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Angling Direct PLC (ANG)

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Monday 08 October, 2018

Angling Direct PLC

Interim Results

RNS Number : 2004D
Angling Direct PLC
08 October 2018
 

8 October 2018

 

Angling Direct plc

 

("Angling Direct" or the "Company" or the "Group")

 

Half-yearly report for the period ended 31 July 2018

 

Angling Direct plc (AIM: ANG), the UK's largest specialist fishing tackle and equipment retailer, is pleased to announce its unaudited financial results for the six months ended 31 July 2018.

 

Financial Highlights:

·      Group revenue of £21.94 million up by 55.8% (H1 2018: £14.08 million)

·      Gross profit of £7.22 million up by 52.6% (H1 2018: £4.73 million)

·      Pre-tax profit of £0.57 million (H1: 2018 £0.09 million) after accelerated investment in European expansion

·      EPS increased by 1.44 pence to 1.11 pence from a loss of 0.33 pence in H1 2018

·      Cash and cash equivalents at 31 July 2018 of £0.78 million (H1 2018: £4.10 million)

 

Operational Highlights:

·      Online sales up 60% to £11.69 million

·      Store sales up 60% to £9.93 million, including like-for-like store growth of 4.2%

·      Continued investment in online marketing, customer service, logistics and distribution

·      Introduction of our first International Website in Germany

·      Acquired Ted Carter Fishing Tackle a well-established retail store in Preston in June

 

Post-Period End:

·      Opening of Guildford store in September 2018

·      Like-for-like store sales in August up by 15.4% & September by 12%

 

 

Martyn Page, Executive Chairman, said: "It has been another highly successful period for the Group with impressive growth achieved across our network of stores and online. We have executed on our strategy to develop a strong pipeline of new store openings and acquisitions and remain on track to meet our full year targets.

"Our online business has been developing at an exceptional rate and we successfully launched our first international Angling Direct website in Germany in June. Further international expansion is expected to take place, with websites for France and Benelux being developed for the second half of this year.

"I would like to thank my fellow directors and the whole of the Angling Direct team for their continued efforts over this period."

 

  For further information:

 

Angling Direct PLC

Martyn Page, Executive Chairman

Darren Bailey, Chief Executive Officer

 

+44 (0) 1603 258658

Cenkos Securities - NOMAD and Broker

Stephen Keys (Corporate Finance)

Russell Kerr (Sales)

 

+44 (0) 20 7397 8900

Yellow Jersey - Financial PR

Charles Goodwin

Harriet Jackson

Katie Bairsto

 

+44 (0) 7747 788 221

+44 (0) 7544 275 882

 

 

Chief Executive's review

 

I am pleased to report a strong set of interim results for the six-month period ended 31 July 2018. In-store and online have both performed well throughout the half despite the challenging winter weather conditions that we faced earlier in the year. Revenue for the period was £21.94 million, an increase of £7.86 million or 55.8% (H1 2018: £14.08 million). Adjusted EBITDA was £0.74 million, a decrease of £0.19 million (H1 2018: £0.93 million) as a consequence of the decision to bring forward our investment in the future growth of the online business in the UK and Europe. As well as infrastructure, we also made additional investment in marketing and customer services to support this growth.

 

The income statement shows a pre-tax profit of £0.57 million, an increase of £0.48 million or 530% on last year (H1: 2018 £0.09 million); and EPS increased by 1.44 pence to 1.11 pence from a loss of 0.33 pence per share in H1 2018.

 

Half Year Trading

The Group enjoyed a strong start to the year, with retail store revenue increasing by 60% to £9.93 million (H1 2018: £6.21 million) demonstrating continued growth, backed with like-for-like sales up by 4.2%. This was despite a 1.2% drop in footfall due to the adverse winter weather, which again confirms our in-store stock ranges and merchandising are going as planned. Average baskets in the stores are up 5.5% to £33.72 (H1: 2018 £31.96).

 

Online revenue from the Company's website increased by 64% to £10.84 million (H1 2018: £6.59 million) helped by further investment in the Company's e-commerce platform, and focused marketing both in the UK and Europe. The average basket value was lower at £78.97 (H1 2018: £96.96) due to our decision to reduce the postage free values to attract a higher frequency of sales for our smaller, higher margin items below £40. This has had a reassuringly positive impact, with the frequency of returning customers ordering sub £40 baskets increasing by over 200%.

 

The number of unique users visiting the website increased by 30% and we are delighted with the conversion increase to 5.24% (H1 2018: 3.74%).

