Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Angling Direct PLC
  6. News
  7. Summary
    ANG   GB00BF1XGQ00

ANGLING DIRECT PLC

(ANG)
  Report
Delayed Quote. Delayed London Stock Exchange - 12/01 11:35:27 am
59 GBX   --.--%
11/12Angling Direct Resolves Cyber Security Attack
MT
11/08Angling Direct Slips 10% on Cybersecurity Breach
MT
10/13ANGLING DIRECT : Half Year Results 2021
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Angling Direct : Half Year Results 2021

10/13/2021 | 03:12am EST

13 October 2021

Angling Direct PLC

('Angling Direct', the 'Company' or the 'Group')

Half Year Results

Continued strong progress in H1, upgrading guidance for full year

Angling Direct PLC (AIM: ANG), the leading omni-channel specialist fishing tackle and equipment retailer, is pleased to announce its unaudited financial results for the six months ended 31 July 2021.

The Group has delivered strong progress against its stated FY22 planned priorities including its plans to establish in-region online European fulfilment which is now entering the implementation phase. The Board is now of the view that pre IFRS 16 EBITDA for the year ending 31 January 2022 (FY22) will be no less than £5.0m (inclusive of the expected costs associated with opening its new European distribution centre), comfortably exceeding current market expectations. With the Group's growing omni-channel offering and the strength of its balance sheet, the Board remains optimistic about the growth prospects and overall success of the business.

Financial highlights:

Given the fluctuating sales patterns as a result of lockdowns and pandemic-related restrictions in the current and previous comparator periods, our commentary below also presents headline financial metrics on a two year basis, showing a third column for the six months ended 31 July 2019 (H1 2020).

£m

H1 2022

H1 2021

H1 2020

H1 2022 Growth

on H1 2021

on H1 2020

Revenue

38.4

32.1

26.5

+19.5%

+44.8%

Online sales

18.5

17.9

12.5

+3.2%

+47.6%

Retail store sales

19.9

14.2

14.0

+40.1%

+42.3%

Gross profit

14.4

10.8

8.5

+33.7%

+68.8%

Gross margin %

37.4%

33.5%

32.1%

+390bps

+530bps

EBITDA (pre IFRS-16)

4.4

2.1

0.8

+111.6%

+488.0%

Profit before tax

3.7

1.4

0.4

+174.2%

+914.4%

Basic EPS

3.70p

2.02p

0.51p

+83.2%

+625.5%

  • Positive Operating cashflow of £5.8m
  • Strong balance sheet with Group net cash at 31 July 2021 of £19.6m (31 July 2020: £21.0m)

Operational highlights:

  • Further digital investment grew UK online conversion by 80 bps to 6.3%
  • Recent investment in UK distribution centre capacity utilised to protect supply position relative to wider market
  • 'AD+' priority delivery subscription service launched March 2021 driving customer loyalty and now accounts for 16% of all UK online orders
  • Established business case and detailed operating model for a European distribution centre, facilitating moving to execution phase - terms agreed on 3,900 square metre facility in the Netherlands
  • New category management model delivered agile stocking and pricing in short supply market supporting gross margin growth
  • Store transformation programme starting to deliver sustainable levels of EBITDA earnings from retail stores. Stores average transaction value up 3.8% and like for like sales up 32.2%
  • Healthy property pipeline for underserved catchments - two further store openings planned by year end

Andy Torrance, CEO of Angling Direct, said:

"We are pleased to have delivered a robust financial performance in the first half of the year, building on the operational and strategic progress made last year. These results demonstrate that the increasingly efficient, market leading omni-channel nature of the Company's trading platform, combined with its strong balance sheet, ensures it is well placed to serve customers across all channels as it emerges from the challenges of the Covid 19 pandemic.

The Group has delivered strong progress against its stated key priorities for FY22 in the first half, including its plans to establish in-region online European fulfilment which is now entering implementation phase. With the Group's leading customer offering and optimised operational capabilities, combined with the scale of the market opportunity, the Board remains optimistic about the growth prospects and overall success of the business."

Sell-side analyst webinar and Investor Meet Company presentation

A webinar for sell-side equity analysts will be held at 9.00 a.m. BST today, 13 October 2021, the details of which can be obtained from FTI Consulting using the contact details below.

