TIDMANG
RNS Number : 8704O
Angling Direct PLC
13 October 2021
13 October 2021
Angling Direct PLC
('Angling Direct', the 'Company' or the 'Group')
Half Year Results
Continued strong progress in H1, upgrading guidance for full
year
Angling Direct PLC (AIM: ANG), the leading omni-channel
specialist fishing tackle and equipment retailer, is pleased to
announce its unaudited financial results for the six months ended
31 July 2021.
The Group has delivered strong progress against its stated FY22
planned priorities including its plans to establish in-region
online European fulfilment which is now entering the implementation
phase. The Board is now of the view that pre IFRS 16 EBITDA for the
year ending 31 January 2022 (FY22) will be no less than GBP5.0m
(inclusive of the expected costs associated with opening its new
European distribution centre), comfortably exceeding current market
expectations. With the Group's growing omni-channel offering and
the strength of its balance sheet, the Board remains optimistic
about the growth prospects and overall success of the business.
Financial highlights:
Given the fluctuating sales patterns as a result of lockdowns
and pandemic-related restrictions in the current and previous
comparator periods, our commentary below also presents headline
financial metrics on a two year basis, showing a third column for
the six months ended 31 July 2019 (H1 2020).
GBPm H1 2022 H1 2021 H1 2020 H1 2022 Growth
------------------------ -------- -------- --------
on H1 2021 on H1 2020
------------------------ -------- -------- -------- ----------- -----------
Revenue 38.4 32.1 26.5 +19.5% +44.8%
Online sales 18.5 17.9 12.5 +3.2% +47.6%
Retail store sales 19.9 14.2 14.0 +40.1% +42.3%
Gross profit 14.4 10.8 8.5 +33.7% +68.8%
Gross margin % 37.4% 33.5% 32.1% +390bps +530bps
EBITDA (pre IFRS-16) 4.4 2.1 0.8 +111.6% +488.0%
Profit before tax 3.7 1.4 0.4 +174.2% +914.4%
Basic EPS 3.70p 2.02p 0.51p +83.2% +625.5%
------------------------ -------- -------- -------- ----------- -----------
-- Positive Operating cashflow of GBP5.8m
-- Strong balance sheet with Group net cash at 31 July 2021 of GBP19.6m
(31 July 2020: GBP21.0m)
Operational highlights:
-- Further digital investment grew UK online conversion by 80 bps to
6.3%
-- Recent investment in UK distribution centre capacity utilised to
protect supply position relative to wider market
-- 'AD+' priority delivery subscription service launched March 2021
driving customer loyalty and now accounts for 16% of all UK online
orders
-- Established business case and detailed operating model for a European
distribution centre, facilitating moving to execution phase - terms
agreed on 3,900 square metre facility in the Netherlands
-- New category management model delivered agile stocking and pricing
in short supply market supporting gross margin growth
-- Store transformation programme starting to deliver sustainable levels
of EBITDA earnings from retail stores. Stores average transaction
value up 3.8% and like for like sales up 32.2%
-- Healthy property pipeline for underserved catchments - two further
store openings planned by year end
Andy Torrance, CEO of Angling Direct, said:
"We are pleased to have delivered a robust financial performance
in the first half of the year, building on the operational and
strategic progress made last year. These results demonstrate that
the increasingly efficient, market leading omni-channel nature of
the Company's trading platform, combined with its strong balance
sheet, ensures it is well placed to serve customers across all
channels as it emerges from the challenges of the Covid 19
pandemic.
The Group has delivered strong progress against its stated key
priorities for FY22 in the first half, including its plans to
establish in-region online European fulfilment which is now
entering implementation phase. With the Group's leading customer
offering and optimised operational capabilities, combined with the
scale of the market opportunity, the Board remains optimistic about
the growth prospects and overall success of the business."
Sell-side analyst webinar and Investor Meet Company
presentation
A webinar for sell-side equity analysts will be held at 9.00
a.m. BST today, 13 October 2021, the details of which can be
obtained from FTI Consulting using the contact details below.
Management will provide a live presentation via the Investor
Meet Company platform at 11.00 a.m. BST on 18 October. The
presentation is open to all existing and potential shareholders.
Questions can be submitted pre-event via your Investor Meet Company
dashboard up until 9.00 a.m. the day before the meeting or at any
time during the live presentation. Investors can sign up to
Investor Meet Company for free to meet Angling Direct plc via:
https://www.investormeetcompany.com/angling-direct-plc/register-investor
. Investors who already follow Angling Direct on the Investor Meet
Company platform will automatically be invited.
