RNS Number : 2589H
Angling Direct PLC
08 October 2024
 

8 October 2024

 

Angling Direct PLC

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

 

Half Year Results

 

Continued strategic progress alongside revenue and margin growth, trading in line with FY25 market expectations

 

Angling Direct PLC (AIM: ANG), the leading omni-channel specialist fishing tackle and equipment retailer, is pleased to announce its unaudited financial results for the six months ended 31 July 2024 (H1 FY25).

 

£m

H1 FY25

H1 FY24

% Change

Revenue

45.8

43.3

+5.6%

UK retail store sales

26.4

+8.4%

UK online sales

17.0

+2.8%

Total UK sales

43.5

+6.2%

European sales

2.4

0.0%

Gross profit

16.8

+10.6%

Gross margin %

36.7%

+160bps

Adj. EBITDA1

2.8

+16.9%

UK Adj. EBITDA

3.2

+12.7%

European Adj. EBITDA

(0.5)

+7.7%

Profit before tax

2.3

+35.7%

Basic EPS

2.24p

+31.0%

Net cash & cash equivalents at period end

17.0

17.6

-3.8%

 

Financial highlights:

·   

Group revenue increased by 5.6% to £45.8m

·   

UK sales grew 6.2% to £43.5m, +7.6% during key Q2 trading period

·   

UK retail store estate delivered sustained strong growth, with total store sales increasing by 8.4%, largely driven by new stores acquired and opened

·   

Like-for-like store sales increased by 1.8%2 underpinned by improved customer footfall and ATV

·   

UK online sales grew 2.8% with increasing unique customer numbers and transactions growth

·   

In Europe, overall sales were flat at £2.4m, within this positive progress in Germany

·   

Gross margin increased by 160 bps, driven in part by a higher mix in sales from own brand products

·   

Adj. EBITDA grew by 16.9% to £2.8m

·   

Adj. EBITDA margin increased by 50 bps to 6.0%, benefitting from operating leverage

·   

Profit before tax increased 35.7%, +28.1% on a pre interest income basis

·   

Operating cashflow of £4.9m (HY24: £5.5m)

·   

Strong balance sheet with Group net cash of £17.0m at 31 July 2024 (31 July 2023: £17.6m) underpinning UK M&A and strategic opportunities

 

Operational highlights:

·   

Annualised the launch of MyAD with membership increasing 50% in the first half to over 330k members (31 January 2024: 220k). This has proven to drive better customer loyalty and engagement, with over 75% of UK revenues now transacted through MyAD

·   

Completed three UK acquisitions of existing retail businesses alongside opening two new UK retail catchments, scaling the UK store footprint to 52 stores 

·   

Higher margin own brand gross profits grew by 40%, leveraged through new ranges, everyday pricing, and improved sourcing and buying. This growth came through both the demand for our entry level "Discover" Brand as well as further progress on the established Advanta Brand

·   

Secured a new UK logistics facility in the West Midlands to support further scale roll out of own brand ambitions beyond FY25

·   

Opened first store in Europe in Utrecht, The Netherlands, to trial European omni-channel model

 

Current trading and outlook

·   

The Company remains focused on delivering its medium-term financial objectives3 with good progress made against these during H1 FY25

·   

Strong trading in the last key seasonal trading weeks in the two months to 30 September 2024, with Group revenues increasing 19.8% on the same period last year

·   

Post the period end, the Group agreed terms with a third-party logistics operator in Europe to service customer fulfillment in this region

·   

The Board remains confident in  the long-term prospects for the Group, underpinned by its leading UK omni-channel proposition and strong balance sheet which reinforces the Group's decision to continue to invest in its home market to support the long-term strategy alongside continued prudent European investment

·   

Overall, a combination of continued UK sales momentum and pursuing a profitable European growth strategy means the Group is well placed to deliver revenue and Adj. EBITDA in line with market expectations for FY254

 

Steve Crowe, CEO of Angling Direct, said:

"We have delivered significant progress in the first half and I would like to thank the team for their continued dedication and hard work. We successfully completed three acquisitions and increased our UK store estate to 52 while also opening our first European store, in Utrecht, the Netherlands. Online sales continued to increase and our focus on availability during peak season resulted in the UK online business taking greater share of the higher ticket item market. The Group's loyalty and repeat purchase membership club, MyAD, gathered further momentum in the UK, increasing member numbers by 50% to over 330,000 in the first half. Over 75% of Angling Direct's UK revenues are now transacted through MyAD, providing greater insights into customer behaviours and buying patterns and driving loyalty.

 

"Looking forward, I am pleased that the strong trading has continued into the second half with revenue in the first two months increasing 19.8% on the same period last year. The solid foundations that we have established ensure that the Group is well placed to take advantage of the significant growth opportunities available in the UK, alongside prudent and controlled expansion in Europe which will significantly grow our addressable market and support our longer term growth ambitions.

 

"The Board is fully focused on the options available for deployment of surplus capital and these continue to develop as opportunities present themselves. We will continue to actively manage the key aspects of both our balance sheet and wider growth strategy for the business, having regard to our overarching objective of maximising shareholder returns."

 

 

1

Adjusted EBITDA figures are presented on a Pre IFRS 16 and Pre IFRS 2 basis unless otherwise stated.