 

We successfully launched our German website in June and the initial results have been very encouraging. We are planning to roll out other European websites later in the year, initially targeting France and Benelux.

 

eBay sales increased by 15% to £0.85 million (H1 2018: £0.74 million), while Insurance replacement sales reduced by 42% to £0.32 million (H1 2018: £0.55 million) due to a reduction in claim volumes and lower rates of theft.

 

The Group continues to invest in its own branded product range, Advanta, which contributed £0.51 million of the Group's total sales, up 13% from last year (H1 2018: £0.45 million). Additionally, we have increased our investment in stock to improve the availability throughout the year of key selling items.

 

The Group's strategy of remaining competitive with its pricing structure, as per its price checker policy, will remain. Despite competing against further discounting by our competition, online growth in Europe, especially on capital items, and price increases from suppliers in the Far East, we still managed to achieve margins of 32.9% in the period (H1 2018: 33.6%).

 

We will continue to monitor these factors and look to improve our margin by focusing on our suppliers and other specific product opportunities.

 

Store Roll-out

The Group is continuing to expand its UK store footprint through strategically placed store roll-out. The Group will continue to assess acquisition opportunities that will be a functional fit and add value to the Group's overall operations. 

 

The Group ended the period owning and operating 22 stores based around the UK (H1 2018: 15 stores). Following the period end a further store was opened in Guildford (September 2018)

 

It is anticipated that the Group will open one further store in Peterborough before the end of October 2018 and the Group, therefore, expects to own and operate 24 stores based by the end of our financial year. The new store pipeline for 2019 is already being developed and this will see expansion into new areas of the country in-line with the Company's stated strategy.

 

Outlook

The Group continues to invest in the future growth of the business, both online and in-store. As we grow, we will continue to review costs and improve operational efficiencies and margins, and the introduction of a new Kardex system in our warehouse will see beneficial efficiencies coming through next year. We are proud of the results of our online strategy and have seen continued solid trading since the period end. We believe that the platform we have established and the experience we have gained will enable us to achieve robust and sustainable growth.

 

 

Darren Bailey

Chief Executive Officer

 

 

CONSOLIDATED INCOME STATEMENT

FOR THE 6 MONTHS ENDED 31 JULY 2018

 

 

 

Notes

(Unaudited)

6 months to

31 July 2018

£ 000's

(Unaudited)

6 months to

31 July 2017

£ 000's

(Audited)

Year ended

31 Jan 2018

£ 000's

CONTINUING OPERATIONS

 

 

 

 

 

Revenue

 

21,939

14,083

30,241

Cost of sales

 

(14,722)

(9,353)

(20,387)

 

 

 

 

 

GROSS PROFIT

 

7,217

4,730

9,854

 

 

 

 

 

Distribution costs

 

(1,398)

(797)

(1,794)

Administrative expenses

 

(5,210)

(3,079)

(7,120)

 

 

 

 

 

OPERATING PROFIT BEFORE EXCEPTIONAL ITEMS

 

 

609

 

854

 

940

 

Exceptional items

3

-

(740)

(730)

 

 

 

 

 

OPERATING PROFIT

 

609

114

210

 

 

 

 

 

Finance costs

 

(37)

(28)

(51)

 

 

 

 

 

PROFIT BEFORE INCOME TAX

 

572

86

159

 

 

 

 

 

Income tax

 

(94)

(117)

(132)

 

 

 

 

 

PROFIT(LOSS) FOR THE PERIOD

 

478

(31)

27

Profit/(Loss) attributable to:

Owners of the parent

 

478

(31)

27

Earnings/(Loss) per share attributable to the ordinary equity holders of the parent:

Basic and diluted (pence)

 

1.11

(0.33)

0.10

 

 

 

 

 

 

 

STATEMENT OF COMPREHENSIVE INCOME

FOR THE 6 MONTHS ENDED 31 JULY 2018

 

 

 

(Unaudited)

6 months to

31 July 2018

£ 000's

(Unaudited)

6 months to

31 July 2017

£ 000's

(Audited)

Year ended

31 Jan 2018

£ 000's

 

PROFIT/(LOSS) FOR THE PERIOD

478

(31)

27

 

 

 

 

OTHER COMPREHENSIVE INCOME

Item that may be reclassified subsequently

to profit or loss:

 

 

 

Bonus share issue

-

(302)

(302)

Revaluation of Property to Fair Value

-

-

86

Income tax relating to components of other comprehensive income

-

-

-

 

 

 

 

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

 

478

 

 

(302)

 

 

(216)

 

 

