Angling Direct Share News (ANG)

(Sharecast News) - Angling Direct said on Wednesday that full-year profits were on track to meet market expectations, as it reported an uptick in sales despite a difficult macro backdrop.

In an update for the year to the end of January, the fishing tackle and equipment retailer said revenues edged up 2.2% to £74.1m. Retail store sales rose 6.8% to £41.3m as it continued its store rollout strategy, but online sales dipped 3% to £32.8m.

Angling Direct said the sales growth was achieved "despite significant consumer headwinds across all of the company's key markets including inflation and cost of living pressures".

The company said European revenues returned to growth following the successful opening of its European distribution centre in March last year, with sales up 18.4% to £3.1m.

During the year, it increased the total number of stores to 45 from 42.

Angling Direct noted that the year included the first 11 months of in-region EU sales fulfilment. It said this "significant" strategic initiative generated larger first year losses than expected, due to the scale of unanticipated consumer spending pressures created by macro-economic and geopolitical developments during the launch phase.

However, associated costs with the European expansion have been absorbed within the "resilient" trading performance of the UK operations, it said. As a result, it expects to report pre-IFRS 16 EBITDA of no less than £2.2m for FY23, in line with market expectations.

Chief executive Andy Torrance said: "We are pleased with the progress achieved in FY23 despite the difficult macroeconomic environment.

"Angling Direct's leading omni-channel model, combined with the strategic and operational progress achieved in FY23, leaves the company well placed to benefit from ongoing consolidation in the industry. The group will therefore continue to invest, where prudent to do so, in order to drive market share growth, leveraging its strong balance sheet, to ensure it is best placed competitively to benefit when consumer confidence returns."