Winter floods impact Angling Direct profits despite “strong growth”

Angling Direct trading update
Angling Direct said trading since Christmas has been "disappointing"
// Angling Direct reports sales increase despite “disappointing” post-Christmas trading
// It expects a 26.5% revenue increase for the year to January 31
// Online sales rose thanks to improved website

Angling Direct has revealed a sales increase both in-store and online, despite the winter floods affecting its financial performance.

The fishing retailer now expects to report a 26.5 per cent increase in revenue for the year to January 31.

Store sales rose by 41.3 per cent to £27.9 million and 12 per cent on a like-for-like basis following the launch of ten new stores.

READ MORE: Angling Direct CEO Darren Bailey exits

Meanwhile, online sales rose 13.3 per cent to £25.2 million thanks to improvements to the company’s ecommerce platform.

Angling Direct’s German, French and The Netherlands websites saw their sales increase by 24.6 per cent, 70.9 per cent and 86.7 per cent respectively.

They now account for 42 per cent of total international sales compared to 31 per cent in the previous year.

Total international sales increased by 7.6 per cent to £5 million.

However, Angling Direct said trading since Christmas has been “disappointing” and profits have been affected by “exceptional winter flooding”.

“Notwithstanding the strong growth the company has delivered this year, a disappointing trading period, post-Christmas, influenced by exceptional winter flooding, has impacted profits,” Angling Direct said.

The lower levels of fishing activity meant that sales of higher margin consumable products have been mostly affected.

“The company continues to have a strong balance sheet and held cash of £5.9 million at the January 31, 2020.”

Last week, Angling Direct’s chief executive Darren Bailey stepped down after three years at the helm.

Dailey had been in the business for 17 years, having previously served as the managing director, before being promoted to chief executive in 2017.

The fishing retailer appointed the former chief operating officer of Holland and Barrett, Andy Torrance to replace Bailey.

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