2

Excluding the Reading store which hasn't materially traded in the comparative period after it suffered a fire in the first week of February 2023. Total like for like stores grew 2.6% including Reading.

3

The Company's medium-term financial objectives were published in the Company's FY24 Preliminary Results announcement on 14 May 2024 and comprise: 1. UK business generating £100m annual revenues; 2. An Adjusted EBITDA in excess of £6m; 3. Moving the European business through the early stages of development to break-even; and 4. Deployment of surplus capital to accelerate growth beyond our medium-term targets, including selective M&A, with investment weighted towards the UK business.

4

Angling Direct believes that consensus market expectations for the year ending 31 January 2025 are for revenues of £88.4 million and pre-IFRS 16 EBITDA of £3.15 million.

 

 

Investor Meet Company presentation - 14 October 2024

Steve Crowe (CEO) and Sam Copeman (CFO) will provide a live presentation via the Investor Meet Company platform at 11.00 a.m. BST on 14 October. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company platform up until 9.00 a.m. the day before the meeting or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free via the following link: https://www.investormeetcompany.com/angling-direct-plc/register-investor. Investors who already follow Angling Direct on the platform will automatically be invited.

 

For further information please contact:

 

Angling Direct PLC

+44 (0) 1603 258 658

Steven Crowe, Chief Executive Officer

Sam Copeman, Chief Financial Officer

 


Singer Capital Markets - NOMAD and Broker

+44 (0) 20 7496 3000

Peter Steel

Tom Salvesen
Alex Bond

James Todd

 


FTI Consulting - Financial PR

+44 (0) 20 3727 1000

Alex Beagley
Matthew Young
Hannah Butler

anglingdirect@fticonsulting.com

 

 

About Angling Direct

 

Angling Direct is the leading omni-channel specialist fishing tackle retailer in the UK, with an established and growing presence in Europe. Headquartered in Norfolk UK, the Company sells fishing tackle products and related equipment through its network of in excess of 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 over 500 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'.

 

 


Delivering against our strategy - Building Europe's largest fishing club

Angling Direct is the UK's largest scale omni-channel fishing tackle retailer and the Group holds a leading position in this attractive market. The Group's published medium-term objectives, as introduced in May 2024 and commented on in further detail below, are as follows:

1.   UK business on a flightpath to revenue of £100m

2.   UK business on a flightpath to >£6m Adj EBITDA

3.   Development of a sustainable European business

4.   Creating Europe's largest fishing club, MyAD, and leveraging its value

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

6.   Angling retail's largest responsible employer

 

The Board is confident that delivery of our strategy and medium-term objectives will further differentiate us from our competitors and unlock the unique opportunity we see ahead, generating long-term sustainable value for all stakeholders.

1.    UK business on a flightpath to revenue of £100m

 

The UK business delivered revenue of £43.5m, growing 6.2% against H1 FY24, with Q2 FY25 being particularly strong at 7.6%. Pleasingly, despite a soft start in Q1 FY25, our stores and the digital channel showed positive progression in H1 FY25. The growth was delivered in both channels through increasing customer numbers as our omni-channel model, underpinned by MyAD and our price promise, continued to increase its reach and gain traction in a consolidating market.

UK Retail Stores

Total store sales in the period increased 8.4% to £26.4m (H1 FY24: £24.4m). Like-for-like store sales grew by 1.8% (excluding Reading, which didn't materially trade in the prior year period due to a fire in February 2023). Recent new stores (opened since January 2023 - Cardiff, Goole, Cannock, Walsall, Crewe, Newark and Shrewsbury) contributed £1.7m of sales in the period with our UK estate increasing to 52 stores overall.

During the period, we saw an increase in footfall and customer numbers across both our established and new spaces. This has been driven by the success of our MyAD loyalty and repeat purchase membership club, alongside the increased use of merchandising technology, growing demand for our in-store services and our valued assisted selling model.

In line with our medium-term objectives of delivering a UK retail stores portfolio with annual sales in excess of £60m, we continued to invest in new UK retail stores. This investment, for the first time since 2019, included the acquisitions of three businesses which allows us to enter attractive catchments and scale earnings faster than our traditional "green field" approach. These opportunities have arisen as the pace of consolidation in the market increases against the backdrop of single site operators' costs increasing ahead of sales, and the need for investment in technology and working capital to mitigate these challenges.

We continue to actively identify opportunities within attractive catchments across the UK, including traditional scale opportunities (greenfield and acquisition) now complemented by smaller catchment areas where we can deploy a smaller store footprint with a margin intense range model. Both Crewe and Walsall represent our first conscious investments in smaller store formats  and their performance since opening has been in line with our internal plans. We continue to make progress with a trial "store in store" concept representing a further opportunity to accelerate the reduced footprint format.

Outside of new space, we continue to evaluate our store refresh and roll back concepts across the existing estate to drive further like for like sales. Three store refreshes are scheduled for the second half of FY25.

UK Online

UK online sales grew by 2.8% to £17.0m (H1 FY24: £16.5m) as our MyAD and everyday low-price propositions, alongside our focus on availability during peak season, resulted in the UK online business continuing to take greater share of the higher ticket item market.

