TIDMANG
RNS Number : 8196I
Angling Direct PLC
06 April 2020
6 April 2020
Angling Direct plc
("Angling Direct", the "Group" or the "Company")
Covid-19 Further Trading and Operational Update, GBP2.5 million
credit facility
Angling Direct plc (AIM: ANG), the largest specialist fishing
tackle and equipment retailer in the UK, announces the following
trading and operational update.
FY21 Trading Year to Date
Despite the well reported period of exceptional flooding across
the UK at the start of the current financial year ending 31 January
2021 ("FY21"), trading was resilient in February, with overall
sales growth of 23.3% and a like-for-like increase for in-store
sales of 1.3% against the prior year period. Group e-commerce sales
grew 3.5% with our UK channel growing by 9.1%. International
e-commerce sales were down 27.6%, primarily due to our strategic
decision taken last Autumn to withdraw from certain territories in
order to protect margins and profitability.
Group sales increased 19.0% year-on-year over the first three
weeks of March prior to the significant recent impact of
Covid-19.
Update on the Impact of Covid-19
The welfare of our colleagues and customers remains paramount
and, to this end, we are taking all appropriate measures to keep
people safe whilst ensuring continuity of our operations to the
extent possible. We are operating flexible working arrangements
wherever possible and have installed the necessary technology to
enable the maximum number of office-based employees possible to
work from home. We continue to monitor this matter very closely and
will provide updates as appropriate.
Further to our announcement on 24 March 2020, all of our stores
remain temporarily closed following Government policy to limit
social interaction.
Our webstores, however, continue to trade and our distribution
centres remain open, with encouraging levels of trade in both the
UK and international markets. The Board is therefore pleased to
report that e-commerce sales remain robust for now, with strong
levels of customer demand since 24 March 2020.
Given the current unprecedented circumstances, the Board has
moved swiftly to preserve capital and improve cash flow. This
includes taking steps to reduce fixed costs and other expenditure
and putting investment plans on hold. To this end, we welcome the
recent measures introduced by UK Government to protect businesses
and their employees. We have taken the difficult decision to use
the reliefs extended, including furloughing employees, to reduce
cash outflows and provide the Group with additional liquidity
during this uncertain trading period. The Company will continue to
review all available options and plans to take full advantage of
all relevant assistance offered to business by UK Government.
The Board also announces that the Company has secured a short
term GBP2.5 million credit facility from NatWest with an expiry
date of September 2020, which will be used to help manage working
capital as required during this period of disruption.
FY21 Outlook
As a result of enforced store closures, the Group now expects a
material reduction in FY21 revenue and profitability. The scale of
the impact will be dependent on how the situation develops and over
what timeframe, together with the impact of any further measures
taken by UK Government to mitigate the disruption.
The Company retains healthy stock levels, allowing our
e-commerce sales to continue, and ready for when people begin to
return to fishing as and when conditions allow.
Due to the inevitable uncertainty caused, the Board has decided
to withdraw current market guidance and will provide a further
update on the anticipated FY21 out-turn only when it believes that
there is sufficient clarity.
FY20 Financial Reporting
Further to the pre-close trading update released on 18 February
2020, the Board reiterates its previous guidance that it expects
the Group to report turnover of GBP53.1 million and a pre IFRS 16
EBITDA loss of no more than GBP0.5 million for the year ended 31
January 2020 ("FY20").
The Board notes recent regulatory guidance around the extension
of financial reporting deadlines in response to the exceptional
events relating to the growing impact of Covid-19. It remains the
Board's intention to announce its FY20 results on 13 May 2020,
however the practical challenges of undertaking and completing a
full year audit process in the current circumstances may lead to
publication of the Company's results being delayed. Should this be
the case, the Company will make a further announcement in due
course.
Andy Torrance, Chief Executive Officer, said:
"The retail environment has never before been in a position
where it has had to deal with a crisis of this magnitude. Our focus
remains on protecting our valued members of staff, ensuring
appropriate and safe working conditions and, where possible,
providing an uninterrupted service to our loyal and supportive
customers. Like many in the retail community, we are also extremely
thankful to UK Government for the support provided at this
difficult time."
For further information:
Angling Direct PLC +44 (0) 1603 258658
Martyn Page, Executive Chairman
Andy Torrance, Chief Executive
Officer
Steven Crowe, Chief Financial
Officer
N+1 Singer - NOMAD and Broker
Peter Steel, Alex Bond (Corporate
Finance)
Tom Salvesen (Corporate Broking) +44 (0) 20 7496 3000
Yellow Jersey PR - Financial PR +44 (0) 203 004 9512
Charles Goodwin
Georgia Colkin +44 (0) 7747 788 221
Annabel Atkins +44 (0) 7544 275 882
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Notes for editors
About Angling Direct plc
Angling Direct is the largest specialist fishing tackle retailer
in the UK. The Company sells fishing tackle products and related
equipment through its network of retail stores, located throughout
the UK, as well as through its own website (
www.anglingdirect.co.uk ) and other third-party websites.
The Company currently sells over 21,500 fishing tackle products,
including capital items, consumables, luggage and clothing. The
Company also owns and sells fishing tackle products under its own
brand 'Advanta', which was formally launched in March 2016.
From 1986 to 2003 the Company's Founders acquired interests in a
number of small independent fishing tackle shops in Norfolk and, in
2003, they acquired a significant premise in Norwich, which was
branded Angling Direct. Since 2003, the Company has continued to
acquire or open new stores, taking the total number up to 35 retail
stores. In 2015 the Company opened a 30,000 sq. ft central
distribution centre in Rackheath, Norfolk, where the Company's head
office is also located.
Angling Direct's shares are traded on the AIM market of the
London Stock Exchange under the ticker symbol ANG.L.
For further information, please visit www.anglingdirect.co.uk
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END
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