For further information please contact:
Angling Direct PLC +44 (0) 1603 258 658
Andy Torrance, Chief Executive
Officer
Steven Crowe, Chief Financial Officer
Singer Capital Markets - NOMAD
and Broker +44 (0) 20 7496 3000
Peter Steel (Corporate Finance)
Alex Bond (Corporate Finance)
Tom Salvesen (Corporate Broking)
FTI Consulting - Financial PR +44 (0) 20 3727 1000
Alex Beagley anglingdirect@fticonsulting.com
James Styles
Alice Newlyn
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under the UK
version of article 7 of the Market Abuse Regulation (EU) No.
596/2014.
About Angling Direct
Angling Direct is the leading omni-channel specialist fishing
tackle retailer in the UK. The Company sells fishing tackle
products and related equipment through its network of retail
stores, located strategically throughout the UK as well as through
its leading digital platform ( www.anglingdirect.co.uk , .de, .fr
and .nl) and other third-party websites.
Angling Direct is committed to supporting its active customer
base and widening access to the angling community through its
passionate colleagues, store-based qualified coaches, social media
reach and ADTV YouTube channel. The Company currently sells over
20,000 fishing tackle products, including capital items,
consumables, luggage and clothing. Angling Direct also owns and
sells fishing tackle products under its own brand 'Advanta', which
was formally launched in March 2016.
From 1986 to 2002, the Company's founders acquired interests in
a number of small independent fishing tackle shops in Norfolk and,
in 2002, they acquired a significant premise in Norwich, which was
branded Angling Direct. Since 2002, the Company has continued to
acquire or open new stores, taking the total number up to 39 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 has an established, and
rapidly growing, presence in Europe with native language websites
set up in key regions to address demand.
Chief Executive Officer's Review
The Group is pleased to have delivered a strong set of results
in the period due to the increasingly efficient, market leading
omni-channel nature of the Angling Direct trading platform that
allowed our customers to flexibly access our products and content,
despite a significant period of store closures and unusual channel
mix caused by government trading restrictions. This is also a
period where the Group has delivered strong progress against all
its stated strategic priorities.
As well as continued sales growth, alongside further improved
margin growth and supply chain efficiency, the Group is now in the
implementation phase of its plan to significantly improve its
European customer offer and in-region fulfilment. We have
established a wholly owned subsidiary, ADNL BV, and agreed Heads of
Terms for a lease over a 3,900 square metre distribution centre in
the Netherlands which we anticipate will be operational ahead of
the spring 2022 fishing season. This underlines our confidence in
the significant opportunity that exists for us to grow our presence
in Europe and expand the Group's broader growth potential.
I would like to thank all my colleagues for their continued
resilience and enthusiastic commitment to the ongoing profitable
growth of the Group at this exciting time in our development.
Results
Group revenue increased by 19.5% to GBP38.4m for the six months
ended 31 July 2021 (H1 2021: GBP32.1m). The Company recorded strong
sales growth in Q1 2022 of 53.6%. Measured against unprecedented
levels of demand in the prior year following store re-openings on
15 June 2020, total sales growth in Q2 was pleasing at 3.5%.
Gross profit increased by 33.7% to GBP14.4m (H1 2021: GBP10.8m).
Pre IFRS 16 EBITDA grew by 112% to GBP4.4m (H1 2021: GBP2.1m) as
the Company's web distribution centre continued to operate during
the third lockdown period, facilitated by drawing on existing stock
levels as well as stock held in otherwise closed retail stores that
offered a Call and Collect service throughout.
Since restrictions were lifted on 12 April 2021, and all stores
safely re-opened, total sales to the end of the period returned to
a more traditional profile when compared to the prior year when
sales were skewed by the pent-up demand caused by the first
lockdown.
Due to the strength of trading, associated cash conversion and
working capital timing, the Company's net cash position at 31 July
2021 was GBP19.6m (31 July 2020: GBP21.0m).
Operational Review
Online
As part of our drive to grow market share and customer loyalty,
we continue to invest in our contemporary digital infrastructure
and customer marketing to ensure we stand apart from our
competitors.
