Angling Direct Plc · LSE:ANG
Angling Direct — H1 FY2022 Earnings Presentation
24 slides from Angling Direct's earnings presentation, October 2021
Slide 1: FY22 Half Year Results
FY22 Half Year Results for the 6 months to 31 July 2021 October 2021
Slide 2: Agenda
01 Agenda HY22 Overview HY22 Financial Overview Business Review & Strategic Progress Summary & Outlook
Slide 3: HY22 Overview
02 HY22 Overview Financial highlights ▪ Group revenue increased 19.5% to £38.4m (HY21: £32.1m) ▪ Online sales up 3.2% to £18.5m (HY21: £17.9m) ▪ Retail store sales up 40.1% to £19.9m (HY21: £14.2m) ▪ Gross profit of £14.4m, up 33.7% (HY21: £10.8m) with a 390bps improvement in gross margin to 37.4% (
Slide 4: HY22 Financial Overview
HY22 FINANCIAL OVERVIEW
Slide 5: HY22 Highlights
04 HY22 Highlights Sales Profitability Websites TOTAL REVENUE GROWTH GROSS MARGIN % UK WEBSITE VISITORS HY22 £38.4m HY22 37.4% HY22 3.6m HY21 £32.1m HY21 33.5% HY21 3.7m HY20 £26.5m HY20 32.1% HY20 2.4m £38.4m 37.4% 3.6m +19.5% +390 bps -2.7% NATIVE WEBSITE COUNTRY EBITDA - PRE IFRS 16 UK WEBSITE CO
Slide 6: HY22 Underlying Growth Trends
05 HY22 Underlying Growth Trends Sales Profitability TOTAL REVENUE GROWTH YOY & YO 2Yr EBITDA - PRE IFRS 16 ex Gov Support HY22 £3.5m HY21 £0.6m HY20 £0.8m HY21 £32.1m +21.1% +£2.9m HY22 £38.4m +19.5% +483% TOTAL REVENUE GROWTH YO 2Yr – Online & Stores EBITDA % - PRE IFRS 16 ex Gov Support HY22 9.1%
Slide 7: Trading KPIs
06 Trading KPIs HY22 HY21 FY21 ▪ Stores closed for 39% of trading days (46% HY21), delivered Like- Overall sales growth 19.5% 21.1% 27.1% for-Like sales increase of 32.2% ▪ Strong double digit UK online UK Sales £37.1m £29.7m £63.2m sales growth of 15.8% against UK Sale growth rate 25.1% 24.8% 31.2%
Slide 8: Income Statement - Delivering Margin Accretive Revenue Growth
07 Income Statement - Delivering Margin Accretive Revenue Growth Period Ended July 21 July 20 Jan 21 ▪ Group sales growth of 19.5% £'000 £'000 £'000 ▪ Gross profit growth outstripping sales progression Total Sales 38,404 32,128 67,581 by 1.7x Gross Profit 14,382 10,759 23,123 ▪ Gross margin 390bps i
Slide 9: Demonstrable EBITDA Improvement
08 Demonstrable EBITDA Improvement Group Online EBITDA % - PRE IFRS 16 EBITDA % - PRE IFRS 16 2 YR 11.5% 16.6% +500 bps +1350 bps EBITDA % - PRE IFRS 16 2 YR Stores EBITDA % - PRE IFRS 16 2 YR 11.5% 15.8% +870 bps +380 bps
Slide 10: IFRS 16 Reconciliation
09 IFRS 16 Reconciliation Excluding £'000 IFRS 16 IFRS 16 Reported ▪ IFRS 16 remains a material uplift to EBITDA, 250 bps Gross profit 14,382 - 14,382 ▪ Business continues to use pre Government grants 932 - 932 IFRS 16 operationally to review Overheads (10,886) 943 (9,943) rent recovery through resp
Slide 11: Robust Balance Sheet and Liquidity Position
10 Robust Balance Sheet and Liquidity Position Period Ended July 21 July 20 Jan 21 £'000 £'000 £'000 ▪ Strong balance sheet - £36.1m Intangibles - goodwill 5,620 5,620 5,620 net assets, 13% increase on HY21 Intangibles - software 598 632 631 Property plant & equipment 5,831 5,784 6,019 ▪ Net debt po
Slide 12: Cash Flow Overview
11 Cash Flow Overview ▪ Net cash generation for the period of £4.6m ▪ Modest working capital improvement, unwind in H2 as new stores come online and seasonal supplier payment pattern ▪ Capex spend reflects re-site of Sittingbourne store and modest investment in doc scanning technology ▪ Modest decre