As part of our drive to grow market share and customer loyalty, we continue to invest in contemporary digital infrastructure and customer marketing, further increasing our competitive moat. These investments delivered increased customer numbers, alongside improved conversion (+c120 bps) despite the more challenging consumer landscape for higher ticket items.

Utilising a more data led approach to our digital marketing continues to prove a clear differentiator and source of competitive advantage. Our YouTube channel subscribers at 31 July surpassed 75,000 with views of c.800,000 in the month of July alone, 16x greater than our next largest omni-channel competitor. Alongside this our social media reach, in particular TikTok and Instagram, continues to scale with our total social followers increasing 17% since 31 July 2023.

Leveraging store footfall to offer customers our broader digital range is a clear opportunity. During H1 FY25 we have built the technology to offer customers in store access to our full range delivered next day to home or the store of their choice. The technology is being trialled in an increasing number of stores with the full launch across the estate scheduled in FY26.

2.    UK business on a flightpath to >£6m EBITDA

 

UK Trading

The UK business increased Adj. EBITDA by 12.7% to £3.2m, exceeding sales growth by c.2 times, with the business able to balance cost investment and revenue growth to deliver earnings aligned to the medium-term ambition.

A key component of delivering the UK profitability ambitions requires further progress on our gross margin. During the period our increasingly sophisticated and agile ranging, buying and pricing practices have increased the gross margin +150 bps, with overall UK margin + 160 bps to 37.1%.

Higher margin own brand gross profit grew by c40% (third party brands c8%), playing an increasingly pivotal role in the overall UK gross margin profile. Stock availability within own brand ranges remains at good levels and provides a strong platform to develop this further in H2 FY25.

Alongside our growing scale, we have continued to deepen our relationships with key suppliers, increasingly allowing us to secure stock at favourable trade terms while giving supplier partners surety of volume and cashflow. In conjunction with this, we have continued the sale of physical and digital space to join up with our MyAD strategy and these revenues increased 100% in the period. 

The team has successfully secured new distribution capacity located in Wednesbury (West Midlands) to serve as the Group's own brand storage and logistics operation. With the increasing reputation and demand of our own brand offer, the need for increased space and more frequent store replenishment capability is critical. The team has worked hard to deliver this ambition and the project is substantially advanced, with go live for picking own brand replenishment from the new facility scheduled for Q3 FY25.

Our technology deployment in the second half is focused on operational efficiency improvements to reduce the exposure of the business to any further above inflationary increases of the living wage in FY26 and beyond.

UK Retail Stores

Following our investment in footfall counting technology in Q4 FY22, we have deployed customer targeted colleague working rotas and store opening hours, which have gone some way towards mitigating significant inflationary pressures from the c.10% increase in the living wage in April 2024. We continue to investigate further deployment model changes, with a view to mitigating future living wage increases. These include, for example, trialling two digital shelf edge labelling solutions as one potential strategy alongside handheld digital technologies to support store colleagues with in-store tasks

In H2 FY24 the business observed increasing levels of product theft from its stores. In response, further operational measures were deployed. These measures have abated some of the impact on earnings with the year-on-year UK retail stores gross margin improving by +20 bps in H1 FY25 as a result and providing a strong platform to leverage further gains in the second half of the year.

UK Online

The online business balanced revenue progression and an increasingly volatile paid advertising landscape against further cost investment in some retail AI and pricing technologies as a mitigatory measure. Alongside this, we have implemented new AI technologies into the customer service journey and continue to trial new digital checkout payment propositions. We have made strong progress in ensuring earnings delivery has kept pace with revenue progression while at the same time selectively investing to deliver further progress in H2 and beyond.

3.    Development of a sustainable European business

 

The European opportunity for medium term market share growth remains clear in an addressable market within Germany, the Netherlands and France over three times that of the UK. During the period the European digital trading landscape remained challenging with significant pressure on both customer price and paid advertising costs. Management  therefore concentrated on optimising trading in our key target territories of Germany and the Netherlands. This approach provides a clear focus on controlled expansion in order to protect margins and reduce trading losses from the digital business ahead of any further material capital deployment in Europe.

In the period, the Group made strong progress against a number of like for like European KPIs including:

·   

Gross margins advancing +160 bps to 29%;

·   

Operating margins +440 bps to -9.5%; and

·   

Adj. EBITDA losses reduced 20% to £0.4m with an associated 360 bps improvement in the EBITDA margin.

 

In May 2024 we opened our first European store in Utrecht, the Netherlands. Revenues continue to scale alongside improved footfall and we are focusing on trading as nimbly as possible to learn at pace and maximise the profit opportunity.

During the period we have been in discussion with a third-party logistics operator to service our European customer fulfilment, enabling our European business to access labour and carriage rates which reflect the third party's greater economies of scale. This agreement will also enable the European business to reduce property costs and provides greater flexibility on property space requirements in FY26 and beyond.

4.    Creating Europe's largest fishing club, MyAD and leveraging its value

 

Thirteen months from launch, MyAD had attracted over 330k members by 31 July 2024, growing 50% through H1 (220k at 31 January 2024). The proposition provides access to everyday deals, 'money can't buy' prizes, special MyAD bundles and monthly free prize giveaways, which continues to resonate well and attract new customers. Alongside this, we launched the MyAD Choice awards in H1 FY25 which allows customers to vote for products across a number of categories. We then share the results with suppliers to leverage the exposure of these products which has proven to be engaging for customers and value accretive for suppliers.