We are pleased to report overall online sales in the period grew
by 3.2% to GBP18.5m (H1 2021: GBP17.9m) partially reflecting the
year-on-year lockdown driven change in channel mix. Our UK website
achieved strong online sales growth of 15.8%. In Europe, Brexit
driven customs disruption significantly impacted delivery lead
times and coupled with restrictions on the export of bait, meant
that sales via the Company's three native language websites (which,
during the period, comprised less than 5% of Group revenue)
declined by 34.2%.
Lead-times to customers in Europe have started to improve as new
customs and border practices slowly start to stabilise. We have now
also partnered with one of Germany's leading bait manufacturers to
supply direct to our customers via Angling Direct websites. The
Board anticipates the new European fulfilment facility will, in the
medium term, greatly facilitate trading and the scale of the
Company's online opportunity in Mainland Europe.
As the Company seeks to exit unprofitable online activity, sales
via eBay and non-core international territories combined reduced by
GBP0.9m, or 5.0% of H1 21 total online sales.
Continued investment and development of our UK search
functionality meant that despite decreased browsing, driven by the
wider economy re-opening, UK conversion increased by 80bps to 6.3%
and average online transaction value grew by 11.2% to GBP77.19. As
we expected, Brexit trading restrictions impacted conversion on the
Group's native language websites with a reduction of 90bps to 1.6%:
(H1 2021 2.5%).
During the first half, the Company invested in the development
of a mobile web App, believed to be the first of its kind in our
sector in the UK. The App is now in the final stage of testing,
with launch date scheduled pre-Christmas, and will provide our
customers with further choice, convenience and inspiration on the
move, as well as the opportunity for us to improve online marketing
efficiency. AD+, our priority delivery subscription service
designed to build ongoing customer loyalty, was launched in March
2021 and now accounts for 16% of all UK online orders.
Retail Stores
We are really encouraged to see customers enthusiastically
returning to our stores. Our store colleagues are the vital touch
point between Angling Direct and our customers. They are crucial
for driving conversion, creating loyal customers and prompting
recommendation.
Total store sales in the period increased 40.1% to GBP19.9m (H1
2021: GBP14.2m). Like-for-like ('LFL') store sales grew by 32.2%.
All retail stores were closed at the beginning of the period from 1
February to 12 April 2021 due to government restrictions during the
third lockdown. This compares to stores being originally closed in
the prior period from 24 March to 14 June 2020.
In line with our strategic commitment to being the first choice
omni-channel retailer in all our markets, we opened one new store
in the period: Redditch (February 2021, restricted until April
2021), re-sited a further store: Sittingbourne (April 2021 with a
considerably improved shopping environment) and re-fitted another:
(Hull with improved layout and ranging).
We have a healthy new store pipeline focused on unserved
catchments, with two further stores planned before the FY22 year
end.
We have established a two-year Retail Transformation plan which
is now well underway. The plan is focused on radically improving
our store shopping environment through improved layouts and
merchandising, promotional messaging and, crucially, colleague
interaction focused on customer satisfaction.
Trading
We are committed to providing the most comprehensive range of
products for major fishing disciplines, always delivering choice,
value, quality and stock availability.
The Company's newly implemented category management process,
along with continued focus on pricing and promotional discipline,
has resulted in gross margin growing by 390bps to 37.4%.
Higher margin own brand sales in the period grew by 10.1%,
whilst its proportion of total sales slipped modestly by 40 bps to
5.2%. The slightly higher proportion of own brand sales in H1 2021
reflects the scarcity of branded equivalent products towards the
end of that period. Current Q3 own brand sales as a proportion of
total sales have improved to 6.8% following a refresh of our
promotional activity. New own brand SKUs and ranges have been
developed which, along with new packaging, are due to be launched
by summer 2022.
The Board has been following a strategy of prudently using the
Company's balance sheet strength to ensure the Group is well
invested in key stock lines as they become available from product
suppliers. We believe this provides a significant competitive
advantage given ongoing global supply chain disruption and
suppliers forecasting upward cost price pressure. Our Category
Management team continues to maintain a key focus on cost price
inflation with the objective of maintaining strong stock
availability for customers, whilst at the same time actively
investing to protect our price competitiveness.
This relative depth of stock has facilitated a degree of pricing
stability in the period beyond traditional levels, however, the
Company remains committed to protecting its competitive customer
offering, and will, where considered necessary, invest gross margin
in its pricing proposition.
We will also take the opportunity in the coming months to
further tailor ranges more closely to our customer needs.
