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Angling Direct warns on profit as heatwave and cost-of-living crisis bite

Angling Direct PLC (AIM:ANG) shares dived as the fishing tackle retailer warned full-year profits would fall “materially” below current market expectation.

The AIM-listed company said the heatwave had effected river levels and fish health, which had a negative impact on trading in the usually busy month of August.

Cost of living pressures, falling consumer confidence and rising inflation have also hit performance, it added.

The group now expects underlying profit (EBITDA) of £3mln-£3.4mln for the year to end-January 2023, well below market consensus forecasts of £4.3mln.

Revenue is also expected to be below market estimates of £82mln.

In a trading update for the first half to 31 July 2022, the company said revenue was £38.9mln, up 1.3% on the same period in the previous year.

However, although the first quarter saw sales growth of 5.4%, pressure on spending and consumer confidence led to a 1.6% drop in the second quarter.

Net cash and cash equivalents as at 31 July 2022 were £17.1mln, down from £19.6mln a year earlier.

Shares tanked 17.8% to 30.00p in midmorning trade.

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