditions increasingly volatile. We remain agile in our trading,
continuing to balance the trajectory of taking further market share
against maintaining resilient gross margins. In addition, in FY24
we developed two new revenue streams: in-store services (reel
spooling) and income from selling digital and physical promotional
space for our brand partners. Further opportunities exist in FY25.
The UK business is demonstrating success with revenue increasing by
9.0% while improving bought in margins by
40 bps.
Both our UK and European
distribution centres continue to explore and test improved ways of
operating. Despite strong wage and energy headwinds, both
operations delivered carriage and colleague ratios below
FY23.
Our
medium-term objectives - on a positive journey to deliver
sustainable value for shareholders
We continue to scale the Group,
growing the UK business at pace, with the medium-term target of
growing to £100m revenue and earnings in excess of £6m now within
sight. The European business continues to scale, balancing the
longer-term opportunity against the current market economics. Our
medium-term priority here is to move the European business through
the early stages of its development to break-even.
Our Group EBITDA ratio increased 30 bps to
3.3%, with the UK EBITDA growth of 15.6%[1] over
indexing against its sales growth at 9.0% and the European EBITDA
losses improving as a ratio of Group EBITDA by c1800 bps to
35.9%.
The UK business is starting to
demonstrate both progressive gross margins, which have evolved from
31.2% in FY20 to 35.4% in FY24 and leveraging the UK Group central
fixed cost base. Both these facets represent clear opportunities
for further value creation.
Macro headwinds on market pricing
(driven by faltering competition) and store theft were greater
challenges than anticipated in FY24, presenting real opportunity
for improvements in FY25 and beyond. We continue to adapt trading
protocols to manage risks around increased levels of theft, an
issue affecting the whole retail sector as reported elsewhere. The
stores suffered £0.5m of shrinkage in the year (FY23: £0.3m); as a
ratio of UK sales this represents a 30 bps drag on the UK EBITDA
margin.
The Group generated positive
cashflows both at an operating performance level and post
investment of further capital deployment. Operating cash flow
increased £6.5m against the prior year of £1.5m. Capital deployment
increased in the year to £2.9m as we sought to accelerate
activities that would drive enhanced EBITDA metrics for the Group
in FY25.
As a result of our strong cash management, the
Board remains focused on evaluating and delivering opportunities to
drive returns beyond our medium-term targets by deploying surplus
funds and accelerating our organic and M&A growth strategy. The
investment of surplus funds would be weighted towards the UK
business. Given the current market backdrop, we are seeing an
increased pipeline of relevant M&A opportunities, however, in
many cases vendor pricing expectations are incompatible with our
overriding objective of ensuring that deployment of surplus funds
is value accretive for our shareholders.
Growth opportunities
European
markets
Our clear strategy is to become Europe's first
choice fishing club through which all anglers can shop with
confidence, seek advice, and be inspired.
In the period we continued to develop our
European business, underpinned by our belief in the clear
opportunity to establish a market leading, contemporary,
omni-channel proposition in mainland Europe, significantly growing
our addressable market. We were pleased to identify and sign the
lease for our first store in mainland Europe, in the Netherlands in
January. This followed a thorough search for a suitable site to act
as a test-case for our omni-channel model which is designed to
enhance returns for all stakeholders.
Overall, the European market, due to its
significant size and fragmented nature, remains very attractive to
Angling Direct in order to significantly expand its addressable
market and develop a significantly larger business over the long
term. The Board believes that our omni-channel customer offering is
the appropriate model to deliver profitable growth.
The European consumer landscape is currently
more uncertain than the UK with intense pricing competition
continuing. The Group will continue to focus on margin discipline
and adopting a prudent approach to developing both the existing
digital business and an adaptable physical trading presence in
Europe in light of the prevailing conditions. Key areas of focus
include optimising ranging, marketing and pricing strategies, with
our work to date in these areas resulting in year-on-year
improvements in the gross and EBITDA margins by +410 bps and +1550
bps respectively. Whilst the competitive market is creating
opportunity for the Group, we will keep EU trading progress under
continual evaluation and, ahead of any potential significant cash
investment, maintain our rigorous review of the likely returns in
this area of the business. In summary, we believe that the current
intense levels of price competition are unsustainable and will
create opportunity for the Group alongside a disciplined approach
to expansion. We remain confident in the significant longer term
growth opportunity.
UK markets
The MyAD fishing club and insight
this brings will continue to be developed to support both suppliers
and customers, and ultimately to deliver incremental shareholder
value.
We remain confident the UK has over
80 catchments which can be served by Angling Direct and in H2
commenced the search programme for the "smaller" store format. More
latterly in the year, elements of the market started to exhibit
increasing levels of distress with a number of single premises
retailers shutting their doors. This presents opportunity for the
Group, as evidenced by two store acquisitions completing in
February 2024 and April 2024 respectively. UK store catchments of
scale offer the ability for the Group to deliver attractive returns
on capital and leverage the Group's UK cost base.
Our own brand product development
has gained momentum during the year, and we see increased
opportunities for broadening this range further, including through
potential new brand acquisitions, as we deploy further capital into
the UK market.
Our
values underpin how we operate - maintaining our commitment to a
sustainable future
Our colleagues remain the face of
Angling Direct to our customers and are key to delivering an
excellent service, both in store and online. They also play an
important role in the angling community. We differentiate ourselves
by providing expert help, trusted advice and inspiration for
customers to get the most from their fishing.
As the exclusive retail sponsors of
the Angling Trust's Get Fishing campaign, designed to attract new
and lapsed anglers through a bankside coaching collaboration with
Sport England and the Environment Agency, we are delighted that the
programme reached over 27,000 individuals through 1,500 events
during 2023. The campaign's digital communications had a reach of
over 3m, all sign-posting the collaboration with Angling Direct. We
continue to work closely with the Angling Trust to improve this
reach and attract and retain anglers through tailored marketing
journeys and product offers. Our ambition remains to support the
health of the pastime and industry through
collaboration.
Coarse fishing licence sales remain
broadly flat against those of the pre COVID landscape but with over
20% increases in young people and disabled licence sales pointing
to increasing engagement from people new to the pastime.
Underpinned by our belief in the
general wellbeing benefits of fishing, we are very supportive of
moves to include fishing as part of a programme for NHS social
prescribing. Working with Anglia Ruskin University (ARU) we have
previously co-funded significant research in this area, the
resultant data having now been peer reviewed and published, further
raising awareness of not just the health benefits of angling but
also the need to broadly invest in order to improve access for more
people to fish.
We continue to work closely with
Tackling Minds, a pioneering mental health organisation which uses
fishing as therapy. We promote, sell and fulfill their merchandise
through 14 of our physical stores as well as through our webstore
with all proceeds being returned to Tackling Minds. During the
period this returned £26k to Tackling Minds.
We have refreshed our approach to
developing a culture where "everybody can contribute", aligned with
our objective to become the leading employer within our market. We
have increased the focus on our annual leadership survey, driving
clear action plans from leaders with the primary focus being on
driving one team with the opportunity to all win together. In
addition, we have introduced "benefits statements for all store
colleagues" so we mutually reflect on the total value of the
colleague offer and continued to offer additional well-being days
for all colleagues over and above historic annual leave
entitlements.
We continued to extend our social
media and YouTube reach. In the period, our YouTube subscribers
exceeded 60,000 for the first time. We have seen particular success
with our "Masterclass" and 'how to' style, 'Quick Bites' skills
development features. Building on our inclusive approach, we have
featured various articles with colleagues of a broad range of ages,
genders, fishing abilities and disciplines, designed to appeal to
an ever more diverse customer base.
We take our ESG responsibilities
seriously and that extends to ensuring Angling Direct is
continually working towards enhancing sustainable business
practices across the areas of environmental protection, economic
viability, and social diversity.