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

478

 

(333)

 

(189)

 

 

Total comprehensive income attributable to:

 

 

 

Owners of the parent

478

(333)

(189)

 

 

 

 

 

 

 

 

 

 

 

 

  

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 JULY 2018

 

ASSETS

Notes

(Unaudited)

6 months to

31 July 2018

£ 000's

(Unaudited)

6 months to

31 July 2017

£ 000's

(Audited)

Year ended

31 Jan 2018

£ 000's

NON-CURRENT ASSETS

 

 

 

 

Intangible assets

 

4,614

1,816

4,564

Property, plant and equipment

 

3,017

1,310

2,294

 

 

7,631

3,126

6,858

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Inventories

 

8,524

4,818

6,815

Trade and other receivables

 

1,002

770

617

Cash and cash equivalents

 

779

4,099

749

 

 

10,305

9,687

8,181

TOTAL ASSETS

 

17,936

12,813

15,039

 

 

 

 

 

EQUITY

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

Called up share capital

4

430

430

430

Share premium

 

7,032

7,032

7032

Revaluation reserve

 

-

-

86

Retained earnings

 

1,271

650

707

TOTAL EQUITY

 

8,733

8,112

8,255

 

 

 

 

 

LIABILITIES

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

Trade and other payables

 

-

-

7

Financial liabilities - borrowings Interest bearing loans and borrowings

 

36

62

54

Deferred tax

 

219

163

203

 

 

255

225

264

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

 

7,218

4,173

5,518

Financial liabilities - borrowings

Bank overdrafts

 

-

-

-

Interest bearing loans and borrowings

 

1,538

29

888

Tax payable

 

192

274

114

 

 

 

 

8,948

 

4,476

 

6,520

 

TOTAL LIABILITIES

 

9,203

4,701

6,784

TOTAL EQUITY AND LIABILITIES

 

17,936

12,813

15,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE 6 MONTHS ENDED 31 JULY 2018

 

 

Called up share capital

£ 000's

Share premium £ 000's

Retained earnings

£ 000's

Revaluation reserve

£ 000's

Total equity

£ 000's

Balance at 31 January 2017

1,410

-

990

-

2,400

 

Changes in equity

 

 

 

 

 

Issue of share capital

420

7,402

-

-

7,822

Costs associated with share issue

-

(370)

-

-

(370)

Redemption of preference shares

(1,400)

-

-

-

(1,400)

Dividends

-

-

(7)

-

(7)

Profit/(Loss) for the period

-

-

(31)

-

(31)

Other comprehensive income

-

-

(302)

-

(302)

Balance at 31 July 2017

 

430

 

7,032

 

650

 

 

 

-

8,112

 

 

 

 

 

 

 

Changes in equity

 

 

 

 

 

Issue of share capital

-

-

-

-

-

Costs associated with share issue

-

-

-

-

-

Profit/(Loss) for the period

-

-

57

-

57

Other comprehensive income

-

-

-

86

86

Balance at 31 January 2018

 

 

430

 

 

7,032

 

 

707

 

 

 

 

86

8,255

 

 

Changes in equity

 

 

 

 

 

Issue of share capital

-

-

-

-

-

Dividends

-

-

-

-

-

Profit/(Loss) for the period

-

-

478

-

478

Other comprehensive income

-

-

86

(86)

-

Balance at 31 July 2018

430

7,032

1,271

 

 

-

8,733

 

 

 

 

 

 

 

 

CONSOLIDATED CASHFLOW STATEMENT

FOR THE 6 MONTHS ENDED 30 JULY 2018

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

Notes

(Unaudited)

6 months to

31 July 2018

£ 000's

(Unaudited)

6 months to

31 July 2017

£ 000's

(Audited)

Year ended

31 Jan 2018

£ 000's

 

Cash generated from operations

1

334

85

(223)

 

Interest paid

 

(34)

(25)

(45)

 

Interest element of finance lease payments made

 

(2)

(3)

(6)

 

Taxation refund

 

-

-

-

 

Taxation paid

 

-

(3)

(139)

 

Net cash from operating activities

 

298

54

(413)

 

Cash flows from investing activities

 

 

 

 

 

Purchase of goodwill

 

(50)

-

(2,748)

 

Purchase of tangible fixed assets

 

(850)

(264)

(1,234)

 

Sale of tangible fixed assets

 

-

-

-

 

 

 

 

 

 

 

Net cash from investing activities

 

(900)

(264)

(3,982)

 

Cash flows from financing activities

 

 

 

 

 

New loans in period

 

