Angling Direct impresses with first-half growth, current trading

Shares in fishing tackle and equipment group Angling Direct rose strongly on Tuesday after the specialist retailer impressed with double-digit profit growth in the first half, and revealed an impressive performance over recent weeks.

The AIM-listed firm reported adjusted EBITDA of £2.8m for the six months to 31 July, up 16.9% on last year, while pre-tax profit jumped 35.7% to £2.3m.

The gross margin improved by 160 basis points to 36.7%, helped partly by a higher mix in sales from the company's own-brand products.

Total revenues rose 5.6% to £45.8m. UK sales, which account for £43.5m of group turnover, grew by 8.2% and 2.8% in-store and online, respectively, helping to offset a flat performance in Europe which remained steady at £2.4m.

Looking ahead to the second half, the company noted strong trading in the last key seasonal trading weeks in two months to 30 September, with group revenues up 19.8% on last year.

Angling Direct said it is well placed to deliver results in line with market expectations over the fiscal year ending 31 January, with analysts currently pencilling in £88.4m in revenues and an adjusted EBITDA of £3.15m, up from £81.7m and £2.7m last year, respectively.

"The solid foundations that we have established ensure that the group is well placed to take advantage of the significant growth opportunities available in the UK, alongside prudent and controlled expansion in Europe which will significantly grow our addressable market and support our longer term growth ambitions," said chief executive Steve Crowe.

The stock was up nearly 5% at 37.2 by 1138 BST, having touched a high of 39p earlier in the session.