Current trading, this year's road map and
beyond
We have a clear ambition to continue
to scale the UK business in the next 12 months and beyond. Our MyAD
proposition will continue to take market share through leveraging
our physical and digital infrastructure to serve new and existing
customers as market consolidation reduces the number of other
retail outlets in the market. Alongside this we will increase the
pace of our UK physical estate roll out to acquire existing
retailers or reach new unserved catchments where we believe we can
make accretive returns. The UK digital business will continue with
its journey, accessing and developing new retail AI technologies to
maintain its competitive advantage.
In Europe we will continue to
responsibly grow our digital business, balancing ambition in a
highly attractive addressable market, set against the current
softer market conditions. Alongside this we will look to learn at
pace from our first European store, to be well placed ahead of the
FY25/26 fishing season to evaluate further roll out if
appropriate.
Against these ambitions in Q1 the
overall Group grew revenue 4.0%. Two new UK trading locations have
been secured through acquisition and opened in FY25 thus far,
alongside opening in one new catchment. In addition, we have signed
an agreement with a leading UK retailer to trial retail space
within its existing estate where it is mutually beneficial to both
parties.
In Europe, the Netherlands store has
commenced trading in May 2024, giving us the opportunity to trial
and learn about the omni-channel model in Europe.
We continue to focus on gross margin
development, and at the same time, our operational grip continues
to mitigate ongoing cost headwinds.
With significant cash on the balance
sheet, the Group will continue to strategically invest in UK market
share gains, scaling the Angling Direct own brand opportunity and
operational efficiencies. In Q4 FY24, the UK business committed to
a seven-figure capital investment in an automated UK packaging
solution, to drive further efficiencies and reduce exposure to
further significant living wage inflation.
The changing competitive landscape
in the UK presents us with the opportunity to deploy capital, take
market share and reduce surplus liquidity. Vendor expectations on
valuation and timing continue to be a persistent challenge to our
M&A strategy, however the Board remains committed to delivering
growth while retaining both strong liquidity and a robust balance
sheet.
We remain vigilant to the external
headwinds facing the sector, including inflationary pressures, and
believe that our experienced management team and agile business
model position us well to navigate any challenges in the period
ahead as we fully capitalise on the significant opportunity
available to us in the UK and European markets.
With the continued support of our
outstanding colleagues, I look forward to sharing further success
with shareholders through 2024 and beyond.
___________________________
Steve Crowe
Executive Director and Chief
Executive Officer
13 May 2024
Chief Financial Officer's
statement
Continuing to deliver record revenues, strengthening EBITDA
margins and generating cash to execute our
strategy
The Group has continued to deliver
on its strategic priorities throughout FY24, despite the
competitive pricing environment, the challenging consumer
landscape, increased cost headwinds facing the business and the
weather impact on angling conditions in H2 of FY24. The Group
delivered record revenues, strengthened EBITDA margins and enhanced
its strong balance sheet and liquidity position. The UK financial
performance continued to underpin the investment in Europe.
The Group remains well positioned to capitalise on
opportunities as further market consolidation occurs and a more
favourable consumer dynamic returns.
Financial highlights
In FY24 the Group delivered record
revenues, with 10.2% growth to £81.7m (FY23: £74.1m). This was
delivered in the UK, both online and within the store portfolio, in
terms of both the existing store footprint and the new space effect
of new and prior year store openings. This was set alongside growth
in the second full year of trading in Europe from the distribution
centre in the Netherlands.
Pre-IFRS16 EBITDA grew 21.0% to
£2.7m (FY23: £2.2m) which equates to 36.9% growth on a comparable
basis, when excluding the cyber security insurance proceeds
reported in FY23 that related to an FY22 event. This performance
was underpinned by margin progression through improved own brand
customer engagement, upside from the FY23 range review driven by
supplier mix, improving supplier terms and the roll out of new
revenue streams in terms of both in-store services (e.g. spooling)
and commercial marketing. This was then partially eroded through
higher levels of retail shrinkage and store theft (consistent with
the wider retail industry news flow) and higher out of season
promotional activity in H2. The EBITDA growth was also supported by
a number of operational initiatives and efficiencies delivered
within the cost base. Profit before tax grew 126.8%, underpinned by
the EBITDA growth as well as the higher interest income, as cash
balances are optimised in the higher interest rate
environment.
The discussion of our financial
performance and position in this section is primarily on an IFRS 16
basis for all years presented. We have also included an analysis of
pre- IFRS 16 EBITDA as an alternative performance measure that we
consider as a key measurement of performance internally as well as
within our covering Broker's market forecasts.
Note 6 to the consolidated financial
statements provides more information and reconciliations relating
to EBITDA on both a pre and post IFRS 16 basis. An explanation of
the difference between the reported operating profit figure and
adjusted EBITDA is shown below:
Financial Highlights
|
|
|
|
|
|
|
|
2024
|
2024
|
2023
|
2023
|
Change %
|
Change %
|
|
Post IFRS16
|
Pre IFRS16
|
Post IFRS16
|
Pre IFRS16
|
Post IFRS16
|
Pre IFRS16
|
Revenue (£m)
|
81.7
|
81.7
|
74.1
|
74.1
|
10.2%
|
10.2%
|
EBITDA (£m)
|
5.3
|
2.7
|
4.6
|
2.2
|
16.7%
|
21.1%
|
Profit before tax (£m)
|
1.5
|
1.5
|
0.7
|
0.8
|
126.8%
|
94.3%
|
Basic earnings per share
(pence)
|
1.58
|
|
0.70
|
|
125.7%
|
|
Adjusted financial measures are defined in the Annual Report
and reconciled to the financial measures defined by International
Financial Reporting Standards ("IFRS"). Management uses EBITDA on a
pre IFRS16 basis for assessing the financial performance of the
Group. These terms are not defined by IFRS and therefore may not be
directly comparable with other companies adjusted profit
measures.
Another year of revenue growth
Revenue grew 10.2% year on year,
with the UK business growing at 9.0% and the European business
growing at 36.3%.
UK store revenues were resilient and
rose 7.6% to £44.4m, 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 revenue
in the year. Like for like store revenue was £40.7m[2], representing 3.1% growth underpinned by improved
conversion, and demonstrating strength against FY23 where the
growth rate was flat. UK online revenue increased 11.1% to £32.9m
driven by strong average transaction value growth. The UK business
also did not benefit from any inflationary tailwinds, with this
broadly flat year on year. Overall the UK business delivered 60.6%
growth versus the pre-Covid FY20 year, with further scope for
expansion.
The European business continued to
be a purely online offering during FY24, based from our European
distribution centre in The Netherlands. This delivered revenue
growth of 36.3% to £4.3m, with the Group continuing to focus on
European territories with the market size to deliver both strong
revenue growth and promising levels of profitability. Our key
territories of Germany, France, and The Netherlands increased
revenue year on year by 40.0% and these territories now represent
96.9% of total international revenue (FY23: 94.3% and FY22: 84.4%).
These European markets were materially impacted by the competitive
pricing environment and the challenging consumer landscape in FY24,
so from a medium-term upside perspective these markets remain
attractive as they normalise.
Revenue
|
|
|
|
31 January
|
31 January
|
|
2024
|
2023
|
|
£m
|
£m
|
|
|
|
UK
|
77.4
|
71.0
|
Germany, France and
Netherlands
|
4.2
|
3.0
|
Other countries
|
0.1
|
0.2
|
|
81.7
|
74.1
|
|
|
|
Retail stores
|
44.4
|
41.3
|
Ecommerce
|
37.2
|
32.8
|
|
81.7
|
74.1
|
Gross profit
Total gross profit increased by
10.5% to £28.5m (FY23: £25.8m). Total gross margin increased by 10
bps to 34.9% (FY23: 34.8%).