International
The opportunity for profitable growth within Europe remains
clear and as outlined in the Group's Annual Results, considerable
management resource has been focused upon realising our plans to
become Europe's first choice omni-channel destination.
The Board has confidence in the business case for establishing
in-region fulfilment which will allow the Group to improve customer
order fulfilment, broaden the appeal of our ranges locally and
facilitate the further development of our full omni-channel
proposition. Working with expert partners we have defined a clear
view of our business requirements in terms of optimal location and
operating model, providing a strong platform for future growth
As a result, we have incorporated a new wholly owned Dutch
subsidiary, ADNL B.V., engaged in-country commercial management and
agreed terms for the lease of a 3,900 square metre distribution
facility in the Netherlands, with a targeted opening date of Spring
2022. We have also received strong support from both existing and
potentially new supply partners to support range extensions for
Europe.
Management's current financial projections show that this new
facility is expected to provide the Company with European growth
capacity to 2027, with the Board anticipating that it will be
earnings positive by 2025. All costs associated with this phase of
expansion will be funded from existing cash resources.
Given our increased confidence in the robustness of the European
business case we have subsequently commenced investment into
stimulating customer engagement ahead of the new facility going
online in Spring 2022.
Organisational Development
We remain fully committed to acting responsibly and sustainably
within our environment and communities. We continue to supplement
and upskill key capabilities within our category management,
digital and operational teams. We have appointed a new Commercial
Director, a new Head of Product Development and a new European
Commercial Manager. As well as human resource, we continue to
invest in digital technologies and customer acquisition marketing
to further differentiate our competitive position.
Current trading and Outlook
Sales in Q3 are anticipated to decline relative to the
unprecedented levels in Q3 in the prior year (post lock down 1). It
is not yet clear the extent to which the Company will track sales
levels during Q4 against the comparative period, which included the
second lockdown (all stores closed November 2020) and the beginning
of the third lockdown (all stores closed January 2021). Post
period-end, we have not experienced any material impact from supply
chain disruption and continue to hold good levels of stock in
mitigation. As with other retailers, we are not immune to increased
raw material and freight costs, however, these will be offset by
our margin growth and we are well placed to continue mitigating any
impact.
Whilst some uncertainty persists, the Company's overall
performance in the current year to date means that the Board is now
of the view that pre IFRS-16 EBITDA for the year ending 31 January
2022 will be no less than GBP5.0m, inclusive of the expected costs
associated with opening the Group's new European distribution
centre and comfortably exceeding current market expectations.
Looking ahead, our strong balance sheet means we have the
firepower to continue investing in both online and in-store growth
along with particular focus on accelerating penetration into our
five key European mainland territories of Germany, France, The
Netherlands, Austria and Belgium. The Board believes that with
Angling Direct's profitable growth and established competitive
advantage, combined with the increasing resonance of its refreshed
purpose to Get Everyone Fishing, the Group is well placed to
benefit from the clear opportunities within its markets both within
the UK and Mainland Europe. With the Group's growing multi-channel
offering and the strength of the balance sheet, the Board remains
optimistic about the growth prospects and overall success of the
business.
