Angling Direct : Annual Results Presentation 2024

FY2024

Full Year

Results

For the 12 months to 31 January 2024

May 2024

Agenda

1. Introduction and Strategy

02

2. Business Review	3. Financial Review	FY25 Focus and Outlook
		4.

FY24 Overview

03

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-likestore sales increased by 3.1%* 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-positionedto 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

* Excluding the Reading store which has not material traded in the period after it suffered a fire in the first week of February 2023

Our

Purpose

Inspiring everyone to get out and enjoy an exceptional fishing experience, regardless of background or ability, in the great outdoors

"Getting Everyone Fishing"

Our

Ambition

To become Europe's largest fishing club, through which all anglers can shop with confidence, seek advice and be inspired

Clear purpose,

strategy and medium-term objectives

04

Underpinned by

6 medium-term objectives

1. UK business on a flightpath to revenue of £100m
2. UK business on a flightpath to >£6m EBITDA* (pre-IFRS16)
3. Creating Europe's largest fishing club,
   MyAD, and leveraging its value
4. Development of a sustainable European business
5. Deployment of surplus liquidity to further grow the business beyond the medium-term objectives
6. Angling retail's largest responsible employer

* Pre-IFRS2

Medium

Term

Objectives

and Capital

Deployment

05

• Targeting a core UK business of >£100m revenue and >£6m EBITDA
• Sales growth delivered through:
• • Stores: continuing the accelerated UK store roll out programme including small format
  • Online: continuing to invest in technology that drives customer engagement and sales
  • Both channels leveraging MyAD
• EBITDA growth substantially over indexing sales growth, underpinned by continued gross margin progression and further leveraging the cost base through further deployment of technology
• Delivering a UK double digit ROCE %
• Delivering a break-even position for Europe and position the business for growth
• Surplus cash above the minimum working capital requirement will be deployed to exceed the UK >£100m target:
• • The material component of this deployment into the UK business via a scale brand supply chain partnership and retaining headroom for opportunistic bolt-on acquisitions
  • Flexibility retained around European deployment

Objective Tracking

06

We have a clear purpose, strategy and medium-term objectives, we are tracking well against these

Medium-term objectives		FY24 performance
A UK business on a flightpath to		UK revenue growth of 9.0% to £77.4m
revenue of £100m		✓ FY24: UK retail +7.6%, UK stores L4L* +3.1%, UK digital +11.1%
		✓ 5 year CAGR 12.6%
UK business on a flightpath to		EBITDA growth of 15.6% to £3.7m**
>£6m EBITDA*** (pre-IFRS16)		✓ EBITDA% growth of +20 bps to 4.7%**
		✓ 5 year 550 bps improvement in UK EBITDA%
Creating Europe's largest fishing		>220,000 members at 31 Jan '24
club, MyAD, and leveraging its		✓ >75% of revenue now through MyAD
value
Development of a sustainable		Revenue growth of 36.3% to £4.3m
European business		✓ European EBITDA accretion of 19.3%, these losses reduced to
		35.9% of Group EBITDA (FY23: 53.8%)

Deployment of surplus liquidity to further grow the business beyond the medium-term objectives

Net cash generation of £1.7m taking cash to £15.8m

• Creation of 2 small format sites via 3 modest post year end acquisitions (commenced FY24)
• H2 FY24 £1m commitment to UK automated packaging solution for FY25 implementation

Angling retail's largest responsible	446 colleagues
employer	✓ 303 colleagues offering in-store expertise
	✓ Improving our carbon intensity ratio by 14.1%
Clear purpose, strategy and medium-term objectives
On target	Additional action required	Behind target

• Excluding the Reading store which has not material traded in the period after it suffered a fire in the first week of February 2023
• Excluding insurance income as a result of the cyber-attack reported in FY23 but relating to FY22
• Pre-IFRS2

07

The

Evolution

of MyAD

Minimum	Monthly
600+ 'everyday	'money can't
deals'	buy prize'

Developing year round member benefits package

Exclusive	Monthly free
MyAD deals	giveaway
and bundles	prizes

Agenda

1. Introduction and Strategy

2. Business Review

08

3. Financial Review	FY25 Focus and Outlook
	4.

FY24

Strategic

Developments

UK Customer

Creating Europe's largest fishing

club, MyAD and leveraging its value

• Launched MyAD in June 2023 as a unique proposition in UK angling retail, bridging the gap between our physical stores and digital offering, with >220,000 members at 31 January 2024
• >75% of revenue now through MyAD, offering early positive insights into cross channel customer behaviour and the impact of targeted customer offers and promotions
• MyAD supporting the development of a new commercial marketing revenue stream, selling digital and physical promotional space for our brand partners

UK Retail

Growing portfolio, evolving formats, rolling out a service- based revenue stream

• Two new stores (Cardiff and Goole) as we continue to enter new catchments
• Growth in conversion driven by new on shelf labelling technology, daily optimised rostering and "BAITS" assisted selling programme
• Rolled out a new in-storeservice-based revenue stream (reel spooling)
• Significant increase in retail theft, investment in preventative measures as well as additional operating protocols now in place

09

UK Digital

Market leading digital capability underpinned by the deployment of new AI retail technologies

• Point upgrade of digital platform drove further optimised site speed and search capability
• Deployment of innovative contemporary digital technologies to provide customers with inspiration and recommendations to drive subsequent conversion
• Roll out of AI retail technology to enhance our digital paid marketing and bidding strategies

FY24

Strategic

Developments

Europe

Delivering growth in a challenging consumer and competitor landscape, trialling our omni channel offer

• Challenging landscape in terms of both consumer and competitor dynamics
• The digital business continues to make gains in all the key target territories. Strong growth in unique customers and, underpinned by new technologies, German trading is now aligned with the more mature UK digital business, leveraging the UK learnings
• In January 2024 we signed the lease on our first European store in existing angling retail catchment in the Netherlands, to start to trial the omni channel offer in FY25

Commercial

Growing portfolio, evolving formats, rolling out a service- based revenue stream

• Continued development of our own brand Advanta range, alongside our new entry level Discover range, providing a competitive advantage and supply chain resilience - making significant progress with gross profit up 16.1% YoY
• Strong progress in stock ranging, fulfilment and availability enabling bolder decision on working capital deployment
• Clearer communication with brand partners, improving strategic alignment

10

Communities & Sustainability

Experienced customer facing colleagues and working with brand and supply chain partners

• 303 in-store customer colleagues with significant angling expertise delivering an exceptional experience, supported by an additional 143 colleagues across the business, most of which are experienced and passionate anglers
• Continue to work with Tackling Minds and returned £26k to support their ongoing work to help people from all walks of life that are struggling with a range of issues
• Engaging with our brand partners to sponsor line recycling centres, resulting in c900 miles of line being recycled in the year, bringing the total to date to over 3,100 miles