TIDMANG
RNS Number : 0310R
Angling Direct PLC
24 October 2023
24 October 2023
Angling Direct PLC
('Angling Direct', the 'Company' or the 'Group')
Half Year Results
Strong sales growth across UK & Europe coupled with tangible
strategic progress in retail and online
Angling Direct PLC (AIM: ANG), the leading omni-channel
specialist fishing tackle and equipment retailer, is pleased to
announce its unaudited financial results for the six months ended
31 July 2023 (H1 FY24).
EBITDA
GBPm H1 FY24 H1 FY23 % Change
Revenue 43.3 38.9 +11.4%
Retail store sales 24.4 21.9 +11.3%
UK online sales 16.5 15.3 +8.3%
Total UK sales 40.9 37.2 +10.1%
European Online sales 2.4 1.7 +39.9%
Gross profit 15.2 13.4 +13.0%
Gross margin % 35.1% 34.6% +50bps
EBITDA (pre IFRS-16) 2.3 1.9 +26.6%
Profit before tax 1.7 1.1 +52.4%
Basic EPS 1.71p 1.14p +50.0%
Financial highlights:
-- Group revenue increased by 11.4% to GBP43.3m
-- Retail store estate experienced another strong period of
growth with total store sales increasing by 11.3% against H1
FY23
-- Like-for-like store sales increased by 4.9%(1) underpinned by improved conversion
-- UK online sales growth of 8.3% with strong average transaction value growth
-- In Europe, online sales grew by 39.9% with online sales to
our key European territory of Germany growing 61.5%
-- Gross margin increased by 50 bps, with progress in both the UK and Europe
-- Group Pre IFRS 16 EBITDA growth of 26.6% to GBP2.3m (45.7%
excluding cyber recoveries from FY22(2) ):
o UK EBITDA increased by 24.1%(2) to GBP2.8m
o Europe's EBITDA loss reduced by 27.2% to GBP0.5m
-- Positive operating cashflow of GBP5.5m (H1 FY22: GBP2.4m)
-- Strong balance sheet with Group net cash of GBP17.6m at 31
July 2023 (31 January 2023: GBP14.1m, 31 July 2022: GBP17.1m)
-- The Group remains well capitalised and securely positioned to continue investing in strategic opportunities to capture further market share in the UK and Europe
Operational highlights:
-- Launched MyAD, the loyalty and repeat purchase membership
model, in the UK, attracting 110k members from launch in June to
the period end
-- Increased our UK digital reach by signing an exclusive
agreement with "Catch", the fishing peg booking App
-- Gross profit on higher margin own brand products grew by
15.7%, both through the launch of the new entry level brand
"Discover" as well as further progress on our established Advanta
brand
-- Improved in-store retail proposition through new on-shelf
labelling technology, the use of our BAITS assisted selling
programme, and new own brand merchandising
-- Continued new store rollout in the UK in the period with new
locations in Cardiff, (the Company's first store outside of
England) and Goole
Current trading and outlook
-- Cumulative August and September sales were in line with
expectation, up 13.9% versus FY23. This was against a softer
comparative period, with the prolonged extreme temperatures in the
prior year.
-- The Company has gained further market share both in the UK
and Europe and believes that a significant opportunity remains in
both of these markets
-- The Group will continue to invest digitally and physically in
the UK, to further drive market share growth, leveraging its strong
balance sheet to ensure it is well placed competitively as consumer
confidence returns
-- The European market remains a highly competitive landscape,
driven by more intense price competition. The Group has continued
to take market share and will continue to invest prudently, to
ensure it is well positioned once markets and consumer confidence
stabilise
-- The Board remains confident that a combination of continued
UK sales momentum and optimising European growth means that the
Group is well placed to deliver revenue and pre-IFRS 16 EBITDA for
the current year in line with market expectations(3)
Steve Crowe, CEO of Angling Direct, said:
"We are pleased to have achieved robust sales growth during H1
FY24 of 11.4% against a challenging consumer backdrop, highlighting
the strength of our omni-channel model.
In the UK, we achieved strong growth in both retail stores and
online sales which saw total UK sales increase by 10.1%.
Simultaneously we made strong progress on our strategic priorities
in the UK growing our store estate and unveiling our MyAD loyalty
programme which attracted 110,000 members in its first two
months.
Despite the more competitive market conditions in Europe,
European sales in H1 FY24 were 39.9% ahead of H1 FY23,
re-validating the significant growth opportunity that Europe
represents for the business. We are committed to building a
sustainably profitable international business and have taken steps
to develop margin and optimise costs in H1 FY24 and this will
continue into H2 and beyond.