Andy Torrance
Chief Executive Officer
12 October 2021
Consolidated statements of profit or loss and other
comprehensive income
For the period ended 31 July 2021
Audited
Unaudited six months year ended
ended 31 July 31 January
Note 2021 2020 2021
GBP'000 GBP'000 GBP'000
Revenue from contracts with customers 4 38,404 32,128 67,581
Cost of sales of goods (24,022) (21,369) (44,458)
Gross profit 14,382 10,759 23,123
-------- -------- --------
Other income 5932 1,503 1,540
Interest revenue calculated using the effective
interest method 19 12 24
Expenses
Administrative expenses (9,608) (8,971) (18,183)
Distribution expenses (1,787) (1,734) (3,424)
Finance costs (215) (211) (434)
------- ------- --------
Profit before income tax expense 3,723 1,358 2,646
Income tax expense 7(863) (2) (241)
----- --- -----
Profit after income tax expense for the period
attributable to the owners of Angling Direct
PLC 2,860 1,356 2,405
Other comprehensive income for the period,
net of tax - - -
----- ----- -----
Total comprehensive income for the period
attributable to the owners of Angling Direct
PLC 2,860 1,356 2,405
===== ===== =====
Earnings per share (Pence)
Basic earnings 15 3.70 2.02 3.33
Diluted earnings 15 3.65 2.02 3.28
Consolidated statements of financial position
As at 31 July 2021
Audited
Unaudited six months year ended
ended 31 July 31 January
Note 2021 2020 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Intangibles 8 6,218 6,252 6,251
Property, plant and equipment 9 5,831 5,784 6,019
Right-of-use assets 10 10,385 10,389 10,910
Total non-current assets 22,434 22,425 23,180
-------------------- ------- ------------
Current assets
Inventories 15,724 11,081 12,481
Trade and other receivables 474 674 623
Prepayments 324 108 245
Cash and cash equivalents 19,584 20,983 14,996
Total current assets 36,106 32,846 28,345
-------------------- ------- ------------
Current liabilities
Trade and other payables 11 10,400 12,478 6,741
Lease liabilities 1,421 1,251 1,358
Income tax 503 - -
Total current liabilities 12,324 13,729 8,099
------ ------ ------
Net current assets 23,782 19,117 20,246
------ ------ ------
Total assets less current liabilities 46,216 41,542 43,426
------ ------ ------
Non-current liabilities
Lease liabilities 9,249 9,264 9,773
Provision 289 265 277
Deferred tax 618 19 258
Total non-current liabilities 10,156 9,548 10,308
------ ------ ------
Net assets 36,060 31,994 33,118
====== ====== ======
Equity
Share capital 12 773 773 773
Share premium 31,037 31,037 31,037
Reserves 157 - 75
Retained profits/(accumulated losses) 4,093 184 1,233
Total equity 36,060 31,994 33,118
==================== ======= ============
Consolidated statements of changes in equity
For the period ended 31 July 2021
Share Share-based
Share premium payment Retained
capital account reserve profits Total equity
Unaudited six months
ended 31
July GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February
2021 773 31,037 75 1,233 33,118
Profit after income
tax expense
for the period - - - 2,860 2,860
Other comprehensive
income for
the period, net of
tax - - - - -
Total comprehensive
income for
the period - - - 2,860 2,860
Transactions with
owners in
their capacity as
owners:
Share-based payments - - 82 - 82
Balance at 31 July
2021 773 31,037 157 4,093 36,060
======= ======== =========== ======== ============
Share-based
Share Share premium payment Retained
capital account reserve profits Total equity
Audited year
ended 31 January GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
February 2020 646 26,017 - (1,172) 25,491
Profit after
income tax
expense
for the period - - - 2,405 2,405
Other
comprehensive
income for
the period, net
of tax - - - - -
Total
comprehensive
income for
the period - - - 2,405 2,405
Transactions
with owners in
their capacity
as owners:
Contributions of
equity, net
of transaction
costs 127 - - - 127
Share premium,
net of
transaction
costs - 5,020 - - 5,020
Share-based
payments - - 75 - 75
Balance at 31
January 2021 773 31,037 75 1,233 33,118
======= ============= =========== ======== ============
Consolidated statements of cash flows
For the period ended 31 July 2021
Audited
year
Unaudited six months ended 31
ended 31 July January
Note 2021 2020 2021
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit/(loss) before income tax expense for
the period 3,723 1,358 2,646
Adjustments for:
Depreciation and amortisation 1,452 1,314 2,662
Share-based payments 82 - 75
Net movement in provisions 7 16 18
Interest received (19) (12) (24)
Interest and other finance costs 215 211 434
5,460 2,887 5,811
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables 149 (165) (114)
Decrease/(increase) in inventories (3,243) 2,372 972
Decrease/(increase) in prepayments (79) 366 229
Increase in trade and other payables 3,697 6,008 407
5,984 11,468 7,305
Interest received 19 12 24
Interest and other finance costs (210) (211) (424)
Net cash from operating activities 5,793 11,269 6,905
---------- ---------- --------
Cash flows from investing activities
Payments for property, plant and equipment 9 (342) (614) (1,382)
Payments for intangibles 8 (170) (179) (338)
Payment of contingent consideration - - (48)
Net cash used in investing activities (512) (793) (1,768)
---------- ---------- --------
Cash flows from financing activities
Proceeds from issue of shares and premium - 5,147 5,147
Repayment of lease liabilities (693) (618) (1,266)
Net cash from/(used in) financing activities (693) 4,529 3,881
---------- ---------- --------
Net increase in cash and cash equivalents 4,588 15,005 9,018
Cash and cash equivalents at the beginning
of the financial period 14,996 5,978 5,978
Cash and cash equivalents at the end of the
financial period 19,584 20,983 14,996
========== ========== ========
Notes to the consolidated financial statements
Note 1. General information
The financial statements cover Angling Direct PLC as a Group consisting
of Angling Direct PLC ('Company' or 'parent entity') and the entities it
controlled at the end of, or during, the half-year (collectively referred
to in these financial statements as the 'Group'). The financial statements
are presented in British Pound Sterling ('GBP'), which is Angling Direct
PLC's functional and presentation currency.
