TIDMANG
RNS Number : 4793Z
Angling Direct PLC
16 May 2023
16 May 2023
Angling Direct PLC
('Angling Direct', the 'Company' or the 'Group')
Final Results
Continued sales growth across all markets despite significant
consumer headwinds
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 2023 (FY23).
GBPm FY23 FY22 % Change
Revenue 74.1 72.5 2.2%
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UK sales 71.0 69.8 1.6%
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Retail store sales 41.3 38.7 6.8%
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Online sales 32.8 33.8 (3.0)%
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UK Online sales 29.6 31.1 (4.8)%
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European Online sales 3.1 2.7 18.4%
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Of which European key territory
sales 3.0 2.2 32.3%
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Gross profit 25.8 26.6 (3.1)%
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Gross margin % 34.8% 36.7% -190bps
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EBITDA (pre IFRS-16) 2.2 5.2 (57.2)%
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Profit before tax 0.7 4.0 (83.4)%
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Basic EPS 0.70p 3.98p (82.4)%
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Financial highlights:
-- Group revenue increased by 2.2% to GBP74.1m
-- Store sales increased by 6.8% against FY22 (GBP38.7m) as the store
rollout strategy continued
-- Like-for-like store sales were GBP38.0m (including the previously
reported disruption caused by the unusually hot weather in the UK
and Europe in August 2022), flat against the prior year
-- UK online sales, representing 90% of total online sales, decreased
by 4.8%, driven by tough H1 comparatives returning to growth in H2
against the prior year
-- UK online sales were 57.9%, and the UK business 47.3% above pre-Covid
levels, illustrating a significant step change in the Group's omni-channel
offering
-- Our key European territories of Germany, France and The Netherlands
grew 32.3% year on year
-- Gross margin declined by 190 bps as we consciously invested in customer
prices to gain market share
-- Positive operating cashflow of GBP1.5m, with a strong balance sheet
and net cash position of GBP14.1m. Securely positioned to meet short-term
challenges and take advantage of any potential market consolidation
Operational highlights:
-- Successfully opened our European distribution centre in March 2022
-- Market share gains in all key territories including strong growth
in new unique customers
-- Continued store rollout strategy, with a total of 45 stores at period
end (FY22: 42) with Cardiff opening in early FY24. Three new stores
in unserved catchments
-- Angling Trust qualified coaches deployed across all stores to ensure
our customers enjoy the very best experience
-- Significant focused investment in Advanta stock and new ranges delivered
24% growth in own brand sales
-- Over 55,000 App downloads, further user enhancements summer 2023,
optimising digital capability
-- As announced separately today, Sam Copeman will join the Company
as CFO on 5 June 2023 and will be appointed to the Board on conclusion
of the Company's AGM on 22 June 2023
Current trading and outlook
-- Despite the turbulent consumer environment and sustained cost pressures,
management remains focused on delivering profitable growth and market
share gains in the UK and Europe over the medium to long term
-- Total Q1 FY24 sales growth of 11.0%, with growth across all channels,
including accelerated growth in Europe
-- Whilst management is pleased with this early sales performance it
remains vigilant to the ongoing inflationary cost pressures being
experienced by consumers
-- However, given the fundamental strengths of the business, management
believes there is a significant opportunity to gain market share
in a weakening competitor landscape
Andy Torrance, CEO of Angling Direct, said:
"The last twelve months have seen Angling Direct continue to
grow sales despite significant consumer headwinds, including
inflation and cost of living pressures across all of the Company's
key markets. Our omni-channel business model continues to
demonstrate considerable financial and operational resilience and
we are pleased to have increased revenues to GBP74.1m. This
performance is largely due to the outstanding work of my colleagues
who continue to go above and beyond for our customers and I would
like to thank them, on behalf of the Board, for their continued
dedication.
Throughout the period, we continued to make good progress
against our strategic objectives - establishing our European
Distribution Centre, continuing our store rollout strategy as well
as improving our omni-channel proposition. Looking through the
current uncertain macroeconomic backdrop, our strategy remains
unchanged as we continue to focus on gaining market share both in
the UK and Europe over the medium term.
Looking ahead, we will continue to evolve our customer offering
across all channels but with a particular focus on sustainable
profitable growth and our European presence. With significant cash
on the balance sheet, the Group will continue to strategically
invest so long as it remains prudent to do so, and only to the
extent that it retains both strong liquidity and its robust balance
sheet.
In my last report as CEO, I am confident that Angling Direct is
in good shape. Whilst we are vigilant as to the continuing
challenging macroeconomic backdrop, I remain cautiously optimistic
when I look to the future, confident that the strong foundations we
have put in place through FY23 will ensure the Group is well-placed
to capitalise on the numerous opportunities that will arise through
the remainder of 2023 and beyond.
Finally, I would like to take this opportunity to welcome Sam
Copeman to the Company who will join us on 5 June in the role of
CFO. Having conducted a rigorous search and selection process, we
are delighted to have chosen Sam to work alongside Steve to deliver
on the next stage of our growth journey. I look forward to working
with both of them as I move into my role of Non-executive
Chairman."
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
Tom Salvesen
Alex Bond
James Fischer
FTI Consulting - Financial PR +44 (0) 20 3727 1000
Alex Beagley anglingdirect@fticonsulting.com
Sam Macpherson
Alice Newlyn
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,
.nl and .eu) 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
28,000 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 46 retail
stores. In 2015, the Company opened a 2,800 sq. metres central
distribution centre in Rackheath, Norfolk, where the Company's head
office is also located. In January 2022 Angling Direct acquired an
additional 3,900 sq. metres distribution centre in Venlo,
Netherlands to service its established, and rapidly growing,
presence in Europe with native language websites set up in key
regions to address demand.
Chairman's Statement
Introduction
I am pleased to present another year of significant strategic
and operational progress where we have once again achieved record
sales. This is despite the headwinds resulting from the continuing
conflict in Ukraine, the global energy crisis, high inflation and
resulting pressure on costs impacting consumer confidence and
spending. All this has, not unexpectedly, made trading very
challenging which has impacted results for most retail businesses
and particularly discretionary retail.
We are however a specialist business with increased scale and a
growing and loyal customer base of anglers passionate about their
fishing. We remain focused on our strategy and strong sense of
purpose. We believe that we are continuing to take market share as
we pursue our beliefs that everyone should have the opportunity to
get out by the waterside and experience the proven wellbeing
benefits of fishing.
We continued our UK store roll-out with the opening of three new
stores in the year. Since the year end, we have opened one store in
Cardiff, taking our total to 46, with further planned openings in
the pipeline this year.
We successfully opened our European Distribution Centre during
the year, which forms the base to drive our expansion into the EU
and, importantly, overcomes some of the issues caused by Brexit.
This significant operational step provides access to target markets
three times the size of the UK, with similar characteristics.
Whilst sales to the EU were affected by the turmoil in Ukraine,
there remains a material opportunity for growth in the medium term,
and we are beginning to see encouraging progress that will
hopefully grow as this current year progresses.
In terms of our digital trading proposition, we have continued
to improve the Angling Direct App with further major upgrade
releases under development. Similarly, we have focused on
continually improving our website user experience, paying
particular attention to promotional trading and ease of
checkout.
Finally, Andy Torrance will step down from his role as CEO and
will take my place as Non-Executive Chairman. Steve Crowe, the
Group's CFO, has been chosen by the Board to replace Andy and will
become CEO. These changes will take place when Steve's successor,
Sam Copeman is appointed to the Board following the conclusion of
the Company's AGM on 22 June 2023.
Financial overview
The Group achieved a record revenue of GBP74.1m in the financial
year to 31 January 2023 (2022: GBP72.5m, up 2.2%).
Store sales increased by 6.8% to GBP41.3m (2022 GBP38.7m) and
online sales decreased by 3.0% to GBP32.8m from GBP33.8m. Within
this, UK online sales decreased by 4.8% to GBP29.6m, driven by
tough H1 comparatives. Significantly, however, UK online sales
remain 57.9% 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 all the headwinds, the Group delivered
pre- IFRS 16 EBITDA of GBP2.2m (2022: GBP5.2m) and a pre-tax profit
of GBP0.7m (2022: GBP4.0m). The Group ended the year with a strong
balance sheet and net cash of GBP14.1m as at 31 January 2023 (2022:
GBP16.6m).
