Angling Direct Plc · LSE:ANG
Angling Direct — H1 FY2021 Earnings Presentation
20 slides from Angling Direct's earnings presentation, October 2020
Slide 1: FY21 Half Year Results
FY21 Half Year Results October 2020
Slide 2: HY21 Overview
02 HY21 Overview Financial highlights • Revenue of £32.1m (HY 20: £26.5m) – up 21% • Sales across all channels from 15 June 2020 (date stores re-opened) to 31 July 2020 - up 95% • Gross profit of £10.8m (HY 20: £8.5m) – up 27%. Gross margin improved by 140 bps to 33.5% • EBITDA of £2.9m (HY 20: £1.2
Slide 3: HY21 Highlights
03 HY21 Highlights Websites Sales Profitability UK WEBSITE VISITORS TOTAL REVENUE GROWTH GROSS MARGIN % HY21 3.7m HY21 £32.1m HY21 33.5% HY20 2.4m HY20 £26.5m HY20 32.1% HY19 2.1m HY19 £21.9m HY19 32.9% 3.7m £32.1m 33.5% +21% +140 bps +54% INTERNATIONAL NATIVE WEBSITE COUNTRY EBITDA – PRE IFRS 16 UK
Slide 4: Financial Overview
SECTION 2 FINANCIAL OVERVIEW
Slide 5: Trading KPIs
10 Trading KPIs Period ended HY21 HY20 FY20 ▪ 21% sales growth despite 12 week store closure Overall sales growth 21.1% 20.9% 26.6% ▪ Country sales for Germany, France and UK Sales (£m) 29.7 23.8 48.2 Netherlands up £0.6m +51% UK Sales growth rate 24.8% 20.1% 29.0% ▪ Excluding discontinued Russian s
Slide 6: Income Statements
11 Income Statements Period Ended July 20 July 19 Jan 20 ▪ Margin improvement contributes £'000 £'000 £'000 £450k additional gross profit YOY ▪ EBITDA ahead of prior year excluding Total Sales 32,128 26,522 53,181 direct government cash help despite costs of 12 week store closure Gross Profit 10,759
Slide 7: HY21 IFRS 16 Table
12 HY21 IFRS 16 Table ▪ IFRS 16 inflates EBITDA by 37%. Pre Excluding IFRS 16 KPI still used by management £'000 IFRS 16 IFRS 16 Reported as key profitability test for stores ▪ HY 21 pre IFRS 16 margin of 6.5% (HY 20: 2.9%) Gross profit 10,759 10,759 ▪ Right-of-Use assets modest reduction Government
Slide 8: Balance Sheet Overview
13 Balance Sheet Overview Period Ended July 20 July 19 Jan 20 ▪ Strong balance sheet - £32.0m of net £'000 £'000 £'000 assets, £21.0m of cash in seasonal high quarter Intangibles - goodwill 5,620 4,887 5,620 ▪ Net debt (IFRS 16 lease liabilities less Intangibles - software 632 - 596 cash) of (£10.5)
Slide 9: Cash Flow Overview
14 Cash Flow Overview ▪ Cash generation for the period of £15m ▪ Working capital underlying improvements, all suppliers being paid to terms ▪ Capex largely committed on new stores pre lockdown • Lower stock levels despite increased store footprint - £2.4m • Timing of supplier payments - 3 new stores
Slide 10: Business Review
SECTION 3 BUSINESS REVIEW
Slide 11: HY21 Stores Review
16 HY21 Stores Review Stores – Integral to our Omni-Channel offering ▪ 3 new stores; convenient locations in high density fishing catchments ▪ 37 trading stores at period end (28 HY 20). Additionally Leicester opened September 2020 ▪ All stores closed from 24th March to 14th June. 224 store colleagu
Slide 12: HY21 Online Review
17 HY21 Online Review HY21 HY20 FY20 HY - HY HY21 HY20 FY20 HY - HY Total unique website visits 4.7m 2.8m 5.9m +67.9% Average basket online £69.40 £74.62 £71.12 -7.0% Unique customers 147k 88k 166k +67.0% Customer repeat percentage 65.0% 69.4% 69.2% -440 BPS UK website visitors 3.7m 2.4m 4.9m +54.2%
Slide 13: COVID-19: Our Experience
18 COVID-19: Our Experience • As a non-essential retailer our stores were closed from 24th March until 15th June • Online retailers were encouraged to remain open and we safely traded the online aspect of the business throughout lockdown • Strong online sales during lockdown of 24% and 74% in April
Slide 14: Covid-19 Response, Opportunities & Outlook
19 Covid-19 Response, Opportunities & Outlook Opportunities Challenges Ongoing Focus Disruption Creates Opportunities ▪ Flexible working practices introduced to protect staff ▪ Recessionary outlook puts pressure on and maximise colleague welfare market customer pricing along with potential ▪ Continu
Slide 15: Summary
20 Summary Financial ▪ Significant growth opportunity – both online and in-store ▪ European online websites continued growth – validates sales model ▪ Continue progress on protecting/growing margins ▪ Maintain focus on operating cashflows Strategy ▪ Continue to build platform to profitably grow UK a
Slide 16: Appendix
SECTION 5 Appendix
Slide 17: Our Competitive Advantage
22 Our Competitive Advantage Products Store Capability and Digital Presence ▪ Category leading range, over Environment ▪ Robust contemporary 20,000 SKUs ▪ Enthusiastic in-store specialists platforms ▪ Broad Generalist/Enthusiast/ ▪ In-store tuition for all levels ▪ Native language sites and local Co
Slide 18: Key Milestones
Serious about your fishing Key Milestones 70M Covid-19 German Dutch + 30th website French Store 60M website | Milton Keynes Opene Kardex 20th Store Stoke 50M Opened 40M £20m Raise 10th Store IPO Halesowen Opened 30M Rackheath Distribution 20M Center Opened Sth Store Ashford Opened 10M £0 2009 2010 2
Slide 19: Board
24 Board Andy Torrance Martyn Page Chief Executive Officer Executive Chairman, CTA, TEP ▪ Appointed CEO in February 2020 (previously ▪ Founder, well known angler with many years NED, since October 2019) past experience as a corporate partner in a Chartered Accountancy LLP advising and guiding ▪ Stro
Slide 20: Disclaimer
25 Disclaimer This presentation is being made only to and directed at: (a) persons who have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “FPO”); or (b) high net worth entities