Angling Direct H1 profits drop 69.8%

Angling Direct has reported that its pre-tax profits dropped 69.8% from £3.7m to £1.1m for the six months ended 31 July 2022 (H1 FY23), and gross profits decreased 6.5% from £14.4m to £13.4m.

Angling Direct said that due to the challenging and highly volatile trading conditions the company faces, and the difficulty in short-term forecasting and trading, the board has reduced its FY23 expectations.

The company now expects that revenues and EBITDA for the year ending 31 January 2023 will be not less than £73.8m and £2.2m respectively.

Meanwhile, revenues for H1 increased by 1.3% to £38.9m and the group’s retail store estate experienced another “strong” period of growth with total store sales increasing by 9.8% year-on-year. 

Like-for-like store sales increased by 4.6%, although online sales decreased by 7.9% to £17m. However, UK online sales of £15.3m remained 61% above pre-Covid levels and online sales in Europe grew by 36.9%.

Additionally, Angling Direct reported higher margin own brand sales growth of 34.6% due to increased promotional activity.

Post-period end sales have also been impacted by “unusually” hot temperatures which caused some fishery closures and led to a 7% sales drop in the peak trading month of August.

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.

“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.”