Management will provide a live presentation via the Investor Meet Company platform at 11.00 a.m. BST on 18 October. 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

Andy Torrance, Chief Executive Officer

Steven Crowe, Chief Financial Officer

Singer Capital Markets - NOMAD and Broker

+44 (0) 20 7496 3000

Peter Steel (Corporate Finance)

Alex Bond (Corporate Finance)

Tom Salvesen (Corporate Broking)

FTI Consulting - Financial PR

+44 (0) 20 3727 1000

Alex Beagley

anglingdirect@fticonsulting.com

James Styles

Alice Newlyn

This announcement contains information which, prior to its disclosure, was inside information as stipulated under the UK version of article 7 of the Market Abuse Regulation (EU) No. 596/2014.

About Angling Direct

Angling Direct is the leading omni-channel specialist fishing tackle retailer in the UK. The Company sells fishing tackle products and related equipment through its network of retail stores, located strategically throughout the UK as well as through its leading digital platform (www.anglingdirect.co.uk,.de, .fr and .nl) and other third-party websites.

Angling Direct is committed to supporting its active customer base and widening access to the angling community through its passionate colleagues, store-based qualified coaches, social media reach and ADTV YouTubechannel. The Company currently sells over 20,000 fishing tackle products, including capital items, consumables, luggage and clothing. Angling Direct also owns and sells fishing tackle products under its own brand 'Advanta', which was formally launched in March 2016.

From 1986 to 2002, the Company's founders acquired interests in a number of small independent fishing tackle shops in Norfolk and, in 2002, they acquired a significant premise in Norwich, which was branded Angling Direct. Since 2002, the Company has continued to acquire or open new stores, taking the total number up to 39 retail stores. In 2015, the Company opened a 30,000 sq. ft central distribution centre in Rackheath, Norfolk, where the Company's head office is also located. Angling Direct has an established, and rapidly growing, presence in Europe with native language websites set up in key regions to address demand.

Chief Executive Officer's Review

The Group is pleased to have delivered a strong set of results in the period due to the increasingly efficient, market leading omni-channel nature of the Angling Direct trading platform that allowed our customers to flexibly access our products and content, despite a significant period of store closures and unusual channel mix caused by government trading restrictions. This is also a period where the Group has delivered strong progress against all its stated strategic priorities.

As well as continued sales growth, alongside further improved margin growth and supply chain efficiency, the Group is now in the implementation phase of its plan to significantly improve its European customer offer and in-region fulfilment. We have established a wholly owned subsidiary, ADNL BV, and agreed Heads of Terms for a lease over a 3,900 square metre distribution centre in the Netherlands which we anticipate will be operational ahead of the spring 2022 fishing season. This underlines our confidence in the significant opportunity that exists for us to grow our presence in Europe and expand the Group's broader growth potential.

I would like to thank all my colleagues for their continued resilience and enthusiastic commitment to the ongoing profitable growth of the Group at this exciting time in our development.

Results

Group revenue increased by 19.5% to £38.4m for the six months ended 31 July 2021 (H1 2021: £32.1m). The Company recorded strong sales growth in Q1 2022 of 53.6%. Measured against unprecedented levels of demand in the prior year following store re-openings on 15 June 2020, total sales growth in Q2 was pleasing at 3.5%.

Gross profit increased by 33.7% to £14.4m (H1 2021: £10.8m). Pre IFRS 16 EBITDA grew by 112% to £4.4m (H1

2021: £2.1m) as the Company's web distribution centre continued to operate during the third lockdown period, facilitated by drawing on existing stock levels as well as stock held in otherwise closed retail stores that offered a Call and Collect service throughout.

Since restrictions were lifted on 12 April 2021, and all stores safely re-opened, total sales to the end of the period returned to a more traditional profile when compared to the prior year when sales were skewed by the pent-up demand caused by the first lockdown.

Due to the strength of trading, associated cash conversion and working capital timing, the Company's net cash position at 31 July 2021 was £19.6m (31 July 2020: £21.0m).

Operational Review

Online

As part of our drive to grow market share and customer loyalty, we continue to invest in our contemporary digital infrastructure and customer marketing to ensure we stand apart from our competitors.

We are pleased to report overall online sales in the period grew by 3.2% to £18.5m (H1 2021: £17.9m) partially reflecting the year-on-year lockdown driven change in channel mix. Our UK website achieved strong online sales growth of 15.8%. In Europe, Brexit driven customs disruption significantly impacted delivery lead times and coupled with restrictions on the export of bait, meant that sales via the Company's three native language websites (which, during the period, comprised less than 5% of Group revenue) declined by 34.2%.