People & community
One of our strong founding beliefs is that we should help
improve the lives of everyone who engages with us. We aim to not
just enhance the lives of anglers, colleagues and customers, but
also to have a positive impact on our suppliers, shareholders,
local communities, and the environment.
Our aim is to introduce the many benefits of fishing to as many
people as possible and to help all anglers to have more success and
enjoyment in the pursuit of their passion. We are achieving that
aim through our superb colleagues who share our vision and are
passionate in delivering the very best experience to our angling
community. This includes having qualified angling coaches in every
store and also coaching at "Get Fishing" events organised in
conjunction with the Angling Trust.
Indeed, 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. I remain humbled by and so grateful for
their unwavering passion and dedication.
We continue to endorse evidence that fishing is a great way to
improve all round wellbeing and we support bodies set up to
encourage those with disabilities, of any kind, to benefit from
fishing.
Last year we set up our Environmental Policy Group (EPG) which I
am pleased to Chair. This has enabled us to formulate a focussed
action plan and we have made some excellent progress with this
strategy, as highlighted in our Annual Report.
Looking ahead
I doubt anyone could have predicted the events that have
disrupted the world over these last few years and their impact on
virtually all businesses. It is clear that the more challenging
economic environment will carry on well into this year but we are
all hopeful that interest rates and energy price pressures will
begin to ease as the year progresses and with that will come a
return of consumer confidence and an upturn in the economy.
We have focused on tight cost controls and good cash management
to offset these impacts and will continue to closely monitor the
evolving political and economic situations and take appropriate
actions where necessary. As with past downturns, I believe that
opportunities will arise for those that are prepared and capable of
seizing and delivering upon them. We have a strong balance sheet
and are well placed and ready to progress our growth strategy and
take such opportunities.
We will continue moving forwards with both our proven successful
omni-channel and purpose driven consolidation model in the UK and
Europe as we look to capitalise on the growth opportunity we
perceive, benefitting our colleagues, our shareholders, the angling
community, the wider society and, not least, the environment.
Board changes
The Board welcomed Chis Keen on 5 April 2022 and Nicola (Nicki)
Murphy on 16 June 2022 as Non-Executive Directors. Chris and Nicki
have already had a positive impact and I know their vast breadth of
experience will continue to bring significant benefit to the
Company.
I would also like to offer my heartfelt thanks to Dilys Maltby
and Paul Davies for everything they have done for the Company
during their period in office. Dilys stepped down as Non-Executive
Director on 15 May 2022 and Paul likewise on 31 January 2023. Paul
had been with us since before our IPO in 2017 and played an
integral role until he stepped down.
And finally, as announced post year end on 28 February 2023, I
have decided to step down as Chairman having proudly served in this
position since the IPO, and before. I will however stay on as a
Non-Executive Director, helping the business stay firmly on course
with our strategic aims, our beliefs, purpose and culture. Being
passionate about the environment I will also continue as Chair of
our EPG.
Concurrently, Andy Torrance will step down from his role as CEO
and will take my place as Non-Executive Chairman. After a thorough
process, Steve Crowe, the Group's CFO, has been chosen by the Board
to replace Andy and will become CEO.
We are pleased to have announced that Sam Copeman will join the
Group in early June to work alongside Steve to deliver the Group's
growth strategy. Sam will join the Board as CFO following
conclusion of the AGM in June at which point the above outlined
Board changes will be implemented.
Yours sincerely,
___________________________
Martyn Page
Non-Executive Chairman
Chief Executive's Review
'Continued focus on our clear purpose and bold ambition has
allowed us to grow and further extend our market leading position
against a difficult consumer backdrop. We've protected the strength
of our balance sheet whilst continuing to make significant
strategic progress.'
Introduction
FY23 has seen Angling Direct continue to grow sales despite
significant consumer headwinds, including inflation and cost of
living pressures across all of the Group's key markets. Against
this backdrop, our omni-channel business model continues to
demonstrate considerable financial and operational resilience.
Thanks to our trading agility, I'm pleased to report total sales
increased by 2.2% to a record GBP74.1m, reflecting further market
share gains at the expense of smaller, less contemporary
competitors. Not only has our amazing 'Team AD' been able to
maintain our strong sales record, but they have also risen to the
challenge and ensured that we continue to make solid strategic
progress across the business, delivering real points of difference
for our valued customers. I would like to sincerely thank all my
colleagues for their exceptional commitment, ongoing resilience,
and above all, their forward-looking enthusiasm again during this
year.
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 market, as people of all backgrounds discover the
restorative pleasure, challenge and wellbeing benefits of
angling.
During my third full financial year as CEO, our ambition was to
continue to profitably grow market share in the UK, while
simultaneously executing our plan to expand trade in the
significant and highly fragmented European fishing tackle market.
Our strong financial position has allowed us to continue to invest
in order to strengthen the Group, to align with its purpose and
strategic growth ambition. We focused those investments to generate
a sustainable return for all stakeholders by innovatively
developing both our digital and physical customer offer,
consciously investing in customer prices in order to maintain our
leading competitive position, and securing stock supply to provide
record levels of product availability.
Our store teams are supporting their customers by being the
'Best in Town'. Total store sales increased 6.8% against FY22
including GBP0.9m sales from the three new stores opened in the
year. Online, we continued to develop our customer experience to
optimise both conversion rates and average transaction values.
Total online sales declined modestly by 3.0% driven by tough H1
prior year comparatives. UK online sales, representing 90% of total
online sales, decreased by 4.8%, however, UK online sales returned
to growth in H2 (against prior year) as channel trading returned to
more normal post pandemic levels. Furthermore, despite online sales
falling across the year as a whole, UK online sales were still
57.9% above pre-Covid levels illustrating the significant step
change in the Group's omni-channel offering. Following the
successful opening of our European Distribution centre in March
2022, our European revenue saw a return to growth as sales
increased by 18.4%, with sales in our key European territories of
Germany, France and the Netherlands increasing by 32.3%. The
initiative represents a significant strategic step for the Group in
expanding our total addressable market and we expect Europe to play
an increasingly important role in the future growth of the
business.
Given the well understood pressure on consumer discretionary
spend, we consciously invested in customer prices to underpin our
competitive pricing advantage. This was particularly prevalent as
we sought to establish material levels of European revenue by
attracting and acquiring new customers. We continued to maintain a
disciplined trading approach, promoting all that Angling Direct has
to offer, whilst continually refreshing our ranges with the latest
innovative, sought after product ranges. Consequently, we saw a
190bps decline in gross margin to 34.8% and a 3.1% reduction in
gross profit versus the prior year. This, combined with a larger
than expected first year European trading loss of GBP1.3m and
GBP0.9m removal of prior year Government Covid-19 support, resulted
in a reduction in profit before tax to GBP0.7m.
We continued to optimise stock investment resulting in record
product availability to customers ahead of the 2023 fishing season,
as well as a curated range to satisfy our European growth plans.
Our resilient trading performance and associated cash conversion
has substantially mitigated these working capital investments,
enabling us to continue our store roll out strategy. Operating
cashflow remained positive at GBP1.5m resulting in a net cash
position of GBP14.1m as at 31(st) January 2023.
I am pleased that we have remained focused on our clear purpose
and strategic opportunities across the breadth of our business. In
particular, the opening of our new European distribution centre in
the Netherlands marked a significant step towards facilitating the
full Angling Direct omni-channel offering within this attractive
and sizeable market. I am confident that the investments we have
made and will continue to make, ensure we are well positioned to
get even more people fishing and continue to deliver sustainable,
profitable growth.
Business review
Focused strategic progress against a challenging consumer
backdrop
We set out to maintain our UK growth momentum while opening a
new EU online distribution centre to accelerate European expansion.
Against a difficult consumer backdrop, we were clear we needed to
remain agile to navigate competitive challenges brought about by
pressure on discretionary spend and rising cost inflation. We have
continued to focus on developing operational excellence, return on
capital, and improving our customers' experience via whichever
sales channel they choose.