In the UK, gross margins increased
by 10 bps to 35.4%. This progression was delivered through:
improved own brand customer engagement; upside from FY23 range
review driven by supplier mix, improving supplier terms, and the
roll out of new revenue streams in terms of both in-store services
(e.g. spooling) and commercial marketing. This was then partially
eroded through higher levels of retail shrinkage and store theft,
consistent with the wider retail industry news flow, and higher out
of season promotional activity in H2. In Europe, the gross margin
improved by 410 bps to 27.4%, primarily driven by range
optimisation and mix.
Own brand product ranges (Advanta,
alongside the new entry level Discover brand introduced in FY24)
contributed 8.8% (FY23 8.3%) of total gross profit, £2.5m, during
the year (FY23: £2.1m). This was an increase of 16.0% on the prior
year and over indexed against total gross profit growth (10.7%) by
540 bps.
Other income
The Reading store did not materially
trade in the period after it suffered a fire in the first week of
February 2023. This was an insured risk and the Group has received
payments on account in respect of the insurance policies which are
reflected in the accounts along with a prudent provision for the
remaining amounts, as the claim position is not yet
finalised.
FY23 includes insurance proceeds in
respect of the malicious cyber-attack during Q4 FY22 that was
subject to an insurance claim with the Group's insurers,
successfully settled in FY23 (FY23: £0.3m).
Administrative expenses
Total administrative expenses
increased by 9.1% to £23.7m (FY23: £21.7m) compared to a 10.2%
increase in revenue.
In the UK, head office
administrative expenses increased 6.7% year, excluding cyber income
recognised in FY23 but relating to an FY22 event, against UK
revenue growth at 9.0%, as the Group continued to challenge itself
to ensure its growth leveraged its central fixed cost base. This
represented 6.8% as a percentage of revenue; a 20 bps improvement
year on year. In UK retail, administrative
expenses increased by £0.5m, of which £0.4m relates to the
investment timing of new space and increased energy costs.
In UK online, administrative expenses increased by £0.7m of which over £0.6m
relates to variable costs that flex with revenue.
In Europe, administrative expenses
have stayed broadly flat despite the 36.3% increase in revenue, as
we continue to leverage the existing cost base while climbing the
growth curve.
Distribution expenses
Total distribution expenses
increased by 6.1% to £3.5m (FY23: £3.3m) compared to a 10.2% increase in revenue. These costs are
variable based on revenue so highlight some of the strong cost
focus in the year, with the UK improving by 30 bps as a percentage
of revenue. Europe costs also had a slight reduction as a
percentage of revenue (20 bps).
Segmental Analysis
The UK stores segment delivered
pre-IFRS16 EBITDA growth of 9.1% (£0.5m), over indexing against
revenue growth of 7.6% (£3.1m), including the EBITDA drag of the
new space effect as it builds up to maturity. This highlights the
progress in the year beyond the headline revenue growth, in terms
of the gross profit and cost base outturn, despite the retail
shrinkage and cost headwinds and continuing to invest in
growth.
The UK online segment delivered
pre-IFRS16 EBITDA growth of 11.9% (£0.4m), also over indexing
against revenue growth of 11.1% (£3.3m). This again highlights the
progress in the year beyond the headline revenue growth in
terms of the gross profit and cost base outturn, despite the cost
headwinds and continuing to invest in growth..
The European segment delivered
revenue growth of £1.1m (36.3%) and pre-IFRS16 EBITDA growth of
£0.2m, reducing the EBITDA losses by 19.3% to -£1.0m. This
highlights the progress in the margin and the leveraging of the
cost base as we continue to prudently grow the European business.
Overall, this resulted in the European pre-IFRS16 EBITDA losses
improving as a percentage of Group EBITDA by c1,800 bps to
35.9%.
The UK head office segment saw a
modest decrease in pre-IFRS EBITDA of £0.3m (5.0%), excluding the
£0.3m FY22 cyber claim income recognised in FY23 that related to an
FY22 event. As set out above, this is against the backdrop of UK
revenue growth at 9.0%, as the Group continued to challenge itself
to ensure its growth leveraged its central fixed cost base. To
demonstrate the progress, this represented 6.8% of revenue, a 20
bps improvement year on year.
Segmental analysis
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
Stores
|
UK Online
|
Europe
Online
|
UK head
office
|
Total
|
Stores
|
UK Online
|
Europe
Online
|
UK head
office
|
Total
|
Revenue (£m)
|
44.4
|
32.9
|
4.3
|
-
|
81.7
|
41.3
|
29.7
|
3.1
|
-
|
74.1
|
Net assets
|
14.2
|
3.1
|
2.5
|
18.8
|
38.5
|
14.4
|
3.3
|
3.4
|
16.2
|
37.3
|
Profit / (loss) before tax
(£m)
|
4.2
|
3.2
|
(1.0)
|
(4.8)
|
1.5
|
3.9
|
2.8
|
(1.3)
|
(4.8)
|
0.7
|
EBITDA post IFRS 16 (£m)
|
7.4
|
3.8
|
(0.7)
|
(5.1)
|
5.3
|
6.7
|
3.4
|
(1.0)
|
(4.5)
|
4.6
|
EBITDA pre IFRS 16 (£m)
|
5.3
|
3.6
|
(1.0)
|
(5.3)
|
2.7
|
4.9
|
3.2
|
(1.2)
|
(4.7)
|
2.2
|
Profit before tax and EBITDA
Profit before tax increased 126.8%
to £1.5m (FY23: £0.7m) with the ratio to revenue increasing to 1.9%
from 0.9% in FY23, gross margin representing 0.1% of the movement,
the cost base 0.4% and increased interest income 0.5% (from £0.1m
to £0.5m).
Post IFRS 16 EBITDA increased 16.7%
to £5.3m (FY23: £4.6m) and as a ratio of revenue improved to by 30
bps to 6.5% (FY23: 6.2%). When excluding the £0.3m cyber security
insurance proceeds reported in FY23, but relating to an FY22 event,
the EBITDA growth improved to 23.7% and as a ratio of revenue grew
70 bps to 6.5% (FY23: 5.8%).
On a pre IFRS 16 basis, EBITDA
increased 21.0% to £2.7m (FY23: £2.2m) and as a ratio of revenue
improved to by 30 bps to 3.3% (FY23: 3.0%). When excluding the
£0.3m cyber security insurance proceeds reported in FY23, but
relating to an FY22 event, the EBITDA growth improved to 36.9% and
as a ratio of revenue grew 60 bps to 3.3% (FY23: 2.7%).
Tax
The Group's effective tax rate was 19.7% (FY23:
19.4%). A reconciliation of the expected tax charge at the standard
rate to the actual charge is shown below. All the Group's
revenues and the majority of its expenses are all subject to
corporation tax. Tax relief for some expenditure, mainly unapproved
share options is received over a longer period than that for which
the costs are charged to the financial statements. Headline
corporation tax rates in the UK (c24% for the full year, 19% to 31
March 2023, then 25% for the remainder of FY24) and the Netherlands
(25.8%) are comparable and therefore no material difference arises
from the differential in headline corporation tax rates.
Taxation
|
|
|
|
£m
|
%
|
Profit before tax
|
1.5
|
|
Expected tax at UK standard rate of
tax
|
0.4
|
24.0%
|
Ineligible depreciation
|
0.0
|
0.5%
|
Capital allowances enhanced
deduction
|
(0.0)
|
(0.8%)
|
Difference in current and deferred
tax rate
|
0.0
|
0.9%
|
Adjustments in respect of previous
year's tax charge
|
(0.1)
|
(4.9%)
|
Actual charge / effective tax
rate
|
0.3
|
19.7%
|
Returns and dividends
Basic earnings per share ('EPS')
were 1.58p (FY23: 0.70p) increasing 125.7% year on year, comparable
with the rate of increase in profit before tax. The lower diluted
earnings per share reflects the current LTIP share options in issue
which would dilute the basic earnings per share.
