UK shoppers keep spending on rods and reels even as drought and squeezed budgets bite, leaving the tackle retailer on course to hit full-year targets.
Angling Direct (AIM: ANG) said group revenue climbed 5.1% to £56.4m in the six months to 31 July, as robust UK trading masked a sharp decline in its European operations, with the retailer reiterating that it remains on track to hit full-year expectations of £109m revenue and £5.7m adjusted EBITDA.
The update landed well with a business that has had to contend with a summer drought drying up rivers and lakes across the country, denting footfall and seasonal fishing demand, alongside the broader squeeze on household budgets that has weighed on discretionary retailers this year.
UK sales rose 6.9%, with store revenue up 6.4% and online sales up 7.5%, while like-for-like UK sales grew 2.9% against what the company described as a strong comparator from the prior year. Angling Direct pointed to continued growth in its MyAD loyalty scheme, which has now passed 696,000 members, as a key driver of repeat custom. Europe remained the soft spot, with sales down 30% to £1.8m, though the company said a more disciplined focus on Germany and the Netherlands, aimed at reducing losses, kept that business trading in line with plan.
The retailer opened three new stores during the half, in Crawley, Kettering and Gloucester, taking its UK estate to 60 outlets, and suggested that tougher trading conditions across the sector could throw up further consolidation opportunities for a well-capitalised operator. Net cash rose to £14.5m from £12.5m at the same point last year, even after the group spent a further £0.9m on share buybacks.
Chief executive Steve Crowe said the business had delivered a resilient first half despite headwinds from the consumer environment and the drought, and flagged scope for additional buybacks beyond the remaining allowance in the current programme. With management reaffirming confidence in full-year consensus expectations, attention now turns to whether the drier weather pattern persists into the second half and how quickly the loss-reduction plan in Europe can move that division back towards break-even.
This report is based on Angling Direct’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Jakub Żerdzicki on Unsplash.
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