Operational excellence
Digitally we have continued to improve our customers' experience
across all five of our websites and our trading App, with a focus
on an improved buying journey and checkout experience in order to
aid conversion. As a result, we continue to improve search
relevance and site speed, maximising conversion opportunity. Our
web trading App, we believe the first of its kind, saw 55,000
unique users in its first full year with sales participation
peaking at 10.9% during promotional periods, supporting customer
loyalty and repeat purchase. Our new email marketing platform
increased email sales participation rate by 26%. These initiatives
along with an ongoing drive to develop fresh and relevant digital
content, meant UK online conversion remained strong at 5.69%.
We continued to promote not only our everyday price
competitiveness but also the breadth of our ranges, including our
own Advanta brand, the quality of our service and customer
inspiration.
A key strategic growth priority was to open our new EU
distribution centre in Venlo, NL. This online fulfilment facility
became fully operational on schedule on 1(st) March 2022 and now
serves our four international websites (www.anglingdirect.de,
www.angling direct.fr, www.anglingdirect.nl and
www.anglingdirect.eu) allowing us to locally tailor our customer
offer, overcome post Brexit trading restrictions and increased
costs, whilst continuing to drive market share gains in the
cEUR1.8bn target European market.
In the UK distribution centre, we focused on protecting recent
efficiency gains, investing in colleagues' benefits and logistics
management. Rising costs and external industrial action led to a
change in parcel carriers later in the period, to the extent that
we now anticipate cost and shrinkage efficiencies in the coming
year.
Recent investments in supply chain management along with ongoing
range and space optimisation, both in store and online, meant that
we have achieved record on shelf product availability for our
customers as we enter the 2023 fishing season. Our Category team
has continued to build positive relationships with our product
suppliers leading to a growing programme of innovative and often
exclusive new product launches, one example being the new One More
Cast (OMC) terminal tackle range.
All store colleagues are now engaged in our BAITS bespoke active
selling programme, designed to ensure our customers receive the
very best advice to support their angling ambitions. As a result,
we have seen consistently strong store customer footfall
conversion. Our Angling Trust qualified angling coaches are
deployed in all stores and are now available for customers to book
personalised dedicated instore coaching sessions. Additionally, all
stores now offer fishing reel spooling, and several have dedicated
Pole Experts to assist customer trial and selection of these higher
priced specialist items. We continue to utilise footfall counters
to match colleagues with customer demand to improve service and to
help alleviate the impact of significant statutory wage (national
minimum living wage) inflation.
In the UK we continue to target customer catchments unserved by
Angling Direct, opening three new stores in the year in Coventry,
Stockton and Washington, bringing the total by the end of the
period to 45. Fitted out to our latest market leading concept and
built by our newly outsourced store development partners, these
stores opened in record time with minimal impact on existing store
operations, and we are pleased with their early performance.
Return on capital
Focused on continually tailoring ranges across the five major
fishing disciplines, Carp, Coarse, Predator, Sea and Game, our
Category Management team continues to evolve, concentrating on more
efficient space utilisation and further margin development. This
ongoing approach will ensure Angling Direct remains the 'go to'
fishing tackle retailer for all anglers, regardless of ability or
fishing discipline. Category management also increasingly informs
our product supplier strategy as our key partners align with our
purpose and growth objectives for mutual benefit.
In a fragmented and consolidating market, with discretionary
consumer spending under pressure, it is vital that Angling Direct
continues to act responsibly whilst also remaining price
competitive. To this end, whilst improving product supply terms, we
consciously invested in customer pricing, the net effect on UK
gross margin being a reduction of 170bps. In the EU, to prompt new
customer trial, marketing campaigns were initially heavily price
promoted, particularly during H1. As a result, the Group's overall
margin across all channels reduced by 190bps to 34.8% for the
period.
During the year we saw a reduction in port disruption and some
moderation of shipping costs but whilst product supply lead time
has improved, stock depth and continuity varies across our supply
base. Utilising our long-established relationships, we consciously
invested to optimise stock inventory ahead of the new spring 2023
season, protecting our growth ambition and supporting the
activation of our new European distribution centre with a GBP2.3m
stock investment. As a result of these actions, stock turn in the
year moved to 2.8x from 3.0x.
To ensure the widest possible product availability for our
online customers we continued to develop our 'single stock file'
approach. By utilising store stock holding to supplement central
stocks, we were able to fulfil direct to customer from in-store
when it was the most efficient option, improving customer
conversion and further optimising sell through and stock turn.
Sales of our own brand range, Advanta, which delivers above
average margins, grew by 24% to GBP5.0m following successful new
product introductions, re-branded packaging and competitive
promotions. Discover, our new own brand range of products designed
for those new to angling, was soft launched ahead of further
expansion of both ranges in 2023.
We continue to focus on improved decision making and a
disciplined approach to new expenditure, including new store site
selection. Our investments in timely management data provision,
revised processes, and much improved visibility of our cashflows,
have allowed more forward planning and better trading decisions as
well as tactical stock investment.
New growth opportunities - European markets
Our clear ambition is to become Europe's first choice
omni-channel fishing tackle destination for all anglers, regardless
of experience and ability. In the period we successfully
established in-region European distribution, reducing adverse post
Brexit trading restrictions and allowing us to offer much more
competitive customer fulfilment options. The distribution centre
services all orders generated outside the UK from our
well-established native language German, French and Dutch websites,
as well as our .eu site, allowing us to despatch to all EU
countries.
We anticipated first year losses in Europe as we invested to
acquire a material customer base, raise wider consumer awareness
and establish growing sales momentum. Unfortunately, the opening of
our new distribution centre coincided with the start of the war in
Ukraine and ensuing pan-European economic turbulence, manifesting
in rapidly increasing inflation and European consumer impacts
similar to those experienced by other consumer businesses across
the UK. EU losses in the period were GBP1.2m (pre-IFRS 16 EBITDA),
exceeding our initial expectation by GBP0.5m, due to a combination
of both lower than modelled sales growth and reduced product
margins.
These European markets, by their significant size and
competitive nature, both online and store-based, are very
attractive to Angling Direct given its unique omni-channel customer
offering. Following significant development work during H2 to
optimise ranges, onboard new suppliers, and refine marketing and
pricing strategies, we remain confident of the significant growth
opportunity available, especially given more recent trading and
margin development progress.
Going forward we will continue to actively invest to grow market
share in the EU with a particular focus on our three identified key
territories, namely Germany, France, and The Netherlands, which
have a combined market size of c.GBP1.8bn. We continue to ensure
that our four international sites replicate our UK platform in
terms of functionality and richness of content, including our new
web trading App. Our in-country teams will continue locally
tailoring ranges, bespoke local marketing and social media
engagement.
We believe the opportunity for a market leading, contemporary,
genuinely omni-channel proposition in mainland Europe is clear and
very attractive to a huge group of prospective new customers. We
are now actively engaged in the search for initial store sites,
ensuring that options are rigorously reviewed, and potential
actions planned to optimise returns for all stakeholders.
New growth opportunities - Digital capability
We are committed to utilising innovative contemporary digital
technologies and have been able to call upon our significant stock
depth, semi-automated distribution facility, multilingual customer
care team and significant social media reach to ensure that we can
provide our customers with market leading advice, engagement,
service and inspiration.
Download and participation in our new AD fishing tackle trading
App has been encouraging. The mobile App allows our customers to
interact, in multiple languages, with the full breadth of Angling
Direct's rich digital content, offers contemporary advice and
inspiration, as well as the ability to purchase from our full
product range direct from the bankside. The next phase of App
development, MyAD, will launch this summer with personalised
membership offers both online and instore, local community features
and exclusive promotions. Scannable at the point of purchase
in-store, data from the App will supplement our existing online
database with, for the first time, visibility of cross channel
shopping behaviour.
Additionally, our in-house web development team has continued to
progressively deploy our new customer journey functionality
designed to improve relevance and ease of use. Visitors have
experienced further improved site speed, new content, such as our
New to Angling feature, new store locator, local pages and improved
blog navigation. Conversion rates in the UK remained strong at
5.69%. Our proactive online marketing investment gave a return on
paid advertising spend in the UK of 12.0x, a modest reduction over
the prior year as a more competitive landscape for paid advertising
emerged as supply chain issues eased.
New growth opportunities - Evolving store concepts
We are committed to delivering the very best physical retail
interaction to create loyal customers and prompt recommendation. We
opened three new retail stores during the period in
Stockton-on-Tees (September 2022), Coventry (August 2022), and
Washington (July 2022) bringing the total portfolio at the end of
FY23 to 45 stores. As well as specifically tailored product ranges,
updated intensive merchandising techniques and clearer customer
messaging, we have further refined our new store fit out concept to
showcase new initiatives such as dedicated 'Learn to Fish'
sections, space intensive hands-on rod and reel displays, tech demo
areas, less space intensive checkouts and dedicated personal
finance areas.