There were no dividends paid,
recommended, or declared during the current and prior financial
year. As discussed in the Directors' report, the Group is focused
on delivering a strategy of profitable growth and will reinvest all
surplus cash resources back into the business, and continue to
evaluate accretive growth opportunities, including M&A
activity. Accordingly, in the short term, the Directors do not
recommend a dividend payment to be distributed for the year ended
31 January 2024. The dividend policy will be kept under review as
strategic expansion plans progress.
Statement of financial position
The consolidated statement of
financial position remains robust. As at 31 January 2024 the Group
had a net asset position of £38.5m (FY23: £37.3m) and a net current
asset position of £24.3m (FY23: £23.7m). The Group includes £0.3m
of net assets and liabilities of its wholly owned subsidiary ADNL
B.V.
The Group continued to have no
external borrowing as at the reporting date and closed FY24 with a
cash and cash equivalents position of £15.8m (FY23: £14.1m). Net
debt (representing the Group's IFRS16 lease liabilities less the
cash position as at the reporting date) decreased to (£4.2m) from
(£2.6m) in FY23, (£0.0m) reflecting the broadly flat (+£20k) lease
obligations in the UK stores with the remainder largely reflecting
the improved working capital position (also see the statement of
cashflows section below).
The table below shows the key
components of the statement of financial position. Property, plant
and equipment grew by £1.2m with the continued investment in the
store portfolio, notably with two new stores in the year (Goole and
Cardiff) and one re-fit (Guildford). Right of use assets (ROU) have
reduced modestly by £0.2m, with the two new stores being added into
the estate alongside the new store in Utrecht (lease signed in
January 2024 and opened in May 2024) with the remaining movement
including new leases in Guildford (plus early exit of the previous
lease), Lincoln and Chelmsford. Offsetting this growth in the gross
ROU asset, the depreciation charge grew to £2.1m (FY23: £2.0m). The
Group continues to evaluate its dilapidation obligations and
associated restoration provision for its growing physical store and
distribution centre footprint. The average length of lease
remaining for the Group has reduced to 5.1 years (FY23: 5.6 years).
Additional investment in our software and IT platforms of £0.3m was
largely offset by a corresponding depreciation charge as the
business reaches a relative level of maturity in its investment
profile. Working capital improved by £1.0m, underpinned by stock
levels reducing £0.8m despite the additional new space impact
(£0.5m, includes some stock build for Cannock, not opened until
FY25), reflecting a comparable £1.3m improvement year on year
driven by further improvements in our stock ranging and fulfilment
processes. The stock holding in the European distribution centre
remained broadly flat. Stock turn for the Group marginally
increased to 2.9x from 2.8x with a higher year on year stock,
particularly over H1, due to the timing of forward orders and
securing availability in the seasonal peak. Similarly, stock turn
for the UK modestly increased to 3.1x from 3.0x.
Statement of financial position
|
|
|
|
31 January
|
31 January
|
|
2024
|
2023
|
|
£m
|
£m
|
Property, plant and
equipment
|
8.7
|
7.5
|
IFRS 16 Right-of-use
assets
|
11.2
|
11.4
|
Intangible assets
|
6.1
|
6.1
|
Total non-current assets
|
26.0
|
25.0
|
Stock
|
17.0
|
17.8
|
Cash
|
15.8
|
14.1
|
Other current assets
|
1.2
|
1.1
|
Total current assets
|
34.0
|
33.0
|
Trade and other payables / contract
liabilities
|
(7.8)
|
(7.5)
|
Lease liabilities
|
(1.8)
|
(1.8)
|
Other current liabilities
|
(0.0)
|
(0.1)
|
Total current liabilities
|
(9.6)
|
(9.3)
|
Lease liabilities
|
(9.8)
|
(9.8)
|
Other non-current
liabilities
|
(2.0)
|
(1.7)
|
Total non-current liabilities
|
(11.8)
|
(11.4)
|
Net
assets
|
38.5
|
37.3
|
Cashflow and funding
During FY24 the Group increased its
cash generated from operating activities increased by £5.0m to
£6.5m (FY23: £1.5m). Operating cash generation was improved as a
result of increased profit before tax as set out above (£0.8m),
lower tax (£0.6m) and a year on year working capital inflow
improvement (£3.4m).
The lower tax payments (£0.6m) were
driven by a £0.5m UK tax payment in FY23 that was made up of the
FY22 tax due (£0.4m) and a single quarterly payment on account that
was made towards FY24 (£0.1m). The business had no tax to pay in
respect of the FY23 year (taxable losses) so it fell outside of the
quarterly payment regime and as such the quarterly payment on
account was refunded in FY24 (£0.1m).
In FY23 the working capital outflow
was £2.4m as a result of higher stock (£1.5m - driven by new space
and the initial investment into the European distribution centre)
and lower creditors (£0.9m) as more stock paid for at year end
driven by supplier mix. In FY24 this trend reversed with a working
capital inflow of £1.0m driven by lower stock at year end (£0.9m,
as set out above despite additional new space).
The Group has pursued its growth
strategy by continuing to deploy available cash resources into
further development of our e-commerce platforms both in the UK and
internationally, alongside investment in our technology and
inventory management systems, with the Group investing £0.3m in
FY24. The Group also deployed £2.5m on property plant and
equipment, largely reflected the continued investment in the retail
estate (as set out above).
Total cash generated in the period
was £1.7m (FY23: £2.5m cash utilised).
Statement of cashflows
|
|
|
|
31 January
|
31 January
|
|
2024
|
2023
|
|
£m
|
£m
|
Opening cash
|
14.1
|
16.6
|
Profit before tax
|
1.5
|
0.7
|
Movement in working
capital
|
1.0
|
(2.4)
|
Depreciation and
amortisation
|
3.8
|
3.5
|
Taxation received /
(paid)
|
0.1
|
(0.5)
|
Other operating
adjustments
|
0.1
|
0.3
|
Net
cash from operating activities
|
6.5
|
1.5
|
Net cash used in investing
activities
|
(2.9)
|
(2.3)
|
Net cash used in financing
activities
|
(1.8)
|
(1.7)
|
Net
(decrease) / Increase in cash in year
|
1.7
|
(2.5)
|
FX changes on cash
equivalents
|
(0.1)
|
0.0
|
Closing cash
|
15.8
|
14.1
|
__________________________
Sam Copeman
Chief Financial Officer
13 May 2024
Consolidated statement of profit or loss and other
comprehensive income
|
|
|
|
Consolidated
|
|
|
Note
|
|
2024
|
|
2023
|
|
|
|
|
£'000
|
|
£'000
|
Revenue from contracts with
customers
|
|
4
|
|
81,657
|
|
74,096
|
Cost of sales of goods
|
|
7
|
|
(53,153)
|
|
(48,307)
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
28,504
|
|
25,789
|
|
|
|
|
|
|
|
Other income
|
|
5
|
|
205
|
|
287
|
Interest revenue calculated using
the effective interest method
|
|
|
|
494
|
|
104
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
Administrative expenses
|
|
|
|
(23,728)
|
|
(21,742)
|
Distribution expenses
|
|
|
|
(3,458)
|
|
(3,260)
|
Finance costs
|
|
7
|
|
(500)
|
|
(509)
|
|
|
|
|
|
|
|
Profit before income tax expense
|
|
|
|
1,517
|
|
669
|
|
|
|
|
|
|
|
Income tax expense
|
|
9
|
|
(299)
|
|
(130)
|
|
|
|
|
|
|
|
Profit after income tax expense for the year attributable to
