NEWS
points fi nger at dealers for discounting
Fishing tackle retail giant Angling Direct announces small loss on mammoth £42m turnover for year ending 31st Jan – pledging to increase its margins as the market continues to consolidate…
A
ngling Direct has posted an impressive £42m turnover for the
fi nancial year up to 31st January 2019. And despite showing a small accounting loss, the company now looks well positioned to continue its expansion with more stores, increased online growth and further expansion into Europe. Martyn Page, executive chairman of Angling Direct, said: “It has been a
from competitors decreases. Coupled with this are encouraging customer habits with increasing numbers of returning customers both in- store and online as Angling Direct becomes the retailer of choice.” Martyn’s comments have been met by derisions in the trade – with both dealers and suppliers stating that it is Angling Direct setting the
is having a knock-on effect on our sales in both the UK and now in Europe. "We know we’re not alone in our thoughts. This will be a very interesting year I think, as some brands will have to make a decision on their own destiny. Angling Direct is forcing hands here – and I think we’ll see more brands going direct, and some that will now start selling only
The Results • Group sales of £42.0m up by 39% (2018: £30.2m) • Online sales of £22.3m up by 30% (2018: £17.1m) with international sales up by 112% • Store sales of £19.7m up by 50% (2018: £13.2m) including like-for-like store growth of 6.2% • Gross profi t of £13.8m up by 40% (2018: £9.9m) with gross margin increasing to 32.9% • Net cash equivalents at 31 January 2019 of £13.5m (2018: £0.8m) • Successfully completed a placing raising £20.0m.
transformational year for Angling Direct, achieving record sales across the store network and online. The successful £20.0 million placing in October 2018, has enabled us to accelerate our expansion strategy with three stores opened in the period, cementing Angling Direct’s position as the UK’s number one fi shing tackle retailer. “As the UK market consolidates, we
are seeing a corresponding increase on our margins as the level of discounting
8 | Tackle & Guns | June 2019
pricing agenda and now, as Angling Direct claims, that they are matching pricing that is already out there. One supplier told T&G: “We’ve had ongoing issues with the company over discounting and each and every time we’ve broached the subject with them, they’ve told us they are merely matching other prices out there. “We’ve had about enough of this now as the damage they are causing us
to good solid independent stores.” Despite the price matching currently going on in the market, Angling Direct has increased its gross profi t margin substantially this year – with gross profi ts up by 40 per cent to £13.8m – showing a healthy gross margin of 32.9 per cent. It doesn’t take a rocket scientist to work out that Angling Direct has been getting some substantial discounts throughout 2018!
www.tandgmagazine.com
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