Location-wise, we remain focused on the concentration of fishing
licence sales as well as local competitive profile. Our property
investment model ensures any new site is targeted with delivering
appropriate returns within a minimum acceptable time. As a
destination retailer our preference is convenient, easy to access
sites. It remains to be seen how the continued demise of premium
High Street retail space impacts upon the cost and availability of
our target destination locations and we continue to monitor
developments closely.
Through our exclusive retail partnership of the Angling Trust's
"Get Fishing" campaign, we have continued to develop our team of
Angling Trust certified fishing coaches to ensure that our
customers get the very best advice and support regardless of their
fishing ability. Now with over 80 coaches and growing, several
colleagues have also achieved their Level 2 qualification.
Customers of all experience levels can now book dedicated timeslots
with our coaches who can offer support in store as well as angling
tuition at external bankside events.
Organisational capability .
As a growing business we continue to proactively invest in
people capability as well as capacity to support our growth plans.
During the year we appointed a new Technology Director who is
focused upon developing a secure, resilient and scalable IT
infrastructure to support our future growth.
We always seek to develop a good proportion of our future talent
in-house ensuring a healthy mix of experienced, enthusiastic
anglers. We did also welcome new colleagues into our UK and
European teams, including experienced Web trading, Marketing, and
Supply managers.
Our colleagues and our role in the community
Our colleagues are the face of Angling Direct to our customers
and are key to delivering an excellent service, both in store and
online. They also play a key 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.
We continue to progressively develop our Team AD employment
benefits package, aligned with our objective to become the leading
employer within our market. We believe high performing colleagues
should be recognised and rewarded for their contribution to our
success. As well as again paying all colleagues a Christmas bonus
as a thank you for their hard work, we continue to develop annual
incentives targeting outperformance across various measures aligned
with both our short and longer term business objectives. To promote
our desire to 'Get Everyone Fishing', each team member now has the
opportunity to take first time angling friends and family fishing
for the day utilising an extra day's paid leave.
ADVoice, our colleague listening council, continues to thrive
chaired by a colleague-elected representative and attended by the
CEO as well as other members of the senior leadership team. All
colleagues receive at least one personal development review during
the year.
At Angling Direct, we passionately believe in the general
wellbeing benefits of fishing and 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 charity which uses fishing as therapy. We offer
support through the donation of fishing tackle, the utilisation of
our social reach, our IT equipment, our colleagues' time at their
events, as well as consulting expertise where necessary.
As market leaders we have a key role to play supporting fishing
participation for the wider benefit of our industry. After a very
successful first two years as exclusive retail sponsors of the
Angling Trust's 'Get Fishing campaign', designed to attract new
anglers through a bankside coaching programme, we're delighted to
continue into a third year. We also remain active supporters of the
Angling Trades Association 'National Fishing Month' designed to get
more people out on the bank. We have co-funded the training of over
80 Angling Direct colleagues as certified angling coaches who will
offer advice and support to anglers of all abilities, both in store
and at local events.
We continued to extend our social media and YouTube reach. In
the period, our Facebook followers exceeded 160,000 for the first
time. We have seen particular success with our '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 responsibilities seriously and that extends to
ensuring Angling Direct is a sustainable business across the areas
of environmental protection, economic viability, and social
equality.
Board Succession Plan
Post period end, we announced the Board Succession Plan, which
will involve the following changes:
-- Andy Torrance will step down from his role as Chief Executive Officer
(CEO) and be appointed Non-executive Chairman
-- Steve Crowe, Angling Direct's Chief Financial Officer (CFO), has been
chosen by the Board to replace Andy and will be appointed CEO
-- Martyn Page, will step down from his role as Non-executive Chairman
and will remain on the Board as a Non-executive Director
-- The Board conducted a thorough search for a CFO and has announced that
Sam Copeman will join the Group on 5 June 2023 and be appointed to
our Board at the conclusion of our AGM on 22 June
Current Trading and Outlook
I am pleased to report that, despite the ongoing inflationary
pressure on consumers, the Group has experienced growth across all
channels in the first three months of our financial year,
delivering total Q1 sales growth of 11.0%.
Looking ahead, we will continue to evolve our customer offering
across all channels but with a particular focus on sustainable
profitable growth and our European presence. With significant cash
on the balance sheet, the Group will continue to strategically
invest in market share gains within the UK and Europe as long as it
remains prudent to do so, and only to the extent that it retains
both strong liquidity and its robust balance sheet.
In my last report as CEO, I am confident that Angling Direct is
in good shape. Whilst we are vigilant as to the continuing
challenging macro-economic backdrop, I remain cautiously optimistic
when I look to the future, confident that the strong foundations we
have put in place through FY23 will ensure the Group is well-placed
to capitalise on the numerous opportunities that will arise through
the remainder of 2023 and beyond.
___________________________
Andy Torrance
Executive Director and Chief Executive Officer
15 May 2023
Chief Financial Officer's statement
Well positioned for growth whilst navigating the more uncertain
macro-economic environment
The Group has continued to deliver on its strategic priorities
throughout FY23 despite the adverse consumer dynamics of reduced
demand post COVID-19 alongside the current cost of living pressures
for consumers. The Group maintained its strong balance sheet and
liquidity position, which presents opportunity as further market
consolidation occurs and more favourable consumer dynamics
return.
Financial highlights
In FY23 the Group continued to generate revenue growth. This was
driven by UK retail stores through the space effect of new and
prior year store openings, alongside establishing in-Europe
distribution capability.
FY23 saw focus on margin preservation within the UK through
greater focus from our category management teams on buying and
pricing as increasing stock availability in the supply chain
alongside tougher consumer spend dynamics resulted in more
disruptive customer pricing within the market. Our resilience in
this area enabled the Group to remain profitable whilst absorbing
the start-up losses of the European online business, alongside
GBP0.9m lower direct government support (in the form of Coronavirus
Job Retention Scheme "CJRS" the Restart Grant Scheme "RGS"). Profit
after tax was GBP0.5m (FY22 GBP3.1m).
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 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
Change Change
Year ended 31 January 2023 2023 2022 2022 % %
Post-IFRS Pre-IFRS Post-IFRS Pre-IFRS Post-IFRS Pre-IFRS
16 16 16 16 16 16
---------- --------- ---------- --------- ---------- ---------
Revenue (GBPm) 74.1 74.1 72.5 72.5 2.2% 2.2%
EBITDA (GBPm) 4.6 2.2 7.3 5.2 (37.9%) (57.2%)
Operating profit (GBPm) 1.1 0.7 4.4 3.8 (75.7%) (80.6%)
Profit before tax (GBPm) 0.7 0.8 4.0 3.8 (83.2%) (79.2%)
Basic earnings per share
(pence) 0.70 3.98 (82.4%)
---------- --------- ---------- --------- ---------- ---------
-- 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 as the 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 2.2% year on year (in the UK 1.6%) with store sales
increasing 6.8% and the online business contracting 3.0%, UK online
sales reduced 4.8%, but remained 57.9% ahead of the pre-COVID FY20
year. The UK growth was driven by increased transaction volumes as
in store conversion and the store footprint increased. The total UK
business now having delivered 47.3% growth against the pre-COVID
FY20 year. The Group's European business grew 18.4%. In Q1 FY23 the
Group opened its own European distribution facility to serve its
European customers. Located in The Netherlands and supplied
primarily directly from a European supplier base this facility
negated much of the post Brexit challenges around cross border
supply and customer fulfilment. The Group continues to focus on
European territories that have the market size to deliver both
strong sales growth and promising levels of profitability. Our key
territories of Germany, France, and The Netherlands increased sales
year on year by 32.3%. These territories now represent 94.3% of
total international sales (FY22: 84.4%). These European markets
have also been materially impacted by consumer dynamics as well as
the geopolitical events in Ukraine, and therefore whilst the timing
of the launch of the in Europe fulfilment has proved challenging,
from a medium-term perspective these remain attractive markets,
given the need, post Brexit, to fulfil these products directly from
within the EU.