the owners of Angling Direct PLC
|
|
|
|
1,218
|
|
539
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
|
(96)
|
|
127
|
|
|
|
|
|
|
|
Other comprehensive income for the
year, net of tax
|
|
|
|
(96)
|
|
127
|
|
|
|
|
|
|
|
Total comprehensive income for the year attributable to the
owners of Angling Direct PLC
|
|
|
|
1,122
|
|
666
|
|
|
|
|
|
|
|
|
|
|
|
Pence
|
|
Pence
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
24
|
|
1.58
|
|
0.70
|
Diluted earnings per
share
|
|
24
|
|
1.57
|
|
0.69
|
Consolidated statement of financial position
|
|
|
|
Consolidated
|
|
|
Note
|
|
2024
|
|
2023
|
|
|
|
|
£'000
|
|
£'000
|
Non-current assets
|
|
|
|
|
|
|
Intangibles
|
|
10
|
|
6,052
|
|
6,060
|
Property, plant and
equipment
|
|
11
|
|
8,675
|
|
7,534
|
Right-of-use assets
|
|
12
|
|
11,237
|
|
11,418
|
Total non-current assets
|
|
|
|
25,964
|
|
25,012
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Inventories
|
|
13
|
|
16,974
|
|
17,813
|
Trade and other
receivables
|
|
14
|
|
403
|
|
447
|
Income tax refund due
|
|
|
|
-
|
|
58
|
Prepayments
|
|
|
|
811
|
|
603
|
Cash and cash equivalents
|
|
|
|
15,765
|
|
14,127
|
Total current assets
|
|
|
|
33,953
|
|
33,048
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Trade and other payables
|
|
15
|
|
6,976
|
|
6,765
|
Contract liabilities
|
|
16
|
|
790
|
|
727
|
Lease liabilities
|
|
17
|
|
1,809
|
|
1,793
|
Derivative financial
instruments
|
|
|
|
9
|
|
51
|
Income tax
|
|
|
|
32
|
|
-
|
Total current liabilities
|
|
|
|
9,616
|
|
9,336
|
|
|
|
|
|
|
|
Net
current assets
|
|
|
|
24,337
|
|
23,712
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
50,301
|
|
48,724
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Lease liabilities
|
|
17
|
|
9,754
|
|
9,750
|
Restoration provision
|
|
18
|
|
851
|
|
801
|
Deferred tax
|
|
19
|
|
1,171
|
|
883
|
Total non-current
liabilities
|
|
|
|
11,776
|
|
11,434
|
|
|
|
|
|
|
|
Net
assets
|
|
|
|
38,525
|
|
37,290
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Share capital
|
|
20
|
|
773
|
|
773
|
Share premium
|
|
21
|
|
31,037
|
|
31,037
|
Reserves
|
|
22
|
|
619
|
|
602
|
Retained profits
|
|
|
|
6,096
|
|
4,878
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
38,525
|
|
37,290
|
Consolidated statement of changes in equity
|
|
Share
|
|
Share
premium
|
|
|
|
Retained
|
|
Total
equity
|
|
|
capital
|
|
account
|
|
Reserves
|
|
profits
|
|
Consolidated
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 February
2022
|
|
773
|
|
31,037
|
|
266
|
|
4,339
|
|
36,415
|
|
|
|
|
|
|
|
|
|
|
|
Profit after income tax expense for
the year
|
|
-
|
|
-
|
|
-
|
|
539
|
|
539
|
Other comprehensive income for the
year, net of tax
|
|
-
|
|
-
|
|
127
|
|
-
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the
year
|
|
-
|
|
-
|
|
127
|
|
539
|
|
666
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners in their capacity as
owners:
|
|
|
|
|
|
|
|
|
|
|
Share-based payments
|
|
-
|
|
-
|
|
209
|
|
-
|
|
209
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 January
2023
|
|
773
|
|
31,037
|
|
602
|
|
4,878
|
|
37,290
|
|
|
Share
|
|
Share
premium
|
|
|
|
Retained
|
|
Total
equity
|
|
|
capital
|
|
account
|
|
Reserves
|
|
profits
|
|
Consolidated
|
|
£'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 year
|
|
-
|
|
-
|
|
-
|
|
1,218
|
|
1,218
|
Other comprehensive income for the
year, net of tax
|
|
-
|
|
-
|
|
(96)
|
|
-
|
|
(96)
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the
year
|
|
-
|
|
-
|
|
(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 statement of cash flows
|
|
|
|
Consolidated
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
£'000
|
|
£'000
|
Cash flows from operating activities
|
|
|
|
|
|
|
Profit before income tax expense for
the year
|
|
|
|
1,517
|
|
669
|
|
|
|
|
|
|
|
Adjustments for:
|
|
|
|
|
|
|
Depreciation and
amortisation
|
|
|
|
3,796
|
|
3,485
|
Share-based payments
|
|
|
|
113
|
|
209
|
Net movement in
provisions
|
|
|
|
30
|
|
30
|
Net variance in derivative
liabilities
|
|
|
|
(42)
|
|
50
|
Interest received
|
|
|
|
(494)
|
|
(104)
|
Interest and other finance
costs
|
|
|
|
512
|
|
429
|
|
|
|
|
|
|
|
|
|
|
|
5,432
|
|
4,768
|
|
|
|
|
|
|
|
Change in operating assets and
liabilities:
|
|
|
|
|
|
|
Decrease in trade and other
receivables
|
|
|
|
49
|
|
95
|
Decrease/(increase) in
inventories
|
|
|
|
910
|
|
(1,540)
|
(Increase) in prepayments
|
|
|
|
(206)
|
|
(58)
|
Increase/(decrease) in trade and
other payables
|
|
|
|
171
|
|
(965)
|
Increase in contract
liabilities
|
|
|
|
63
|
|
84
|
|
|
|
|
|
|
|
|
|
|
|
6,419
|
|
2,384
|
Interest received
|
|
|
|
494
|
|
104
|
Interest and other finance
costs
|
|
|
|
(512)
|
|
(429)
|
Income taxes
refunded/(paid)
|
|
|
|
79
|
|
(513)
|
|
|
|
|
|
|
|
Net cash from operating
activities
|
|
|
|
6,480
|
|
1,546
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Payments for property, plant and
equipment
|
|
|
|
(2,595)
|
|
(2,014)
|
Payments for intangibles
|
|
|
|
(332)
|
|
(289)
|
|
|
|
|
|
|
|
Net cash used in investing
activities
|
|
|
|
(2,927)
|
|
(2,303)
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Repayment of lease
liabilities
|
|
|
|
(1,835)
|
|
(1,720)
|
|
|
|
|
|
|
|
Net cash used in financing
activities
|
|
|
|
(1,835)
|
|
(1,720)
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and
cash equivalents
|
|
|
|
1,718
|
|
(2,477)
|
Cash and cash equivalents at the
beginning of the financial year
|
|
|
|
14,127
|
|
16,604
|
Effects of exchange rate changes on
cash and cash equivalents
|
|
|
|
(80)
|
|
-
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end
of the financial year
|
|
|
|
15,765
|
|
14,127
|
1. Basis of preparation
These financial statements have been prepared
in accordance with UK adopted international accounting
standards.
The financial information set out
above does not constitute the company's statutory accounts for the
years ended 31 January 2024 and 31 January 2023. Statutory accounts
for the years ended 31 January 2024 and 31 January 2023 have been
reported on by the Independent Auditors. The Independent Auditors
report on the Annual Report and Financial Statements for the years
ended 31 January 2024 and 31 January 2023 is
unqualified.
Statutory accounts for the year
ended 31 January 2023 have been filed with the Registrar of
Companies. The statutory accounts of the year ended 31 January 2024
will be delivered to the Registrar of Companies in due
course.
2. Going concern including
liquidity
The Group has considerable financial resources
together with long-standing relationships with a number of key
suppliers and an established reputation in the retail sector across
the UK and Europe.
The Directors have considered the Group's
growth prospects in the period to 31 January 2026 based on its
customer proposition and online offering in the UK and Europe and
concluded that potential growth rates remain strong. The Group has
no external finance outside of its right-of-use lease liabilities.
The Group has conducted various stress tests, none of which
resulted in a change to the assessment of the Group as a going
concern.
In making this judgement, the Directors have
reviewed the future viability and going concern position of the
Group for the foreseeable future.
