TIDMANG
RNS Number : 6839L
Angling Direct PLC
17 May 2022
17 May 2022
Angling Direct plc
("Angling Direct" the "Company" or the "Group")
Full Year Results
Record revenues in a year of significant strategic
advancement
Angling Direct plc (AIM: ANG), the leading omni-channel
specialist fishing tackle and equipment retailer, is pleased to
announce its Full Year results for the 12 months ended 31 January
2022 ("FY22").
Financial Highlights
Given the fluctuating sales patterns as a result of lockdowns
and pandemic-related restrictions in the current and previous
comparator periods, our commentary below also presents headline
financial metrics on a two-year basis, showing a third column for
the year ended 31 January 2020 ("FY 2020").
FY 2022 Growth
GBPm FY 2022 FY 2021 FY 2020 on FY on FY
2021 2020
R evenue 72.5 67.6 53.2 7.2% 36.3%
Online Sales 33.8 35.3 25.2 (4.3)% 33.9%
- of which UK Online
Sales 31.1 30.3 18.8 2.7% 65.8%
Retail store Sales 38.7 32.3 27.9 19.9% 38.4%
Gross Profit 26.6 23.1 16.6 15.1% 60.2%
Gross margin % 36.7% 34.2% 31.2% 250bps 550bps
EBITDA (pre IFRS-16) 5.2 4.0 (0.5) 30.6% N/A
Profit before tax 4.0 2.7 (1.5) 50.6% N/A
Basic EPS 3.98p 3.36p (2.01) 18.5% N/A
Operational Highlights
-- Significant progress made on the development of Company's
European distribution centre which opened post period end and is
now fully operational
-- UK conversion increased to 6.4% (+45bps) - driven by improved
customer journey utilising AI to improve search relevance and ease
of use
-- Improved buying and pricing through rigorous category
management leading to enhanced product margins
-- Four new stores opened (Cheltenham, Ipswich, Redditch,
Southampton) in strategically located, high density fishing
catchments, bringing store estate total to 42 at period end (FY21:
38)
-- To further improve instore experience, the Company deployed
81 Angling Trust qualified angling coaches, re-structured our field
management team and began to utilise newly installed footfall
counters to re-allocate labour spend to match customer demand
-- Launched web trading app in the UK, the only one of its kind
serving angling customers with encouraging initial feedback
-- Continued to proactively invest in our capability and
capacity to support our growth - appointing a new Commercial
Director and welcoming new colleagues into our European expansion
team
-- Growing contribution from higher margin own brand Advanta range, with 24.9% sales growth
Outlook
-- Q1 FY23 sales growth of 5.4% having annualised significant prior year post lockdown peaks
-- As a result of the strong foundations built over the course
of the last two years, the Board remains committed to its growth
plan and will continue to invest in order to strengthen the
Company's market leading position and gain market share both within
the UK and Europe
-- Despite sales growth in Q1, our industry is not immune to the
inflationary cost pressures being experienced and the associated
impact on consumer confidence
-- European distribution centre officially opened 1 March 2022,
on time and on budget and is despatching to customers across the
EU
-- On track to meet current year market expectations*
-- Cash at 30 April GBP13.4m
-- Chris Keen has joined the Board as Independent Non-Executive
Director, experienced international CFO, strengthens Audit
Committee.
Andy Torrance, CEO of Angling Direct, said:
"The last twelve months have marked a period of significant
progress for Angling Direct, both online and in store, in the UK as
well as continuing our focus on key European territories. I am
proud that despite all the headwinds our teams faced last year, we
were able to continue to progress on all of our key strategic and
operational priorities.
Post year end, we were pleased to also see the opening of our
new in-region fulfilment centre in Venlo, The Netherlands. We see a
significant opportunity to continue to grow our market share
through establishing our presence in Europe and this new facility
will help to accelerate delivery of our strategic plans in a more
efficient manner and ideally position us to become Europe's first
choice omni-channel fishing tackle destination for all anglers,
regardless of their experience or ability.
Whilst trading in the new financial year to date has seen growth
broadly in line with our expectations, our business is subject to
the same pressures and challenges as many others. However, the
strategic and operational progress the Group made last year means
we are able to continue investing appropriately to strengthen our
market leading position and gain market share both within the UK
and Europe. As a result, we remain cautiously optimistic for the
future and the Board remains committed to its growth plan."
*Angling Direct believes that current market expectations for
the year ending 31 January 2023 are revenue of GBP82.0 million and
pre-IFRS 16 EBITDA of GBP4.3 million.
For further information please contact:
Angling Direct plc +44 (0) 1603 258658
Andy Torrance, Chief Executive
Officer
Steven Crowe, Chief Financial Officer
Singer Capital Markets - NOMAD
and Broker Peter Steel, Alex Bond
(Corporate Finance)
Tom Salvesen (Corporate Broking) +44 (0) 20 7496 3000
FTI Consulting - Financial PR +44 (0) 20 3727 1000
Alex Beagley anglingdirect@fticonsulting.com
Sam Macpherson
Alice Newlyn
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
About Angling Direct
Angling Direct is the leading omni-channel specialist fishing
tackle retailer in the UK. The Company sells fishing tackle
products and related equipment through its network of retail
stores, located strategically throughout the UK as well as through
its leading digital platform (https://www.anglingdirect.co.uk, .de,
.fr and .nl) and other third-party websites.
Angling Direct is committed to supporting its active customer
base and widening access to the angling community through its
passionate colleagues, store-based qualified coaches, social media
reach and ADTV YouTube channel. The Company currently sells over
20,000 fishing tackle products, including capital items,
consumables, luggage and clothing. Angling Direct also owns and
sells fishing tackle products under its own brand 'Advanta', which
was formally launched in March 2016.
From 1986 to 2002, the Company's founders acquired interests in
a number of small independent fishing tackle shops in Norfolk and,
in 2002, they acquired a significant premise in Norwich, which was
branded Angling Direct. Since 2002, the Company has continued to
acquire or open new stores, taking the total number up to 42 retail
stores. In 2015, the Company opened a 2,800 sq. metres central
distribution centre in Rackheath, Norfolk, where the Company's head
office is also located. In January 2022 Angling Direct acquired an
additional 3,900 sq. metres distribution centre in Venlo,
Netherlands to service its established, and rapidly growing,
presence in Europe with native language websites set up in key
regions to address demand.
Chairman's Statement
Introduction and Board changes
I am pleased to present yet another successful performance, both
in terms of the robust financial results, significant operational
improvements and in making positive differences through our
continued focus on our purpose and experiential culture.
As the 2022 financial year began COVID-19 was still having a
major impact, indeed it is still, with the continued sad loss of
lives, lockdown store closures and shortages of materials and
products. Fortunately, since April 2021 the Group's retail stores
have remained open and a new normal began to unfold as the year
progressed, however, Brexit continued to present challenges to many
UK businesses, including ourselves. More recently a dreadful
situation has arisen with Russia's invasion of Ukraine and our
thoughts are with all the people affected by this.
We are passionate about getting everyone fishing and Angling
Direct operates in a specialist niche sector and one highly
regarded for its wellbeing benefits of time spent outside beside
the water. Our business has continued to grow, helping the Group to
deliver record sales, not only because of continuous improvements
to our processes and efficiencies but very much due to our strength
of purpose, and desire to get everyone enjoying a successful and
accessible fishing experience.
There were two changes to the Board during the year. Darren
Bailey, the Group's previous CEO, stepped down as a Non-Executive
Director at the AGM on 23 June 2021. Once again, I offer my
heartfelt thanks for everything he has done for the Company over
the years. At the same time, in view of my confidence in the
experience and dedication shown by our Executive Directors, Andy
Torrance and Steve Crowe, I stepped down as an Executive and moved
to Non-Executive Chairman.
Post period end, we were pleased to welcome Chris Keen to the
Board as an Independent Non-Executive Director. His extensive
financial and omni-channel leadership experience, particularly in
the retail sector, will be invaluable as we strengthen our Board
and look to achieve further progress in 2022.
Financial overview
The Group achieved a record revenue of GBP72.5m in the financial
year to 31 January 2022 (2021: GBP67.6m, up 7.2%).
Whilst stores were affected by forced closure at the beginning
of the year, store sales were GBP38.7m (2021: GBP32.3m) and,
reflecting the large increase against the prior year when stores
were closed for a much longer period, our total online sales
decreased by 4.3% to GBP33.8m from GBP35.3m. Within this, UK Online
increased by 2.7% to GBP31.1m from GBP30.3m.
With continuing efficiencies, despite shortages of some
products, the Group delivered a pre-tax profit of GBP4.0m (2021:
GBP2.7m) and a 250bps improvement in gross margin to 36.7%. The
Group ended the year with a strong balance sheet and net cash of
GBP16.6m as at 31 January 2022.
Operational progress
The Group maintained a strong emphasis on profitable growth,
stock shrinkage and cash retention. In addition, there has been a
particular emphasis on stock and product/sector categorisation
(right product in the right location) and we continue to increase
distribution efficiencies and capacity. We also reviewed labour to
turnover ratios and improved efficiencies to provide store
colleagues with more sales and customer time.
We continued our online ecommerce development to obtain benefits
from ongoing inhouse improvements and to enhance customer online
experience. To this end we developed and launched the Angling
Direct app.
We opened four new stores in the year, taking our total to 42
stores, and relocated another into better premises, while also
refitting and updating in the wider estate, constantly aiming to
improve the customer experience.
