Angling Direct continues UK growth but Europe a concern

The UK’s leading tackle retailer has continued its impressive growth within its domestic market, but saw a worrying dip in sales across Europe.

Angling Direct, which now has 60 stores across England and Wales, reported a 5.1% increase in revenue to £56.4m (£53.6m) in the first half of its financial year compared to the same period in the previous comparable period However, it hit a bump in sales across Europe, where it has digital sales operations and a store in Utrecht, with sales of £1.8m (£2.5m) – down 30.4%.

It told investors that the European digital trading landscape remained challenging with significant pressure on both customer price and paid advertising costs. “The consumer landscape in our markets in the region are more uncertain than the UK. While the competitive sector is creating longer-term opportunity for the group, we will keep EU trading progress under continual evaluation, maintaining a balance between market optionality and a forward-looking view of the likely returns in this area of the business” it told investors.

“We continue to believe that there is significant longer-term opportunity in Europe to underpin a sustained growth trajectory for the group and despite the current unsustainable market trends, this will create opportunity for the group much as it has done in the UK.”

In the UK, retail store sales were up 6.4% to £32.4m (£30,5m), while online sales also performed well, delivering a 7.5% increase to £22.1m (£20.6m). Adjusted profit before tax increased 11.2% to £3.3m.

Angling Direct revenue was bolstered by the performance of its MyAD loyalty card with membership up 16% over the period which saw it reach 696,000 subscribers, compared to 600,000 at the end of January.

During the six months it added three more stores in Crawley, Kettering and Gloucester.  

Higher margin own brand gross profits grew by around 22%, leveraged through new ranges, everyday pricing and improved sourcing, buying and UK logostics. Since announcing its latest results, Angling Direct says that Group revenues in August and September increased 10.7% and total like-for-like revenue grew as it continued to acquire new customers from store-based competitors who it says are unable to continue trading in the current environment.

Steve Crowe, CEO of Angling Direct said: “ I am pleased to report a resilient first half performance despite the well-documented challenges facing the UK retail sector. This performance is testament to the hard work of everyone at Team AD and on behalf of the Board, I would like to thank them for their continued dedication.

“Our higher-ticket categories proved robust, even as reduced rainfall impacted footfall and seasonal demand patterns. Further to this, our MyAD Fishing Club continues to be a powerful differentiator, driving deeper engagement across our stores and digital platforms while enabling us to attract and retain more customers in a competitive environment. We have continued to make progress against our UK store roll-out strategy, bringing our UK estate to 60 stores.

“We delivered a resilient performance during the period and saw positive momentum in the final two months of the key trading season. with the Group trading in line with full year market expectations. The Board remains vigilant to the external headwinds facing the sector. However, it has continued confidence in the outlook for the Group. This is underpinned by our market leading position, strategy and resilient business model, all of which position us well for medium-term profitable growth.”