The Group's policy is to ensure that it has
sufficient facilities to cover its future funding requirements. At
31 January 2024, the Group had cash and cash equivalents of £15.8m
(2023: £14.1m). This significant headroom has been factored into
the Directors' going concern assessment.
Having duly considered all of these factors and
having reviewed the forecasts for the coming year, the Directors
have a reasonable expectation that the Group has adequate resources
to continue trading for the foreseeable future, and as such
continue to adopt the going concern basis of accounting in
preparing the financial statements.
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.
Where the customer contract is fulfilled by an
operating segment other than the segment to which the customer
order was placed, the revenue is recognised in the operating
segment to which the order originates, and the profit attributable
to that transaction is recognised in the operating segment
fulfilling the order. In 2024, Revenue of £683,000 (2023: £937,000)
was recognised in the UK Online and fulfilled by the Stores, and
profit of £44,000 (2023: £38,000) was transferred to the Stores
from the UK Online segment.
The CODM reviews EBITDA (earnings before
interest, tax, depreciation and amortisation) pre IFRS 16. The
accounting policies adopted for internal reporting to the CODM are
consistent with those adopted in the financial statements, save for
IFRS 16. A full reconciliation of pre IFRS 16 EBITDA to post IFRS
16 EBITDA performance is provided to the CODM.
The information reported to the CODM is on a
monthly basis.
At 31 January 2024, £24,965,000 of non-current
assets are located in the UK (31 January 2023: £24,066,000) and
£1,086,000 of non-current assets are located in the Netherlands (31
January 2023: £946,000).
There are no major customers in the current
year and prior year that contribute more than 10% of the Group's
revenue.
Operating segment information
|
|
|
|
UK
|
|
Europe
|
|
|
|
|
|
|
Stores
|
|
Online
|
|
Online
|
|
Head
office
|
|
Total
|
Consolidated - 2024
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
44,438
|
|
32,933
|
|
4,286
|
|
-
|
|
81,657
|
Profit/(loss) before income
tax
|
|
4,171
|
|
3,198
|
|
(1,018)
|
|
(4,834)
|
|
1,517
|
EBITDA post IFRS16
|
|
7,391
|
|
3,756
|
|
(745)
|
|
(5,083)
|
|
5,319
|
Total assets
|
|
26,036
|
|
6,679
|
|
3,657
|
|
23,545
|
|
59,917
|
Total liabilities
|
|
(11,885)
|
|
(3,619)
|
|
(1,187)
|
|
(4,701)
|
|
(21,392)
|
EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before income
tax
|
|
4,171
|
|
3,198
|
|
(1,018)
|
|
(4,834)
|
|
1,517
|
Less: Interest income
|
|
-
|
|
-
|
|
-
|
|
(494)
|
|
(494)
|
Add: Interest expense
|
|
455
|
|
42
|
|
32
|
|
(29)
|
|
500
|
Add: Depreciation and
amortisation
|
|
2,765
|
|
516
|
|
241
|
|
274
|
|
3,796
|
EBITDA post IFRS 16
|
|
7,391
|
|
3,756
|
|
(745)
|
|
(5,083)
|
|
5,319
|
|
|
|
|
|
|
|
|
|
|
|
Less: Costs relating to IFRS 16
lease liabilities
|
|
(2,047)
|
|
(180)
|
|
(220)
|
|
(181)
|
|
(2,628)
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA pre IFRS 16
|
|
5,344
|
|
3,576
|
|
(965)
|
|
(5,264)
|
|
2,691
|
|
|
|
|
UK
|
|
Europe
|
|
|
|
|
|
|
Stores
|
|
Online
|
|
Online
|
|
Head
office
|
|
Total
|
Consolidated - 2023
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
41,296
|
|
29,656
|
|
3,144
|
|
-
|
|
74,096
|
Profit/(loss) before income
tax
|
|
3,925
|
|
2,771
|
|
(1,259)
|
|
(4,768)
|
|
669
|
EBITDA post IFRS 16
|
|
6,663
|
|
3,373
|
|
(977)
|
|
(4,500)
|
|
4,559
|
Total assets
|
|
26,377
|
|
7,029
|
|
4,460
|
|
20,194
|
|
58,060
|
Total liabilities
|
|
(12,001)
|
|
(3,733)
|
|
(1,084)
|
|
(3,952)
|
|
(20,770)
|
EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before income
tax
|
|
3,925
|
|
2,771
|
|
(1,259)
|
|
(4,768)
|
|
669
|
Less: Interest income
|
|
-
|
|
-
|
|
-
|
|
(104)
|
|
(104)
|
Add: Interest expense
|
|
362
|
|
45
|
|
37
|
|
65
|
|
509
|
Add: Depreciation and
amortisation
|
|
2,376
|
|
557
|
|
245
|
|
307
|
|
3,485
|
EBITDA post IFRS 16
|
|
6,663
|
|
3,373
|
|
(977)
|
|
(4,500)
|
|
4,559
|
|
|
|
|
|
|
|
|
|
|
|
Less: Costs relating to IFRS 16
lease liabilities
|
|
(1,764)
|
|
(178)
|
|
(219)
|
|
(174)
|
|
(2,335)
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA pre IFRS 16
|
|
4,899
|
|
3,195
|
|
(1,196)
|
|
(4,674)
|
|
2,224
|
4. Revenue from contracts with
customers
Disaggregation of revenue
The disaggregation of revenue from
contracts with customers is as follows:
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Route to market
|
|
|
|
|
Retail store sales
|
|
44,438
|
|
41,296
|
E-commerce
|
|
37,219
|
|
32,800
|
|
|
|
|
|
|
|
81,657
|
|
74,096
|
|
|
|
|
|
Geographical regions
|
|
|
|
|
United Kingdom
|
|
77,371
|
|
70,952
|
Europe and Rest of the
World
|
|
4,286
|
|
3,144
|
|
|
|
|
|
|
|
81,657
|
|
74,096
|
|
|
|
|
|
Timing of revenue recognition
|
|
|
|
|
Goods transferred at a point in
time
|
|
81,657
|
|
74,096
|
5. Other income
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Insurance claim
|
|
154
|
|
258
|
Rental income
|
|
51
|
|
29
|
|
|
|
|
|
Other income
|
|
205
|
|
287
|
6. 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.
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
EBITDA reconciliation
|
|
|
|
|
Profit before income tax expense
post IFRS 16
|
|
1,517
|
|
669
|
Less: Interest income
|
|
(494)
|
|
(104)
|
Add: Interest expense
|
|
500
|
|
509
|
Add: Depreciation and
amortisation
|
|
3,796
|
|
3,485
|
EBITDA post IFRS 16
|
|
5,319
|
|
4,559
|
|
|
|
|
|
Less: costs relating to IFRS 16
lease liabilities
|
|
(2,628)
|
|
(2,335)
|
|
|
|
|
|
EBITDA pre IFRS 16
|
|
2,691
|
|
2,224
|
7. Expenses
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Profit before income tax includes
the following specific expenses:
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
Cost of inventories as included in
'cost of sales'
|
|
53,153
|
|
48,307
|
|
|
|
|
|
Depreciation
|
|
|
|
|
Land and buildings
improvements
|
|
10
|
|
39
|
Plant and equipment
|
|
1,142
|
|
862
|
Motor vehicles
|
|
2
|
|
2
|
Computer equipment
|
|
191
|
|
204
|
Land and buildings right-of-use
assets
|
|
2,032
|
|
1,904
|
Plant and equipment right-of-use
assets
|
|
7
|
|
7
|
Motor vehicles right-of-use
assets
|
|
66
|
|
56
|
Computer equipment right-of-use
assets
|
|
6
|
|
6
|
|
|
|
|
|
Total depreciation
|
|
3,456
|
|
3,080
|
|
|
|
|
|
Amortisation
|
|
|
|
|
Software
|
|
340
|
|
405
|
|
|
|
|
|
Total depreciation and amortisation
*
|
|
3,796
|
|
3,485
|
|
|
|
|
|
Finance costs
|
|
|
|
|
Interest and finance charges
paid/payable on lease liabilities
|
|
512
|
|
430
|
Interest and finance charges on
restoration provision
|
|
30
|
|
30
|
Change in fair value of forward
foreign currency hedges
|
|
(42)
|
|
49
|
|
|
|
|
|
Finance costs expensed
|
|
500
|
|
509
|
|
|
|
|
|
Foreign exchange losses
|
|
(4)
|
|
18
|
|
|
|
|
|
Leases
|
|
|
|
|
Short-term lease payments
|
|
20
|
|
40
|
Low-value assets lease
payments
|
|
70
|
|
47
|
|
|
|
|
|
Total leases expensed
|
|
90
|
|
87
|
*Depreciation and amortisation
expense is included within "administrative expenses" in the
Statement of profit or loss and other comprehensive
income.