A major achievement in the year was incorporating our European
subsidiary in the Netherlands, locating and securing a European
Distribution Centre site and embarking on the fit out. Post the
year end, this new facility successfully commenced distribution to
our European customers, helping to negate the issues brought by
Brexit while delivering on our strategy to drive our European
expansion.
These initiatives will have a positive impact on the Group's
operating efficiency in the years ahead as we continually drive for
further improvements to develop our offering and broaden our
customer reach.
People and community
We strongly believe that we can and should help improve the
lives of everyone who engages with us. As such, we aim to not just
enhance the lives of anglers and colleagues, but also to have a
positive impact on our suppliers, shareholders, local communities,
wider society, and the environment.
Our incredible team of colleagues share our vision and passion
to deliver the very best experience to anyone that interacts with
Angling Direct.
Our customers love being in our stores, on our website and
social media outlets socialising, learning and receiving
top-quality fishing advice and assistance. We equally relish both
the visits to buy and the platonic, to use Arthur Ransome's
words.
Ours is a passion to introduce the benefits of fishing to as
many people as possible, through promotion, coaching, education and
advice. We now have qualified angling coaches in all our stores and
are also teamed with the Angling Trust and their "Get fishing"
campaign. We endorse evidence that fishing is a great way to
improve all round wellbeing and we support bodies set up to
encourage those with disabilities, of any kind, to benefit from
fishing.
Looking ahead
In concluding, as in the previous year, it has been another year
of great difficulty, turmoil and sadness for the whole world, and
we are respectful that many individuals and business have
experienced a material impact. However, Angling Direct has a clear
purpose, a robust operational framework and growing reach which has
allowed the Group to deliver another year of sound financial
results.
The World continues to be faced with many major challenges at
this time the impact of which are difficult to predict. The Board
continues to monitor these evolving situations closely and will
take the required steps to deliver on our promises to colleagues
and customers. I am excited by continued opportunities for growth
which lie ahead for the Group, within both our stores and online
customer offerings. The opening of our new distribution centre in
Europe facilitates the acceleration of European growth strategy,
whilst continued investment in our UK infrastructure will allow us
to continue to grow market share domestically.
On the direct issues where we can make a difference to the
company, our customers and the angling world, I am so grateful and
in awe of the way that everyone at Angling Direct works together as
one "Team AD" to rise to and overcome the challenges, to delivering
strong results for the year, and to ensuring the company is well
placed to move forwards on its incredible journey, a journey full
of purpose, ambition and passion.
Martyn Page
Non-Executive Chairman
16 May 2022
Chief Executive's Review
'Having a clear engaging purpose and bold ambition has allowed
us to take significant strategic steps, whilst tactically growing
and strengthening our market leading position'
Introduction
FY22 was in many ways another unprecedented year with further
pandemic restrictions continuing to both underpin the logic for,
but also test the flexibility of our omni-channel business model as
we annualised exceptional prior year sales growth. I'm very pleased
to report that not only has our amazing 'Team AD' been able to
maintain our strong sales record, with total sales increasing by
7.2% to GBP72.5m, but they have also risen to the challenge and
ensured that we made solid strategic progress across the business
to deliver profitable growth, especially as we begin to execute our
plans to accelerate European sales which currently account for less
than 4% of Group revenue. I would like to thank all my colleagues
for their exceptional commitment, ongoing resilience, and above
all, their forward-looking enthusiasm again during this year.
As the UK market leader with a purpose of Getting Everyone
Fishing, Angling Direct is uniquely placed to deliver further
improved growth within the thriving and significant European
fishing tackle market as people of all backgrounds discover the
restorative pleasure, challenge and wellbeing benefits of
angling.
This is my second full financial year as CEO. After a first year
focused upon optimising the core business return and the initial
challenges of the pandemic, our ambition in this period was to
continue to profitably grow market share in the UK whilst
simultaneously commencing execution of our plan to expand and trade
more efficiently in the significant and highly fragmented European
market. As a result of our strong balance sheet, we continued to
invest in order to strengthen the Group, to align with its purpose
and strategic growth ambition. In addition to establishing our
dedicated European warehouse in the Netherlands, we focused on
developing our customer offer, protecting and improving our profit
margins, and securing stock supply to ensure that our investments
generate a sustainable return for all stakeholders.
It was a pleasure to see customers returning to our stores and
our strong growth was driven by robust store sales as COVID-19
trading restrictions eased during FY22. 70 store trading days were
lost to COVID-19 trading restrictions in the year, compared to 134
in FY21. Total store sales increased 19.9% against FY21 and 38.4%
on a two-year basis, including GBP0.7m sales from the four new
stores opened in the year, three of which were in the final
quarter. As expected, given the annualisation of non-comparable
trading restrictions, total online sales declined modestly by 4.3%
(there were large periods of FY21 where the business was only able
to sell online which distorted sales channel mix for the year as a
whole) but grew on a two-year basis by 33.9%. Pleasingly, given
this expected channel shift, UK online sales (representing 92% of
total online sales) increased by 2.7% as we continued to develop
our platforms to drive increases in both conversion rate and
average transaction values. We acted early to mitigate against
Brexit related increased export costs and this, combined with
increased fulfilment times and range restrictions, meant that our
total European sales reduced by 39.3%, declining 21.8% in our key
territories of Germany, France and the Netherlands.
We continued to maintain a disciplined trading approach,
promoting all that Angling Direct has to offer, coupled with a
structured approach to pricing and inventory management achieving a
250bps improvement in gross margin and a 15.1% gross profit
improvement on the prior year to GBP26.6m. Consequently, profit
before tax improved 50.6% against FY21 to GBP4.0m. Strong trading,
balanced by deeper stock investment, meant operating cashflow
remained positive but declined year on year by 31.4% to
GBP4.8m.
As previously reported, we suffered a malicious and disruptive
cyber-attack in November 2021, in the midst of our European systems
development project. After over 18 months of pandemic response, the
Angling Team dug deep into their reserves and demonstrated again
what a resilient and dedicated team they are. Thankful for earlier
investments made in our systems infrastructure, once access and
control were re-established, we were able to quickly re-build our
web platforms [and resume trading to minimise disruption]. We have
since provided all of the required information to the Information
Commissioner's Office and they have closed their investigation with
no action taken. Further, we have thoroughly reviewed our security
protocols and made necessary changes but, as with all other
businesses, we remain ever vigilant to this threat. I would like to
thank our loyal customers for their patience and understanding
during the disruption caused at this time.
Whilst the impacts of the pandemic are still being felt and
significant consumer confidence and global security uncertainty
persists, I am pleased that we have remained focused on our clear
purpose and strategic opportunities across the breadth of our
business. In particular, the opening of our new European
distribution centre in the Netherlands is a significant step
towards facilitating the full Angling Direct omni-channel offering
within this highly attractive and sizeable market. I am confident
that the investments we have made, and will continue to make, mean
we are well positioned to get even more people fishing and continue
to deliver sustainable, profitable growth.
Business review
Focused strategic progress in another turbulent year
We set out to maintain our UK growth momentum and protect
margins, as well as activating plans for efficient European
expansion, whilst wanting to remain agile to navigating challenges
brought about by the pandemic, particularly our response to ongoing
supply chain uncertainty. We have continued to focus on driving
operational excellence, return on capital, and improving our
customers' experience whichever sales channel they choose.
Operational excellence
Our investment in A.I. driven web search software has allowed
our customers to experience increased site speed and improved
search relevance. To drive customer loyalty and repeat purchase, we
introduced AD+, our priority delivery subscription scheme,
attracting 9,311 subscribers in its first year. Q4 saw the soft
launch of our web trading App, which we believe is the first of its
kind for the sector, allowing customers to access our full product
range and rich content from the bankside. We have embedded a new
email marketing platform driving 50%+ growth in email channel
revenue. These initiatives, along with an ongoing drive to develop
fresh relevant digital content, meant our UK online conversion rate
improved by 45bps to 6.38%.
We continued to promote not only our everyday price
competitiveness but also to highlight the breadth of our ranges,
the quality of our service and customer inspiration. Our own brand
(higher margin) Advanta grew by 24.9%.
To drive market share gains in the EU, improve our customer
offer, and overcome post Brexit trading restrictions and increased
costs, a key priority was to establish in region European
fulfilment. We incorporated a new trading subsidiary ADNL BV which
allowed us to complete a lease for a new distribution centre in
Venlo, south Netherlands. After a huge organisational effort this
facility opened in March 2022, ahead of the Spring fishing season
with the majority of set up capital falling within this financial
period.
In the UK distribution centre, our colleagues continued to work
flexibly in response to COVID related store closures shifting
channel demand. Streamlined goods in, increased packing bench
capacity, multi skilling and ongoing review of operating practices
improved labour cost distribution efficiency by 50bps, to 3.0% for
the full year. We utilised recently increased pallet storage
capacity to secure forward stocks of key lines, in particular our
own brand Advanta range.
Across our supply chain we continued to focus upon process
compliance, shrinkage and obsolescence management which resulted in
a reduction in stock loss leading to margin accretion of c.23bps.
Our category team have made good progress reviewing product range
selection, optimising use of space and margin in store.
To further improve our in store experience, we deployed 81
Angling Trust qualified angling coaches, re-structured our field
management team and, utilising newly installed footfall counters,
re-allocated labour spends to match customer demand. We also
developed and trialled our bespoke active selling programme BAITS
in Q4 to drive conversion in the future. Average transaction values
in store reduced by 1.9% to GBP39.55 from GBP40.30.
Early in the pandemic, we saw some property development market
slowdown, despite this we opened four new stores in new catchments
unserved by Angling Direct, fitted out in our new format, three of
which were in Q4. Our target new store locations are becoming
increasingly clearer as we match potential sales volumes from
licence sales data set against more optimised ranging, fit out and
colleague costs.