Revenue 31 January 31 January
2023 2022
GBPm GBPm
----------- -----------
UK Revenue 71.0 69.8
Germany, France and Netherlands revenue 3.0 2.2
Other countries revenue 0.2 0.4
74.1 72.5
----------- -----------
Retail stores revenue 41.3 38.7
Ecommerce revenue 32.8 33.8
74.1 72.5
----------- -----------
Stores were not impacted by COVID trading restrictions during
FY23, unlike FY22 where Q1 was impacted by such restrictions.
Like-for-like store sales were flat year on year with Q1 reflecting
the restrictions 34.1% higher, Q2 9.7% lower, with this softening
to 1.1% lower by Q4. The increase in store sales from the expansion
of the Group's three new stores during the year was GBP0.9m with
GBP2.4m from the four new store openings in FY22, collectively
contributing GBP3.3m (8.1%) to total stores revenue.
UK online sales reduced 4.8% year on year, reflecting a COVID
influenced H1 FY22 comparatives. Customer demand has proved
volatile throughout the year with monthly performance against prior
year periods (excluding November - anniversary of cyber-attack in
FY22) ranging from 26% down to 12% up.
Our own brand product range Advanta contributed 6.8% (FY22 5.6%)
of total sales, GBP5.0m, during the year (FY22: GBP4.1m) an
increase of 24.2% on prior year.
Gross margin
Our gross profit decreased by 3.1% to GBP25.8m (FY22: GBP26.6m).
Gross margin reduced by 190 bps to 34.8% (FY22: 36.7%). UK gross
margins reduced to 35.3% from 37.0%. The UK business was unable to
pass through all product price inflation into the customer's
basket, as well as investing in price to grow market share. Against
this consumer spend headwind the UK business was successful in
supporting the gross margin by increasing its penetration of own
brand sales, as well as improving the margins from sell through of
discontinued lines.
Other income
As highlighted above the Group did not access direct government
support during FY23 relating to the COVID-19 pandemic. In FY22 the
Group accessed GBP0.9m of support, comprising GBP0.7m for RGS and
GBP0.2m for CJRS.
The Group was the subject of a malicious cyber-attack during Q4
FY22 which resulted in 7 days lost trading for the online business.
The incident was subject to an insurance claim with the Group's
insurers and this was successfully settled in FY23 with the Group
recovering a payment of GBP0.3m.
Administrative expenses
Total administrative expenses increased by 10.4% to GBP21.7m
(FY22: GBP19.7m) compared to a 2.2% increase in revenue. Of the
increase GBP0.6m relates to the European segment, GBP0.4m as the
European segment incurred higher levels of variable cost as
revenues grew, GBP0.5m of higher fixed costs relating to the
European property and colleagues, with a GBP0.3m saving on
advisors' fees incurred during the setup phase during FY22.
In the UK head office administrative expenses reduced GBP0.4m as
the Group continued to challenge itself to ensure its growth
leveraged its fixed cost base. UK stores increased GBP1.5m (17%),
an increased depreciation charge of GBP0.4m for new space alongside
the loss of government support for business rates and living wage
increases materially contributed to the change. The UK online
business administrative expenses increased GBP0.4m as living wage
challenges and business rates relief also impacted this
segment.
Segmental Analysis
The Group has for the first time disclosed its European business
as a separate reporting segment as the Board now evaluates this
aspect of the business as a separate operating segment.
The stores, despite increasing revenue year on year by 6.8%,
reduced their EBITDA to GBP6.7m (FY22 GBP7.1m) and profit before
tax year on year to GBP3.9m (FY22 GBP4.8m). Operational
efficiencies were unable to fully offset the impact of COVID
Business Rates relief falling away (GBP0.3m), impact of c7% living
wage increase and softer gross margins year on year (70 bps) as the
Group consciously invested margin to retain customers as consumer
spend became more challenged. All stores remain pre-IFRS 16 EBITDA
profitable post three-year maturity.
The UK online business despite contracting 4.8% in revenues year
on year delivered GBP2.8m of profit before tax and GBP3.4m of
EBITDA. The segment experienced more challenging dynamics on gross
margin than the stores given the relative mix in the online
business to higher value capital items.
The European segment delivered a loss before tax of GBP1.3m and
an EBITDA loss of GBP1.0m. The in-country customer fulfilment model
commenced in March which coincided with the start of the war in
Ukraine and more challenging European customer dynamics. Whilst the
sales ambitions for the start-up European business were not
delivered in the year the Group worked hard to balance growth and
levels of losses. H2 in FY23 saw the Group reduce the EBITDA losses
to GBP0.4m from the GBP0.6m in H1 against a backdrop of maintaining
an annual fixed cost base of cGBP0.8m.
The Head Office segment modestly increased its loss before tax
to GBP4.8m (FY22 GBP4.7m) despite the loss of GBP0.9m of government
COVID-19 support. Payroll costs in the segment reduced GBP0.5m year
on year as the Group continued to evaluate colleague investment
levels against the more challenging consumer environment.
Segmental analysis 2023 2022
Year ended 31 January UK Europe Head Head
GBPm Stores online online office Total Stores Online office Total
Revenue 41.3 29.7 3.1 - 74.1 38.7 33.8 - 72.5
Net assets 14.4 3.3 3.4 16.2 37.3 12.7 4.6 19.1 36.4
Profit / (loss) before
tax 3.9 2.8 -1.3 -4.8 0.7 4.8 3.9 -4.7 4.0
EBITDA post IFRS 16 6.7 3.4 -1.0 -4.5 4.6 7.1 4.5 -4.3 7.3
EBITDA pre IFRS 16 4.9 3.2 -1.2 -4.7 2.2 5.3 4.3 -4.5 5.2
Profit before tax and EBITDA
Profit before tax decreased 83% to GBP0.7m (FY22: GBP4.0m) with
the ratio to sales reducing from 5.5% in FY22 to 0.9%, gross margin
representing 1.9% of the movement, the cost base 2% and reduced
government support net of the cyber insurance recovery 0.7%. EBITDA
reduced 38% to GBP4.6m (FY22: GBP7.3m), as a ratio of sales 6.2%
(FY22: 10.1%) and on a pre IFRS 16 basis 57% to GBP2.2m (FY22:
GBP5.2m), as a ratio of sales 3.0% (FY22: 7.2%).
Tax
The Group's effective tax rate was 19.4% (FY22: 23.5%). 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. The
main expenses that are not deductible for tax purposes are
professional fees. 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.
Corporation tax rates in the UK and the Netherlands are comparable
and therefore no material difference arises from the UK headline
corporation tax rate of 19%.
Taxation GBPm %
------ -------
Profit before tax 0.7
------------------------------------------- ------ -------
Expected tax at UK standard rate of
tax 0.1 19.0%
Ineligible depreciation 0.0 1.8%
Expenses not deductible for tax purposes 0.0 0.1%
Capital allowances enhanced deduction (0.1) (8.1%)
Difference in current and deferred tax
rate 0.0 2.8%
Adjustments in respect of previous year's
tax charge 0.0 3.7%
Actual charge / effective tax rate 0.1 19.4%
------------------------------------------- ------ -------
Returns and dividends
Basic earnings per share ('EPS') is 0.70p (FY22: 3.98p) reducing
82% year on year, comparable with the rate in reduction of 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. The Group is focused on
delivering a strategy of profitable growth and will reinvest all
surplus cash resources back into the business, and continues to
evaluate accretive M&A opportunities as market pricing starts
to reflect post COVID-19 trading. As a result of this, in the short
term, the Directors do not recommend a dividend payment to be
distributed for the year ended 31 January 2023. The dividend policy
will be kept under review as strategic expansion plans
progress.
Statement of financial position
Our consolidated statement of financial position is robust. As
at 31 January 2023 the Group had a net asset position of GBP37.3m
(FY22: GBP36.4m) and a net current asset position of GBP23.7m
(FY22: GBP23.2m). The Group includes GBP0.0m of net assets and
liabilities of its wholly owned subsidiary ADNL B.V.
The Group also had no external borrowing as at the reporting
date and closed FY23 with a cash and cash equivalents position of
GBP14.1m (FY22: GBP16.6m). Net debt* increased to (GBP2.6m) from
(GBP5.6m) in FY22, (GBP0.6m) reflecting the increased lease
obligations in the UK stores with the remainder reflecting
investment of cash into continued UK store roll outs and European
working capital.
