Angling Direct PLC on Thursday said it expects revenue to be ‘marginally’ behind current expectations as the heatwave and ‘unavoidable’ inflationary pressures hit trading.
Shares in Angling Direct were down 16% at 30.80 pence in London on Wednesday morning.
For the six months ending July 31, the Norwich-based fishing tackle retailer reported a minor 1.3% increase in revenue to £38.9 million from £38.4 million a year before.
Sales from its retail stores increased 9.8% to £21.9 million from £19.9 million the prior year, as the period was free of Covid-19 trading restrictions. However, online sales decreased 7.9% to £17.0 million from £18.5 million, which it said was expected. The company noted sales from its key European locations increased 55% from a year ago, due to its new European distribution centre which opened in March.
Looking ahead, Angling Direct said its focus remains on gaining market share in both UK and European markets as ‘the highly fragmented European market remains a very attractive strategic priority for the Group to accelerate market share’.
Angling Direct expects revenue for the full year to be ‘marginally below current market expectations’ as a result of the recent heatwave, which has created adverse fishing conditions. It said this has affected river levels and fish health, thus impacting its ‘busy’ trading for August, as well as sales growth and profit.
Further, the company expects earnings before interest, tax, depreciation and amortisation to be ‘materially behind current market expectations’ in the range of £3.0 million to £3.4 million.
Initially, expectations for the year were Ebitda of £4.3 million and revenue of £82.0 million.
‘Despite the current exceptional macro-economic circumstances, the Board continues to proactively manage operations and believes the Company is gaining market share and demonstrating resilience in the UK. However there has been an inevitable impact from the ongoing cost of living pressures, declining consumer confidence and unavoidable inflationary pressures on trading,’ Angling Direct said.
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