Return on capital
Our Category Management team is now well established with a new
Commercial Director appointed mid-year. A customer focused range
review commenced in Q4, tailoring ranges within five major fishing
disciplines, Carp, Coarse, Predator, Sea and Game, supporting more
efficient space utilisation and further margin development. This
ongoing approach will ensure Angling Direct remains the 'go to'
fishing tackle retailer for all anglers, regardless of ability or
fishing discipline. Category management will also inform our
supplier management strategy by encouraging partners to align with
our growth objectives for mutual benefit. Our gross margin across
all channels grew by 250bps in the period.
We continued to work closely with our product suppliers in
response to extended manufacturing lead-times and shipping
disruption. Utilising our long-established relationships and the
strength of our balance sheet, we consciously invested to deepen
our stock inventory ahead of the new spring 2022 season, protecting
our growth ambition and supporting the activation of our new
European distribution centre. As a result of these actions, stock
turn in the year moved to 3.0x from 3.6x.
To ensure the widest possible product availability for our
online customers we continued to develop our 'single stock file'
approach. Utilising store stock holding to supplement central
stocks facilitated direct to customer from in-store online
fulfilment, improving customer conversion and further optimising
sell through and stock turn.
Plans to develop our own-brand Advanta range have progressed
well, to some extent made possible by investing in our dedicated
own-brand team. Exciting range extension, re-branding and
re-packaging plans were initiated and are well progressed. New
product started to arrive for Spring 2022, although unfortunately
we aren't immune from well documented supply chain delays, meaning
the bulk of new lines will arrive later in the spring. We hold good
stocks and continue to promote ongoing Advanta products, as a
result increasing participation of this range to 5.6% (GBP4.1m
sales) of total sales, a growth of 24.9% in the period.
We continue to focus on improved decision making and a
disciplined approach to new expenditure, including new store site
selection. Our investment in timely management data provision,
revised processes, and much improved visibility of our cashflows,
have allowed more forward planning and better trading decisions as
well as tactical stock investment. As at 31 January 2022 the Group
had increased the strength of its Balance Sheet to GBP36.4m,
including GBP16.6m of cash resources.
New growth opportunities - European markets
Our clear ambition is to become Europe's first choice
omni-channel fishing tackle destination for all anglers, regardless
of experience and ability.
We set out in the period to establish the viability and commence
execution of in-region European distribution, reducing adverse post
Brexit trading restrictions and allowing us to offer much more
competitive customer fulfilment options, along with the opportunity
to supplement our sought-after UK brand selection with increasingly
tailored local ranges from new local suppliers.
As I mentioned earlier, we incorporated a wholly owned Dutch
subsidiary, ADNL B.V., as a platform for accelerated growth into
the significant, fragmented and highly attractive European angling
market. In January 2022 ADNL B.V. signed a lease for a 4,000 sq m
warehouse in Venlo, south Netherlands, ideally located to act as a
centre for not only EU distribution, but also our growing European
colleague team.
In the period we undertook the ambitious project to develop new
ADNL B.V. trading and finance systems, fit out and stock the new
facility and welcome a number of new colleagues in-country, ready
to commence despatch to customers ahead of the Spring 2022 fishing
season. This was a very significant project for a business of our
size to undertake, especially given pandemic travel restrictions
and the cyber-attack distraction. Early trading trends are
supportive of the strategic rationale and I'm extremely proud of
what's been successfully achieved so far and would like to thank my
colleagues and our suppliers for the team effort that resulted in
the facility despatching its first customer order on 1 March 2022.
The distribution centre will service all orders generated outside
the UK from our well-established native language German, French and
Dutch websites, as well as our new .eu site, allowing us to
despatch to all EU countries (an increase from 16 in FY21).
Alongside executing this project, we also acted quickly after
Brexit to balance protecting our established core customer base
against significant adverse costs and complexity as a result of
leaving the EU. Throughout this period, we have been prevented from
despatching B2C angling bait from the UK and we have incurred
approximately 5.5% of European sales in additional customs
administration costs. Despite us complying from day one with all
the increased administrative burden, well documented delays at
customs borders have extended delivery lead-times to a level well
in excess of our customers' reasonable expectations, in some cases
as long as four weeks. As a result, our international sales in the
period reduced to GBP2.7m (FY21: GBP4.4m) but we were able to
mitigate the channel profitability impact, limiting the trading
loss to GBP0.3m in the year.
Going forward we are now actively investing to grow market share
in the EU with a particular focus on our five identified key
territories, namely Germany, France, Netherlands, Belgium and
Austria, a combined market we estimate to amount to c.GBP1.9bn. We
continue to ensure that our three international sites (German,
French and Dutch) replicate our UK platform in terms of
functionality and richness of content, including our new web
trading app. Our in-country teams will continue to locally tailor
ranges, local marketing and social media engagement.
We believe the opportunity for a market leading, contemporary,
genuinely omni-channel proposition in mainland Europe is clear and
very attractive to a huge group of prospective new customers. We
are now actively engaged in the planning of this next step,
ensuring that options are rigorously reviewed, and potential
actions planned to optimise returns for all stakeholders.
New growth opportunities - Digital capability
We are committed to utilising market leading contemporary
digital technologies and have been able to call upon our
significant stock depth, semi-automated distribution facility,
multilingual customer care team and significant social media reach
to ensure that we can provide our customers with market leading
advice, engagement, service and inspiration.
This year we developed what we believe to be the first fishing
tackle trading app of its kind, soft launching in Q4. Early take up
and feedback has been encouraging and we have now commenced the
next phase of development. Our customers will be able to interact,
in multiple languages, with the full breadth of Angling Direct's
range and digital content, with contemporary advice and inspiration
as well as local community and the potential for personalised
membership offers.
Additionally, our in-house web development team has continued to
progressively deploy our new customer journey functionality
designed to improve relevance and ease of use. Visitors have
experienced further improved site speed, new content, such as our
New to Angling feature, new store locator, local pages and improved
blog navigation. Conversion rates in the UK further increased by
45bps to above 6.38%. Our proactive online marketing investment
gave a return on paid advertising spend in the UK of 14.5x, a
reduction of 12.7% over the prior year as a more competitive
landscape for paid advertising emerged as supply chain issues
eased.
New growth opportunities - Evolving store formats
We are committed to delivering the very best physical retail
interaction to create loyal customers and prompt recommendation. We
opened four new retail stores during the period in Redditch
(February 2021), Ipswich (November 2021), Southampton and
Cheltenham (both January 2022). As well as specifically tailored
product ranges, updated intensive merchandising techniques and
improved clearer customer messaging, we have further refined our
new store fit out concept to showcase new initiatives such as
dedicated 'Learn to Fish' sections, space intensive hands-on rod
and reel displays, tech demo tables, less space intensive checkouts
and dedicated personal finance areas.
We have refined our UK store property search and investment
modelling bringing the total portfolio at the end of FY22 to 42
stores. Location-wise, we remain focused on the concentration of
fishing licence sales as well as our local competitive profile. Our
property investment model ensures any new site is targeted with
delivering appropriate returns within a minimum acceptable time. As
a destination retailer our preference is convenient, easy to access
sites. It remains to be seen how the continued demise of premium
High Street retail space (an asset class that we are not exposed
to) impacts upon the cost and availability of our target
destination locations and we continue to monitor developments
closely.
We have continued to develop our colleague cadre of Angling
Trust certified fishing coaches to ensure that our customers get
the very best advice and support regardless of their fishing
ability. Now with over 80 coaches and growing, several colleagues
have now achieved their Level 2 qualification. Coaches can offer
support in store as well as angling tuition at external bankside
events.
In the period we devised and successfully trialled our unique
in-house assisted sales and service model. Designed to make sure we
always thoroughly understand the needs of our customers, in order
to ensure they get the most from their purchases this training will
be rolled out to all store colleagues during Q1 FY23.
Organisational capability
As a growing business we continue to proactively invest in
people's capability as well as capacity to support our growth
plans. In the period we have appointed a new Commercial Director as
well as welcoming new colleagues into our European team including
experienced Commercial and Logistics managers.
We worked with specialist international web fulfilment partners
in order to plan and establish our European distribution centre. We
plan to manage the facility inhouse.
Having partnered with external specialist advisors, we have
thoroughly reviewed our learnings from the November 2021
Cyber-attack and put in place additional monitoring and protection
processes where applicable. Additionally, we continue to make
prudent investments to ensure resilience, stability and growth
capacity within our server provision for both our Epicor ERP and
Magento web platforms.
Our colleagues and our role in the community
Our colleagues are the face of Angling Direct to our customers
and are key to delivering an excellent service, both in store and
online. They also play a key role in the angling community. We
differentiate ourselves by providing expert help, trusted advice
and inspiration for customers to get the most from their
fishing.
Again, we were able to pay an enhanced all colleague annual
Christmas bonus as a thank you for another successful year. Having
reviewed our business planning processes, we were able to align
functional objectives with our Purpose and Ambition, which
facilitated for the first time incentivising our broader leadership
team to deliver our annual business objectives. We continued to top
up furlough payments to protect our colleagues' income. To promote
our desire to 'Get everyone fishing', each team member now has the
opportunity to take first time angling friends and family fishing
for the day utilising an extra day's paid leave.
We established a colleague listening council, ADVoice, chaired
by a colleague elected representative and attended by the CEO as
well as other members of the senior leadership team. For the first
time all colleagues received at least one development review during
the year.