The Board is optimistic about the long-term growth prospects of
the Group, underpinned by its robust balance sheet. The UK angling
market remains resilient, with strong demand for a compelling
product offering alongside quality service. Following positive H1
FY24 results, the Board remains confident that the full year
results will be in line with market expectations(3) and would like
to acknowledge and thank all members of the Angling Direct team for
their efforts and we look forward to sharing continued success in
the future."
(1) Excluding the Reading store which hasn't materially traded
in the period after it suffered a fire in the first week of
February. Total like for like stores grew 2.6% including
Reading.
(2) Excluding insurance recoveries received during H1 FY23 in
respect of the cyber-attack in the FY22 year
(3) Note: Angling Direct believes that consensus market
expectations for the year ending 31 January 2024 are for revenues
of GBP83.0 million and pre-IFRS 16 EBITDA of GBP2.7 million.
Investor Meet Company presentation - 30 October 2023
Management will provide a live presentation via the Investor
Meet Company platform at 2.00 p.m. GMT on 30 October. The
presentation is open to all existing and potential shareholders.
Questions can be submitted pre-event via your Investor Meet Company
dashboard up until 9.00 a.m. the day before the meeting or at any
time during the live presentation. Investors can sign up to
Investor Meet Company for free to meet Angling Direct plc via:
https://www.investormeetcompany.com/angling-direct-plc/register-investor
. Investors who already follow Angling Direct on the Investor Meet
Company platform will automatically be invited.
For further information please contact:
Angling Direct PLC +44 (0) 1603 258 658
Steven Crowe, Chief Executive Officer
Sam Copeman, Chief Financial Officer
Singer Capital Markets - NOMAD and Broker +44 (0) 20 7496 3000
Peter Steel, Alex Bond, James Fischer
(Corporate Finance)
Tom Salvesen (Corporate Broking)
FTI Consulting - Financial PR +44 (0) 20 3727 1000
Alex Beagley
Sam Macpherson
Hannah Butler
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
28,000 fishing tackle products, including capital items,
consumables, luggage and clothing. Angling Direct also owns and
sells fishing tackle products under its own brands 'Advanta', and
the recently launched entry level offering 'Discover'.
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 47 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 March 2022, Angling Direct opened a
3,940 square metre 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.
Angling Direct PLC
Interim Report - 31 July 2023
Angling Direct PLC
Chief Executive Officer's Review
31 July 2023
The Group is pleased to have continued to grow sales and improve
earnings in the UK and Europe despite the persistent cost of living
pressures facing consumers. This performance is testament to the
resilience of our model and market leading position.
Our growth strategy is centred around becoming Europe's first
choice fishing tackle destination, for all anglers, regardless of
experience or ability. As a result of our increasingly
differentiated, market leading omni-channel trading platform the
Group gained further market share in the period, making good
progress against all of its stated strategic priorities. Encouraged
by the sales growth and market share gains achieved, as well as the
longer-term growth opportunity, the Group maintained its programme
of strategic investment in the UK in H1 FY24 despite the economic
headwinds.
As well as new opportunities, H1 FY24 has presented several
significant challenges, most notably balancing our ambition to
rapidly grow turnover in our key European territories, against
intense price competition. Despite these challenges, the European
market offers a significant medium term growth opportunity
alongside the established UK business where we continue to build an
increasingly modern, contemporary and cash generative omni-channel
business.
We have assumed that the current cost of living pressures will
persist into H2 FY24 and beyond which will inevitably impact many
of our current and potential new customers. During this time, we
will continue to invest in profitable growth in the UK, alongside
prudently investing in our strategic objective to grow a European
business capable of delivering meaningful economic returns as
consumer confidence returns.
The H1 FY24 results reflect the resilience of our model and
continued professionalism and dedication of our colleagues in
providing high quality advice and service to our customers and I
would like to take this opportunity to thank them for their
significant contribution.
Results
Group revenue increased by 11.4% to GBP43.3m for the six months
ended 31 July 2023 (H1 FY23: GBP38.9m). The Company recorded strong
sales growth across both channels in the UK, leveraging existing
infrastructure, as well as new space from the physical retail
estate. Overall H1 FY24 UK revenues grew 10.1% against 3.4% in H2
FY23.
European revenues grew by 39.9% as the Group continued to
optimise its European growth trajectory against a backdrop of
striving to write only profitable business.
Gross profit increased by 13.0% to GBP15.2m (H1 FY23: GBP13.4m)
and gross margin grew 50 bps to 35.1%, 40 bps in the UK and 510 bps
in Europe.
Pre IFRS 16 EBITDA grew by 26.6% to GBP2.3m (H1 FY23: GBP1.9m).