The table below shows the key components of the statement of
financial position, the movements of note being the increase in
inventory levels primarily reflecting the GBP2.3m inventory
investment into the new European distribution centre. The Group had
three new stores in the estate as well as also building up our own
branded stock, Advanta, and funded these activities through
continued refinement of the wider UK stock holding without
compromising availability. Stock turn for the Group as a result of
these factors reduced to 2.8x from 3.0x. Stock turn for the UK
remained at 3.0x.
Property, plant and equipment grew by GBP0.6m with the
introduction of three new stores. Additions in the year also
included GBP0.1m relating to Cardiff (opened in Q1 FY24) as well as
GBP0.2m relating to ongoing store refresh programmes. Right of use
assets (ROU) have grown modestly by GBP0.4m. Three new stores were
brought into the estate comprising GBP1.0m of the ROU addition,
with the remaining additions relating to the existing Milton Keynes
location (new lease arrangement) and the new store in Cardiff. The
addition of the European distribution centre lease was executed Q4
FY22 and did not materially impact the year-on-year change.
Offsetting this growth in asset, the depreciation charge grew to
GBP2.0m (FY22: GBP1.6m), the Group continued to evaluate its
dilapidation obligations and associated restoration provision for
its growing physical store and distribution centre footprint. Two
leases were remeasured in line with contracted lease dates. The
average length of lease remaining for the Group has reduced to 5.6
years (FY22: 6.0 years). Additional investment in our software and
IT platforms of GBP0.3m was offset by a corresponding depreciation
charge as the business starts to reach a level of maturity on its
investment profile.
Statement of financial position 31 January 31 January
2023 2022
GBPm GBPm
----------- -----------
Property, plant and equipment 7.5 6.9
IFRS 16 Right-of-use assets 11.4 11.0
Intangible assets 6.1 6.2
Total non-current assets 25.0 24.1
Stock 17.8 16.3
Cash 14.1 16.6
Other current assets 1.1 1.1
Total current assets 33.0 34.0
Trade payables (7.5) (8.7)
Lease liabilities (1.8) (1.6)
Other current liabilities (0.1) (0.5)
Total current liabilities (9.3) (10.8)
Lease liabilities (9.8) (9.4)
Other non-current liabilities (1.7) (1.5)
Total non-current liabilities (11.4) (10.9)
Net assets 37.3 36.4
--------------------------------- ----------- -----------
*Net debt represents the Group's IFRS 16 lease liabilities less
the cash position as at the reporting date.
Cash flow and funding
During FY23 the Group generated cash from operating activities
of GBP1.5m (FY22: GBP4.8m). Operating cash generation was impacted
GBP3.3m year on year as a result of the reduced profit before tax
as set out above. Working capital investment year on year was
broadly neutral despite the scaled investment into the European
distribution centre. The Group was also tax paying in FY23 for the
first time with GBP0.4m paid in respect of the FY22 year and
GBP0.1m on account in respect of the FY23 forecast profits.
The Group has pursued its growth strategy by continuing to
deploy available cash resources into our e-commerce platforms both
in the UK and internationally, alongside investment in our
technology and inventory management systems. During the period, the
Group spent GBP2.0m on property plant and equipment, capitalised
spend in FY23 was GBP1.7m as FY23 cash included payments in respect
of prior year additions made in the closing months of FY22 as the
new European distribution centre was being operationalised.
Total cash used in the period was GBP2.5m (FY22: GBP1.6m cash
generated).
Cash flow 31 January 31 January
2023 2022
GBPm GBPm
Opening cash 16.6 15.0
------------------------------------ ----------- -----------
Profit for year 0.7 4.0
Movement in working capital (2.4) (2.4)
Depreciation and amortisation 3.5 2.9
Taxation paid (0.5) -
Other operating adjustments 0.2 0.3
Net cash from operating activities 1.5 4.8
Net cash from investing activities (2.3) (1.5)
Net cash from financing activities (1.7) (1.7)
Increase in cash in year (2.5) 1.6
Closing cash 14.1 16.6
------------------------------------ ----------- -----------
Going concern and viability
At the Statement of Financial Position date, the Group had cash
balances of GBP14.1m. The Directors consider the GBP14.1m enables
them to meet all current liabilities as they fall due. Since the
year end, the Group has continued to trade within the range of
internal plans upon which this assessment has been made.
After consideration of market conditions, the Group's financial
position, financial forecasts for two years, its profile of cash
generation and principal risks, the Directors have a reasonable
expectation that both the Company and the Group will be able to
continue in operation and meet their liabilities as they fall due
over the period. For this reason, the going concern basis continues
to be adopted in preparing the financial statements.
Outlook
We are confident in our ability to deliver further growth
despite the continued uncertainty in the macro-economic environment
and the impact on consumer confidence and spending patterns. With
the improved financial performance in the UK business, which is now
consistently delivering positive profits in comparison to the
pre-pandemic year in FY20, alongside the strengthened balance
sheet, and tight cash management, we are well positioned to
continue the programme of investment, both into the UK within the
physical estate, as well as in Europe in short term losses as the
online business continues to gain traction.
We will continue our focus on organic growth in the UK through
the acquisition of customers, both in the physical and online space
and will invest further to better understand and develop our
understanding of the customer and our offer to them. Operationally
the business will continue to focus on efficiency to mitigate as
far as possible the impact of cost and wage inflation, and more
specially the living wage changes from April 2023.
As our understanding of the European market deepens, we will
deploy capital into a European omni-channel offer, primarily
through greenfield sites, augmented by investment in strategically
aligned acquisitions where these can be delivered on compelling
metrics.
We have continued to focus on building disciplined financial
controls both in the UK and more latterly in Europe. In addition,
our focus has been upon achieving operational excellence,
strengthening corporate governance, maintaining the robustness of
the statement of financial position and promoting fishing as a
pastime through our evolving online and store customer
offerings.
