Angling Direct upbeat on first-half sales growth

23rd Aug 2023 08:20

(Sharecast News) - Fishing tackle and equipment retailer Angling Direct reported an 11.4% improvement in first-half revenue on Wednesday, to £43.3m.

The AIM-traded firm said retail sales through its UK brick-and-mortar outlets reached £24.4m, which was up 11.3% year-on-year, while online sales within the UK totaled £16.5m, a rise of 8.3%.

That brought overall UK sales to £40.9m, which was 10.1% higher than the same point last year.

Notably, online sales from the European market saw a significant boost, amounting to £2.4m - an increase of almost 40%.

The company's net cash and cash equivalents stood at £17.6m by the end of the period, making for modest growth of 2.9%.

Angling Direct noted 4.9% growth in like-for-like store sales, which, excluding the Reading store, was driven by a surge in transaction volumes.

The company said it continued to expand its retail footprint during the period, having inaugurated a new store in Cardiff in February, followed by another in Goole in May.

That brought the total count of operational stores to 47 across the UK.

It said the uptrend in the UK's online sales could meanwhile be attributed largely to an increase in average transaction values.

"We remain focused on gaining market share both in the UK and Europe whilst continuing to proactively manage all aspects of the group's operations in order to improve gross and operating margins and mitigate cost inflation," said chief executive officer Steve Crowe.

"The business has continued to demonstrate both its resilience and the capacity to grow in the UK, despite the cost of living pressures facing consumers."

Crowe said that while the trading environment in Europe was challenging, with more intense price competition persisting in the market, there remained a significant growth opportunity for Angling Direct.

"Overall the board is confident that a combination of continuing UK sales momentum with balancing European growth and profitability means that the group is well placed to deliver revenue and pre-IFRS 16 EBITDA in line with full year market expectations."

At 0904 BST, shares in Angling Direct were up 1.3% at 39p.

Reporting by Josh White for Sharecast.com.