At Angling Direct, we passionately believe in the general
wellbeing benefits of fishing and are very supportive of moves to
include fishing as part of a programme for NHS social prescribing.
To further facilitate this, we are working with Anglia Ruskin
University to co-fund significant peer reviewed research in this
area which we believe will raise awareness of not just the health
benefits of angling but also the need to broadly invest in order to
improve access for more people to fish.
We continue to work closely with Tackling Minds, a pioneering
mental health charity which uses fishing as therapy. We offer
support through the donation of fishing tackle, the utilisation of
our social reach, our IT equipment, our colleagues' time at their
events, as well as consulting expertise where necessary.
As market leaders we have a key role to play supporting fishing
participation for the wider benefit of our industry. After a very
successful first year as exclusive retail sponsors of the Angling
Trusts 'Get Fishing campaign', designed to attract new anglers
through a bankside coaching programme, we're delighted to continue
into a second year. We were also principal retail sponsor of the
Angling Trades Association 'National Fishing Month' designed to get
more people out on the bank. We have co-funded the training of over
80 Angling Direct colleagues as certified angling coaches who will
offer advice and support to anglers of all abilities, both in store
and at local events.
We continued to extend our social media and YouTube reach. In
the period, our Facebook reach exceeded 132,000 for the first time
and we have now achieved over 125,000 viewing hours of our YouTube
Channel, ADTV. We have seen particular success with our how to
style, 'Quick Bites' skills development features. Using a fresh,
new and more inclusive approach, we have featured various articles
with colleagues of a broad range of ages, genders, fishing
abilities and disciplines, designed to appeal to an ever more
diverse customer base.
We take our responsibilities seriously and that extends to
ensuring Angling Direct is a sustainable business across the areas
of environmental protection, economic viability, and social
equality.
Outlook
We are extremely pleased with the Company's robust trading
performance in FY22 alongside significant strategic and operational
progress, through what has been another challenging year. Despite
Government restrictions and the distractions of a substantial
cyber-attack, we were able to continue to further grow our
business, embed efficiencies and progress gross margin improvement.
Establishing our European subsidiary and opening its dedicated EU
distribution centre to service our native language websites is a
significant strategic milestone and will facilitate further
attractive growth opportunities.
Our progress is in no small way due to the ongoing loyal support
of our customers and suppliers, along with the dedication of our
fabulous colleagues. Again, I would like to thank all our
stakeholders for the role they have played and continue to play in
our ongoing success.
We remain vigilant as to continuing challenges in the
macro-environment such as rising inflation, supply chain disruption
and Russia's invasion of Ukraine. Angling is not immune from the
cost-of-living crisis but is an enduring pastime with broad appeal
and is accessible to all budgets. Our work to strengthen the
foundations of Angling Direct, as well as significant investment in
its future growth, leave it securely placed to progress towards its
ambition within a substantial accessible market.
In the year ahead we will continue to evolve our customer
offering across all channels but with a particular focus on growing
our European presence where we see a big opportunity. Alongside
capitalising on profitable organic growth opportunities, we will,
if appropriate, consider business acquisition within the UK and
Europe, utilising the strength of our balance sheet to gain market
share, optimised to create value for all stakeholders. We will
continue to invest in technology and digitisation with a focus on
seamless integration between channels and accessibility through web
applications to extend our reach into new and existing angling
communities.
We are actively working to deepen our sense of purpose, building
on our founding philosophies to Get Everyone Fishing. Developing a
wider Team AD approach will increase our relevance and drive
further participation in local communities for the benefit of all
our stakeholders.
Our first quarter of the new financial year has seen growth
trends which are broadly in line with our expectations having
annualised significant prior year post lockdown peaks. However, we
recognise that consumer confidence is fragile given the degree of
uncertainty around the world currently. Whilst our industry is not
immune to the inflationary cost pressures being experienced across
the economy, the strong foundations we have built over the course
of the last two years means we are able to continue investing
appropriately in product pricing to protect our market leading
competitiveness and still focus on building profitable sales in
line with our stated ambition.
We remain financially sound and approach our two busiest trading
quarters of our financial year with an improved customer offer,
operationally strengthened business, deeper stock availability, and
with a loyal customer base. Our new distribution centre in Europe
is fully operational and we are focused on building sales momentum
in this substantial market.
As a result, I am cautiously optimistic when I look to the
future, and confident that the strategic and operational progress
made through FY22 will ensure the Group is able to take advantage
of the numerous opportunities that will arise through the remainder
of 2022 and beyond.
Andy Torrance
Chief Executive Officer
16 May 2022
Chief Financial Officer's Review
Strong financial performance underpinned by the execution of our
stated strategy
The Group continued to be resilient despite the difficulties
presented by the COVID-19 pandemic and ongoing wider macroeconomic
headwinds, delivering strong growth in revenues and adjusted
EBITDA. The strong financial performance was underpinned by the
execution of our stated strategy, supported by favourable consumer
dynamics with investment opportunities ahead to deliver further
growth.
Financial highlights
In FY22 the Group continued to generate strong revenue growth.
The pace of growth in the UK retail stores outstripped the UK
online business by 7x, influenced by the backdrop of COVID-19 store
trading restrictions in both FY21 and FY22.
FY22 saw continued emphasis on margin development through
greater focus from our category management teams on buying and
pricing. The progress in this area enabled the Group to absorb both
the set-up costs associated with the execution phase of our
European distribution strategy as well as GBP0.6m lower direct
government support (in the form of the Coronavirus Job Retention
Scheme "CJRS" and Restart Grant Scheme "RGS") without eroding year
on year profitability. Profit after tax was GBP3.1m (FY21
GBP2.4m).
During Q3 FY22 the Group incorporated its wholly owned Dutch
subsidiary ADNL B.V., this entity did not despatch product to
consumers during the period.
The discussion of our financial performance and position in this
section is primarily on an IFRS 16 basis for all years presented.
We have also included an analysis of pre IFRS 16 EBITDA as an
alternative performance measure that we consider as a key
measurement of performance internally as well as within our
covering Brokers' market forecasts.
Some comparative figures for right of-use land and buildings
assets and their associated lease liability have been restated to
reflect confirmed contractual lease end dates. The impact to
earnings in prior years is negligible with retained equity
increasing by GBP29k at 31 January 2021 and 0.03p and 0.02p
positive impact on basic earnings per share in FY21 and FY20
respectively. Note 3 provides further detail and reconciliation.
Note 6 provides more information and reconciliations relating to
EBITDA on both a pre and post IFRS 16 basis. An explanation of the
difference between the reported operating profit figure and
adjusted EBITDA is shown below:
Financial Highlights
Change Change
Year ended 31 January 2022 2022 2021 2021 % %
Post-IFRS Pre-IFRS Post-IFRS Pre-IFRS Post-IFRS Pre-IFRS
16 16 16 16 16 16
Revenue (GBPm) 72.5 72.5 67.6 67.6 7.2% 7.2%
EBITDA (GBPm) 7.3 5.2 5.7 4.0 28.3% 30.6%
Operating profit / (loss)
(GBPm) 4.4 3.8 3.1 2.7 45.0% 38.6%
Profit / (loss) before tax
(GBPm) 4.0 3.8 2.6 2.7 50.6% 38.1%
Basic earnings per share
(pence) 3.98 3.36 18.5%
-- Adjusted financial measures are defined on page 85 of the
Annual Report and reconciled to the financial measures defined by
International Financial Reporting Standards ("IFRS"). Management
uses EBITDA on a pre IFRS16 as the basis for assessing the
financial performance of the Group. These terms are not defined by
IFRS and therefore may not be directly comparable with other
companies adjusted profit measures.
Another year of strong revenue growth
Revenue grew 7.2% year on year with store sales increasing 19.9%
and the online business contracting 4.3%. UK online sales increased
2.7% against FY21 and 65.8% on a two-year basis despite the impact
of physical retailing having fewer restrictions in FY22. The
Group's European business contracted 39.3%. The Brexit ports'
hiatus impacted customer delivery lead times while customs
restrictions essentially stopped the exporting of bait, as well as
increased minimum basket thresholds to negate frictional export
costs and tariffs, which all affected website visitors and customer
conversion.
Revenue 31 January 31 January
2022 2021
GBPm GBPm
UK Revenue 69.8 63.2
Germany, France and Netherlands revenue 2.2 2.9
Other countries revenue 0.4 1.5
72.5 67.6
Retail stores revenue 38.7 32.3
Ecommerce revenue 33.8 35.3
72.5 67.6
The Group continues to focus on its online sales to
international territories which have the market size to deliver
strong sales growth and promising levels of profitability. Our
international footprint is predominantly in mainland Europe and
these international sales accounted for 7.9% of total online sales
(FY21: 12.4%). Our German, French and Dutch websites, which make up
the Group's core European markets, reduced in sales by 1.7%, 31.7%
and 51.8% respectively. These three territories now represent 84.4%
of total international sales (FY21: 65.6%). During Q4, as the Group
advanced through its execution phase of its European distribution
strategy, sales to these key territories increased 5.6% in the
quarter.
Stores were impacted by trading restrictions during Q1 of FY22
and were only able to operate on a "Call & Collect" basis;
despite this like-for-like store sales increased by 14.1% for the
full year FY22. The increase in store sales from the expansion of
the Group's four new stores during the year was GBP0.7m with
GBP3.7m from the four new store openings in FY21, collectively
contributing GBP4.4m (6.1%) to total revenue.
Our own brand Advanta contributed 5.6% (FY21 4.8%) of total
sales, GBP4.1m, during the year (FY21: GBP3.2m).
