UK Fishing Retailer Lowers Forecasts Amid Volatility and Hot Weather Impact

  • Angling Direct’s H1 profits drop 69.8%
  • FY23 expectations lowered due to challenging trading conditions
  • Revenues and EBITDA forecasted at £73.8m and £2.2m respectively
  • Retail store sales growth of 9.8% year-on-year
  • Like-for-like store sales up 4.6%
  • Online sales down 7.9% to £17m
  • UK online sales 61% above pre-Covid levels
  • European online sales growth of 36.9%
  • Higher margin own brand sales growth of 34.6%
  • Hot temperatures cause 7% drop in August sales
  • CEO Andy Torrance remains optimistic about long-term growth

Angling Direct, a UK-based fishing equipment retailer, has reported a 69.8% drop in pre-tax profits for the six months ended 31 July 2022 (H1 FY23), with profits falling from £3.7m to £1.1m and gross profits decreasing by 6.5% from £14.4m to £13.4m. The company has adjusted its FY23 expectations due to challenging trading conditions, predicting revenues and EBITDA for the year ending 31 January 2023 will not be less than £73.8m and £2.2m respectively. Despite these challenges, the retail store estate experienced a 9.8% increase in total sales year-on-year, with like-for-like store sales up by 4.6%. However, online sales dropped by 7.9% to £17m, while UK online sales were 61% above pre-Covid levels and European online sales grew by 36.9%. The company also saw a 34.6% increase in higher margin own brand sales due to increased promotional activity. Post-period end sales were affected by unusually hot temperatures, causing fishery closures and a 7% decline in August’s peak trading month. CEO Andy Torrance remains optimistic about the long-term growth prospects, believing that strategic investments will position the company well when consumer confidence returns.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Angling Direct’s financial performance, including specific numbers and percentages for profits, revenues, EBITDA, and sales growth in different regions. It also includes a statement from the CEO regarding the company’s strategy and outlook. The information is presented without sensationalism or opinion masquerading as fact.
Noise Level: 3
Noise Justification: The article provides relevant information on Angling Direct’s financial performance and the impact of external factors on its sales. It also includes a statement from the CEO about the company’s strategy and long-term prospects. However, it does not contain any noise or irrelevant information.
Financial Relevance: Yes
Financial Markets Impacted: Angling Direct’s stock price and other fishing gear retailers
Financial Rating Justification: The article discusses a company’s financial performance, its impact on revenue and EBITDA expectations, and the CEO’s outlook on market conditions.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk