Fishing retailer catches sales boost to defy summer drought
The UK’s largest fishing shop has posted a surge in sales to defy fears that the record drought is impacting the country’s rivers and fisheries.
Angling Direct, the UK’s leading seller of fishing equipment, said it has grown its market share and is on track to meet its profit targets despite the drought, which has seen river flows fall to record-low levels.
Steve Crowe, chief executive of the AIM-listed firm, said: “Despite the well-documented challenges to the UK consumer environment, alongside a UK-wide drought impacting fish and fisheries, I am pleased to report that we have delivered a resilient start to the year.”
The retailer posted 6.4 per cent in-store and 7.5 per cent online sales growth in the UK. The group’s revenue jumped by five per cent to £56.4m in the first half of the year. Angling Direct also opened three new stores during the period, bringing its total network to 60 sites across the UK.
Crowe said the retailer’s big-ticket categories are proving “robust” despite rising fuel prices and the “ongoing headwinds in the consumer sector”.
The Norwich-based firm is “making further progress against our recently upgraded medium-term objectives and gaining further share of the UK angling market,” he added.
On track for £100m turnover
The UK has been hit with a record drought this summer, as rainfall dropped to less than one per cent across parts of southern and southeastern England.
River flows in 78 per cent of English rivers fell below normal levels in July, with one sixth classed as exceptionally low, but Crowe said demand for fishing tackle has held up.
Despite growing sales in the UK, Angling Direct has seen revenue plummet in its European business. The group’s turnover in Europe fell by more than 30 per cent to £2.5m, which it blamed on “a challenging” fishing market on the continent.
“The company has continued its focus on key markets in Germany and the Netherlands, with our European business trading in line with the Board’s expectations during [the first half of the year],” the group said.
Angling Direct said it is on track to meet expectations of £109m revenue and £5.7m adjusted earnings by year-end.
The firm’s shares rose by 1.5 per cent to 47p in early trading.