Gross margin
Our gross profit increased by 15.1% to GBP26.6m (FY21:
GBP23.1m). Gross margin improved 250 bps to 36.7% (FY21: 34.2%) and
the key underlying factors are explained below:
Category management buying and pricing
In Q4 FY21, the Group commenced its category management
methodology and restructured its category team composition to
deliver excellence in buying and pricing. This approach yielded
positive benefits across 17 of the 18 key categories as the team
were able to secure buying and pricing positions which enhanced the
year-on-year gross margin ratio. The strength of the Group's
commercial relationships in conjunction with our liquidity position
supported these buying dynamics to access stocks within an
unpredictable supply chain environment.
Supplier terms
Throughout the COVID-19 pandemic, challenged supply chains and
longer lead times meant the Group focused on security of stock as
opposed to challenging our category teams to negotiate improved
terms. As supply chains have become relatively less challenged, and
stocking positions more certain during FY22, the ability to secure
commercial agreements which reward both parties for growing their
businesses have started to feature increasingly in commercial
agreements, which have enhanced the margin during FY22.
Legacy inventories
One of the early objectives of the category management approach
was to execute in early FY22 a full range review of the business.
The expectation of this review was to potentially exit several
ranges quickly from the business, requiring these identified ranges
to be sold below their cost price, hence the FY21 results reflected
this potential cost through a reduction in inventory line values.
However, during FY22, against the backdrop of continued supply
chain challenges, management deferred the execution of this
overarching range review until Q1 FY23 when suppliers were
anticipated to give greater transparency over future product supply
volumes for the FY23 core fishing season. The one-off nature of
this review results in no recurring reduction in inventory value or
charge to gross margin in FY22.
Other income
As highlighted above, the Group was able to access direct
government support to compensate for costs incurred whilst the
business was unable to fully trade during the ongoing COVID-19
pandemic. The Group accessed GBP0.9m of support, GBP0.7m for RGS
and GBP0.2m for CJRS. This compared to FY21 when the Group accessed
GBP1.5m of direct government support, GBP0.9m for CJRS and GBP0.6m
under the Government's Retail Hospitality and Leisure Grant Fund.
Year on year the Group accessed GBP0.6m less of direct government
support.
Administrative expenses
Total administrative expenses increased by 8.2% to GBP19.7m
(FY21: GBP18.2m) compared to a 7.2% increase in revenue. Much of
the increase is sales volume driven and reflects the Group's
broader organisational scale in terms of physical store footprint
and investment in colleagues. Headcount cost has increased by 6.0%
to GBP10.8m (FY21: GBP10.1m). The additional depreciation and
amortisation charged mainly relates to new store leased assets
which increased to GBP2.9m (FY21: GBP2.7m). In addition, the
Group's incurred GBP0.4m of set up costs during the execution phase
of its European distribution strategy, as well as a further GBP0.1m
of non-cash share options charge relating to the share options
issued to key management during the year, and a full year's charge
in respect of the Executive team.
The Group was the subject of a malicious cyber-attack during Q4
FY22 which resulted in 7 days lost trading for the online business.
The incident is subject to an ongoing insurance claim with the
Group's insurers who directly incurred a substantial proportion of
incremental costs due to the incident. Based on the range of
outcomes and the materiality of these ranges for this claim, no
asset or liability has been recognised within the FY22 results in
respect of the incident.
Profit before tax and EBITDA
Profit before tax increased 50.6% to GBP4.0m with the ratio to
sales improving from 4.0% FY21 to 5.6%, gross margin representing
2.5% of the movement, the cost base 0.1% and reduced government
support (1.0) %. EBITDA improved 28.3% to GBP7.3m (FY21: GBP5.7m),
as a ratio of sales 10.1% (FY21: 8.5%) and on a pre IFRS 16 basis
30.6% to GBP5.2m (FY21: GBP4.0m), as a ratio of sales 7.2% (FY21:
5.9%).
Tax
The Group's effective tax rate was 23.5% (FY21: 9.2%). A
reconciliation of the expected tax charge at the standard rate to
the actual charge is shown below. All the Group's revenues and the
majority of its expenses are all subject to corporation tax. The
main expenses that are not deductible for tax purposes are
professional fees. The tax rate benefitted from the 130% super
deduction for capital allowances. Tax relief for some expenditure,
mainly fixed assets and unapproved share options is received over a
longer period than that for which the costs are charged to the
financial statements.
Taxation GBPm %
Profit before tax 4.0
Expected tax at UK standard rate of
tax 0.7 19.0%
Ineligible depreciation 0.0 0.2%
Expenses not deductible for tax purposes 0.1 1.3%
Capital allowances enhanced deduction (0.1) (1.3%)
Difference in current and deferred tax
rate 0.1 2.4%
Effect of tax rate change on opening
deferred tax balances 0.1 2.0%
Adjustments in respect of previous year's
tax charge (0.0) (0.1%)
Actual charge / effective tax rate 0.9 23.5%
Returns and dividends
Basic earnings per share ('EPS') was 3.98p (FY21: 3.36p)
progressing 18.5% for the year, below the rate of growth of profit
before tax due to the change in effective tax rate explained above.
The lower diluted earnings per share reflects the current LTIP
share options in issue which would dilute the basic earnings per
share.
There were no dividends paid, recommended or declared during the
current and prior financial year. With the last of the Government's
COVID-19 restrictions being removed, the Group is focused on
carefully navigating any further supply chain disruption and will
reinvest all surplus cash resources back into the business. As a
result of this, in the short term, the Directors do not recommend a
dividend payment to be distributed for the year ended 31 January
2022. The dividend policy will be kept under review as strategic
expansion plans progress.
Statement of financial position
Our consolidated statement of financial position is robust. As
at 31 January 2022, the Group had a net asset position of GBP36.4m
(FY21: GBP33.1m) and a net current asset position of GBP23.2m
(FY21: GBP20.2m). The Group for the first time includes the assets
and liabilities of its wholly owned subsidiary ADNL B.V.
The Group also had no external borrowing as at the reporting
date and closed FY22 with a cash and cash equivalents position of
GBP16.6m (FY21: GBP15.0m). Net debt* improved to (GBP5.6m) from
(GBP4.8m) FY21 reflecting the strength of the earnings and cash
generation in the period.
The key movements in the consolidated statement of financial
position, largely reflect additional net current assets. The table
shows the key components with the movements of note being the
increase in inventory levels reflecting our strategy of building
stock holdings to de-risk continued supply chain disruption during
the period. The Group had four new stores in the estate as well as
also building up our own branded stock, Advanta . The year-end
balance also reflects a modest stock build of GBP0.3m to support
the opening of the European distribution centre in FY23. Stock turn
for the Group as a result of these factors reduced to 3.0x from
3.6x.
Property, plant and equipment grew by GBP1.0m with the
introduction of four new stores, three of these alongside GBP0.3m
relating to the new European distribution centre being in the
second half of the year. Right of use assets have grown reflecting
four new stores which were brought into the estate in addition to
the European distribution centre lease executed in Q4. Offsetting
this growth in asset, the depreciation charge grew to GBP1.6m,
while the Group continued to evaluate its dilapidation obligations
and associated restoration provision for its growing physical store
and distribution centre footprint. The average length of lease
remaining for the Group has reduced to 6.0 years (FY21 6.7 years).
Additional investment in our software and IT platforms of GBP327k
was offset by a corresponding depreciation charge as the business
starts to reach a level of maturity on its investing profile.
Statement of financial position 31 January 31 January
2022 2021
GBPm GBPm
Property, plant and equipment 6.9 6.0
IFRS 16 Right-of-use assets 11.0 10.0
Intangible assets 6.2 6.3
Total non-current assets 24.1 22.3
Stock 16.3 12.5
Cash 16.6 15.0
Other current assets 1.1 0.9
Total current assets 34.0 28.3
Trade payables (8.7) (6.7)
Lease liabilities (1.6) (1.4)
Other current liabilities (0.5) -
Total current liabilities (10.8) (8.1)
Lease liabilities (9.4) (8.8)
Other non-current liabilities (1.5) (0.5)
Total non-current liabilities (10.9) (9.4)
Net assets 36.4 33.1
*Net debt represents the Group's IFRS 16 lease liabilities less
the cash position as at the reporting date.
Cash flow and funding
During FY22, the Group generated cash from operating activities
of GBP4.8m (FY21: GBP6.9m). Operating cash generation was impacted
by a working capital drag of GBP3.8m year on year, primarily as a
result of the stocking strategy described earlier in this
statement, however, the increased levels of profitability negated
some of this investment.
The Group has pursued its growth strategy by continuing to
deploy available cash resources into our e-commerce platforms both
in the UK and internationally, alongside investment in our
technology and inventory management systems. During the period, the
Group spent GBP1.2m on property plant and equipment primarily
relating to the four new store roll outs and the fit out of the
European distribution centre. Given the timing of these investments
during the year, of the GBP2.2m intangible and property plant and
equipment additions, GBP0.4m was settled after the balance sheet
date, and GBP0.3m reflects the early settlement of the Kardex
semi-automated picking system lease. This cash flow is reflected
through the financing activities on the statement of cash
flows.
Total cash generation for the period was GBP1.6m (FY21:
GBP9.0m). FY21 included GBP5.1m of net proceeds from a share
placing at the height of the COVID-19 pandemic. Excluding the
proceeds of this placing the cash generation reduced by GBP2.3m
year on year with operating cash 1.5x investing and financing cash
flows versus 2.3x in FY21 (excluding share placing).
