Angling Direct PLC on Tuesday said profit dropped in its recently completed financial year, despite a rise in revenue, and it announced the hiring of a new chief financial officer as part of an overall change at the top of the company.

The Norfolk, England-based fishing tackle and equipment retailer reported pretax profit of £700,000 for the financial year that ended January 31, down from £4.0 million the previous year.

Angling Direct said revenue increased by 2.2% to £74.1 million in financial 2023 from £72.5 million in financial 2022. Retail store sales increased 6.8% to £41.3 million from £38.7 million, with UK sales up 1.6% to £71.0 million from £69.8 million.

Online sales decreased by 3.0% to £32.8 million from £33.8 million, including a 4.8% drop in UK online sales to £29.6 million from £31.1 million. However European online sales increased 18% to £3.1 million from £2.7 million.

Despite the increase in revenue, profit was hurt by a quicker rise in cost of sales and by higher administrative expenses. Cost of sales rose by 5.3% to £48.3 million from £45.9 million, narrowing gross profit margin to 25.8% from 26.6%. Administrative expenses increased by 10% to £21.7 million from £19.7 million year on year, which Angling Direct said was mostly due to higher costs in Europe.

Angling Direct did not declare a dividend for the 2023 financial year, unchanged from the prior year. The company said it will keep its dividend policy under review as strategic expansions progressed.

Angling Direct was confident it could deliver further growth in the current financial year ‘despite the continued uncertainty in the macro-economic environment’. It said it would continue to focus on organic growth in the UK by growing its retail and online customer base.

‘The last twelve months have seen Angling Direct continue to grow sales despite significant consumer headwinds, including inflation and cost of living pressures across all of the company’s key markets...Looking ahead, we will continue to evolve our customer offering across all channels but with a particular focus on sustainable profitable growth and our European presence,’ Chief Executive Officer Andy Torrance commented.

‘Whilst we are vigilant as to the continuing challenging macroeconomic backdrop, I remain cautiously optimistic when I look to the future, confident that the strong foundations we have put in place...will ensure the group is well-placed to capitalise on the numerous opportunities that will arise through the remainder of 2023 and beyond.’

Angling Direct also said Sam Copeman has been hired as CFO to replace Steve Crowe, who was promoted to CEO in February. Crowe will replace Torrance, who is stepping down as CEO at the annual general meeting on June 22 to move to non-executive chair. Martyn Page simultaneously will step down as non-executive chair and remain on the board as a non-executive director.

Copeman previously worked as finance director at sports consultancy firm Esportif and oversaw its acquisition by sports, music and entertainment agency Wasserman last year. He will join Angling Direct on June 5 and join its board at the AGM.

Shares in Angling Direct were up 2.1% at 26.56 pence in London on Tuesday.

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