TIDMANG
RNS Number : 1048Q
Angling Direct PLC
24 February 2021
24 February 2021
Angling Direct plc
("Angling Direct" or the "Company")
Full Year Trading Update and Notice of Results
Angling Direct plc (AIM: ANG), the leading omni-channel
specialist fishing tackle and equipment retailer, provides the
following update in relation to trading for the financial year
ended 31 January 2021 ("FY21"), ahead of announcing its Final
Results on 11 May 2021.
Since its update on 2 December 2020, the Group has maintained
positive sales momentum and expects to report a 27% increase in
revenue to GBP67.6m (FY20: GBP53.2m) for FY21. This strong
performance has been achieved despite all of the Group's retail
stores being forced to close between 24 March and 14 June (82 days)
and subsequently only able to operate on a "call & collect"
basis from 5 November to 1 December and again from 5 January 2021
to the year end (53 days).
The Company's strong growth was driven by robust momentum in
online sales which grew 40% to GBP35.3m (FY20: GBP25.2m). UK online
sales increased 62% while online sales in the Company's key
European territories of Germany, France and Netherlands grew 35%.
The number of unique visitors to the Company's UK website increased
by 2.5m in the year to 7.4m, as many people returned to angling as
a recreational activity with the associated well-being benefits.
The Company's web fulfilment centre was quick to adopt COVID-safe
working practices at the onset of the pandemic and continues to
safely operate through lockdowns and different tiering
scenarios.
Total store sales (which included call & collect) increased
16% to GBP32.3m (FY20: GBP27.9m), while the total number of stores
increased from 34 at 31 January 2020 to 38 at 31 January 2021, with
the new stores contributing GBP2.2m in sales. Like-for-like store
sales were down 8 % as a consequence of the aforementioned store
trading restrictions imposed for over 30% of the financial
year.
Despite significant management time being appropriately invested
in dealing with the unique challenges presented by COVID-19 , the
Board remained focused on delivering the Group's long-term strategy
of profitable growth and made good progress in the key areas of
developing margin, reducing promotional activity, increasing own
brand sales penetration, improving working capital and leveraging
operational efficiencies from previous supply chain and store
investments. As a result of these actions and the strong trading
performance in line with recently upgraded market expectations, the
Board expects to report a pre IFRS-16 EBITDA of at least GBP3.8m
for the year, a significant improvement on the prior year (FY20:
pre IFRS-16 EBITDA loss of GBP0.5m).
The balance sheet resilience was strengthened in June 2020
through a placing, raising GBP5.5m gross proceeds. Management has
maintained tight working capital discipline through the pandemic
and this, combined with the strong trading performance and
associated cash conversion, has led to a significantly improved
cash position as at 31 January 2021 of GBP15.0m (31 January 2020:
GBP5.9m) .
Current Trading and Outlook
The new financial year has started with lockdowns in place
across the UK and in many of the Company's key European markets. In
common with other retailers and despite rigorous preparation, the
Company has also experienced some post-Brexit disruption to
logistics as well as less predictable Far East supply.
Notwithstanding the current abnormal trading conditions which will
impact the first half, the Board believes that Angling Direct's
leading omni-channel model combined with its strategic and
operational progress in FY21, leaves the Company well placed to
benefit from the heightened interest in angling as customers seek
to take advantage of its numerous wellbeing benefits. Moreover, the
strong balance sheet means the Company is well positioned to
withstand further challenges, while also continuing to seize
opportunities to invest in key growth areas.
Whilst the Board welcomes the signposting from the government
that non-essential retail could fully open from 12(th) April 2021,
in light of the continued uncertainties caused by the pandemic, at
this early stage of the Group's current financial year the Board
believes it prudent to maintain its position of not providing
guidance for FY22 until such time that there is further clarity
over the timing and extent of the disruption. The Board expects to
provide more detail on the new financial year and current trading
at the Final Results in May.
Andy Torrance, CEO of Angling Direct, commented:
"On behalf of the Board I would like to take this opportunity to
thank all Angling Direct employees who have worked tirelessly
throughout the COVID-19 pandemic, often in challenging
circumstances, to deliver for our growing customer community. I am
pleased with the performance that we have delivered through FY21,
with good progress made on all fronts, both operationally and
strategically, and look forward to reopening our stores in April,
in line with the government's roadmap as announced on 22 February
2021. The actions taken in FY21 ensure that the Company is well
positioned to withstand future challenges and I firmly believe that
when we are through the other side of the pandemic, the Company's
market leading omni-channel offering and scale will enable us to
continue on our growth trajectory in the UK and internationally, as
angling grows in popularity."
For further information please contact:
Angling Direct plc +44 (0) 1603 258658
Martyn Page, Executive Chairman
Andy Torrance, Chief Executive
Officer
Steven Crowe, Chief Financial
Officer
N+1 Singer - NOMAD and Broker +44 (0) 20 7496 3000
Peter Steel, Alex Bond (Corporate
Finance)
Tom Salvesen (Corporate Broking)
FTI Consulting - Financial PR +44 (0) 20 3727 1000
Alex Beagley
James Styles
Alice Newlyn
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
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 YouTube channel. 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 38 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.
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END
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