Lead-times to customers in Europe have started to improve as new customs and border practices slowly start to stabilise. We have now also partnered with one of Germany's leading bait manufacturers to supply direct to our customers via Angling Direct websites. The Board anticipates the new European fulfilment facility will, in the medium term, greatly facilitate trading and the scale of the Company's online opportunity in Mainland Europe.

As the Company seeks to exit unprofitable online activity, sales via eBay and non-core international territories combined reduced by £0.9m, or 5.0% of H1 21 total online sales.

Continued investment and development of our UK search functionality meant that despite decreased browsing, driven by the wider economy re-opening, UK conversion increased by 80bps to 6.3% and average online transaction value grew by 11.2% to £77.19. As we expected, Brexit trading restrictions impacted conversion on the Group's native language websites with a reduction of 90bps to 1.6%: (H1 2021 2.5%).

During the first half, the Company invested in the development of a mobile web App, believed to be the first of its kind in our sector in the UK. The App is now in the final stage of testing, with launch date scheduled pre-Christmas, and will

provide our customers with further choice, convenience and inspiration on the move, as well as the opportunity for us to improve online marketing efficiency. AD+, our priority delivery subscription service designed to build ongoing customer loyalty, was launched in March 2021 and now accounts for 16% of all UK online orders.

Retail Stores

We are really encouraged to see customers enthusiastically returning to our stores. Our store colleagues are the vital touch point between Angling Direct and our customers. They are crucial for driving conversion, creating loyal customers and prompting recommendation.

Total store sales in the period increased 40.1% to £19.9m (H1 2021: £14.2m). Like-for-like ('LFL') store sales grew by 32.2%. All retail stores were closed at the beginning of the period from 1 February to 12 April 2021 due to government restrictions during the third lockdown. This compares to stores being originally closed in the prior period from 24 March to 14 June 2020.

In line with our strategic commitment to being the first choice omni-channel retailer in all our markets, we opened one new store in the period: Redditch (February 2021, restricted until April 2021), re-sited a further store: Sittingbourne (April 2021 with a considerably improved shopping environment) and re-fitted another: (Hull with improved layout and ranging).

We have a healthy new store pipeline focused on unserved catchments, with two further stores planned before the FY22 year end.

We have established a two-year Retail Transformation plan which is now well underway. The plan is focused on radically improving our store shopping environment through improved layouts and merchandising, promotional messaging and, crucially, colleague interaction focused on customer satisfaction.

Trading

We are committed to providing the most comprehensive range of products for major fishing disciplines, always delivering choice, value, quality and stock availability.

The Company's newly implemented category management process, along with continued focus on pricing and promotional discipline, has resulted in gross margin growing by 390bps to 37.4%.

Higher margin own brand sales in the period grew by 10.1%, whilst its proportion of total sales slipped modestly by 40 bps to 5.2%. The slightly higher proportion of own brand sales in H1 2021 reflects the scarcity of branded equivalent products towards the end of that period. Current Q3 own brand sales as a proportion of total sales have improved to 6.8% following a refresh of our promotional activity. New own brand SKUs and ranges have been developed which, along with new packaging, are due to be launched by summer 2022.

The Board has been following a strategy of prudently using the Company's balance sheet strength to ensure the Group is well invested in key stock lines as they become available from product suppliers. We believe this provides a significant competitive advantage given ongoing global supply chain disruption and suppliers forecasting upward cost price pressure. Our Category Management team continues to maintain a key focus on cost price inflation with the objective of maintaining strong stock availability for customers, whilst at the same time actively investing to protect our price competitiveness.

This relative depth of stock has facilitated a degree of pricing stability in the period beyond traditional levels, however, the Company remains committed to protecting its competitive customer offering, and will, where considered necessary, invest gross margin in its pricing proposition.

We will also take the opportunity in the coming months to further tailor ranges more closely to our customer needs.

International

The opportunity for profitable growth within Europe remains clear and as outlined in the Group's Annual Results, considerable management resource has been focused upon realising our plans to become Europe's first choice omni-channel destination.

The Board has confidence in the business case for establishing in-region fulfilment which will allow the Group to improve customer order fulfilment, broaden the appeal of our ranges locally and facilitate the further development of our full omni-channel proposition. Working with expert partners we have defined a clear view of our business requirements in terms of optimal location and operating model, providing a strong platform for future growth

As a result, we have incorporated a new wholly owned Dutch subsidiary, ADNL B.V., engaged in-country commercial management and agreed terms for the lease of a 3,900 square metre distribution facility in the Netherlands, with a targeted opening date of Spring 2022. We have also received strong support from both existing and potentially new supply partners to support range extensions for Europe.

