Angling Direct PLC (LON:ANG), the fishing tackle and equipment retailer, has seen like-for-like (LFL) sales continue to surge this year.
The first two months of the current financial year – i.e. February and March – saw LFL sales rise by 28.5% year-on-year, while overall sales were up 50.7% on the previous year.
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The sales update on current trading was given in the company's results statement covering the 12 months to the end of January, in which the company said LFL store sales rose 6.2% in the year to end-January.
Sales in its bricks and mortar stores rose 50% to £19.7mln from £13.2mln the year before while online sales surged 30% to £22.3mln from £17.1mln, driven by a 112% increase in the value of international sales.
The group opened three new stores during the 2018/19 fiscal year, leading to an increase in administrative costs to £11.2mln from £7.1mln the year before. That, in turn, tipped the retailer into the red, with a loss before tax of £267,000, compared to a profit the previous year of £159,000.
Sunday Talking Point
What is the one angling moment that has made you the happiest?#AnglingDirect #SundayTalkingPoint pic.twitter.com/Y0ngpYI28B
— Angling Direct (@anglingdirect) May 12, 2019
Martyn Page, the executive chairman of the company, said the year just ended was a transformational one for the company, with record sales in the stores network and online.
"As the UK market consolidates, we are seeing a corresponding increase on our margins as the level of discounting from competitors decreases. Coupled with this are encouraging customer habits with increasing numbers of returning customers both in-store and online as Angling Direct becomes the retailer of choice," Page declared.
"We are excited by the sales growth outside the UK through our native language websites, which will be a key focus for the group in 2019. The European market is highly fragmented with limited competition online. We expect to increase our market share through targeted marketing campaigns, unrivalled customer experience and carefully considered M&A opportunities," Page said.
The group finished the financial year with net cash equivalents of £13.5mln, up from £0.8mln a year earlier, following a successful fundraising of £20mln.
The cash will provide the group with the ammo to continue to build on momentum in the year ahead, with new store openings planned and continued online growth targeted.
“Our plans for the summer season are progressing very well and the board is confident that the company is on track to meet its full year targets," Page asserted.