8. Staff costs
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Aggregate remuneration:
|
|
|
|
|
Wages and salaries
|
|
10,453
|
|
9,711
|
Social security costs
|
|
944
|
|
963
|
Other pension costs
|
|
465
|
|
377
|
|
|
|
|
|
Total staff costs
|
|
11,862
|
|
11,051
|
The average number of employees
during the year was as follows:
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
|
|
|
Stores
|
|
303
|
|
300
|
Warehouse
|
|
51
|
|
46
|
Administration and other
|
|
44
|
|
47
|
Marketing and digital
trading
|
|
26
|
|
28
|
IT and web
|
|
12
|
|
12
|
Management
|
|
9
|
|
9
|
|
|
|
|
|
|
|
|
|
|
Average number of
employees
|
|
446
|
|
442
|
Staff costs above include Directors'
salaries, social security costs and other pension costs. Directors'
remuneration is detailed in the Remuneration report which forms
part of these financial statements.
9. Income tax
expense
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
Current tax
|
|
45
|
|
25
|
Deferred tax - origination and
reversal of temporary differences
|
|
329
|
|
80
|
Current tax adjustment recognised
for prior periods
|
|
(34)
|
|
(34)
|
Deferred tax adjustment recognised
for prior periods
|
|
(41)
|
|
59
|
|
|
|
|
|
Aggregate income tax
expense
|
|
299
|
|
130
|
|
|
|
|
|
Numerical reconciliation of income tax expense and tax at the
statutory rate
|
|
|
|
|
Profit before income tax
expense
|
|
1,517
|
|
669
|
|
|
|
|
|
Tax at the statutory tax rate of
24.03% (2023: 19%)
|
|
365
|
|
127
|
|
|
|
|
|
Tax effect amounts which are not
deductible/(taxable) in calculating taxable income:
|
|
|
|
|
Non-qualifying
depreciation
|
|
8
|
|
12
|
Super deduction rate
|
|
(12)
|
|
(54)
|
Non-deductible expenses
|
|
-
|
|
1
|
Deferred tax rate change
|
|
13
|
|
19
|
|
|
|
|
|
|
|
374
|
|
105
|
Adjustment in respect of prior
years
|
|
(75)
|
|
25
|
|
|
|
|
|
Income tax expense
|
|
299
|
|
130
|
The corporate income tax rate went
from 19% up to 25% from 1 April 2023 hence an average rate of
24.03% for the year ended 31 January 2024.
10. Intangibles
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
Goodwill - at cost
|
|
5,802
|
|
5,802
|
Less: Impairment
|
|
(182)
|
|
(182)
|
|
|
5,620
|
|
5,620
|
|
|
|
|
|
Software - at cost
|
|
2,052
|
|
1,720
|
Less: Accumulated
amortisation
|
|
(1,620)
|
|
(1,280)
|
|
|
432
|
|
440
|
|
|
|
|
|
|
|
6,052
|
|
6,060
|
Reconciliations
Reconciliations of the written down
values at the beginning and end of the current and previous
financial year are set out below:
|
|
Goodwill
|
|
Software
|
|
Total
|
Consolidated
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
Balance at 1 February
2022
|
|
5,620
|
|
556
|
|
6,176
|
Additions
|
|
-
|
|
289
|
|
289
|
Amortisation expense
|
|
-
|
|
(405)
|
|
(405)
|
|
|
|
|
|
|
|
Balance at 31 January
2023
|
|
5,620
|
|
440
|
|
6,060
|
Additions
|
|
-
|
|
332
|
|
332
|
Amortisation expense
|
|
-
|
|
(340)
|
|
(340)
|
|
|
|
|
|
|
|
Balance at 31 January
2024
|
|
5,620
|
|
432
|
|
6,052
|
11. Property, plant and
equipment
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
Land and buildings improvements - at
cost
|
|
1,002
|
|
1,002
|
Less: Accumulated
depreciation
|
|
(352)
|
|
(342)
|
|
|
650
|
|
660
|
|
|
|
|
|
Plant and equipment - at
cost
|
|
11,116
|
|
9,158
|
Less: Accumulated
depreciation
|
|
(3,607)
|
|
(2,836)
|
|
|
7,509
|
|
6,322
|
|
|
|
|
|
Motor vehicles - at cost
|
|
9
|
|
15
|
Less: Accumulated
depreciation
|
|
(8)
|
|
(12)
|
|
|
1
|
|
3
|
|
|
|
|
|
Computer equipment - at
cost
|
|
1,432
|
|
1,333
|
Less: Accumulated
depreciation
|
|
(917)
|
|
(784)
|
|
|
515
|
|
549
|
|
|
|
|
|
|
|
8,675
|
|
7,534
|
Reconciliations
Reconciliations of the written down
values at the beginning and end of the current and previous
financial year are set out below:
|
|
Land
and
buildings
|
|
Plant
and
|
|
Motor
|
|
Computer
|
|
|
|
|
improvements
|
|
equipment
|
|
vehicles
|
|
equipment
|
|
Total
|
Consolidated
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 February
2022
|
|
699
|
|
5,666
|
|
5
|
|
538
|
|
6,908
|
Additions
|
|
-
|
|
1,511
|
|
-
|
|
214
|
|
1,725
|
Exchange differences
|
|
-
|
|
7
|
|
-
|
|
1
|
|
8
|
Depreciation expense
|
|
(39)
|
|
(862)
|
|
(2)
|
|
(204)
|
|
(1,107)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 January
2023
|
|
660
|
|
6,322
|
|
3
|
|
549
|
|
7,534
|
Additions
|
|
-
|
|
2,335
|
|
-
|
|
157
|
|
2,492
|
Exchange differences
|
|
-
|
|
(6)
|
|
-
|
|
-
|
|
(6)
|
Depreciation expense
|
|
(10)
|
|
(1,142)
|
|
(2)
|
|
(191)
|
|
(1,345)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 January
2024
|
|
650
|
|
7,509
|
|
1
|
|
515
|
|
8,675
|
12. Right-of-use
assets
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
Land and buildings - long leasehold
- right-of-use
|
|
21,089
|
|
19,235
|
Less: Accumulated
depreciation
|
|
(10,017)
|
|
(7,984)
|
|
|
11,072
|
|
11,251
|
|
|
|
|
|
Plant and equipment -
right-of-use
|
|
80
|
|
80
|
Less: Accumulated
depreciation
|
|
(63)
|
|
(56)
|
|
|
17
|
|
24
|
|
|
|
|
|
Motor vehicles -
right-of-use
|
|
510
|
|
433
|
Less: Accumulated
depreciation
|
|
(370)
|
|
(304)
|
|
|
140
|
|
129
|
|
|
|
|
|
Computer equipment -
right-of-use
|
|
59
|
|
59
|
Less: Accumulated
depreciation
|
|
(51)
|
|
(45)
|
|
|
8
|
|
14
|
|
|
|
|
|
|
|
11,237
|
|
11,418
|
Reconciliations
Reconciliations of the written down
values at the beginning and end of the current and previous
financial year are set out below:
|
|
Land
and
|
|
Plant
and
|
|
Motor
|
|
Computer
|
|
|
|
|
buildings
|
|
equipment
|
|
vehicles
|
|
equipment
|
|
Total
|
Consolidated
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 February
2022
|
|
10,899
|
|
31
|
|
78
|
|
20
|
|
11,028
|
Additions
|
|
2,142
|
|
-
|
|
107
|
|
-
|
|
2,249
|
Remeasurement
|
|
73
|
|
-
|
|
-
|
|
-
|
|
73
|
Exchange differences
|
|
41
|
|
-
|
|
-
|
|
-
|
|
41
|
Depreciation expense
|
|
(1,904)
|
|
(7)
|
|
(56)
|
|
(6)
|
|
(1,973)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 January
2023
|
|
11,251
|
|
24
|
|
129
|
|
14
|
|
11,418
|
Additions
|
|
1,481
|
|
-
|
|
77
|
|
-
|
|
1,558
|
Remeasurement
|
|
398
|
|
-
|
|
-
|
|
-
|
|
398
|
Exchange differences
|
|
(26)
|
|
-
|
|
-
|
|
-
|
|
(26)
|
Depreciation expense
|
|
(2,032)
|
|
(7)
|
|
(66)
|
|
(6)
|
|
(2,111)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 January
2024
|
|
11,072
|
|
17
|
|
140
|
|
8
|
|
11,237
|
13. Inventories
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Current assets
|
|
|
|
|
Finished goods - at cost
|
|
16,974
|
|
17,813
|
Finished goods include £0.05m (2023:
£0.1m) of provisions for obsolescence. The movement in this
provision reflects the net realisable value of the product lines
that was recognised through the statement of profit or loss during
the year to 31 January 2024.