Angling Direct PLC is a public limited company incorporated under the Companies
Act 2006, listed on the AIM (Alternative Investment Market), a sub-market
of the London Stock Exchange. The Company is incorporated and domiciled
in the United Kingdom. The registered number of the Company is 05151321.
Its registered office and principal place of business is:
2d Wendover Road,
Rackheath Industrial Estate
Rackheath
Norwich, Norfolk
NR13 6LH
The principal activity of the Group is the sale of fishing tackle through
its websites and stores. The Group's business model is designed to generate
growth by providing excellent customer service, expert advice and ensuring
product lines include a complete range of premium equipment. Customers range
from the casual hobbyist through to the professional angler.
The financial statements were authorised for issue, in accordance with a
resolution of Directors, on 12 October 2021. The Directors have the power
to amend and reissue the financial statements.
Note 2. Significant accounting policies
These financial statements for the interim half-year reporting period ended
31 July 2021 have been prepared in accordance with the AIM Rules for Companies,
International Accounting Standard IAS 34 'Interim Financial Reporting' and
the Companies Act for for-profit oriented entities.
These interim financial statements do not include all the notes of the type
normally included in annual financial statements. Accordingly, these financial
statements are to be read in conjunction with the annual report for the
year ended 31 January 2021 and any public announcements made by the Company
during the interim reporting period.
The interim consolidated financial information has been prepared on a going-concern
basis.
The principal accounting policies adopted are consistent with those set
out on pages 78 to 87 of the consolidated financial statements of Angling
Direct PLC for the year ending 31 January 2021, except for taxation which
has been accounted for as described in note 7.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and
Interpretations issued by the International Accounting Standards Board that
are mandatory for the current reporting period. There was no impact on the
adoption of these new or amended Accounting Standards and Interpretations
Any new or amended Accounting Standards or Interpretations that are not
yet mandatory have not been early adopted.
Note 3. Segmental reporting
Segmental information is presented in respect of the Group's operating segments,
based on the Group's management and internal reporting structure, and monitored
by the Group's Chief Operating Decision Maker (CODM).
Segment results, assets and liabilities include items directly attributable
to a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly own brand stock in transit from the manufacturers,
group cash and cash equivalents, taxation related assets and liabilities,
centralised support functions salary and premises costs, and government
grant income.
Geographical segments
The business operated predominantly in the UK. As at 31 July 2021, it has
three native language web sites for Germany, France and the Netherlands.
In accordance with IFRS 8 'Operating segments' no segmental results are
presented for trade with European customers as these are not reported separately
for management purposes and are not considered material for separate disclosure,
save for disaggregation of revenue in note 4.
Operating segments
The Group is split into two operating segments (Stores and Online) and a
centralised support function (Head Office) for business segment analysis.
In identifying these operating segments, management follows the route to
market for the generation of the customer order for its products. Due to
the growth in the Group's online sales, management has made a judgement
that there are now two operating segments. In the comparative period, management
considered there to be only one segment, therefore comparative information
is not available to be restated.
Each of these operating segments is managed separately as each segment requires
different specialisms, marketing approaches and resources. Head Office includes
costs relating to the employees, property and other overhead costs associated
with the centralised support functions.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and
amortisation) pre IFRS 16. The accounting policies adopted for internal
reporting to the CODM are consistent with those adopted in the financial
statements, save for IFRS 16. A full reconciliation of pre IFRS 16 EBITDA
to post IFRS 16 EBITDA performance is provided to the CODM.
The information reported to the CODM is on a monthly basis.
All non-current assets are located in the UK.
