After bumping along at 12-month lows last week, shares in the UK’s largest fishing-tackle and equipment seller Angling Direct (ANGL:AIM) bobbed up 2.5% to 60p on Monday thanks to an upbeat half-year trading update.
The firm made ‘considerable progress on all key areas of its strategy’ during the six months to 31 July including market consolidation, online sales growth and increased store footprint.
The business continues ‘to perform well and significantly outperform the overall UK retail market’ according to chairman Martyn Page, and is ‘on track to deliver results in line with market expectations’ come next January.
Revenue was up 21% in the first half to £26.5m while gross profit (revenues minus cost of sales) was up 18% to £8.5m.
GROWING MARKET
In-store sales were up 41% thanks to newly-acquired stores in Hull and Scunthorpe, which were part of Chapman’s Angling purchased in February, and new store openings. Like-for-like in-store sales were up a respectable 14.9% compared with 4% growth in the same period a year ago.
Online growth was also healthy with UK sales up nearly 17% and European sales up 29% thanks to new Dutch, French and German websites.
The second half has started well with a record performance in August (sales up 33% on last year) as a new store was opened in Leeds and the market for fishing gear continues to grow.
The firm’s own Advanta brand, which was launched in 2011 to offer basic kit, has been expanded to higher-value products all the way up to £300 bivouacs or ‘bivvies’ for overnight camping.
According to the Environment Agency there has been a 35% rise in the number of UK fishing licences bought in the last decade, and the European fishing tackle market is estimated by the trade association to be worth up to €3bn in annual sales.