Outside of this, we continue to work on the planned H2 delivery of personalised offers to customers based on data and behaviours. The annualisation of MyAD has enabled the business to see year on year customer behaviours, in particular around frequency, average basket and buying patterns. Over 75% of our UK revenues are now transacted through MyAD, with approximately one third of our MyAD customers being an omni-channel customer, one third digital only with the remaining third  store only. We are increasingly confident that our deepening and unique insights into anglers' needs and preferences will drive improved performance in revenues and operations through growing levels of loyalty, repeat purchasing and better ability to engage with our customer base.

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

 

We have a strong balance sheet which allows us to remain focused on deploying surplus capital into accelerating the growth of the UK business. The significant opportunity to scale the UK store roll out programme is clear and we continue to develop existing greenfield sites, develop our store acquisition pipeline and develop our 'store in store' programme to ensure that we are best positioned to fully capitalise on the opportunities available to us in the market.

Outside of store growth, during the period we have committed further capital to secure the Group's new own brand distribution facility, as well as further investment in the UK automated packaging project for the UK online business which is due to go live in Q4 FY25.

There is a distinct opportunity for the Group to further scale investment in owned brands and we will continue to actively develop this pipeline both organically and inorganically.  

The Board is fully focused on the options available for deployment of surplus capital and these continue to develop as opportunities present themselves. We will continue to actively manage the key aspects of both our balance sheet and wider growth strategy for the business, having regard to our overarching objective of maximising shareholder returns.

6.    Angling retail's largest responsible employer

 

We remain fully committed to acting responsibly and sustainably within our environment and communities. We continue to be the employer of choice for an increasing number of anglers with our colleague count increasing to over 500 for the first time.

We continue to develop our approach to sustainability and have focused on reducing our waste sent to landfill and reducing plastic packaging within our own brand ranges in the period. We continue to support our fishing line recycling programme to source recycling bins for fisheries from suppliers and have introduced recycling points in our new retail stores.

Protecting the environment is core to everything we do and we remain focused on leveraging our size and scale to increase our environmental impact. Our angler engagement programme, through our collaboration with the Angling Trust, is helping fishing clubs gain knowledge and access to testing water quality in their locality, alongside some of the work our colleagues have been doing on river litter picks and the benefits to water quality and fisheries. We have also continued our work with the Pike Anglers Club of Great Britain to discourage warm water pike fishing to help reduce stress impact for pike during the warmer months when oxygen levels are lower in the water.

We continue to support Tackling Minds, a Community Interest Company focused on positively supporting those with mental health issues and rehabilitation through access to angling and blue spaces. Our support comes through the sale of their merchandise in some of our key trading locations with all proceeds returned to Tackling Minds alongside associated donations.

It is more important than ever to ensure we rigorously scrutinise any incremental organisational risk and investment, whilst ensuring we appropriately plan and resource for future share growth in our consolidating markets. In the period, we have deployed the new major release of our ERP platform alongside improving our flexibility and resilience by moving our key technology to being cloud hosted. Outside of this our appetite for increasingly contemporary technology and deployment within the business increases and the Board continues to review the opportunities and associated risks this represents.

Current trading and Outlook

Following a strong performance in H1, Angling Direct has seen the positive momentum continue into August and September with current trading ahead of the H1 FY25 run rate. As such, the Board remains confident in delivering continued revenue and earnings growth while remaining laser focused on progressing against the stated medium-term objectives.

The UK angling market remains resilient and is benefiting from increasing consolidation, with good demand for a compelling product offering alongside quality service. Our customer loyalty programme, MyAD, has proven successful to date and will further help to meet the needs of our customers while simultaneously driving loyalty and repeat purchase. We will continue our investment in the UK in our people, technology, physical estate and brands in order to support further organic growth. This will be augmented by investment in selective acquisitions which complement the existing business and accelerate our ambitions.

In Europe, the competitive landscape remains tough and achieving profitable digital customer acquisition growth has proven challenging. However, selective bricks and mortar investment remains a realistic target to deliver value within these markets to leverage existing investments already made. The Group will continue to invest to drive market share and consolidation, where prudent to do so, and review operational flexibility and performance to ensure it is well positioned as consumer pricing and markets stabilise.

The Board would like to acknowledge and thank all members of the Angling Direct team for their efforts and we look forward to sharing continued success in the future.  