The Group will be tax paying during FY23.
Cash flow 31 January 31 January
2022 2021
GBPm GBPm
Opening cash 15.0 6.0
Profit / (loss) for year 4.0 2.6
Movement in working capital (2.4) 1.5
Depreciation and amortisation 2.9 2.7
Other operating adjustments 0.3 0.1
Net cash from operating activities 4.8 6.9
Net cash from investing activities (1.5) (1.8)
Net cash from financing activities (1.7) 3.9
Increase in cash in year 1.6 9.0
Closing cash 16.6 15.0
Going concern and viability
At the Statement of Financial Position date, the Group had cash
balances of GBP16.6m. The Directors consider that GBP16.6m enables
them to meet all current liabilities as they fall due. Since the
year end, the Group has continued to trade within the range of
internal plans upon which this assessment has been made with
cGBP2.2m of working capital investment into European inventories
post the balance sheet date.
After consideration of market conditions, the Group's financial
position, financial forecasts for two years, its profile of cash
generation and principal risks, the Directors have a reasonable
expectation that both the Company and the Group will be able to
continue in operation and meet their liabilities as they fall due
over the period. For this reason, the going concern basis continues
to be adopted in preparing the financial statements.
Long-term growth
The Group has generated consistent growth in the scale of its
business and profits over recent years. A summary of the compound
growth rates ("CAGR") over the past two full trading years in the
key financial figures is as follows:
Long-term growth - Year ended CAGR CAGR
31 January 2022 2022 2020 2020 % %
Post-IFRS Pre-IFRS Post-IFRS Pre-IFRS Post-IFRS Pre-IFRS
16 16 16 16 16 16
Revenue (GBPm) 72.5 72.5 53.2 53.2 16.7% 16.7%
EBITDA (GBPm) 7.3 5.2 0.7 (0.5) 233.6%
Profit before tax (GBPm) 4.0 3.8 (1.5) (1.2)
EPS (pence) 3.98 (2.01)
FY23 outlook
FY22 was characterised by continued disruption to trading
conditions, condensing store trading periods and associated sales,
alongside challenging comparatives for the online business,
exacerbated by the Brexit disruption. Wider social and travel
restrictions both in the UK and globally supported UK angling as a
pastime negating some of the earlier trading restrictions in Q1
FY22. An improvement in gross margins was achieved as the Group was
able to use its strong balance sheet to secure stocks in a
disrupted supply chain environment, alongside significant direct
financial assistance from the UK Government improved operating
margins.
Following an exceptional period and emerging from the pandemic,
the Board is now seeing increasing levels of visibility in its
markets. As such, the Board believes that the Group is well-placed
to deliver growth in revenues both in the UK and its European
markets, albeit it is reasonable to expect that this growth will be
at a lower rate for the UK than the prior year where we have
greater market share, as trading conditions normalise and
inflationary pressures with the associated impact on consumers
becomes clearer. The Board is also mindful of the likelihood that
uncertainty around the Group's Far East supply chain will continue
to persist at least in the short-term and, as such, the Group will,
where appropriate, continue to use its strong balance sheet to
secure stock and mitigate exposure here.
The measures taken by the Group to drive gross margin
enhancement and a more efficient cost base that will underpin this
growth are now well established. The Group took further financial
assistance from the UK Government during FY22 but, on the basis
that there are no further national lockdowns, we expect no income
from this source in the current year compared with FY22. We expect
that the impact on profitability of this factor alongside the new
"national living wage" and reduced indirect government support
through Business rates increasing back above pre-COVID-19 levels,
will be partially mitigated by further underlying operational
efficiency improvements.
We have continued to focus on building disciplined financial
controls both in the UK and more latterly in Europe with the
opening of the European distribution centre in Q1 FY23. In
addition, our focus has been upon achieving operational excellence,
strengthening corporate governance, maintaining our robust balance
sheet and capitalising on the renaissance of fishing as a pastime
and our improved and evolving online and store customer
offerings.
Q1 FY23 saw the first despatch of product from our European
distribution centre and the Board remains focused on optimising
this opportunity.
Steven Crowe
Chief Financial Officer
16 May 2022
Consolidated statement of profit or loss and other comprehensive
income
For the year ended 31 January 2022
Restated
2022 2021
Note GBP'000 GBP'000
Revenue from contracts with customers 5 72,474 67,581
Cost of sales of goods 8 (45,864) (44,458)
Gross profit 26,610 23,123
Other income 6 914 1,540
Interest revenue calculated using the effective interest
method 14 24
Expenses
Administrative expenses 8 (19,687) (18,194)
Distribution expenses (3,423) (3,424)
Finance costs (406) (398)
Profit before income tax (expense)/benefit 4,022 2,671
Income tax (expense) 10 (945) (246)
Profit/(loss) after income tax (expense)/benefit
for the year attributable to the owners of Angling
Direct PLC 3,077 2,425
Other comprehensive income for the year, net of tax - -
Total comprehensive income for the year attributable
to the owners of Angling Direct PLC 3,077 2,425
Pence Pence
Basic earnings per share 24 3.98 3.36
Diluted earnings per share 24 3.93 3.31
Consolidated statement of financial position
As at 31 January 2022
Consolidated
Restated Restated
Note 2022 2021 2020
GBP'000 GBP'000 GBP'000
Non-current assets
Intangibles 11 6,176 6,251 6,216
Property, plant and equipment 12 6,908 6,019 5,593
Right-of-use assets 13 11,028 10,007 9,588
Total non-current assets 24,112 22,277 21,397
Current assets
Inventories 14 16,273 12,481 13,453
Trade and other receivables 15 542 623 509
Prepayments 545 245 474
Cash and cash equivalents 16,604 14,996 5,978
Total current assets 33,964 28,345 20,414
Current liabilities
Trade and other payables 16 8,680 6,741 6,430
Lease liabilities 17 1,648 1,358 1,182
Derivative financial instruments 1 - -
Income tax 464 - 17
Total current liabilities 10,793 8,099 7,629
Net current assets 23,171 20,246 12,785
Total assets less current liabilities 47,283 42,523 34,182
Non-current liabilities
Lease liabilities 17 9,402 8,831 8,428
Restoration provision 18 722 282 254
Deferred tax 19 744 263 -
Total non-current liabilities 10,868 9,376 8,682
Net assets 36,415 33,147 25,500
Equity
Share capital 20 773 773 646
Share premium 21 31,037 31,037 26,017
Reserves 22 266 75 -
Retained profits / (accumulated losses) 4,339 1,262 (1,163)
Total equity 36,415 33,147 25,500
Share Share-based
Share premium payment Retained
capital account reserve profits Total equity
Consolidated GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February 2020 646 26,017 - (1,172) 25,491
Adjustment for restatement (note
3) - - - 9 9
Balance at 1 February 2020 -
restated 646 26,017 - (1,163) 25,500
Profit after income tax expense
for the year - - - 2,425 2,425
Other comprehensive income for
the year, net of tax - - - - -
Total comprehensive income for
the year - - - 2,425 2,425
Transactions with owners in
their capacity as owners:
Contributions of equity, net
of transaction costs 127 - - - 127
Share premium, net of transaction
costs (note 21) - 5,020 - - 5,020
Share-based payments - - 75 - 75
Balance at 31 January 2021 773 31,037 75 1,262 33,147
Share Share-based
Share premium payment Retained
capital account reserve profits Total equity
Consolidated GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February 2021 773 31,037 75 1,262 33,147
Profit after income tax expense
for the year - - - 3,077 3,077
Other comprehensive income for
the year, net of tax - - - - -
Total comprehensive income for
the year - - - 3,077 3,077
Transactions with owners in
their capacity as owners:
Share-based payments - - 191 - 191
Balance at 31 January 2022 773 31,037 266 4,339 36,415
Consolidated
Restated
Note 2022 2021
GBP'000 GBP'000
Cash flows from operating activities
Profit before income tax expense for the year 4,022 2,671
Adjustments for:
Depreciation and amortisation 2,922 2,673
Share-based payments 191 75
Net movement in provisions 12 18
Interest received (14) (24)
Interest and other finance costs 394 398
7,527 5,811
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables 81 (114)
(Increase)/decrease in inventories (3,792) 972
(Increase)/decrease in prepayments (300) 229
Increase in trade and other payables 1,626 407
5,142 7,305
Interest received 14 24
Interest and other finance costs (393) (388)
Net cash from operating activities 4,763 6,941
Cash flows from investing activities
Payments for property, plant and equipment 13 (1,202) (1,382)
Payments for intangibles 12 (327) (338)
Payment of contingent consideration 26 - (48)
Proceeds from disposal of property, plant and equipment 5 -
Net cash used in investing activities (1,524) (1,768)
Cash flows from financing activities
Proceeds from issue of shares and premium - 5,147
Repayment of lease liabilities 32 (1,631) (1,302)
Net cash (used in)/from financing activities (1,631) 3,845
Net increase in cash and cash equivalents 1,608 9,018
Cash and cash equivalents at the beginning of the
financial year 14,996 5,978
Cash and cash equivalents at the end of the financial
year 16,604 14,996
Notes to the consolidated financial statements
31 January 2022
1. Basis of preparation
The Group's consolidated financial statements have been prepared
in accordance with UK adopted international accounting standards
and IFRIC interpretations and with those parts of the Companies Act
2006 applicable to reporting groups under IFRS.
The financial information set out above does not constitute the
company's statutory accounts for 2022 or 2021. Statutory accounts
for the years ended 31 January 2022 and 31 January 2021 have been
reported on by the Independent Auditors. The Independent Auditors'
Report on the Annual Report and Financial Statements for the years
ended 31 January 2021 and 31 January 2022 are unqualified.