___________________________
Steve Crowe
Chief Financial Officer
15 May 2023
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 January 2023
Consolidated
2023 2022
Revenue from contracts with customers 4 74,096 72,474
Cost of sales of goods 7 (48,307) (45,864)
Gross profit 25,789 26,610
-------- --------
Other income 5 287 914
Interest revenue calculated using the effective interest
method 104 14
Expenses
Administrative expenses (21,742) (19,687)
Distribution expenses (3,260) (3,423)
Finance costs 7 (509) (406)
-------- --------
Profit before income tax expense 669 4,022
Income tax expense 9(130) (945)
----- -----
Profit after income tax expense for the year attributable
to the owners of Angling Direct PLC 539 3,077
Other comprehensive income
Items that may be reclassified subsequently to profit
or loss
Foreign currency translation 127 -
--- -----
Other comprehensive income for the year, net of tax 127 -
--- -----
Total comprehensive income for the year attributable
to the owners of Angling Direct PLC 666 3,077
--- -----
Pence Pence
Basic earnings per share 24 0.70 3.98
Diluted earnings per share 24 0.69 3.93
Consolidated statement of financial position
As at 31 January 2023
Consolidated
Non-current assets 2023 2022
Intangibles 10 6,060 6,176
Property, plant and equipment 11 7,534 6,908
Right-of-use assets 12 11,418 11,028
Total non-current assets 25,012 24,112
------ ------
Current assets
Inventories 13 17,813 16,273
Trade and other receivables 14 447 542
Income tax refund due 58 -
Prepayments 603 545
Cash and cash equivalents 14,127 16,604
Total current assets 33,048 33,964
------ ------
Current liabilities
Trade and other payables 15 6,765 8,037
Contract liabilities 16 727 643
Lease liabilities 17 1,793 1,648
Derivative financial instruments 51 1
Income tax - 464
Total current liabilities 9,336 10,793
------ ------
Net current assets 23,712 23,171
------ ------
Total assets less current liabilities 48,724 47,283
------ ------
Non-current liabilities
Lease liabilities 17 9,750 9,402
Restoration provision 18 801 722
Deferred tax 19 883 744
Total non-current liabilities 11,434 10,868
------ ------
Net assets 37,290 36,415
====== ======
Equity
Share capital 20 773 773
Share premium 21 31,037 31,037
Reserves 22 602 266
Retained profits 4,878 4,339
Total equity 37,290 36,415
====== ======
Share
Share premium Retained
capital account Reserves profits Total equity
Consolidated GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February
2021 773 31,037 75 1,262 33,147
Profit after income tax
expense
for the year - - - 3,077 3,077
Other comprehensive
income for
the year, net of tax - - - - -
Total comprehensive
income for
the year - - - 3,077 3,077
Transactions with owners
in
their capacity as
owners:
Share-based payments - - 191 - 191
Balance at 31 January
2022 773 31,037 266 4,339 36,415
======= ======== ======== ======== ============
Share
Share premium Retained
capital account Reserves profits Total equity
Consolidated GBP'000 GBP'000 GBP'000 GBP'000 GBP'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
======= ======== ======== ======== ============
Consolidated statement of cashflows
For the year ended 31 January 2023
Consolidated
2023 2022
Cash flows from operating activities
Profit before income tax expense for the year 669 4,022
Adjustments for:
Depreciation and amortisation 3,485 2,922
Share-based payments 209 191
Net movement in provisions 30 12
Net variance in derivative liabilities 50 -
Interest received (104) (14)
Interest and other finance costs 429 394
4,768 7,527
Change in operating assets and liabilities:
Decrease in trade and other receivables 95 81
Increase in inventories (1,540) (3,792)
Increase in prepayments (58) (300)
(Decrease)/Increase in trade and other payables (965) 1,596
Increase in contract liabilities 84 30
2,384 5,142
Interest received 104 14
Interest and other finance costs (429) (393)
Income taxes paid (513) -
Net cash from operating activities 1,546 4,763
------- -------
Cash flows from investing activities
Payments for property, plant and equipment (2,014) (1,202)
Payments for intangibles (289) (327)
Proceeds from disposal of property, plant and equipment - 5
Net cash used in investing activities (2,303) (1,524)
------- -------
Cash flows from financing activities
Repayment of lease liabilities (1,720) (1,631)
Net cash used in financing activities (1,720) (1,631)
------- -------
Net (decrease)/increase in cash and cash equivalents (2,477) 1,608
Cash and cash equivalents at the beginning of the
financial year 16,604 14,996
Cash and cash equivalents at the end of the financial
year 14,127 16,604
======= ======
1. Basis of preparation
The Group's consolidated financial statements have been prepared in accordance
with UK adopted international accounting standards and IFRIC interpretations
and with those parts of the Companies Act 2006 applicable to reporting groups
under IFRS.
The financial information set out above does not constitute the company's
statutory accounts for 2023 or 2022. Statutory accounts for the years ended
31 January 2023 and 31 January 20222 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 2023 and 31 January 2022 is unqualified.
Statutory accounts for the year ended 31 January 2022 have been filed with
the Registrar of Companies. The statutory accounts for the year ended 31
January 2022 will be delivered to the Registrar 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 2025 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 2023, the Group had cash
and cash equivalents of GBP14.1m (2022: GBP16.6m). 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.
Geographical segments
The business operated predominantly in the UK. As at 31 January 2023, it
has three native language web sites for Germany, France and the Netherlands.
In accordance with IFRS 8 'Operating segments' for the periods up to 31
January 2022 no segment results are presented for trade with European customers
as these are not reported separately for management purposes and are not
considered material for separate disclosure. Trading through the subsidiary
in the Netherlands commenced on 1 March 2022.
Operating segments
In the periods to 31 January 2022, the Group is split into two operating
segments (Stores and Online) and a centralised support function (Head Office)
for business segment analysis. In identifying these operating segments,
management follows the route to market for the generation of the customer
order for its products. Due to the commencement of trading through the subsidiary
in the Netherlands, management has made a judgement that there are now three
operating segments (Stores, UK Online and Europe Online) from 1 February
2022. The Group has not restated the previously reported segment information
for the year ended 31 January 2022, as the necessary information is not
available and the cost to develop it would be excessive.
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 2023, Revenue of GBP937,000 was recognised in the UK Online and
fulfilled by the Stores, and profit of GBP38,000 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 2023, GBP24,066,000 of non-current assets are located in the
UK (31 January 2022: GBP23,030,000) and GBP946,000 of non-current assets
are located in the Netherlands (31 January 2022: GBPnil).
There are no major customers that contribute more than 10% of the Group's
revenue.
Operating segment information
UK Europe
Stores Online Online Head office Total
Consolidated - 2023 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 IFRS16 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
======= ===== ======= ======= =======
Stores Online Head office Total
Consolidated - 2022 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 38,665 33,809 - 72,474
Profit/(loss) before income tax 4,816 3,940 (4,734) 4,022
EBITDA post IFRS 16 7,144 4,510 (4,318) 7,336
Total assets 25,983 8,724 23,369 58,076
Total liabilities (13,262) (4,095) (4,304) (21,661)
EBITDA Reconciliation
Profit/(loss) before income tax 4,816 3,940 (4,734) 4,022
Less: Interest income - - (14) (14)
Add: Interest expense 330 49 27 406
Add: Depreciation and amortisation 1,998 521 403 2,922
EBITDA post IFRS 16 7,144 4,510 (4,318) 7,336
------- ----- ------- -------
Less: Costs relating to IFRS 16 lease
liabilities (1,813) (182) (140) (2,135)
EBITDA pre IFRS 16 5,331 4,328 (4,458) 5,201
======= ===== ======= =======
4. Revenue from contracts with customers
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Consolidated
2023 2022
GBP'000 GBP'000
Route to market
Retail store sales 41,296 38,665
E-commerce 32,800 33,809
74,096 72,474
Geographical regions
United Kingdom 70,952 69,818
Europe and Rest of the World 3,144 2,656
74,096 72,474
Timing of revenue recognition
Goods transferred at a point in time 74,096 72,474
======= =======
5. Other income
Consolidated
2023 2022
GBP'000 GBP'000
Net foreign exchange (loss) - (18)
Government grants - 932
Insurance claim 258 -
Rent income 29 -
Other income 287 914
======= =======
As a result of the economic impacts of the Covid-19 pandemic, a number of
government programmes were put into place to support businesses and consumers.
Examples of such initiatives include the UK's Coronavirus Job Retention
Scheme. In accounting for the impacts of these measures, the Group has applied
IAS 20: 'Government Grants'.
No government grants were received during the current year. During prior
year to 31 January 2022, the Group recognised an amount totalling GBP216,000
receivable under the UK Government's Coronavirus Job Retention Scheme and
an amount totalling GBP716,000 receivable under UK Governments Restart Grants.
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
2023 2022
GBP'000 GBP'000
EBITDA reconciliation
Profit before income tax expense post IFRS 16 669 4,022
Less: Interest income (104) (14)
Add: Interest expense 509 406
Add: Depreciation and amortisation 3,485 2,922
EBITDA post IFRS 16 4,559 7,336
------- -------
Less: costs relating to IFRS 16 lease liabilities (2,335) (2,135)
EBITDA pre IFRS 16 2,224 5,201
======= =======
7. Expenses
Consolidated
2023 2022
GBP'000 GBP'000
Profit before income tax includes the following specific
expenses:
Cost of sales
Cost of inventories as included in 'cost of sales' 48,307 45,864
Depreciation
Land and buildings improvements 39 16
Plant and equipment 862 643
Motor vehicles 2 2
Computer equipment 204 282
Land and buildings right-of-use assets 1,904 1,454
Plant and equipment right-of-use assets 7 56
Motor vehicles right-of-use assets 56 61
Computer equipment right-of-use assets 6 6
Total depreciation 3,080 2,520
Amortisation
Software 405 402
Total depreciation and amortisation * 3,485 2,922
Finance costs
Interest and finance charges paid/payable on lease liabilities 430 393
Interest and finance charges on restoration provision 30 12
Change in fair value of forward foreign currency hedges 49 1
Finance costs expensed 509 406
Foreign exchange losses 18 18
Leases
Short-term lease payments 40 51
Low-value assets lease payments 47 16
Total leases expensed 87 67
------- -------
* Depreciation and amortisation expense is included within "administrative
expenses" in the Statement of profit or loss and other comprehensive
income.