The UK grew 12.2% (24.1% excluding Cyber-attack insurance
recoveries received in H1 FY23 relating to the FY22 cyber incident)
with progression in both stores and online (18.3% growth in stores,
10.0% growth online).
The Company retains a strong net cash position at 31 July 2023
of GBP17.6m (31 July 2022: GBP17.1m), with positive cash generation
in the period having increased working capital investment in retail
space and securing record stock availability, alongside continued
capital expenditure investment in the store portfolio in the
period.
Operational Review
Retail Stores
Total store sales in the period increased 11.3% to GBP24.4m (H1
FY23: GBP21.9m). Like-for-like store sales grew by 4.9% (excluding
Reading, which hasn't materially traded in the period due to a fire
in the first week of February). New space (Washington, Stockton,
Coventry, Cardiff and Goole) contributed GBP1.9m of sales in the
period.
Our evolving "BAITS" assisted selling programme alongside our
new on shelf labelling technology and own brand merchandising has
delivered significant value with in-store conversion in the period
improving 300 bps. To enhance this initiative, we launched MyAD in
June, our loyalty and repeat purchase free to join membership club.
The proposition enables our customers to access a range of products
at preferential pricing, alongside tailored offers based on their
shopping history with Angling Direct. The App based technology will
for the first time enable us to understand our customer base across
both our store and online business with early positive insight.
Bringing these aspects together is designed to support our purpose
of Getting Everyone Fishing, and ensures our customers consistently
get the very best advice and support tailored to their specific
needs and fishing ambitions. This is crucial for driving
conversion, creating satisfied, loyal customers, and prompting
recommendation.
During the period we also started to explore alternative paid
for services in store with the launch of our reel spooling and pole
elastication services.
Since our investment in footfall counting technology in FY22, we
have been able to deploy customer-targeted store colleague working
rotas, which are helping to mitigate significant inflationary wage
pressures from the c10% increase in living wage in April 2023.
Whilst store footfall across the existing estate was broadly flat,
there was significant progress in conversion in the like-for-like
stores (360 bps) underpinning our increase in transaction volumes.
Deployment models more than offset the living wage drag with an
improved colleague cost to sales ratio.
In line with our strategic commitment to being the first choice
omni-channel fishing retailer in all our markets, we continue to
invest in new UK retail stores. Continuing to utilise out-sourced
development contractors we built two new stores in the period,
opening in Cardiff in February and Goole in May. We continue to
seek out opportunities within unserved catchments with one further
store opening targeted for H2 FY24, as well as our Reading store
re-opening.
Alongside this, we are observing an increasing trend where
customers in certain catchments are underserved by existing
retailers, presenting an opportunity for Angling Direct to
penetrate these markets with a reduced footprint. We also continue
to re-evaluate our store refresh and merchandising concepts across
the estate. In the period we re-sited the Guilford store as well as
refreshing our Farlows store.
UK Online
UK online sales in the period grew by 8.3% to GBP16.5m (H1 FY23:
GBP15.3m) as our everyday low-price proposition alongside our focus
on availability during peak season resulted in UK online taking
greater share of the higher ticket capital item market. Website
sessions and customer numbers remained broadly flat against the
more challenging consumer landscape reflected in modestly reduced
conversion and increased pressure on paid advertising bidding
costs.
As part of our drive to grow market share and customer loyalty,
we are continuing to invest in contemporary digital infrastructure
and customer marketing, to ensure we stand apart from our
competitors.
As a precursor to the launch of MyAD in June we continued to
develop our App offering, with c5% of total orders now placed
through the App. Alongside this our paid subscription model AD+
accounted for c17% of the orders in the period, showing the
strength of our repeat custom model despite the increasingly
uncertain consumer and competitive landscape.
During the period we signed an exclusive agreement with "Catch",
the fishery peg booking App. The first stage of this relationship
has focused on transparency of partnership and respective offerings
across our respective platforms, with the emphasis now moving
towards embedding the offer as part of our respective digital
customer journeys.
Alongside these trading initiatives the team has changed its
customer delivery carrier arrangements following a re-tendering
process. The improvements being observed in service (reducing lost
parcels) and unit cost economics have positively impacted the
latter part of the period. Alongside the improvement in average
transaction value, this has significantly improved the carriage and
packing ratio, offsetting the cost of paid advertising and
colleague living wage inflationary pressures.
UK Trading
We are committed to providing the most comprehensive range of
products for major fishing disciplines, ensuring that we always
deliver a variety of choice, value, quality and stock
availability.
The MyAD programme launched in June and attracted 110,000
members by the period end. The early insights from this data are
encouraging, pointing to loyalty, repeat purchase and value for
customers.
