7th Oct 2019 08:52
(Alliance News) - Fishing products retailer Angling Direct PLC on Monday reported a double-digit rise in interim revenue, but this did not prevent a drop in profit, due to higher costs in the period.
For the six months to the end of July, Angling Direct posted pretax profit of GBP323,000, down 32% from GBP480,000 the year before.
Pretax profit performance was hurt by higher distribution costs of GBP1.5 million, up from GBP1.4 million, administrative expenses of GBP6.6 million, up from GBP5.2 million.
Adjusted earnings before interest, taxes, depreciation and amortisation were up 16% at GBP1.3 million from GBP1.1 million.
Revenue increased by 21% to GBP26.5 million from GBP21.9 million the prior year, with growth throughout all divisions, Angling Direct said.
In-store revenue rose by 41% to GBP14.0 million, as like-for-like sales grew by 15% and like-for-like footfall by 9.8%.
Meanwhile, online revenue expanded 9.6% to GBP11.5 million, supported by more-focused marketing in the UK and Europe, the company said, and a 12% rise in unique users visiting Angling Direct's UK site.
Angling Direct opened two new stores in the period and acquired two more through the acquisition of Chapman's Angling in February, bringing its total portfolio to 28 stores as at July 31, up from 22 the year before.
Looking ahead, Angling Direct said it has started the second half of its financial year positively, with record sales both in-store and online in August, despite issues in the UK retail sector.
The group has opened two more stores since the end of July, and expects to end its financial year with a portfolio of 34 stores.
"It has been another highly successful period for the group with strong growth achieved across our network of stores and online. We have successfully executed our strategy to deliver new store openings in the period and have further consolidated the market through selective acquisitions," said Executive Chair Martyn Page.
"The second half has started well, with the opening of two new stores and a record performance in August with sales up 33% on prior year, I am pleased to report that the group is on track to meet market expectations," Page added.
Shares in Angling Direct were up 5.3% at 61.60 pence on Monday.
By Dayo Laniyan; [email protected]
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