  


 

Consolidated statements of profit or loss and other comprehensive income

For the period ended 31 July 2024

 





Unaudited six months ended 31 July


Audited
year ended
31 January



Note

 

2024

 

2023

 

2024



 

 

 

 

 

 

 



 

 

£'000

 

£'000

 

£'000










Revenue from contracts with customers


4


45,838


43,341


81,657

Cost of sales of goods




(29,031)


(28,149)


(53,153)










Gross profit




16,807


15,192


28,504










Other income




17


111


205

Interest revenue calculated using the effective interest method




309


140


494










Expenses









Administrative expenses




(12,764)


(11,820)


(23,728)

Distribution expenses




(1,719)


(1,656)


(3,458)

Finance costs




(315)


(246)


(500)










Profit before income tax expense




2,335


1,721


1,517










Income tax expense


6


(601)


(400)


(299)










Profit after income tax expense for the period attributable to the owners of Angling Direct PLC




1,734


1,321


1,218










Other comprehensive income


















Items that may be reclassified subsequently to profit or loss









Foreign currency translation




(68)


(81)


(96)










Other comprehensive income for the period, net of tax




(68)


(81)


(96)










Total comprehensive income for the period attributable to the owners of Angling Direct PLC




1,666


1,240


1,122

 









 




Pence


Pence


Pence

Basic earnings       


15


2.24


1.71


1.58

Diluted earnings 


15


2.22


1.69


1.57










 

 

 

Consolidated statements of financial position

As at 31 July 2024

 

 









 

 

 

 

Unaudited six months ended 31 July

 

Audited
year ended
31 January

 

 

Note

 

2024

 

2023

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 









Non-current assets









Intangibles


7


6,315


6,007


6,052

Property, plant and equipment


8


9,674


7,916


8,675

Right-of-use assets


9


12,822


11,150


11,237

Total non-current assets




28,811


25,073


25,964










Current assets









Inventories




21,899


20,013


16,974

Trade and other receivables




770


751


403

Prepayments




875


763


811

Cash and cash equivalents




16,955


17,624


15,765

Total current assets




40,499


39,151


33,953










Current liabilities









Trade and other payables


10


12,697


11,702


6,976

Contract liabilities




518


481


790

Lease liabilities




2,059


1,809


1,809

Derivative financial instruments




14


32


9

Income tax




235


315


32

Total current liabilities




15,523


14,339


9,616










Net current assets




24,976


24,812


24,337










Total assets less current liabilities




53,787


49,885


50,301










Non-current liabilities









Lease liabilities




11,071


9,583


9,754

Restoration provision




914


840


851

Deferred tax




1,569


910


1,171

Total non-current liabilities




13,554


11,333


11,776










Net assets




40,233


38,552


38,525










Equity









Share capital


11


773


773


773

Share premium




31,037


31,037


31,037

Reserves




593


543


619

Retained profits




7,830


6,199


6,096










Total equity




40,233


38,552


38,525

 

 

 

 

Consolidated statements of changes in equity

For the period ended 31 July 2024

 

 


Share


Share
premium


 


Retained


Total equity

 


capital


account


Reserves


profits


Unaudited six months ended 31 July


£'000


£'000


£'000


£'000


£'000

 


 


 


 


 


 

Balance at 1 February 2024


773


31,037


619


6,096


38,525












Profit after income tax expense for the period


-


-


-


1,734


1,734

Other comprehensive income for the period, net of tax


-


-


(68)


-


(68)












Total comprehensive income for the period


-


-


(68)


1,734


1,666












Transactions with owners in their capacity as owners:











Share-based payments


-


-


42


-


42












Balance at 31 July 2024


773


31,037


593


7,830


40,233

 

 

 


Share


Share premium


 


Retained


Total equity

 


capital


account


Reserves


 profits


Audited year ended 31 January


£'000


£'000


£'000


£'000


£'000

 


 


 


 


 


 

Balance at 1 February 2023


773


31,037


602


4,878


37,290












Profit after income tax expense for the period


-


-


-


1,218


1,218

Other comprehensive income for the period, net of tax


-


-


(96)


-


(96)












Total comprehensive income for the period


-


-


(96)


1,218


1,122












Transactions with owners in their capacity as owners:











Share-based payments


-


-


113


-


113












Balance at 31 January 2024


773


31,037


619


6,096


38,525

 

 

 

 

 

 

Consolidated statements of cash flows

For the period ended 31 July 2024

 

 









 

 

 

 

Unaudited six months ended 31 July

 

Audited
year ended
31 January

 

 

Note

 

2024

 

2023

 

2024

 

 

 

 

£'000

 

£'000

 

£'000

Cash flows from operating activities









Profit before income tax expense for the period




2,335


1,721


1,517










Adjustments for:









Depreciation and amortisation




1,973


1,787


3,796

Share-based payments




42


22


113

Net movement in provisions




17


16


30

Net variance in derivative liabilities




5


(19)


(42)

Interest received




(309)


(140)


(494)

Interest and other finance costs




298


230


512














4,361


3,617


5,432










Change in operating assets and liabilities:









(Increase)/decrease in trade and other receivables




(364)


(300)


49

(Increase)/decrease in inventories




(4,431)


(2,252)


910

Increase in prepayments




(63)


(162)


(206)

Increase in trade and other payables




5,621


4,893


171

(Decrease)/increase in contract liabilities




(272)


(246)


63














4,852


5,550


6,419

Interest received




309


140


494

Interest and other finance costs




(298)


(230)


(512)

Income taxes (paid)/refunded




-



79










Net cash from operating activities




4,863


5,460


6,480










Cash flows from investing activities









Payment for purchase of business, net of cash acquired




(740)



Payments for property, plant and equipment


8


(1,535)


(1,012)


(2,595)

Payments for intangibles


7


(232)


(116)


(332)










Net cash used in investing activities




(2,507)


(1,128)


(2,927)










Cash flows from financing activities









Repayment of lease liabilities




(1,086)


(885)


(1,835)










Net cash used in financing activities




(1,086)


(885)


(1,835)










Net increase in cash and cash equivalents




1,270


3,447


1,718

Cash and cash equivalents at the beginning of the financial period




15,765


14,127 


14,127

Effects of exchange rate changes on cash and cash equivalents




(80)


50


(80)










Cash and cash equivalents at the end of the financial period




16,955


17,624


15,765

 

 

Notes to the consolidated financial statements

31 July 2024

 

Note 1. General information

 

The financial statements cover Angling Direct PLC as a Group consisting of Angling Direct PLC ('Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year (collectively referred to in these financial statements as the 'Group'). The financial statements are presented in British Pound Sterling ('GBP'), which is Angling Direct PLC's functional and presentation currency.