Management's current financial projections show that this new facility is expected to provide the Company with European growth capacity to 2027, with the Board anticipating that it will be earnings positive by 2025. All costs associated with this phase of expansion will be funded from existing cash resources.

Given our increased confidence in the robustness of the European business case we have subsequently commenced investment into stimulating customer engagement ahead of the new facility going online in Spring 2022.

Organisational Development

We remain fully committed to acting responsibly and sustainably within our environment and communities. We continue to supplement and upskill key capabilities within our category management, digital and operational teams. We have appointed a new Commercial Director, a new Head of Product Development and a new European Commercial Manager. As well as human resource, we continue to invest in digital technologies and customer acquisition marketing to further differentiate our competitive position.

Current trading and Outlook

Sales in Q3 are anticipated to decline relative to the unprecedented levels in Q3 in the prior year (post lock down 1). It is not yet clear the extent to which the Company will track sales levels during Q4 against the comparative period, which included the second lockdown (all stores closed November 2020) and the beginning of the third lockdown (all stores closed January 2021). Post period-end, we have not experienced any material impact from supply chain disruption and continue to hold good levels of stock in mitigation. As with other retailers, we are not immune to increased raw material and freight costs, however, these will be offset by our margin growth and we are well placed to continue mitigating any impact.

Whilst some uncertainty persists, the Company's overall performance in the current year to date means that the Board is now of the view that pre IFRS-16 EBITDA for the year ending 31 January 2022 will be no less than £5.0m, inclusive of the expected costs associated with opening the Group's new European distribution centre and comfortably exceeding current market expectations.

Looking ahead, our strong balance sheet means we have the firepower to continue investing in both online and in-store growth along with particular focus on accelerating penetration into our five key European mainland territories of Germany, France, The Netherlands, Austria and Belgium. The Board believes that with Angling Direct's profitable growth and established competitive advantage, combined with the increasing resonance of its refreshed purpose to Get Everyone Fishing, the Group is well placed to benefit from the clear opportunities within its markets both within the UK and Mainland Europe. With the Group's growing multi-channel offering and the strength of the balance sheet, the Board remains optimistic about the growth prospects and overall success of the business.

Andy Torrance

Chief Executive Officer

12 October 2021

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Angling Direct plc published this content on 13 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 October 2021 07:11:03 UTC.


ę Publicnow 2021
All news about ANGLING DIRECT PLC
11/12Angling Direct Resolves Cyber Security Attack
MT
11/08Angling Direct Slips 10% on Cybersecurity Breach
MT
10/13ANGLING DIRECT : Half Year Results 2021
PU
10/13ANGLING DIRECT : Half-Year Presentation 2021
PU
10/13ANGLING DIRECT : Earnings Flash (ANG.L) ANGLING DIRECT Reports Fiscal H1 EPS GBX3.65
MT
10/13ANGLING DIRECT : Earnings Flash (ANG.L) ANGLING DIRECT Reports Fiscal H1 Revenue GBP38.4M
MT
10/13Angling Direct plc Provides Sales Guidance for the Third Quarter of 2021
CI
10/13Angling Direct plc Reports Earnings Results for the Half Year Ended July 31, 2021
CI
08/18FTSE 100 Slips 0.2%, Dragged by BHP
DJ
08/18Pound Likely to Rise Vs Euro on UK Economic Outperformance
DJ
More news
Financials
Sales 2022 72,5 M 96,2 M 96,2 M
Net income 2022 - - -
Net cash 2022 5,34 M 7,09 M 7,09 M
P/E ratio 2022 -
Yield 2022 -
Capitalization 45,6 M 60,7 M 60,5 M
EV / Sales 2022 0,56x
EV / Sales 2023 0,50x
Nbr of Employees 398
Free-Float 53,7%
Chart ANGLING DIRECT PLC
Duration : Period :
Angling Direct PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ANGLING DIRECT PLC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 0
Last Close Price 0,59 
Average target price
Spread / Average Target -
Managers and Directors
Andrew James Torrance Chief Executive Officer & Director
Steve Crowe Chief Financial Officer
Martyn Graham Page Non-Executive Chairman
Wouter Putman Operations Manager
David Paul Rodwell Davies Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
ANGLING DIRECT PLC-19.73%60
PELOTON INTERACTIVE, INC.-71.00%14 529
CALLAWAY GOLF COMPANY12.29%5 015
ASICS CORPORATION43.33%4 549
ACUSHNET HOLDINGS CORP.34.14%4 004
MIPS AB (PUBL)133.59%3 469