Operating segment information
Stores Online Head office Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 19,938 18,466 - 38,404
Profit/(loss) before income tax 2,832 2,809 (1,918) 3,723
EBITDA post IFRS 16 3,965 3,140 (1,734) 5,371
Total assets 23,669 8,418 26,453 58,540
Total liabilities (13,249) (6,061) (3,170) (22,480)
EBITDA Reconciliation
Profit/(loss) before income tax 2,832 2,809 (1,918) 3,723
Less: Interest income - - (19) (19)
Add: Interest expense 176 25 14 215
Add: Depreciation and amortisation 956 306 190 1,452
EBITDA post IFRS 16 3,964 3,140 (1,733) 5,371
Less: Costs relating to IFRS 16 lease
liabilities (816) (79) (48) (943)
EBITDA pre IFRS 16 3,148 3,061 (1,781) 4,428
===== ===== ======= =====
Note 4. Revenue from contracts with customers
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is
as follows:
Audited
Unaudited six months year ended
ended 31 July 31 January
2021 2020 2021
GBP'000 GBP'000 GBP'000
Route to market
Retail store sales 19,938 14,232 32,259
Online sales 18,466 17,896 35,322
38,404 32,128 67,581
Geographical regions
United Kingdom 37,144 29,690 63,206
Germany, France and Netherlands 1,033 1,569 2,868
Other countries 227 869 1,507
38,404 32,128 67,581
Timing of revenue recognition
Goods transferred at a point in time 38,404 32,128 67,581
=========== ========= ===============
Note 5. Other income
Audited
Unaudited six months year ended
ended 31 July 31 January
2021 2020 2021
GBP'000 GBP'000 GBP'000
Net foreign exchange gain - - 13
Government grants 932 1,503 1,527
Other income 932 1,503 1,540
========== ========== ===========
As a result of the economic impacts of the Covid-19 pandemic, a number of
government programmes have been put into place to support businesses and
consumers. Examples of such initiatives include the UK's Coronavirus Job
Retention Scheme. In accounting for the impacts of these measures, the Group
has applied IAS 20: 'Government Grants'.
During the six months to 31 July 2021, the Group recognised an amount totalling
GBP216,000 (2020: GBP893,000) receivable under the UK Government's Coronavirus
Job Retention Scheme and an amount totalling GBP716,000 (2020: GBPnil) receivable
under the UK Government's Restart Grant Scheme. There was an amount of GBP610,000
receivable under the UK Government's Retail Hospitality and Leisure Grant
Fund as at 31 July 2020.
Note 6. EBITDA reconciliation (earnings before interest, taxation, depreciation
and amortisation)
The Directors believe that adjusted profit provides additional useful information
for shareholders on performance. This is used for internal performance analysis.
This measure is not defined by IFRS and is not intended to be a substitute
for, or superior to, IFRS measurements of profit. The following table is
provided to show the comparative earnings before interest, tax, depreciation
and amortisation ('EBITDA') after adjusting for costs relating to IFRS 16
lease liabilities.
Unaudited Unaudited
six six Audited
months months year
ended ended ended 31
31 July 31 July January
2021 2020 2021
GBP'000 GBP'000 GBP'000
EBITDA reconciliation
Profit before income tax expense post IFRS 16 3,723 1,358 2,646
Less: Interest income (19) (12) (24)
Add: Interest expense 215 211 434
Add: Depreciation and amortisation 1,452 1,314 2,662
EBITDA post IFRS 16 5,371 2,871 5,718
Less: costs relating to IFRS 16 lease liabilities (943) (778) (1,737)
EBITDA pre IFRS 16 4,428 2,093 3,981
========= ========= =========
Note 7. Income tax expense
The tax charge for the six months ended 31 July 2021 is
recognised based on management's estimate of the weighted average
annual effective tax rate expected for the full financial year,
adjusted for the tax impact of any discrete items arising in the
period. Deferred tax balances are calculated using tax rates that
have been enacted or substantively enacted by the balance sheet
date and that are expected to apply in the period when the
liability is settled or the asset realised.
In the March 2021 budget, the Chancellor of the Exchequer
announced an increase to the standard rate of UK corporation tax
from 19% to 25% from 1 April 2023. The impact on the half year due
to the enacted change in the taxation rate is an increase in the
opening deferred taxation liability by GBP82,000. This increases
the effective taxation rate for the period by approximately 2%.