The Company's category management process remains firmly
embedded in the business. As stock availability across our sector
returned to more historically normal levels post COVID, depressed
consumer demand in FY23 against the COVID sales spike left many
suppliers with excess inventory positions. Our team has been
nimble, navigating this through buying into ranges and volumes
where AD has more ability to manage its price point.
Higher margin own brand gross profit in the period grew by a
pleasing 15.7% against a backdrop of increasing sales of these
items by 6.4%. The launch of our entry level brand, 'Discover'
later in the period, alongside the strategy of developing ranges in
smaller dimension higher margin categories, underpinned the growth
in the gross profit. Stock availability within own brand ranges
remains at good levels and presents a strong platform from which to
develop further in H2 FY24.
As we deepen our relationships with key suppliers, we have
increasingly secured stocks at favourable trade terms with a view
to enhancing margins, whilst giving supplier partners surety of
volume and cashflow. In conjunction with this, during the period we
formalised our approach to the selling of physical and digital
space to join up with our MyAD strategy. The pipeline and appetite
from key suppliers for further development of this in H2 FY24 and
beyond is strong. Alongside this we continue to grow the number of
innovative products to market exclusively for our customers. These
include the extension of the One More Cast terminal tackle range by
leading angler Ali Hamedi and developing product bundle concepts
with key partners such as Korda fishing tackle and Sticky Baits.
This approach provides further opportunity for us to develop value
levers exclusively through the MyAD offer.
As a result of these strategies alongside the 10.1% increase in
sales, the UK delivered a 40 bps improvement in its gross margin to
35.5%.
Europe
The opportunity for growth of market share within Europe remains
clear, despite the European digital trading landscape intensifying
as a result of competitive pricing and paid advertising costs.
During the period, our team has focused upon optimising trading
and efficiencies to support our first full financial year of
trading directly from The Netherlands.
As a result of these positive advancements, active unique
customer numbers in our key European territories have increased by
41.3% to 25,100, with the conversion rate increasing by 63 bps to
3.13%. European key territory sales increased by 39.9% in H1 FY23
to GBP2.4m (H1 FY22: GBP1.7m).
We are committed and see a significant opportunity to build a
sustainably profitable international business and have taken steps
to develop margin and optimise costs in H1 FY24 until such time
that more normal pricing trends resume. In the period gross margins
improved 510 bps to 27.4%, contribution improved 990 bps to -5.0%,
operating margin improved 1,240 bps to -13.9% and pre IFRS 16
EBITDA losses reduced 27.2% to GBP0.5m.
The Board continues to believe that the full Angling Direct
omni-channel model will be attractive to European customers and
that, in the medium term, bricks and mortar retail stores will
complement our growing online business. We have carefully evaluated
the trading strategies required for this opportunity to create
shareholder value. We are now focused on securing ranges and
locations which deliver these metrics and will continue to monitor
and review our progress against these plans closely over the coming
months.
Environmental and Organisational Development
We remain fully committed to acting responsibly and sustainably
within our environment and communities. We continue to develop our
approach to sustainability with key successes in the period of
particular note around reducing our waste sent to landfill,
reducing plastic packaging within our own brand ranges, and
continuing our roll out of LED lighting in our store estate. We
have also extended our fishing line recycling programme to source
recycling bins for fisheries from suppliers, introduced recycling
points in our 2024 built stores and commenced our angler engagement
programme through our collaboration with the Pike Anglers Club of
Great Britain to discourage warm water pike fishing. To complement
this, we have also commenced sign posting to our communities
through our sustainability digital content a number of established
environmental campaigns which would support the sustainability of
angling.
Within the context of the current highly inflationary
environment, it is more important than ever to ensure we rigorously
scrutinise any incremental organisational investment, whilst
ensuring we appropriately plan and resource for future share growth
in our consolidating markets. In the period, we have continued to
supplement and upskill key capabilities within our digital and IT
development teams.
At the start of the period the Group announced its Board
succession plan with Andy Torrance stepping down from his role as
CEO and appointed Non-executive Chair. Martyn Page consequently
stepped down from his role as Non-Executive Chair and remains on
the Board as a Non-executive Director. These changes facilitated
myself stepping up to CEO and following this we successfully
concluded a CFO search and were delighted to welcome Sam Copeman to
the Board in June at the completion of the AGM. Christian (Chris)
Keen and Nicola (Nicki) Murphy continue as the Company's
Independent Non- Executive Directors. Chris continues as Chair of
the Audit Committee with Nicki moving to Chair of the Remuneration
Committee.
Current trading and Outlook
We remain confident of continued growth and delivery of our
strategic goals. The UK angling market remains resilient, with good
demand for a compelling product offering alongside quality service.