Angling Direct PLC is a listed public company limited by shares incorporated under the Companies Act 2006, listed on the AIM (Alternative Investment Market), a sub-market of the London Stock Exchange. The Company is incorporated and domiciled in England and Wales within the United Kingdom. The registered number of the Company is 05151321. Its registered office and principal place of business is:

 

2d Wendover Road,



Rackheath Industrial Estate



Rackheath



Norwich
Norfolk



NR13 6LH



           

The principal activity of the Group is the sale of fishing tackle through its websites and stores. The Group's business model is designed to generate growth by providing excellent customer service, expert advice and ensuring product lines include a complete range of premium equipment. Customers range from the casual hobbyist through to the professional angler.

The financial statements were authorised for issue, in accordance with a resolution of Directors, on 12 October 2024. The Directors have the power to amend and reissue the financial statements.

 

Note 2. Significant accounting policies

 

These financial statements for the interim half-year reporting period ended 31 July 2024 have been prepared in accordance with the AIM Rules for Companies, International Accounting Standard IAS 34 'Interim Financial Reporting' and the Companies Act for for-profit oriented entities.

These interim financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 31 January 2024 and any public announcements made by the Company during the interim reporting period.

The interim consolidated financial information has been prepared on a going-concern basis.

The principal accounting policies adopted are consistent with those set out on pages 68 to 94 of the consolidated financial statements of Angling Direct PLC for the year ending 31 January 2024, except for taxation which has been accounted for as described in note 6.

New or amended Accounting Standards and Interpretations adopted

The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the International Accounting Standards Board that are mandatory for the current reporting period. There was no impact on the adoption of these new or amended Accounting Standards and Interpretations on the financial performance or position of the Group during the financial half-year ended 31 July 2024 and is not expected to have an impact for the full financial year ending 31 January 2025.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Note 3. Segmental reporting

 

Segment information is presented in respect of the Group's operating segments, based on the Group's management and internal reporting structure, and monitored by the Group's Chief Operating Decision Maker (CODM). 

 

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly own brand stock in transit from the manufacturers, group cash and cash equivalents, taxation related assets and liabilities, centralised support functions salary and premises costs, and government grant income. 

 

Operating segments

Management has made a judgement that there are three operating segments (Stores, UK Online and Europe Online). The business operated predominantly in the UK, also operating three native language web sites for Germany, France and the Netherlands, being the European segment.

 

Each of these operating segments is managed separately as each segment requires different specialisms, marketing approaches and resources. Head Office includes costs relating to the employees, property and other overhead costs associated with the centralised support functions.

 

The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation) pre IFRS 16 and IFRS 2 ("Adjusted EBITDA"). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements, save for IFRS 16 and IFRS 2. A full reconciliation of pre IFRS 16 and IFRS 2 EBITDA to post IFRS 16 and IFRS 2 EBITDA performance is provided to the CODM.

 

The information reported to the CODM is on a monthly basis.

 

At 31 July 2024, £ 27,767,000 of non-current assets are located in the UK (31 July 2023 £24,167,000) and £ 1,044,000 of non-current assets are located in the Netherlands (31 July 2023 £906,000).

 

Operating segment information

 



Stores


UK
Online



Europe


Head

Office


Total

31 July 2024


£'000


£'000


£'000


£'000


£'000












Revenue


26,422


17,001


2,415


-


45,838

Profit/(loss) before income tax


3,369


1,902


(479)


(2,457)


2,335

EBITDA post IFRS 16 and IFRS 2


5,004


2,206


(321)


(2,575)


4,314

Total assets


33,746


8,392


1,962


25,210


69,310

Total liabilities


(15,190)


(9,760)


(1,495)


(2,632)


(29,077)

 

EBITDA Reconciliation











Profit/(loss) before income tax


3,369


1,902


(479)


(2,457)


2,335

Less: Interest income


-


-


-


(309)


(309)

Add: Interest expense


263


21


19


12


315

Add: Depreciation and amortisation


1,372


283


139


179


1,973

EBITDA post IFRS 16 and IFRS 2


5,004


2,206


(321)


(2,575)


4,314












Less: Costs relating to IFRS 16 lease liabilities


(1,195)


(126)


(134)


(133)


(1,588)

Add: Costs relating to IFRS 2 share-based payments


-


-


-


42


42












Adjusted EBITDA


3,809


2,080


(455)


(2,666)


2,768

 

 



