Angling Direct Share Price (ANG)

Norfolk-based Angling Direct (ANG:48.5p), the leading fishing tackle retailer in the UK, has reported a strong year of growth and is maintaining the momentum in the new financial year, too.

Total UK retail sales increased by 14.8 per cent to a record £99.2mn, buoyed by online growth (revenue up 20 per cent to £42.8mn) and 11 per cent higher store sales. Adjust for new store openings and like-for-like sales across the retail estate increased by 5.8 per cent. The performance was also underpinned by the success of Angling Direct’s MyAD omnichannel customer loyalty club app, which grew by almost half to 0.6mn members. Scaling the company’s social media presence is helping, too. Angling Direct now has 0.58mn social media followers, up 14 per cent year on year.

It is worth noting the improving profitability of the UK business. Higher-margin own-brand sales, better buying and pricing all contributed to a higher gross margin (up from 36.2 to 37.6 per cent). Adjusted cash profit from the UK business increased by a quarter to £5.3mn, outpacing revenue growth, reflecting its operating leverage. The loss-making European operation is heading in the right direction, cutting its cash loss by a third to £0.5mn.

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Since the year-end, UK revenue has continued its positive trajectory, rising by 11.8 per cent (February) and 7.6 per cent (March). To date, additional costs (freight and distribution fuel surcharges) incurred due to the Middle East conflict have been insignificant or fully mitigated.

For the year ahead, Singer Capital Markets pencils in 5 per cent higher revenue of £109mn and 19 per cent growth in cash profit to £5.7mn, as well as upgrading adjusted pre-tax profit estimates by 8 per cent to £3.7mn (15 per cent year-on-year growth). Analysts expect 25 per cent growth in earnings per share (EPS) to 3.9p (10 per cent upgrade), implying the shares trade on a cash-adjusted forward price/earnings ratio of 8.5, a modest rating for a company forecast to deliver 45 per cent EPS growth over the next two years.

So, having suggested buying the shares at 39p (Alpha Research: ‘Catch a small-cap stock with big potential upside’, IC, 6 February 2025), and reiterated that advice at 53p (‘Catch this small cap before the share price flies’, IC, 27 February 2026), I see upside to Singer’s raised target price of 85p (upgrade from 75p). Buy.

I've been watching these since Simon first tipped them in IC. Good set of results & forward guidance today. Now they've had time to get a foothold in the 3 European countries, they should show a reasonable profit by the next update. I'm not expecting to pull up any trees with this one, but it shouldn't be heavily affected by AI or Recession. I'm now aboard.

Very good set of results.things going in right direction.

SP drifted since the March trading update and when tipped by IC at 53p. Decent buying volume today with no move. Expecting Tuesday’s results to spark new interest and momentum for the SP, so I joined the buyers today. GLA.

Excellent trading update. very pleased.