Angling Direct swings to loss and blames winter flooding and store acquisitions

The retailer reported for the 12 months to January 31, 2020, an EBITDA loss of £0.5m and a net loss before income tax of £1.5m and said the “exceptional winter flooding” at the beginning of the year reduced fishing activity in the UK.

Group sales for the year rose 27% up to £53.2m, with stores sales rising 42% to £27.9m with like-for-like store growth of 12%. Online sales meanwhile grew 14% to £25.3m, with international sales seeing an 8% surge.

During the year, Angling Direct opened 10 new stores bringing its estate to 34 and continued its investment in online, native language websites in France and the Netherlands, as well as in Germany.

For the period since February, Angling Direct reported strong sales pre-coronavirus store closures and the opening of two further UK stores in Warrington and Bristol.

Since the coronavirus pandemic struck, the specialist retailer said that online sales were “materially ahead” in April versus last year by 24%.

The retailer said it was also “progressing towards safe reopening of stores” on June 15, in line with government guidance.

Executive chair Martyn Page said: “Last year was a period of rapid expansion for Angling Direct, with major investment going into the opening of ten new stores, three of which were acquisitions, as well as delivering further upgrades to our online business and our own brand products. All of these initiatives are designed to enable us to grow market share, protect our margins and improve our customer experience.

“The impact of COVID-19 led to the closure of our 36 stores, but our online business has seen excellent growth and we have been able to fulfil the increasing number of orders as a consequence of the prior investment made in automation within our distribution centre, as well as our online customer experience. We are now in the process of preparing to open our stores safely, as we work in accordance with government advice to protect our staff and customers.

“COVID-19 aside, the Board has taken progressive steps to create further operational efficiencies and address the challenges inherent in all rapidly growing businesses. We continue to focus on these steps and the opportunity to grow revenue and margins both in the UK and internationally.”