Our customer loyalty programme MyAD will further help to meet the
needs of our customers and at the same time drive loyalty and
repeat purchase. We will continue our investment in the UK in our
people, technology and our physical estate in order to support
further organic growth. This will be augmented by investment in
selective acquisitions and development of exceptional greenfield
sites in the UK. This investment in the UK will be targeted at
driving further market share growth and leveraging our strong
balance sheet to ensure we are best placed competitively as
consumer confidence returns.
Europe retains a more competitive landscape which means growing
profitable digital customer acquisition is challenging as we build
scale. However selective bricks and mortar remains a realistic
target to deliver value within these markets to leverage existing
investments already made. The Group will continue to invest to
drive market share, where prudent to do so, to ensure it is well
positioned as markets stabilise post and the macroeconomic consumer
challenges impacting these markets.
Following strong H1 2024 results, cumulative August and
September sales were in line with expectation, up 13.9% versus
FY23. This was against a softer comparative period, with the
prolonged extreme temperatures in the prior year. The Board remains
confident that the full year results will be in line with consensus
market expectations. The Board would like to acknowledge and thank
all members of the Angling Direct team for their efforts, and we
look forward to sharing continued success in the future.
Angling Direct PLC
Consolidated statements of profit or loss and other comprehensive income
For the period ended 31 July 2023
Audited
Unaudited six months year ended
ended 31 July 31 January
Note 2023 2022 2023
GBP'000 GBP'000 GBP'000
Revenue from contracts with customers 4 43,341 38,898 74,096
Cost of sales of goods (28,149) (25,450) (48,307)
Gross profit 15,192 13,448 25,789
Other income 5111 268 287
Interest revenue calculated using the effective
interest method 140 26 104
Expenses
Administrative expenses (11,820) (10,699) (21,742)
Distribution expenses (1,656) (1,689) (3,260)
Finance costs (246) (225) (509)
Profit before income tax expense 1,721 1,129 669
Income tax expense 7(400) (251) (130)
Profit after income tax expense for the period
attributable to the owners of Angling Direct
PLC 1,321 878 539
Other comprehensive income
Items that may be reclassified subsequently
to profit or loss
Foreign currency translation (81) - 127
Other comprehensive income for the period,
net of tax (81) - 127
Total comprehensive income for the period
attributable to the owners of Angling Direct
PLC 1,240 878 666
Pence Pence Pence
Basic earnings 15 1.71 1.14 0.70
Diluted earnings 15 1.69 1.12 0.69
Angling Direct PLC
Consolidated statements of financial
position
As at 31 July 2023
Audited
year
Unaudited six months ended 31
ended 31 July January
Note 2023 2022 2023
GBP'000 GBP'000 GBP'000
Non-current assets
Intangibles 8 6,007 6,124 6,060
Property, plant and equipment 9 7,916 7,158 7,534
Right-of-use assets 10 11,150 10,771 11,418
Total non-current assets 25,073 24,053 25,012
Current assets
Inventories 20,013 17,564 17,813
Trade and other receivables 751 1,093 447
Income tax refund due - - 58
Prepayments 763 474 603
Cash and cash equivalents 17,624 17,084 14,127
Total current assets 39,151 36,215 33,048
Current liabilities
Trade and other payables 11 11,702 9,398 6,765
Contract liabilities 481 425 727
Lease liabilities 1,809 1,709 1,793
Derivative financial instruments 32 - 51
Income tax 315 566 -
Total current liabilities 14,339 12,098 9,336
Net current assets 24,812 24,117 23,712
Total assets less current liabilities 49,885 48,170 48,724
Non-current liabilities
Lease liabilities 9,583 9,116 9,750
Restoration provision 840 759 801
Deferred tax 910 893 883
Total non-current liabilities 11,333 10,768 11,434
Net assets 38,552 37,402 37,290
Equity
Share capital 12 773 773 773
Share premium 31,037 31,037 31,037
Reserves 543 375 602
Retained profits 6,199 5,217 4,878
Total equity 38,552 37,402 37,290
Angling Direct PLC
Consolidated statements of changes in equity
For the period ended 31 July 2023
Share
Share premium Retained
capital account Reserves profits Total equity
Unaudited six months
ended 31
July GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February
2023 773 31,037 602 4,878 37,290
Profit after income tax
expense
for the period - - - 1,321 1,321
Other comprehensive
income for
the period, net of tax - - (81) - (81)
Total comprehensive
income for
the period - - (81) 1,321 1,240
Transactions with owners
in
their capacity as
owners:
Share-based payments - - 22 - 22
Balance at 31 July 2023 773 31,037 543 6,199 38,552
Share Share premium Retained
capital account Reserves profits Total equity
Audited year ended
31 January 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 period - - - 539 539
Other comprehensive
income for
the period, net of
tax - - 127 - 127
Total comprehensive
income for
the period - - 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
Angling Direct PLC
Consolidated statements of cash flows
For the period ended 31 July 2023
Unaudited six months Audited
ended 31 July year ended
31 January
