‘We have a vision’: American Golf hails improvement despite challenging year
American Golf has hailed its improved financial performance despite facing “global and national factors” which negatively impacted how much customers wanted to spend and their confidence.
The Warrington-headquartered company has reported an EBITDA of £4.3m for the year to the end of January 2024, up from a loss of £1.4m in the prior 12 months.
American Golf, which is owned by International Leisure Group and backed by private equity firm Endless, has not revealed its full accounts, which are not due to be filed with Companies House until September.
However, audited figures seen by Morning Wire show the American Golf brand’s turnover increased by £300,000 to £135.8m in the year while its pre-tax losses were cut from £10.5m to £5.2m.
In its prior financial year International Leisure Group, the holding company for American Golf Trading, American Golf Leisure and International Leisure Brands, posted a turnover of £151.2m, down from £166.8m.
It also made a pre-tax loss of £9.8m after reporting a pre-tax profit of £7.5m in the year before.
“We listened to our customers”
American Golf chief executive Nigel Oddy said: “There is no doubt that 2023 was challenging for all retailers, including golf retail, as global and national factors impacted consumer spend and confidence.
“We listened to our customers and their feedback has helped inform our strategy for the years ahead. Due to the continued cost of living pressures, customers told us they were reducing their non-essential golf spend last year, but we were able to take action to leverage our core strengths: focusing on data, our own brand products, our omni-channel offering, and our relationship with third parties.
“American Golf has refocused on core retail, including our 88 nationwide stores, to put us in a strong position for FY 2024/25, with exciting plans for this year and onwards. We have a vision to become the ultimate one-stop destination for everything a golfer requires.”
During the year American Golf introduced personalised golf products and gifts, golf insurance and a free Winter Game Review.
The business said its new strategy saw sales increase by seven per cent in the fourth quarter of 2023 compared to the same period in the prior year
American Golf added that its online sales business also grew by more than four per cent for the full year.
This performance is in line with American Golf’s growth target of £8m+ EBITDA over the next three years.
American Golf “optimistic” for the future
Oddy added: “We expect the golf market to continue to be challenging – however we’re optimistic that we can continue to increase American Golf’s share of that market by focusing on our core strengths. Our reset has put us in a strong position as we make ambitious plans for the future of the business.
“We believe in a truly omnichannel business to best connect with our customers – providing flexibility and convenience for a seamless shopping experience.
“We look forward to rolling out our new app and web experience, along with refurbishments across our existing estate and the opening of new stores in the next few months.”