Anglers handling a caught carp
Revenues rose 11.9% to a forecast-beating £91.3 million at the nets, rods and scales seller / Image source: Angling Direct
  • Retailer reels in forecast ‘beat’
  • Growth accelerated in H2
  • European losses reduced

Shares in Angling Direct (ANG:AIM) ticked up 3% to 40.5p after the fishing tackle and equipment retailer delivered a positive full-year trading update in the face of an uncertain consumer backdrop, which served to demonstrate the resilience of the angling sector and the micro cap company itself.

Thanks to strong second half trading, year-to-January-2025 revenues and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) are now expected to come in ‘slightly ahead’ of the £88.4 million and £3.15 million consensus was calling for respectively.

Shares highlighted Angling Direct as a ‘great growth catch’ at 36p on 23 May 2024, highlighting its market leadership in the UK, where it is profitable from a repeat customer base of anglers, as well as its exciting long-run potential in the fragmented European market.

POSITIVE LIKE-FOR-LIKES

A strong second half meant that full-year revenues rose by 11.9% to a forecast-beating £91.3 million at the Norfolk-headquartered nets, rods and scales seller.

Growth was driven by a combination of new stores and like-for-like growth both in stores and online, as the AIM tiddler continued to advance its multi-channel approach both in the UK and Europe.

Encouragingly, revenue growth in the core UK business accelerated from 9% in full-year 2024 to 11.7% in the year just-ended.

Led by CEO Steve Crowe, Angling Direct attributed this performance to self-help initiatives including ‘improved third party ranging and availability, an increasingly compelling own brand offer and the growth of the MyAD omni-channel customer loyalty club to over 409,000 subscribers’, an 86% increase over the 220,000 subscribers as at 31 January 2024.

LOSSES SCALED BACK

Angling Direct’s UK like-for-like store sales grew 6%, benefitting from increased footfall and higher transaction volumes.

The company also used its net cash balance sheet to accelerate its new store opening programme whilst returning cash to shareholders through an ongoing buyback.

Away from UK shores, Angling Direct’s European online sales swam 7.1% higher to £4.6 million and further progress was made in scaling back European operating losses.

The firm is now focused on its key markets of Germany and the Netherlands, where it has opened a first European brick and mortar outlet in Utrecht in May.

WHAT DID THE CEO SAY?

Crowe commented: ‘Full-year 2025 marks another year of significant progress against our medium-term objectives with growth delivered both in stores and online. The continued expansion of our UK footprint combined with the growing momentum of our MyAD customer loyalty club, provides a clear line of sight to achieving our medium-term revenue and adjusted EBITDA targets of £100 million and £6 million, respectively.’

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The CEO continued: ‘We are proud to have delivered this strong performance against a highly challenging market backdrop and our sustained growth, despite persistent macro headwinds, demonstrates the resilient nature of our business model and demand for our products from a steadily growing customer base.’

BROKER VIEWS

Canaccord Genuity reiterated its ‘buy’ rating and 57p price target following the update, arguing Angling Direct’s valuation is too low ‘given the domestic and international growth potential, and does not reflect the group’s market-leading position or potential for further consolidation.’

Concurring with Canaccord Genuity that the company’s progress isn’t being priced in was Singer Capital Markets, which commented: ‘The UK’s leading consolidator has reported strong H2 trading, including 21% sales growth in stores. This has delivered significant share gains and a 6% pre-tax profit upgrade. This reflects cumulative strategic and operational improvements including work on 3rd party ranging and availability, strengthening its own brand offer, growing its MyAD loyalty club, and investing in faster store expansion.’

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Issue Date: 26 Feb 2025