Statutory accounts for the year ended 31 January 2021 have been
filed with the Registrar of Companies. The statutory accounts for
the year ended 31 January 2022 will be delivered to the Registrar
in due course.
Restatement of comparatives
Following a review of the Company's 2021 Annual report by the
Directors the statement of financial position for 2021 and 2020 has
been restated to reflect the contracted lease expiry dates for
three of the land and buildings right of use assets.
The overall impact of the restatement is to increase equity by
GBP29,000 at 31 January 2021.
The impact of this restatement was to reduce 2021 right of use
assets by GBP903,000 and reduce lease liabilities by GBP942,000.
The impact of this restatement increased the 2021 profit after
income tax by GBP20,000.
The impact of this restatement was to reduce 2020 right of use
assets by GBP892,000 and reduce lease liabilities by GBP906,000.
The impact of this restatement increased the 2020 profit after
income tax by GBP9,000.
For each financial statement line item affected see note 3.
2. Going concern including liquidity
The Group has considerable financial resources together with long-standing
relationships with a number of key suppliers and an established reputation
in the retail sector across the UK and Europe.
The Directors have considered the Group's growth prospects in the period
to 31 January 2024 based on its customer proposition and online offering
in the UK and Europe and concluded that potential growth rates remain strong.
The Group has conducted various stress tests, none of which resulted in
a change to the assessment of the Group as a going concern.
In making this judgement, the Directors have reviewed the future viability
and going concern position of the Group for the foreseeable future.
The Group's policy is to ensure that it has sufficient facilities to cover
its future funding requirements. At 31 January 2022, the Group had cash
and cash equivalents of GBP16.6m (FY21: GBP15.0m). This significant headroom
has been factored into the Directors' going concern assessment.
Having duly considered all of these factors and having reviewed the forecasts
for the coming year, the Directors have a reasonable expectation that the
Group has adequate resources to continue trading for the foreseeable future,
and as such continue to adopt the going concern basis of accounting in preparing
the financial statements.3. Restatement of comparatives
Restatement of Right of use asset expiry dates
The Group has restated right of use asset land and building lease expiry
dates. The overall impact on total equity as at 31 January 2021 was an increase
of GBP29,000. The restatement to comparatives of the statement of profit
or loss and other comprehensive income for the year ended 31 January 2021
and the statement of financial position as at 31 January 2021 and as 1 February
2020 is as follows:
-- Reduction in lease liabilities of GBP942,000 (current GBPnil and non-current
GBP942,000) (discounted based on the weighted average incremental borrowing
rate of 4%) as at 31 January 2021 (1 February 2020: GBP906,000; current
GBPnil and non-current GBP906,000);
-- Right-of-use assets of GBP903,000 were reduced as at 31 January 2021
(1 February 2020: GBP892,000);
-- Additional depreciation of GBP11,000 was recognised against the right-of-use
assets as at 31 January 2021 (1 February 2020: GBP5,000);
-- A reduction in interest payments of GBP36,000 was recognised against
the lease liabilities as at 31 January 2021 (1 February 2020 GBP14,000)
-- Restoration provision was increased by GBP5,000 as at 31 January 2021
(1 February 2020: GBP5,000)
-- Deferred tax liability increased by GBP5,000 as at 31 January 2021 (as
a result of the net tax effect on right-of-use assets and lease liabilities)
(1 February 2020: GBPnil);
-- The overall impact on total equity as at 31 January 2021 was an increase
of GBP29,000. This comprises an increase of GBP20,000 in the year 31 January
2021 and GBP9,000 in the period to 31 January 2020.
Statement of profit or loss and other comprehensive income
Consolidated
Restated
2021 2021
GBP'000 GBP'000 GBP'000
Extract Reported Adjustment Restated
Expenses
Administrative expenses (18,183) (11) (18,194)
Finance costs (434) 36 (398)
Profit before income tax (expense) 2,646 25 2,671
Income tax (expense) (241) (5) (246)
Profit after income tax expense for the year
attributable to the owners
of Angling Direct PLC 2,405 20 2,425
Other comprehensive income for the year, net of
tax - - -
Total comprehensive income for the year
attributable to the owners of
Angling Direct PLC 2,405 20 2,425
Pence Pence Pence
Reported Adjustment Restated
Basic earnings per share 3.33 0.03 3.36
Diluted earnings per share 3.28 0.03 3.31
Statement of financial position at the beginning of the earliest comparative
period Consolidated
1 Feb 2020 1 Feb 2020
GBP'000 GBP'000 GBP'000
Extract Reported Adjustment Restated
Non-current assets
Right-of-use assets 10,480 (892) 9,588
Total non-current assets 22,289 (892) 21,397
Current assets
Total current assets 20,414 - 20,414
Current liabilities
Total current liabilities 7,629 - 7,629
Net current assets 12,785 - 12,785
Total assets less current liabilities 35,074 (892) 34,182
Non-current liabilities
Lease liabilities 9,334 (906) 8,428
Restoration provision 249 5 254
Total non-current liabilities 9,583 (901) 8,682
Net assets 25,491 9 25,500
Equity
Retained accumulated losses (1,172) 9 (1,163)
Total equity 25,491 9 25,500
Statement of financial position at the end of the earliest comparative
period Consolidated
Restated
2021 2021
GBP'000 GBP'000 GBP'000
Extract Reported Adjustment Restated
Non-current assets
Right-of-use assets 10,910 (903) 10,007
Total non-current assets 23,180 (903) 22,277
Current assets
Total current assets 28,345 - 28,345
Current liabilities
Total current liabilities 8,099 - 8,099
Net current assets 20,246 - 20,246
Total assets less current liabilities 43,426 (903) 42,523
Non-current liabilities
Lease liabilities 9,773 (942) 8,831
Restoration provision 277 5 282
Deferred tax 258 5 263
Total non-current liabilities 10,308 (932) 9,376
Net assets 33,118 29 33,147
Equity
Retained profits 1,233 29 1,262
Total equity 33,118 29 33,147
4. Segmental reporting
Segmental information is presented in respect of the Group's operating segments,
based on the Group's management and internal reporting structure, and monitored
by the Group's Chief Operating Decision Maker (CODM).
Segment results, assets and liabilities include items directly attributable
to a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly own brand stock in transit from the manufacturers,
Group cash and cash equivalents, taxation related assets and liabilities,
centralised support functions salary and premises costs, and government
grant income.
Geographical segments
The business operated predominantly in the UK. As at 31 January 2022, it
has three native language web sites for Germany, France and the Netherlands.
In accordance with IFRS 8 'Operating segments' no segmental results are
presented for trade with European customers as these are not reported separately
for management purposes and are not considered material for separate disclosure,
save for disaggregation of revenue in note 4. Trading through the subsidiary
in the Netherlands commenced on 1March 2022.
Stores Online Head office Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 38,665 33,809 - 72,474
Profit/(loss) before income tax 4,816 3,940 (4,734) 4,022
EBITDA post IFRS 16 7,141 4,510 (4,318) 7,333
Total assets 25,983 8,724 23,369 58,076
Total liabilities (13,262) (4,095) (4,304) (21,661)
EBITDA Reconciliation
Profit/(loss) before income tax 4,816 3,940 (4,734) 4,022
Less: Interest income - - (14) (14)
Add: Interest expense 330 49 27 406
Add: Depreciation and amortisation 1,998 521 403 2,922
EBITDA post IFRS 16 7,144 4,510 (4,318) 7,336
Less: Costs relating to IFRS 16 lease
liabilities (1,813) (182) (140) (2,135)
EBITDA pre IFRS 16 5,331 4,328 (4,458) 5,201
5. Revenue from contracts with customers
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
2022 2021
GBP'000 GBP'000
Route to market
Retail store sales 38,665 32,259
E-commerce 33,809 35,322
72,474 67,581
Geographical regions
United Kingdom 69,818 63,206
Germany, France and Netherlands 2,242 2,868
Other countries 414 1,507
72,474 67,581
Timing of revenue recognition
Goods transferred at a point in time 72,474 67,581
6. Other income
2022 2021
GBP'000 GBP'000
Net foreign exchange (loss)/gain (18) 13
Government grants 932 1,527
Other income 914 1,540
As a result of the economic impacts of the COVID-19 pandemic, a number of
government programmes have been put into place to support businesses and
consumers. Examples of such initiatives include the UK's Coronavirus Job
Retention Scheme. In accounting for the impacts of these measures, the Group
has applied IAS 20: 'Government Grants'.
During the year to 31 January 2022, the Group recognised an amount totalling
GBP216,000 (2021: GBP917,000) receivable under the UK Government's Coronavirus
Job Retention Scheme, an amount totalling GBP716,000 (2021:GBPnil) receivable
under UK Governments Restart Grants and an amount totalling GBPnil (2021:
GBP610,000) receivable under the UK Government's Retail Hospitality and
Leisure Grant Fund.
7. EBITDA reconciliation (earnings before interest, taxation, depreciation
and amortisation)
The Directors believe that adjusted profit provides additional useful information
for shareholders on performance. This is used for internal performance analysis.
This measure is not defined by IFRS and is not intended to be a substitute
for, or superior to, IFRS measurements of profit. The following table is
provided to show the comparative earnings before interest, tax, depreciation
and amortisation ("EBITDA") after adjusting for costs relating to IFRS 16
lease liabilities.