Note 8. Intangibles
Audited
Unaudited six months year ended
ended 31 July 31 January
2021 2020 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill - at cost 5,802 5,802 5,802
Less: Impairment (182) (182) (182)
5,620 5,620 5,620
Software - at cost 1,274 945 1,104
Less: Accumulated amortisation (676) (313) (473)
598 632 631
6,218 6,252 6,251
========== ========== ===========
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Goodwill Software Total
Unaudited six months ended 31 July GBP'000 GBP'000 GBP'000
Balance at 1 February 2021 5,620 631 6,251
Additions - 170 170
Amortisation expense - (203) (203)
Balance at 31 July 2021 5,620 598 6,218
======== ======== =======
Note 9. Property, plant and equipment
Audited
Unaudited six months year ended
ended 31 July 31 January
2021 2020 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Land and buildings improvements - at cost 1,002 1,002 1,002
Less: Accumulated depreciation (295) (313) (287)
707 689 715
Plant and equipment - at cost 6,660 5,910 6,411
Less: Accumulated depreciation (2,041) (1,326) (1,685)
4,619 4,584 4,726
Motor vehicles - at cost 15 15 15
Less: Accumulated depreciation (9) (6) (8)
6 9 7
Computer equipment - at cost 1,326 1,093 1,271
Less: Accumulated depreciation (827) (591) (700)
499 502 571
5,831 5,784 6,019
========== ========== ===========
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and
buildings Plant and Motor Computer
improvements equipment vehicles equipment Total
Unaudited six months
ended 31
July GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February
2021 715 4,726 7 571 6,019
Additions - 249 - 55 304
Depreciation expense (8) (356) (1) (127) (492)
Balance at 31 July 2021 707 4,619 6 499 5,831
============ ========= ======== ========= =======
Note 10. Right-of-use assets
Audited
Unaudited six months year ended
ended 31 July 31 January
2021 2020 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Land and buildings - right-of-use 15,235 13,752 15,003
Less: Accumulated depreciation (5,305) (3,937) (4,610)
9,930 9,815 10,393
Plant and equipment - right-of-use 575 575 575
Less: Accumulated depreciation (194) (137) (166)
381 438 409
Motor vehicles - right-of-use 269 254 269
Less: Accumulated depreciation (218) (146) (187)
51 108 82
Computer equipment - right-of-use 59 59 59
Less: Accumulated depreciation (36) (31) (33)
23 28 26
10,385 10,389 10,910
========== ========== ===========
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and Plant and Motor Computer
buildings equipment vehicles equipment Total
Unaudited six months
ended 31
July GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February 2021 10,393 409 82 26 10,910
Additions 232 - - - 232
Depreciation expense (695) (28) (31) (3) (757)
Balance at 31 July 2021 9,930 381 51 23 10,385
========= ========= ======== ========= =======
Note 11. Trade and other payables
Audited
Unaudited six months year ended
ended 31 July 31 January
2021 2020 2021
GBP'000 GBP'000 GBP'000
Current liabilities
Trade payables 6,334 8,444 3,287
Accrued expenses 1,894 1,030 1,462
Refund liabilities 96 35 102
Social security and other taxes 1,097 2,240 537
Contingent consideration - 50 -
Other payables 979 679 1,353
10,400 12,478 6,741
========== ========== ===========
Note 12. Share capital
Unaudited six months ended 31 July
2021 2020 2021 2020
Shares Shares GBP'000 GBP'000
Ordinary shares of GBP0.01 each - fully
paid 77,267,304 77,267,304 773 773
========== ========== ======= =======
Note 13. Dividends
There were no dividends paid, recommended or declared during the
current or previous financial period.
Note 14. Contingent liabilities
The Group had no material contingent liabilities as at 31 July
2021, 31 January 2021 and 31 July 2020.
Note 15. Earnings per share
Unaudited Unaudited Audited
six months six months year
ended 31 ended 31 ended 31
July July January
2021 2020 2021
GBP'000 GBP'000 GBP'000
Profit after income tax attributable to the
owners
of Angling Direct PLC 2,860 1,356 2,405
----------- ----------- ---------
Number Number Number
Weighted average number of ordinary shares
used
in calculating basic earnings per share 77,267,304 67,172,185 72,226,957
Adjustments for calculation of diluted
earnings
per share:
Options over ordinary shares 970,610 - 1,049,867
Weighted average number of ordinary shares
used
in calculating diluted earnings per share 78,237,914 67,172,185 73,276,824
---------- ---------- ----------
Pence Pence Pence
Basic earnings per share 3.70 2.02 3.33
Diluted earnings per share 3.65 2.02 3.28
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END
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