Fishing products retailer Angling Direct PLC (AIM:ANG) has pointed to continued growth in Europe as key after reporting a jump in pre-tax profit on better sales over the first half of the year.
Over the half year to July, Angling Direct said revenue increased by 11.4% to £43.3 million, as UK sales grew by 10.1% and European sales by 39.9%.
This compared to a softer first half of last year on the back of prolonged extreme temperatures in August and September, Angling Direct said, with sales in these two months jumping by 13.9%.
Pre-tax profit grew by over 50% to £1.7 million as a result, with average transaction value also increasing.
“The European market offers a significant medium-term growth opportunity alongside the established UK business, where we continue to build an increasingly modern, contemporary and cash-generative omnichannel business,” the firm said in a statement.
Though cost of living pressures are expected to persist, the firm added it is on course to meet expectations of £83 million in full-year revenue.
Angling Direct continued that it would prudently invest in its strategic objective of growing a strong European business moving forward, in a bid to deliver “meaningful economic returns as consumer confidence returns”.
“Despite the more competitive market conditions in Europe, European sales in the first half were ahead, re-validating the significant growth opportunity that Europe represents,” chief executive Steve Crowe said.
“We are committed to building a sustainably profitable international business and have taken steps to develop margin and optimise costs in the first half.”
Shares soared by 8.5% to 35.79p.