Angling Direct, the fishing tackle-and-equipment retailer, has announced a significant increase in pretax profit for the first half of its fiscal year. The company attributes this success to strong sales growth in both its European and U.K. stores. With these positive results, Angling Direct is confident in meeting its full-year expectations.
For the six months ended July 31, pretax profit reached £1.7 million, a notable increase from the previous year's £1.1 million during the same period. Additionally, revenue rose by 11%, reaching £43.3 million compared to £38.9 million. This growth was driven by strong performance in both the retail and online store segments.
Earnings and Forecast
Angling Direct reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of £2.3 million, surpassing the previous year's £1.9 million. Looking ahead, the company provided a consensus revenue market forecast of £83.0 million for the year ending January 31. They also projected pre-IFRS 16 EBITDA of £2.7 million.
The company experienced a 50 basis point increase in gross margin, reaching 35.1%. This improvement can be attributed to progress seen in both the U.K. and European markets.
Angling Direct's CEO, Steve Crowe, expressed optimism regarding the group's long-term growth prospects. He emphasized the company's robust balance sheet as a key driver of this positive sentiment. After a successful first half of fiscal year 2024, Crowe remains confident that the full-year results will meet market expectations.
Sales performance in August and September has remained strong, aligning with expectations and exhibiting a 14% increase compared to the same months in the previous year.