Angling Direct plc (LON:ANG) is raising £20mln from investors to fund an ambitious expansion plan at home and abroad.
The UK’s largest fishing tackle retailer has had to trim its prices in recent months to remain competitive after discounting by rivals, while bosses have complained that the hobby’s popularity is waning.
READ: Angling shares sink as competition drags on margins
Still, it has issued 21.6mln shares at 92.5p apiece – a 7.5% discount to Tuesday’s closing price of 100p – to help it grow organically and possibly through acquisitions as well.
Angling Direct wants to open around 20 new stores in its core UK market in 2019 and 2020, while it also wants to roll out native language websites in Europe, where it will implement a new media and marketing plan as well.
The cash injection will also be used to explore potential merger and acquisition opportunities, increase staff headcount and expand the higher-margin Advanta product lines.
Sales rising
“We are delighted with the level of support Angling Direct has received from its existing and new investors,” said chief executive Darren Bailey.
“The business has made excellent progress in the 15 months since joining AIM, with acquisitions completed, new stores opened, and revenue grown significantly.”
He added: “The new funds will allow Angling Direct to go to the next level, as we seek to extensively increase our UK footprint and expand into Europe through our successful online business.”
Bosses said they are looking to the future with “increasing confidence”, with like-for-like sales climbing 15.4% and 12.0% in August and September respectively.