Angling Direct blames bad weather for disappointing performance
Despite strong growth and expansion in the last year, bad winter weather have dented Angling Direct’s profits.
The figures
Angling Direct have announced a 41.3 per cent increase in in-store sales to £27.9m, and expects to report revenue of £53.1m.
Online sales grew 13.3 per cent to £25.2m as Angling Direct focused more on its German, French and Netherlands websites, which increased sales by 24.6 per cent, 70.9 per cent and 86.7 per cent respetively.
The specialist fishing tackle and equipment retailer has retained a strong balance sheet and held cash of £5.9m at 31 January 2020.
Why it’s interesting
The company added 10 new stores last year, including two acquisitions, which takes its total number of stores to 34.
Angling Direct said that while it is pleased with the performance, the “legacy stock that came with the acquired stores did contribute to margins being lower than the levels to which the board aspires.”
Additionally the retailer said that a disappointing post-Christmas trading period, as well as exceptional winter flooding, had dented profits.
The retailer said that the lower level of fishing activity paired with some legacy costs means it will deliver a pre-IFRS 16, EBITDA loss of no more than £0.5m.
Shares in Angling Direct were down seven per cent at 9am.
It is an ambivalent start for new chief executive Andy Torrance who was appointed earlier this month to head up the company.
Former boss Darren Bailey will remain on the board as a non-executive director.
What Angling Direct said
Notwithstanding the strong growth the Company has delivered this year, a disappointing trading period, post-Christmas, influenced by exceptional winter flooding, has impacted profits. The lower levels of fishing activity meant that the higher margin, consumable products, were hit disproportionally. In addition, a more prudent approach has been taken to some legacy costs, which, taken together, lead the Company to believe that it will deliver a pre-IFRS 16, EBITDA loss of no more than £0.5 million.
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