3rd Jun 2020 12:05
(Alliance News) - Angling Direct PLC said Wednesday its annual loss widened on higher administrative and distribution expenses, despite double digit growth in revenue.
For the year to the end of January, the fishing equipment retailer reported a pretax loss of GBP1.4 million, widened from GBP392,000 the year before.
This was due to administrative expenses rising to GBP14.7 million from GBP11.3 million, due to higher headcount and new store leased assets, while distribution expenses increased to GBP3.1 million from GBP2.7 million.
Revenue however, grew by 27% to GBP53.2 million from GBP42.0 million, due to strong sales performances both online and in-store.
Revenue from store sales was the largest contributor and had the highest rate of growth, increasing by 42% to GBP27.9 million, while online sales rose by 14% to GBP25.3 million.
Operationally, Angling Direct increased its store network to 34 through the addition of seven new stores and three acquisitions.
Angling Direct will not pay a dividend for the year, in order to preserve cash for re-investment in the business as well as for navigating the Covid-19 outbreak.
Looking ahead, the company said sales for the month of February before store closures were up by 23% compared to the sale month the year before, while for April, online sales increased by 24% year-on-year.
This trend has continued into the month of May, however for the current year as a whole, Angling Direct expects a material reduction in revenue and profitability as a result of enforced store closures.
"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," said Executive Chair Martyn Page.
Shares in Angling Direct were up 1.7% at 63.04 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Angling Direct