Slide 13: Business Review & Strategic Progress
BUSINESS REVIEW & STRATEGIC PROGRESS
Slide 14: Solid Progress on all FY22 Key Priorities
13 Solid Progress on all FY22 Key Priorities ▪ Paid priority subscription service (AD+) launched 3 March – 6k customers and 16% of all Digital Capability UK online orders ▪ Mobile App – user testing Sept 21, unique to UK tackle sector ▪ AI search enhancements deployed – UK online conversion increase
Slide 15: HY22 Digital – Strong Double Digit UK Sales Growth
14 HY22 Digital – Strong Double Digit UK Sales Growth FY21 HY21 HY22 Change FY21 HY21 HY22 Change Total unique website 9.0m 4.7m 4.3m -8.5% Average basket (online) £70.81 £69.40 £77.19 +11.2% visits Customer repeat 62.1% 65.0% 74.4% +940 Active unique customers 260k 147k 139k -5.4% percentage BPS UK
Slide 16: Two Year Stores Transformation
15 Two Year Stores Transformation Stores – Key Role as Shoppers Return to High Street ▪ 39 stores at period end, including: ▪ 1 new store (Redditch) ▪ 1 re-site (Sittingbourne) ▪ 1 refit (Hull) ▪ Healthy property pipeline in underserved catchments. Two further new stores anticipated before year end
Slide 17: International – Compelling Platform to Drive Future Growth
16 International – Compelling Platform to Drive Future Growth ▪ In-region fulfilment is vital next step towards facilitating the full AD online offer ▪ Tailoring ranges, restoring bait sales, efficiently improving customer fulfilment and unlocking potential for complementary, follow-on bricks and mo
Slide 18: International Distribution Centre – Timeline
17 International Distribution Centre – Timeline Q3 & Q4 22 – Q1 22 – Business Q2 22 – Business Q1 & Q2 23 – Go live Realisation, contract Q4 21 – Market opportunity requirements & High case, detailed & ramp up with site, systems build, assessment level operating operating model & enhanced offering s
Slide 19: Summary
18 Summary Financial ▪ Continued significant growth opportunity – both online, in-store in the UK and Europe ▪ Resilient, flexible business model, responsive to opportunity and challenge ▪ European market opportunity is clear, material progress made towards in-region fulfilment ▪ Focus on growing sh
Slide 20: Current Trading & Outlook
19 Current Trading & Outlook ▪ Sales in Q3 are anticipated to decline relative to the unprecedented levels in Q3 in the prior year (post lock down 1) ▪ Extent to which Company will track sales levels during Q4 against the comparative period not yet clear due to lockdown effects ▪ Not experienced any
Slide 21: Appendix
APPENDIX
Slide 22: Evolving Strategy
21 Evolving Strategy Purpose - Inspiring everyone to get outdoors and enjoy an exceptional fishing experience Ambition - To become Europe’s first choice omni-channel fishing tackle destination, for all anglers regardless of experience or ability Strategic Pillars Product Authority Customer Experienc
Slide 23: Key Milestones
Angling Direct Getting everyone fishing 38th Store | 39th Store Leicester | Redditch Opened | Opened 70M German Dutch+} 34th website French Store 60M website | Man- ghester pen Kardex sox! sue Sto 50M Opened 40M £20m Raise 10th Store IPO Halesowen Opened 30M Rackheath Distribution 20M Center Opened
Slide 24: Disclaimer
23 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