Note 2023 2022 2023
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit before income tax expense for the period 1,721 1,129 669
Adjustments for:
Depreciation and amortisation 1,787 1,672 3,485
Share-based payments 22 109 209
Net movement in provisions 16 13 30
Net variance in derivative liabilities (19) (1) 50
Interest received (140) (26) (104)
Interest and other finance costs 230 212 429
3,617 3,108 4,768
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables (300) (551) 95
(Increase) in inventories (2,252) (1,291) (1,540)
(Increase)/decrease in prepayments (162) 71 (58)
Increase/(decrease) in trade and other payables 4,893 1,227 (965)
(Decrease)/increase in contract liabilities (246) - 84
5,550 2,564 2,384
Interest received 140 26 104
Interest and other finance costs (230) (212) (429)
Income taxes paid - - (513)
Net cash from operating activities 5,460 2,378 1,546
Cash flows from investing activities
Payments for property, plant and equipment 9(1,012) (841) (2,014)
Payments for intangibles 8 (116) (158) (289)
Net cash used in investing activities (1,128) (999) (2,303)
Cash flows from financing activities
Repayment of lease liabilities (885) (899) (1,720)
Net cash used in financing activities (885) (899) (1,720)
Net increase/(decrease) in cash and cash
equivalents 3,447 480 (2,477)
Cash and cash equivalents at the beginning
of the financial period 14,127 16,604 16,604
Effects of exchange rate changes on cash
and cash equivalents 50 - -
Cash and cash equivalents at the end of the
financial period 17,624 17,084 14,127
Angling Direct PLC
Notes to the consolidated financial statements
31 July 2023
Note 1. General information
The financial statements cover Angling Direct PLC as a Group consisting
of Angling Direct PLC ('Company' or 'parent entity') and the entities
it controlled at the end of, or during, the half-year (collectively referred
to in these financial statements as the 'Group'). The financial statements
are presented in British Pound Sterling ('GBP'), which is Angling Direct
PLC's functional and presentation currency.
Angling Direct PLC is a listed public company limited by shares incorporated
under the Companies Act 2006, listed on the AIM (Alternative Investment
Market), a sub-market of the London Stock Exchange. The Company is incorporated
and domiciled in England and Wales within the United Kingdom. The registered
number of the Company is 05151321. Its registered office and principal
place of business is:
2d Wendover Road,
Rackheath Industrial
Estate
Rackheath
Norwich
Norfolk
NR13 6LH
The principal activity of the Group is the sale of fishing tackle through
its websites and stores. The Group's business model is designed to generate
growth by providing excellent customer service, expert advice and ensuring
product lines include a complete range of premium equipment. Customers
range from the casual hobbyist through to the professional angler.
The financial statements were authorised for issue, in accordance with
a resolution of Directors, on 23 October 2023. The Directors have the
power to amend and reissue the financial statements.
Note 2. Significant accounting policies
These financial statements for the interim half-year reporting period
ended 31 July 2023 have been prepared in accordance with the AIM Rules
for Companies, International Accounting Standard IAS 34 'Interim Financial
Reporting' and the Companies Act for for-profit oriented entities.
These interim financial statements do not include all the notes of the
type normally included in annual financial statements. Accordingly, these
financial statements are to be read in conjunction with the annual report
for the year ended 31 January 2023 and any public announcements made by
the Company during the interim reporting period.
The interim consolidated financial information has been prepared on a
going-concern basis.
The principal accounting policies adopted are consistent with those set
out on pages 74 to 100 of the consolidated financial statements of Angling
Direct PLC for the year ending 31 January 2023, except for taxation which
has been accounted for as described in note 7.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and
Interpretations issued by the International Accounting Standards Board
that are mandatory for the current reporting period. There was no impact
on the adoption of these new or amended Accounting Standards and Interpretations
Any new or amended Accounting Standards or Interpretations that are not
yet mandatory have not been early adopted.
Note 3. Segmental reporting
Segment information is presented in respect of the Group's operating
segments, based on the Group's management and internal reporting structure,
and monitored by the Group's Chief Operating Decision Maker (CODM).
Segment results, assets and liabilities include items directly attributable
to a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly own brand stock in transit from the
manufacturers, group cash and cash equivalents, taxation related assets
and liabilities, centralised support functions salary and premises costs,
and government grant income.
Geographical segments
The business operated predominantly in the UK. It has three native language
web sites for Germany, France and the Netherlands.