14. Trade and other
receivables
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Current assets
|
|
|
|
|
Trade receivables
|
|
23
|
|
26
|
Other receivables
|
|
380
|
|
421
|
|
|
|
|
|
|
|
403
|
|
447
|
15. Trade and other
payables
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade payables
|
|
4,503
|
|
4,543
|
Accrued expenses
|
|
1,107
|
|
1,088
|
Refund liabilities
|
|
32
|
|
55
|
Social security and other
taxes
|
|
367
|
|
589
|
Other payables
|
|
967
|
|
490
|
|
|
|
|
|
|
|
6,976
|
|
6,765
|
16. Contract
liabilities
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Contract liabilities
|
|
790
|
|
727
|
|
|
|
|
|
Reconciliation
|
|
|
|
|
Reconciliation of the written down
values at the beginning and end of the current and previous
financial year are set out below:
|
|
|
|
|
|
|
|
|
|
Opening balance (Contract
liabilities at the start of the year)
|
|
727
|
|
643
|
Issued in year
|
|
2,821
|
|
3,801
|
Redeemed in year
|
|
(2,758)
|
|
(3,717)
|
|
|
|
|
|
Closing balance (Contract
liabilities at the end of the year)
|
|
790
|
|
727
|
The contract liabilities primarily
relate to unredeemed vouchers and gift cards. This will be
recognised as revenue when the vouchers and gift cards are redeemed
by customers, which is expected to occur over the next two
years.
17. Lease
liabilities
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Lease liability
|
|
1,809
|
|
1,793
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Lease liability
|
|
9,754
|
|
9,750
|
|
|
|
|
|
|
|
11,563
|
|
11,543
|
18. Restoration
provision
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Restoration provision
|
|
851
|
|
801
|
Movements in provisions
Movements in each class of provision
during the current financial year, other than employee benefits,
are set out below:
|
|
Restoration
|
|
|
provision
|
Consolidated - 2024
|
|
£'000
|
|
|
|
Carrying amount at the start of the
year
|
|
801
|
Additional provisions
recognised
|
|
52
|
Unwinding of discount
|
|
30
|
Provisions released on
disposal
|
|
(31)
|
Effects of movement in exchange
rates
|
|
(1)
|
|
|
|
Carrying amount at the end of the
year
|
|
851
|
19. Deferred
tax
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Non-current liabilities
Deferred tax liability comprises temporary differences attributable
to:
|
|
|
|
|
Property, plant &
equipment
|
|
1,463
|
|
1,097
|
IFRS 16 transitional
adjustment
|
|
(58)
|
|
(70)
|
Unapproved share
options issued
|
|
(147)
|
|
(119)
|
Tax losses
|
|
(87)
|
|
(25)
|
|
|
|
|
|
Deferred tax liability
|
|
1,171
|
|
883
|
Movements:
|
|
|
|
|
Opening balance
|
|
883
|
|
744
|
Charged/(credited) to profit or
loss
|
|
329
|
|
80
|
Adjustment recognised for prior
periods
|
|
(41)
|
|
59
|
|
|
|
|
|
Closing balance
|
|
1,171
|
|
883
|
20. Share
capital
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
Shares
|
|
Shares
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
Ordinary shares of £0.01 each -
fully paid
|
|
77,267,304
|
|
77,267,304
|
|
773
|
|
773
|
21. Share
premium
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Share premium account
|
|
31,037
|
|
31,037
|
The share premium account is used to
recognise the difference between the issued share capital at
nominal value and the capital received, net of transaction
costs.
22. Reserves
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Foreign currency reserve
|
|
31
|
|
127
|
Share-based payments
reserve
|
|
588
|
|
475
|
|
|
|
|
|
|
|
619
|
|
602
|
Foreign currency reserve
The foreign currency translation
reserve comprises exchange differences relating to the translation
of the net assets of the Group's foreign subsidiary from their
functional currency into the parent's functional
currency.
Share-based payments reserve
The reserve is used to recognise the
value of equity benefits provided to employees and Directors as
part of their remuneration, and other parties as part of their
compensation for services.
Movements in reserves
Movements in each class of reserve
during the current and previous financial year are set out
below:
|
|
Foreign
|
|
Share-based
|
|
|
|
|
currency
|
|
payments
|
|
Total
|
Consolidated
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
Balance at 1 February
2022
|
|
-
|
|
266
|
|
266
|
Foreign currency translation
gains
|
|
127
|
|
-
|
|
127
|
Options granted
|
|
-
|
|
209
|
|
209
|
|
|
|
|
|
|
|
Balance at 31 January
2023
|
|
127
|
|
475
|
|
602
|
Foreign currency translation
gains
|
|
(96)
|
|
-
|
|
(96)
|
Options granted
|
|
-
|
|
113
|
|
113
|
|
|
|
|
|
|
|
Balance at 31 January
2024
|
|
31
|
|
588
|
|
619
|
23. Dividends
There were no dividends paid,
recommended or declared during the current or previous financial
year.
24. Earnings per
share
|
|
Consolidated
|
|
|
2024
|
|
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
Profit after income tax attributable
to the owners of Angling Direct PLC
|
|
1,218
|
|
539
|
|
|
Number
|
|
Number
|
|
|
|
|
|
Weighted average number of ordinary
shares used in calculating basic earnings per share
|
|
77,267,304
|
|
77,267,304
|
Adjustments for calculation of
diluted earnings per share:
|
|
|
|
|
Options over ordinary
shares
|
|
515,516
|
|
900,536
|
|
|
|
|
|
Weighted average number of ordinary
shares used in calculating diluted earnings per share
|
|
77,782,820
|
|
78,167,840
|
|
|
Pence
|
|
Pence
|
|
|
|
|
|
Basic earnings per share
|
|
1.58
|
|
0.70
|
Diluted earnings per
share
|
|
1.57
|
|
0.69
|
25. Events after the reporting
period
Since 31 January 2024, the Group has
completed the following transactions:
· In
Crewe, the following two transactions were consolidated on to a
single site:
o On 8
February 2024, acquired 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.
o On 9
February 2024, acquired the specified 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, acquired the specified 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.
The initial accounting for these
acquisitions is incomplete given the proximity to the year
end.