650

-

850

 

Loan repayments in period

 

-

(1,515)

(1,515)

 

Capital repayments in period

 

(18)

(15)

(30)

 

Share issue

 

-

7,520

7,520

 

Cost of share issue

 

-

(370)

(370)

 

Redemption of preference shares

 

-

(1,400)

(1,400)

 

Equity dividends paid

 

-

(7)

(7)

 

 

 

 

 

 

 

Net cash from financing activities

 

632

4,213

5,048

 

(Decrease)/Increase in cash

and cash equivalents

 

30

4,003

653

 

Cash and cash equivalents at beginning

of period

 

749

96

96

 

Cash and cash equivalents at end of period

2

779

4,099

749

 

 

NOTES TO THE CASH FLOW STATEMENT

FOR THE 6 MONTHS ENDED 31 JULY 2018

 

1. RECONCILIATION OF PROFIT BEFORE TAX TO CASH GENERATED FROM OPERATIONS

 

 

 

 

(Unaudited)

6 months to

31 July 2018

£000's

(Unaudited)

6 months to

31 July 2017

£000's

(Audited)

Year ended 31 Jan 2018

£000's

 

Profit before income tax

572

86

159

Depreciation charges

127

75

163

Impairment of goodwill

-

-

-

Profit on disposal of fixed assets

-

-

-

Finance costs

37

28

51

 

736

 

189

 

373

 

(Increase)/Decrease in inventories

(1,709)

(440)

(2,437)

(Increase)/Decrease in trade and other receivables

(385)

(274)

(121)

Increase/(Decrease) in trade and other payables

1,692

610

1,962

 

 

 

 

Cash generated from operations

 

334

 

85

 

(223)

 

 

 

 

2. CASH AND CASH EQUIVALENTS

 

The amounts disclosed on the cash flow statement in respect of cash and cash equivalents are in respect of the statement of financial position amounts:

 

Period ended 31 July 2018

(Unaudited)

As at 31 July 2018

£000's

(Audited)

As at 31 Jan 2018

£000's

Cash and cash equivalents

779

749

Bank Overdrafts

-

-

 

779

749

 

 

Period ended 31 July 2017

(Unaudited)

 As at 31 July 2017

£000's

(Audited)

 As at 31 Jan 2017

£000's

Cash and cash equivalents

4,099

283

Bank Overdrafts

-

(187)

 

4,099

96

 

 

Period ended 31 January 2018

(Audited)

As at 31 Jan 2018

£000's

(Audited)

As at 31 Jan 2017

£000's

Cash and cash equivalents

749

283

Bank Overdrafts

-

(187)

 

749

96

 

 

NOTES TO THE FINANCIAL STATEMENTS UNAUDITED RESULTS

FOR THE 6 MONTHS ENDED 31 JULY 2018

 

1. Basis of preparation

 

These interim financial statements for the six-month period ended 31 July 2018 have been prepared using the historical cost convention, on a going concern basis and in accordance with applicable International Financial Reporting Standards as adopted by the European Union ("IFRS") and with those parts of the UK Companies Act 2006 applicable to companies reporting under IFRS as adopted by the European Union. They have also been prepared on a basis consistent with the accounting policies expected to be applied for the year ending 31 January 2019 and which are also consistent with the accounting policies applied for the year ended 31 January 2018 except for the adoption of any new standards and interpretations.

 

These interim results for the six months ended 31 July 2018 are unaudited and do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial statements for the year ended 31 January 2018 have been delivered to the Registrar of Companies and filed at Companies House and the auditors' report on those financial statements was unqualified and did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.

 

2. Profit per share

 

Basic Earnings Per Share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares of 42,999,993 (31st January 2018, and 31st July 2018) outstanding during the period.

 

3. Exceptional items

 

There were no exceptional items in the period.

 

 

4. Called up Share Capital

 

(Unaudited)

 31 July 2018

£

(Unaudited)

 31 July 2017

£

Audited

 31 Jan 2018

£

Allotted, called up and fully paid

 

 

 

 

Ordinary shares of £1 each

-

-

-

Ordinary shares of 1p each

430,000

430,000

430,000

Preference shares of £1 each

-

-

-

 

430,000

 

430,000

 

430,000

 

 

 

 

No of Ordinary 1p shares

 

Balance at 31 July 2017

 

42,999,993

 

Balance at 31 January 2018

 

42,999,993

 

Balance at 31 July 2018

 

42,999,993

 

 

 

5. Post balance sheet events

 

There are no post balance sheet events to report

 


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