Operating segments
The Group is split into three operating segments (Stores, UK Online and
Europe 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.
Each of these operating segments is managed separately as each segment
requires different specialisms, marketing approaches and resources. Head
Office includes costs relating to the employees, property and other overhead
costs associated with the centralised support functions.
The CODM reviews EBITDA (earnings before interest, tax, depreciation
and amortisation) pre IFRS 16. 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 July 2023, GBP24,167,000 of non-current assets are located in the
UK (31 July 2022 GBP22,952,000) and GBP906,000 of non-current assets
are located in the Netherlands (31 July 2022 GBP1,101,000).
Operating segment information
Stores UK Europe Head Office Total
Online Online
31 July 2023 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 24,382 16,545 2,414 - 43,341
Profit/(loss) before income
tax 2,974 1,838 (518) (2,573) 1,721
EBITDA post IFRS 16 4,482 2,107 (382) (2,593) 3,614
Total assets 19,662 7,435 4,013 33,114 64,224
Total liabilities (7,574) (4,725) (1,224) (12,149) (25,672)
EBITDA Reconciliation
Profit/(loss) before income
tax 2,974 1,838 (518) (2,573) 1,721
Less: Interest income - - - (140) (140)
Add: Interest expense 222 21 15 (12) 246
Add: Depreciation and
amortisation 1,286 248 121 132 1,787
EBITDA post IFRS 16 4,482 2,107 (382) (2,593) 3,614
Less: Costs relating to
IFRS 16 lease liabilities (959) (84) (111) (115) (1,269)
EBITDA pre IFRS 16 3,523 2,023 (493) (2,708) 2,345
UK Europe
Stores Online Online Head office Total
31 July 2022 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 21,897 15,275 1,726 - 38,898
Profit/(loss) before income
tax 2,577 1,620 (707) (2,361) 1,129
EBITDA post IFRS 16 3,859 1,923 (570) (2,212) 3,000
Total assets 25,198 7,588 4,163 23,319 60,268
Total liabilities (12,726) (4,412) (1,116) (4,612) (22,866)
EBITDA Reconciliation
Profit/(loss) before income
tax 2,577 1,620 (707) (2,361) 1,129
Less: Interest income - - - (26) (26)
Add: Interest expense 175 23 19 8 225
Add: Depreciation and amortisation 1,107 280 118 167 1,672
EBITDA post IFRS 16 3,859 1,923 (570) (2,212) 3,000
Less: Costs relating to
IFRS 16 lease liabilities (882) (84) (107) (75) (1,148)
EBITDA pre IFRS 16 2,977 1,839 (677) (2,287) 1,852
Note 4. Revenue from contracts with customers
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Audited year
Unaudited six months ended
ended 31 July 31 January
2023 2022 2023
GBP'000 GBP'000 GBP'000
Route to market
Retail store sales 24,382 21,897 41,296
E-commerce 18,959 17,001 32,800
43,341 38,898 74,096
Geographical regions
United Kingdom 40,927 37,172 70,952
Europe and Rest of the World 2,414 1,726 3,144
43,341 38,898 74,096
Timing of revenue recognition
Goods transferred at a point in time 43,341 38,898 74,096
Note 5. Other income
Unaudited Audited year
six months ended 31
ended 31 July January
2023 2022 2023
GBP'000 GBP'000 GBP'000
Net foreign exchange gain/(loss) - 8 -
Insurance claim 86 243 258
Rent income 25 17 29
Other income 111 268 287
The insurance claim income relates to the estimated loss of profit claim
for the fire in the Reading store in respect of the period between February
2023 and 31 July 2023 (2022: Cyber claim insurance income).
Note 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.
Unaudited Unaudited
six months six months Audited
ended ended year ended
31 July 31 July 31 January
2023 2022 2023
EBITDA reconciliation GBP'000 GBP'000 GBP'000
Profit before income tax expense post IFRS
16 1,721 1,129 669
Less: Interest income (140) (26) (104)
Add: Interest expense 246 225 509
Add: Depreciation and amortisation 1,787 1,672 3,485
EBITDA post IFRS 16 3,614 3,000 4,559
Less: costs relating to IFRS 16 lease
liabilities (1,269) (1,148) (2,335)
EBITDA pre IFRS 16 2,345 1,852 2,224
Note 7. Income tax expense
The tax charge for the six months ended 31 July 2023 is recognised based
on management's estimate of the weighted average annual effective tax rate
expected for the full financial year, adjusted for the tax impact of any
discrete items arising in the period. Deferred tax balances are calculated
using tax rates that have been enacted or substantively enacted by the balance
sheet date and that are expected to apply in the period when the liability
is settled or the asset realised.