Stores


UK
Online



Europe


Head

Office


Total

31 July 2023


£'000


£'000


£'000


£'000


£'000












Revenue


24,382


16,545


2,414


-


43,341

Profit/(loss) before income tax


2,974


1,838


(518)


(2,573)


1,721

EBITDA post IFRS 16 and IFRS 2


4,482


2,107


(382)


(2,593)


3,614

Total assets


19,662


7,435


4,013


33,114


64,224

Total liabilities


(7,574)


(4,725)


(1,224)


(12,149)


(25,672)

 

EBITDA Reconciliation











Profit/(loss) before income tax


2,974


1,838


(518)


(2,573)


1,721

Less: Interest income


-


-


-


(140)


(140)

Add: Interest expense


222


21


15


(12)


246

Add: Depreciation and amortisation


1,286


248


121


132


1,787

EBITDA post IFRS 16 and IFRS 2


4,482


2,107


(382)


(2,593)


3,614












Less: Costs relating to IFRS 16 lease liabilities


(959)


(84)


(111)


(115)


(1,269)

Add: Costs relating to IFRS 2 share based payments


-


-


-


22


22












Adjusted EBITDA


3,523


2,023


(493)


(2,686)


2,367

 

 


 

Note 4. Revenue from contracts with customers

 

Disaggregation of revenue

The disaggregation of revenue from contracts with customers is as follows:

 

 


Unaudited

six months ended 31 July

Audited
year ended
31 January

 


2024


2023


2024

 


£'000


£'000


£'000

 


 


 


 

Route to market







Retail store sales


26,499


24,382


44,438

E-commerce


19,339


18,959


37,219










45,838


43,341


81,657








Geographical regions







United Kingdom


43,423


40,927


77,371

Europe and Rest of the World


2,415


2,414


4,286










45,838


43,341


81,657








Timing of revenue recognition







Goods transferred at a point in time


45,838


43,341


81,657

 

 

Note 5. EBITDA reconciliation (earnings before interest, taxation, depreciation and amortisation)

 

The Directors believe that adjusted profit provides additional useful information for shareholders on performance. This is used for internal performance analysis. This measure is not defined by IFRS and is not intended to be a substitute for, or superior to, IFRS measurements of profit. The following table is provided to show the comparative earnings before interest, tax, depreciation and amortisation ('EBITDA') after adjusting for rents, dilapidation charges and associated legal costs, where applicable, relating to IFRS 16 lease liabilities, and adjusting for IFRS 2 share-based payments.

 



Unaudited

six months
ended 31 July

Audited
year ended
31 January



2024


2023


2024

EBITDA reconciliation


£'000


£'000


£'000








Profit before income tax expense post IFRS 16 and IFRS 2


2,335


1,721


1,517

Less: Interest income 


(309)


(140)


(494)

Add: Interest expense


315


246


500

Add: Depreciation and amortisation 


1,973


1,787


3,796

EBITDA post IFRS 16 and IFRS 2


4,314


3,614


5,319








Less: Costs relating to IFRS 16 lease liabilities 


(1,588)


(1,269)


(2,628)

Add: Costs relating to IFRS 2 share-based payments


42


22


113








Adjusted EBITDA


2,768


2,367


2,804

 

Note 6. Income tax expense

 

The tax charge for the six months ended 31 July 2024 is recognised based on management's estimate of the weighted average annual effective tax rate expected for the full financial year, adjusted for the tax impact of any discrete items arising in the period. Deferred tax balances are calculated using tax rates that have been enacted or substantively enacted by the balance sheet date and that are expected to apply in the period when the liability is settled or the asset realised.

 

Note 7. Intangibles

 

 


Unaudited

six months ended 31 July

Audited
year ended
31 January

 


2024


2023


2024

 


£'000


£'000


£'000

 


 


 


 

Non-current assets







Goodwill - at cost


6,015


5,802


5,802

Less: Impairment


(182)


(182)


(182)



5,833


5,620


5,620








Software - at cost


2,283


1,835


2,052

Less: Accumulated amortisation


(1,801)


(1,448)


(1,620)



482


387


432










6,315


6,007


6,052

 

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial period are set out below:

 

 


Goodwill


Software


Total

Unaudited six months ended 31 July


£'000


£'000


£'000

 







Balance at 1 February 2024


5,620


432


6,052

Additions


-


232


232

Additions through business combinations *


213


-


213

Amortisation expense


-


(182)


(182)








Balance at 31 July 2024


5,833


482


6,315

 

* During the period the Group has acquired the following:


In Crewe, the following two transactions were consolidated on to a single site:
- On 8 February 2024, the business and assets of HF Angling Limited (a company registered in England and Wales) for consideration of £0.21m. The business comprised of a single angling retail store in Crewe, UK.
- On 9 February 2024, the specific assets of Fink Foods Limited (a company registered in England and Wales) for consideration of £0.04m. The assets were acquired from a single angling retail store in Crewe, UK.


In Walsall, on 22 April 2024, the specific assets of Allen's Fishing Tackle Limited (a company registered in England and Wales) for consideration of £0.07m. The assets were acquired from a single angling retail store in Walsall, UK.


In Shrewsbury, on 24 July 2024, the business and assets of Total Angling Limited (a company registered in England and Wales) for consideration of £0.43m. The business comprised of a single angling retail store in Shrewsbury, UK.