Consolidated
Restated
2022 2021
GBP'000 GBP'000
EBITDA reconciliation
Profit before income tax expense post IFRS 16 4,022 2,671
Less: Interest income (14) (24)
Add: Interest expense 406 398
Add: Depreciation and amortisation 2,922 2,673
EBITDA post IFRS 16 7,336 5,718
Less: costs relating to IFRS 16 lease liabilities (2,135) (1,737)
EBITDA pre IFRS 16 5,201 3,981
8. Expenses
Restated
2022 2021
GBP'000 GBP'000
Profit before income tax includes the following specific
expenses:
Cost of sales
Cost of inventories as included in 'cost of sales' 45,864 44,458
Depreciation
Land and buildings improvements 16 18
Plant and equipment 643 674
Motor vehicles 2 3
Computer equipment 282 213
Land and buildings right-of-use assets 1,454 1,320
Plant and equipment right-of-use assets 56 57
Motor vehicles right-of-use assets 61 80
Computer equipment right-of-use assets 6 5
Total depreciation 2,520 2,370
Amortisation
Software 402 303
Total depreciation and amortisation * 2,922 2,673
Finance costs
Interest and finance charges paid/payable on lease liabilities 393 388
Interest and finance charges on restoration provision 12 10
Forward foreign currency hedges 1 -
Finance costs expensed 406 398
Leases
Short-term lease payments 51 25
Low-value assets lease payments 16 15
67 40
* Depreciation and amortisation expense is included within "administrative
expenses" in the Statement of profit or loss and other comprehensive
income.
9. Staff costs
2022 2021
GBP'000 GBP'000
Aggregate remuneration:
Wages and salaries 9,591 9,140
Social security costs 815 772
Other pension costs 347 234
Total staff costs 10,753 10,146
The average number of employees during the year was as follows:
2022 2021
Stores 272 264
Warehouse 45 50
Administration 41 45
Marketing & online content 27 21
IT and web 12 13
Management 9 9
Other 4 5
Average number of employees 410 407
Staff costs above include Directors' salaries, social security costs and
other pension costs.
10. Income tax expense
Restated
2022 2021
GBP'000 GBP'000
Income tax expense/(benefit)
Current tax 464 -
Deferred tax - origination and reversal of temporary differences 305 263
Deferred tax - rate change 179 -
Current tax adjustment recognised for prior periods - (17)
Deferred tax adjustment recognised for prior periods (3) -
Aggregate income tax expense/(benefit) 945 246
Numerical reconciliation of income tax expense and tax
at the statutory rate
Profit before income tax expense 4,022 2,671
Tax at the statutory tax rate of 19% 763 508
Tax effect amounts which are not deductible/(taxable)
in calculating taxable income:
Non qualifying depreciation 7 -
Super deduction capital allowances (54) -
EMI share scheme exercised - (161)
Non-deductible expenses 53 12
Deferred tax rate impact 179 (5)
Recognition of previously unrecognised tax losses - (41)
948 313
Adjustment recognised for prior periods (3) (17)
Unrecognised losses prior year - (50)
Income tax expense 945 246
11. Intangibles
2022 2021
GBP'000 GBP'000
Non-current assets
Goodwill - at cost 5,802 5,802
Less: Impairment (182) (182)
5,620 5,620
Software - at cost 1,431 1,104
Less: Accumulated amortisation (875) (473)
556 631
6,176 6,251
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Goodwill Software Total
GBP'000 GBP'000 GBP'000
Balance at 1 February 2020 5,620 596 6,216
Additions - 338 338
Amortisation expense - (303) (303)
Balance at 31 January 2021 5,620 631 6,251
Additions - 327 327
Amortisation expense - (402) (402)
Balance at 31 January 2022 5,620 556 6,176
12. Property, plant and equipment
2022 2021
GBP'000 GBP'000
Non-current assets
Land and buildings improvements - at cost 1,002 1,002
Less: Accumulated depreciation (303) (287)
699 715
Plant and equipment - at cost 7,640 6,411
Less: Accumulated depreciation (1,974) (1,685)
5,666 4,726
Motor vehicles - at cost 15 15
Less: Accumulated depreciation (10) (8)
5 7
Computer equipment - at cost 1,118 1,271
Less: Accumulated depreciation (580) (700)
538 571
6,908 6,019
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Land and Plant
buildings and Motor Computer
improvements equipment vehicles equipment Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February
2020 733 4,274 10 576 5,593
Additions - 1,126 - 208 1,334
Depreciation expense (18) (674) (3) (213) (908)
Balance at 31 January
2021 715 4,726 7 571 6,019
Additions - 1,588 - 249 1,837
Disposals (5) (5)
Depreciation expense (16) (643) (2) (282) (943)
Balance at 31 January
2022 699 5,666 5 538 6,908
13. Right-of-use assets
Restated
2022 2021
GBP'000 GBP'000
Non-current assets
Land and buildings - long leasehold - right-of-use 16,979 14,116
Less: Accumulated depreciation (6,080) (4,626)
10,899 9,490
Plant and equipment - right-of-use 80 575
Less: Accumulated depreciation (49) (166)
31 409
Motor vehicles - right-of-use 326 269
Less: Accumulated depreciation (248) (187)
78 82
Computer equipment - right-of-use 59 59
Less: Accumulated depreciation (39) (33)
20 26
11,028 10,007
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Land and Plant and Motor Computer
buildings equipment vehicles equipment Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 February 2020 -
restated 8,952 466 139 31 9,588
Additions 1,214 - 23 - 1,237
Remeasurement 644 - - - 644
Depreciation expense (1,320) (57) (80) (5) (1,462)
Balance at 31 January 2021 -
restated 9,490 409 82 26 10,007
Additions 2,519 - 57 - 2,576
Disposals - (322) - - (322)
Remeasurement 344 - - - 344
Depreciation expense (1,454) (56) (61) (6) (1,577)
Balance at 31 January 2022 10,899 31 78 20 11,028
14. Inventories
2022 2021
GBP'000 GBP'000
Current assets
Finished goods - at cost 16,273 12,481
Finished goods include GBP0.3m (FY21: GBP0.3m) of provisions to remove certain
product lines from the Group as part of a product ranging exercise. This
write down to reflect net realisable value of these product lines was recognised
as an expense during the year to 31 January 2021.
15. Trade and other receivables
2022 2021
GBP'000 GBP'000
Current assets
Trade receivables 62 99
Other receivables 480 524
542 623
16. Trade and other payables
2022 2021
GBP'000 GBP'000
Current liabilities
Trade payables 4,844 3,287
Accrued expenses 2,000 1,462
Refund liabilities 42 102
Social security and other taxes 711 537
Other payables 1,083 1,353
8,680 6,741
17. Lease liabilities
Restated
2022 2021
GBP'000 GBP'000
Current liabilities
Lease liability 1,648 1,358
Non-current liabilities
Lease liability 9,402 8,831
11,050 10,189
18. Restoration provision
Restated
2022 2021
GBP'000 GBP'000
Non-current liabilities
Restoration provision 722 282
Movements in provisions
Movements in each class of provision during the current financial year,
other than employee benefits, are set out below:
Restoration
provision
GBP'000
Carrying amount at the start of the year - restated 282
Additional provisions recognised 84
Revised estimated cost of future restoration 344
Unwinding of discount 12
Carrying amount at the end of the year 722
19. Deferred tax
Restated
2022 2021
GBP'000 GBP'000
Non-current liabilities
Deferred tax liability comprises temporary differences
attributable to:
Property, plant and equipment 898 561
Tax losses - (213)
IFRS 16 transitional adjustment (82) (71)
Unapproved share options issued (67) (14)
Short term timing differences (5) -
Deferred tax liability 744 263
Movements:
Opening balance 263 -
Adjustment recognised for prior periods (3) -
Deferred tax - rate change 179 -
Other temporary differences 305 263
Closing balance 744 263
20. Share capital
2022 2021 2022 2021
Shares Shares GBP'000 GBP'000
Ordinary shares of GBP0.01 each -
fully
paid 77,267,304 77,267,304 773 773
21. Share premium
2022 2021
GBP'000 GBP'000
Share premium account 31,037 31,037
22. Reserves
2022 2021
GBP'000 GBP'000
Share-based payments reserve 266 75
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to
employees and Directors as part of their remuneration, and other parties
as part of their compensation for services.
Movements in reserves
Movements in each class of reserve during the current and previous financial
year are set out below:
Share-based
payments
GBP'000
Balance at 31 January 2020 -
Options granted 75
Balance at 31 January 2021 75
Options granted 191
Balance at 31 January 2022 266
23. Dividends
There were no dividends paid, recommended or declared during the current
or previous financial year.
24. Earnings per share
Restated
2022 2021
GBP'000 GBP'000
Profit/(loss) after income tax attributable to the owners
of Angling Direct PLC 3,077 2,425
Number Number
Weighted average number of ordinary shares used in
calculating
basic earnings per share 77,267,304 72,226,957
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares 1,000,912 1,049,867
Weighted average number of ordinary shares used in
calculating
diluted earnings per share 78,268,216 73,276,824
Pence Pence
Basic earnings per share 3.98 3.36
Diluted earnings per share 3.93 3.31
25. Events after the reporting period
The Group commenced trading from its new European distribution centre in
the Netherlands on 1(st) March 2022, allowing orders to be despatched to
all EU countries.
No other matter or circumstance has arisen since 31 January 2022 that has
significantly affected, or may significantly affect the Group's operations,
the results of those operations, or the Group's state of affairs in future
financial years.
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END
FR BRGDUBGBDGDL
(END) Dow Jones Newswires
May 17, 2022 10:03 ET (14:03 GMT)
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