Note 8. Intangibles
Unaudited six Audited
months ended 31 year ended
July 31 January
2023 2022 2023
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill - at cost 5,802 5,802 5,802
Less: Impairment (182) (182) (182)
5,620 5,620 5,620
Software - at cost 1,835 1,589 1,720
Less: Accumulated amortisation (1,448) (1,085) (1,280)
387 504 440
6,007 6,124 6,060
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Goodwill Software Total
Unaudited six months ended 31 July GBP'000 GBP'000 GBP'000
Balance at 1 February 2023 5,620 440 6,060
Additions - 116 116
Amortisation expense - (169) (169)
Balance at 31 July 2023 5,620 387 6,007
Note 9. Property, plant and equipment
Unaudited Audited
six months ended year ended
31 July 31 January
2023 2022 2023
GBP'000 GBP'000 GBP'000
Non-current assets
Land and buildings improvements - at cost 1,002 1,002 1,002
Less: Accumulated depreciation (347) (310) (342)
655 692 660
Plant and equipment - at cost 10,096 8,253 9,158
Less: Accumulated depreciation (3,325) (2,370) (2,836)
6,771 5,883 6,322
Motor vehicles - at cost 15 15 15
Less: Accumulated depreciation (13) (12) (12)
2 3 3
Computer equipment - at cost 1,363 1,263 1,333
Less: Accumulated depreciation (875) (683) (784)
488 580 549
7,916 7,158 7,534
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and
buildings Plant and Motor Computer
improvements equipment vehicles equipment Total
Unaudited six months
ended 31
July GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February
2023 660 6,322 3 549 7,534
Additions - 943 - 31 974
Exchange differences - (4) - (1) (5)
Depreciation expense (5) (490) (1) (91) (587)
Balance at 31 July 2023 655 6,771 2 488 7,916
Note 10. Right-of-use assets
Audited
Unaudited six months year ended
ended 31 July 31 January
2023 2022 2023
GBP'000 GBP'000 GBP'000
Non-current assets
Land and buildings - right-of-use 19,964 17,630 19,235
Less: Accumulated depreciation (8,984) (6,998) (7,984)
10,980 10,632 11,251
Plant and equipment - right-of-use 80 80 80
Less: Accumulated depreciation (59) (53) (56)
21 27 24
Motor vehicles - right-of-use 467 372 433
Less: Accumulated depreciation (329) (277) (304)
138 95 129
Computer equipment - right-of-use 59 59 59
Less: Accumulated depreciation (48) (42) (45)
11 17 14
11,150 10,771 11,418
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and Plant and Motor Computer
buildings equipment vehicles equipment Total
Unaudited six months
ended 31
July GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February 2023 11,251 24 129 14 11,418
Additions 1,021 - 34 - 1,055
Remeasurement (273) - - - (273)
Exchange differences (19) - - - (19)
Depreciation expense (1,000) (3) (25) (3) (1,031)
Balance at 31 July 2023 10,980 21 138 11 11,150
Note 11. Trade and other payables
Unaudited six Audited
months ended 31 year ended
July 31 January
2023 2022 2023
GBP'000 GBP'000 GBP'000
Current liabilities
Trade payables 8,023 6,011 4,543
Accrued expenses 1,287 1,286 1,088
Refund liabilities 56 58 55
Social security and other taxes 1,141 1,158 589
Other payables 1,195 885 490
11,702 9,398 6,765
Contract liabilities has been reported separately on the Statement of financial
position. This was previously reported in other payables.
Note 12. Share capital
Unaudited six months ended 31 July
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
Note 13. Dividends
There were no dividends paid, recommended or declared during the current
or previous financial period.
Note 14. Contingent liabilities
The Group had no material contingent liabilities as at 31 July 2023, 31 January
2023 and 31 July 2022.
Note 15. Earnings per share
Unaudited Unaudited Audited
six months six months year
ended 31 ended 31 ended 31
July July January
2023 2022 2023
GBP'000 GBP'000 GBP'000
Profit after income tax attributable to the
owners
of Angling Direct PLC 1,321 878 539
Number Number Number
Weighted average number of ordinary shares
used
in calculating basic earnings per share 77,267,304 77,267,304 77,267,304
Adjustments for calculation of diluted
earnings
per share:
Options over ordinary shares 851,266 962,010 900,536
Weighted average number of ordinary shares
used
in calculating diluted earnings per share 78,118,570 78,229,314 78,167,840
Pence Pence Pence
Basic earnings per share 1.71 1.14 0.70
Diluted earnings per share 1.69 1.12 0.69
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END
IR FXLLLXBLFFBV
(END) Dow Jones Newswires
October 24, 2023 02:05 ET (06:05 GMT)
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