NEWS
show huge growth as profits tumble
Half year results highlight just how important the high margin Advanta is becoming for Britain’s biggest angling chain as profits fall...
A
ngling Direct has announced its half year trading update and has posted
1.3% growth for the first six months of the year. The report covers trading from 1st February to 31st July 2022. The results, which are possibly
more positive than many in the trade anticipated, show that like-for-like store sales have increased by 4.6% against an ongoing trend of falling online sales – which dropped by 7.8% year on year. Profits are now predicted to fall by nearly 70% to just over £1m. Growth in Europe continues, showing a 55% gain to £1.6m in sales. Propping up the half year results
are higher margin own-brand sales in the period grew by 34.6%. This increase in the proportion of total sales accounted for by higher margin own brand sales is partially attributable to the introduction of new Advanta and AdvantaPro products. In fact, according to the report new Advanta reels have been particularly successful, as has the introduction of own brand lead weights. Andy Torrance, CEO of Angling
Direct, said: “Despite the uncertain macroeconomic environment, our strategy remains unchanged as we continue to focus on gaining market share both in the UK and Europe over the medium to long term. As a result, we are pleased to have achieved sales growth during the first half of the year
10 | Tackle & Guns | Issue: 752
against a strong prior year comparator. In fact, sales in the first quarter were 5.4% ahead of the previous year before sentiment began to be significantly impacted by the cost-of- living crisis during Q2. “Sales in August were disrupted by the unusually hot weather in the UK and Europe. Despite trading improving in September, further adverse economic news flow and political uncertainty has resulted in volatile and unprecedented trading conditions which is making short-term forecasting challenging. As a result of these factors and the Board’s decision to continue its strategic investment, the Board believes it is prudent to revise downwards its forecasts for the full year accordingly. “The Board remains optimistic about the long-term growth prospects of the Group and believes that continued strategic investment now will leave the Group best placed competitively when consumer confidence returns. The Group will only continue to strategically invest in a controlled manner and only to the extent that it retains both strong liquidity and its robust balance sheet.” At the time of going to press, shares in the company had tumbled by 12.5% on the back of the results – possibly fuelled by a drop in gross margin and profit projection for the company.
Half Year Financial Highlights
• Revenue up 1.3% to £38.9m
• Retail sales up 9.8% to £21.9m
• Online sales down 7.9% to £17m
• Gross Profit down 6.5%
• Gross Margin down 2.8%
• Profit down 69.8% to 1.1m
www.tandgmagazine.com
own brand sales
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