8. Staff costs
Consolidated
2023 2022
GBP'000 GBP'000
Aggregate remuneration:
Wages and salaries 9,711 9,591
Social security costs 963 815
Other pension costs 377 347
Total staff costs 11,051 10,753
======= =======
The average number of employees during the year was as follows:
Consolidated
2023 2022
Stores 300 272
Warehouse 46 45
Administration 45 41
Marketing 28 27
IT and web 12 12
Management 9 9
Other 2 4
Average number of employees 442 410
====== ======
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
2023 2022
GBP'000 GBP'000
Income tax expense
Current tax 25 464
Deferred tax - origination and reversal of temporary differences 80 305
Deferred tax - rate change - 179
Current tax adjustment recognised for prior periods (34) -
Deferred tax adjustment recognised for prior periods 59 (3)
Aggregate income tax expense 130 945
Numerical reconciliation of income tax expense and tax
at the statutory rate
Profit before income tax expense 669 4,022
Tax at the statutory tax rate of 19% 127 763
Tax effect amounts which are not deductible/(taxable)
in calculating taxable income:
Non-qualifying depreciation 12 7
Super deduction rate (54) (54)
Non-deductible expenses 1 53
Deferred tax rate impact 19 179
105 948
Adjustment recognised for prior periods 25 (3)
Income tax expense 130 945
======= =======
10. Intangibles
Consolidated
2023 2022
GBP'000 GBP'000
Non-current assets
Goodwill - at cost 5,802 5,802
Less: Impairment (182) (182)
5,620 5,620
Software - at cost 1,720 1,431
Less: Accumulated amortisation (1,280) (875)
440 556
6,060 6,176
======= =======
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 GBP'000 GBP'000 GBP'000
Balance at 1 February 2021 5,620 631 6,251
Additions - 327 327
Amortisation expense - (402) (402)
Balance at 31 January 2022 5,620 556 6,176
Additions - 289 289
Amortisation expense - (405) (405)
Balance at 31 January 2023 5,620 440 6,060
======== ======== =======
11. Property, plant and equipment
Consolidated
2023 2022
GBP'000 GBP'000
Non-current assets
Land and buildings improvements - at cost 1,002 1,002
Less: Accumulated depreciation (342) (303)
660 699
Plant and equipment - at cost 9,158 7,640
Less: Accumulated depreciation (2,836) (1,974)
6,322 5,666
Motor vehicles - at cost 15 15
Less: Accumulated depreciation (12) (10)
3 5
Computer equipment - at cost 1,333 1,118
Less: Accumulated depreciation (784) (580)
549 538
7,534 6,908
======= =======
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 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February
2021 715 4,726 7 571 6,019
Additions - 1,588 - 249 1,837
Disposals - (5) - - (5)
Depreciation expense (16) (643) (2) (282) (943)
Balance at 31 January
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
============ ========= ======== ========= =======
12. Right-of-use assets
Consolidated
2023 2022
GBP'000 GBP'000
Non-current assets
Land and buildings - long leasehold - right-of-use 19,235 16,979
Less: Accumulated depreciation (7,984) (6,080)
11,251 10,899
Plant and equipment - right-of-use 80 80
Less: Accumulated depreciation (56) (49)
24 31
Motor vehicles - right-of-use 433 326
Less: Accumulated depreciation (304) (248)
129 78
Computer equipment - right-of-use 59 59
Less: Accumulated depreciation (45) (39)
14 20
11,418 11,028
======= =======
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 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February 2021 9,490 409 82 26 10,007
Additions 2,519 - 57 - 2,576
Disposals - (322) - - (322)
Remeasurement 344 - - - 344
Depreciation expense (1,454) (56) (61) (6) (1,577)
Balance at 31 January 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
========= ========= ======== ========= =======
13. Inventories
Consolidated
2023 2022
GBP'000 GBP'000
Current assets
Finished goods - at cost 17,813 16,273
======= =======
Finished goods include GBPnil (2022: GBP0.3m) of provisions to remove certain
product lines from the Group as part of a product ranging exercise and includes
GBP0.1m (2022: GBPnil) of provisions for obsolescence. This write down to
reflect net realisable value of these product lines was recognised as an
expense during the year to 31 January 2023.
14. Trade and other receivables
Consolidated
2023 2022
GBP'000 GBP'000
Current assets
Trade receivables 26 62
Other receivables 421 480
447 542
======= =======
15. Trade and other payables
Consolidated
2023 2022
GBP'000 GBP'000
Current liabilities
Trade payables 4,543 4,844
Accrued expenses 1,088 2,000
Refund liabilities 55 42
Social security and other taxes 589 711
Other payables 490 440
6,765 8,037
======= =======
Contract liabilities has been reported separately on the Statement of financial
position. This was previously reporting in other payables.
.
16. Contract liabilities
Consolidated
2023 2022
GBP'000 GBP'000
Current liabilities
Contract liabilities at the start of the year 643 613
Issued in year 3,801 2,202
Redeemed in year (3,717) (2,172)
Contract liabilities at the end of the year 727 643
======= =======
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
2023 2022
GBP'000 GBP'000
Current liabilities
Lease liability 1,793 1,648
Non-current liabilities
Lease liability 9,750 9,402
11,543 11,050
======= =======
18. Restoration provision
Consolidated
2023 2022
GBP'000 GBP'000
Non-current liabilities
Restoration provision 801 722
======= =======
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 - 2023 GBP'000
Carrying amount at the start of the year 722
Additional provisions recognised 49
Unwinding of discount 30
Carrying amount at the end of the year 801
===========
19. Deferred tax
Consolidated
2023 2022
GBP'000 GBP'000
Non-current liabilities
Deferred tax liability comprises temporary differences
attributable to:
Property, plant & equipment 1,097 893
IFRS 16 transitional adjustment (70) (82)
Unapproved share options issued (119) (67)
Tax losses (25) -
Deferred tax liability 883 744
======= =======
Movements:
Opening balance 744 263
Charged/(credited) to profit or loss 80 305
Deferred tax - rate change - 179
Adjustment recognised for prior periods 59 (3)
Closing balance 883 744
=== ===
The movement in the net deferred tax assets and liabilities is explained
as follows:
Recognised
At 1 February in At 31 January
Profit or
2022 loss 2023
GBP'000 GBP'000 GBP'000
Property, plant and equipment 893 204 1,097
IFRS 16 transitional adjustment (82) 12 (70)
Options issued (67) (52) (119)
Tax losses - (25) (25)
744 139 883
--------------- ----------- --------------
20. Share capital
Consolidated
2023 2022 2023 2022
Shares Shares GBP'000 GBP'000
Ordinary shares of GBP0.01 each -
fully
paid 77,267,304 77,267,304 773 773
========== ========== ======= =======
21. Share premium
Consolidated
2023 2022
GBP'000 GBP'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
2023 2022
GBP'000 GBP'000
Foreign currency reserve 127 -
Share-based payments reserve 475 266
602 266
======= =======
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 GBP'000 GBP'000 GBP'000
Balance at 1 February 2021 - 75 75
Options granted - 191 191
Balance at 31 January 2022 - 266 266
Foreign currency translation gains 127 - 127
Options granted - 209 209
Balance at 31 January 2023 127 475 602
======== =========== =======
23. Dividends
There were no dividends paid, recommended or declared during the current
or previous financial year.
24. Earnings per share
Consolidated
2023 2022
GBP'000 GBP'000
Profit after income tax attributable to the owners of
Angling Direct PLC 539 3,077
======= =======
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 900,536 1,000,912
Weighted average number of ordinary shares used in
calculating
diluted earnings per share 78,167,840 78,268,216
========== ==========
Pence Pence
Basic earnings per share 0.70 3.98
Diluted earnings per share 0.69 3.93
25. Events after the reporting period
Post the reporting period, in February 2023, one of the Groups stores (Reading)
suffered a fire. The severity of the fire has resulted in the store temporarily
having to cease trading and at the date of this report the store is being
renovated by the landlord. The Group is insured for both the value of the
stock held at the location as well as loss profits from the location to
cover the period of closure (up to twelve months). The quantification of
the full claim will be subject to discussion with insurers once the store
opening date is agreed, post the required renovation works being completed.
No other matter or circumstance has arisen since 31 January 2023 that has
significantly affected, or may significantly affect the Group's operations,
the results of those operations, or the Group's state of affairs in future
financial years.
`
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END
FR NKPBQABKDPPD
(END) Dow Jones Newswires
May 16, 2023 02:00 ET (06:00 GMT)
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