 

The following summarises the total assets acquired through business combinations in the six months ended 31 July 2024:

 



 

Fair value of assets acquired




2024





£'000






Property, plant and equipment




  65

Inventories




468  

Contract liabilities




(6)

Total identifiable assets




527






Goodwill




213






Total consideration




740

 

Goodwill arising from the acquisitions consists largely of the synergies and economies of scale expected from combining the operations of Angling Direct and the businesses acquired.

 

Goodwill and intangible assets recognised in the year relating to business combinations are not expected to be deductible for tax purposes.

 

The Directors do not consider any individual in-year acquisition to be material to the Group and therefore have not disclosed these.

 

 


 

Note 8. Property, plant and equipment

 

 


Unaudited

six months ended 31 July

Audited
year ended
31 January

 


2024


2023


2024

 


£'000


£'000


£'000

 


 


 


 

Non-current assets







Land and buildings improvements - at cost


1,002


1,002


1,002

Less: Accumulated depreciation


(357)


(347)


(352)



645


655


650








Plant and equipment - at cost


12,754


10,096


11,116

Less: Accumulated depreciation


(4,186)


(3,325)


(3,607)



8,568


6,771


7,509








Motor vehicles - at cost


44


15


9

Less: Accumulated depreciation


(10)


(13)


(8)



34


2


1








Computer equipment - at cost


1,444


1,363


1,432

Less: Accumulated depreciation


(1,017)


(875)


(917)



427


488


515










9,674


7,916


8,675

 

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial period are set out below:

 

 


Land and
buildings


Plant and


Motor


Computer



 


improvements


equipment


vehicles


equipment


Total

Unaudited six months ended 31 July


£'000


£'000


£'000


£'000


£'000

 











Balance at 1 February 2024


650


7,509


1


515


8,675

Additions


-


1,643


35


12


1,690

Exchange differences


-


(4)


-


-


(4)

Depreciation expense


(5)


(580)


(2)


(100)


(687)












Balance at 31 July 2024


645


8,568


34


427


9,674

 

 

 

 

Note 9. Right-of-use assets

 

 


Unaudited

six months ended 31 July

Audited
year ended
31 January

 


2024


2023


2024

 


£'000


£'000


£'000

 


 


 


 

Non-current assets







Land and buildings - right-of-use


21,292


19,964


21,089

Less: Accumulated depreciation


(8,594)


(8,984)


(10,017)



12,698


10,980


11,072








Plant and equipment - right-of-use


80


80


80

Less: Accumulated depreciation


(66)


(59)


(63)



14


21


17








Motor vehicles - right-of-use


269


467


510

Less: Accumulated depreciation


(164)


(329)


(370)



105


138


140








Computer equipment - right-of-use


59


59


59

Less: Accumulated depreciation


(54)


(48)


(51)



5


11


8










12,822


11,150


11,237

 

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial period are set out below:

 

 


Land and


Plant and


Motor


Computer



 


buildings


equipment


vehicles


equipment


Total

Unaudited six months ended 31 July


£'000


£'000


£'000


£'000


£'000

 











Balance at 1 February 2024


11,072


17


140


8


11,237

Additions


2,701


-


-


-


2,701

Exchange differences


(12)


-


-


-


(12)

Depreciation expense


(1,063)


(3)


(35)


(3)


(1,104)












Balance at 31 July 2024


12,698


14


105


5


12,822

 

Note 10. Trade and other payables

 


Unaudited

six months ended 31 July

Audited
year ended
31 January

 


2024


2023


2024

 


£'000


£'000


£'000

 


 


 


 

Current liabilities







Trade payables


8,729


8,023


4,503

Accrued expenses


1,499


1,287


1,107

Refund liabilities


49


56


32

Social security and other taxes


1,458


1,141


367

Other payables


962


1,195


967










12,697


11,702


6,976

 

Contract liabilities has been reported separately on the Statement of financial position. This was previously reported in other payables.

 

Note 11. Share capital

 

 


Unaudited six months ended 31 July

 


2024


2023


2024


2023

 


Shares


Shares


£'000


£'000

 


 


 


 


 

Ordinary shares of £0.01 each - fully paid


77,267,304


77,267,304


773


773

 

Note 12. Dividends

 

There were no dividends paid, recommended or declared during the current or previous financial period.

 

Note 13. Contingent liabilities

 

The Group had no material contingent liabilities as at 31 July 2024, 31 January 2024 and 31 July 2023.

 

Note 14. Earnings per share

 



Unaudited

six months ended 31 July

Audited
year ended
31 January



2024


2023


2024



£'000


£'000


£'000








Profit after income tax attributable to the owners of Angling Direct PLC


1,732


1,321


1,218

 



Number of shares


Number of shares


Number of shares








Weighted average number of ordinary shares used in calculating basic earnings per share


77,267,304


77,267,304


77,267,304

Adjustments for calculation of diluted earnings per share:
    Options over ordinary shares


612,946


851,266


515,516

Weighted average number of ordinary shares used in calculating diluted earnings per share


77,880,250


78,118,570


77,782,820

 



Pence


Pence


Pence








Basic earnings per share


2.24


1.71


1.58

Diluted earnings per share


2.22


1.69


1.57

 

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