• Revenue Growth: UK revenue growth of 6.2% for H1.

• EBITDA Growth: UK EBITDA growth of 12.7%, outpacing sales growth.

• Gross Margin Improvement: UK gross margin increased by 160 basis points.

• European Sales: European digital revenues down 3.2%.

• Net Cash Generation: GBP1.3 million in H1, down GBP2.2 million year-on-year.

• Store Expansion: Six new stores opened, including three acquisitions and two greenfield sites in the UK, and one store in Utrecht, Netherlands.

• MyAD Membership: Approximately 368,000 members by end of September, with 75% of revenues transacted through the loyalty scheme.

• Liquidity: GBP17 million in surplus liquidity, with plans for M&A to enhance earnings and revenue.

• Own Brand Performance: 40% year-on-year growth in gross profit from own brand products.

• European EBITDA Loss Reduction: Improved by 20% year-on-year.

• Warning! GuruFocus has detected 3 Warning Sign with LSE:ANG.

Release Date: October 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Angling Direct PLC (LSE:ANG) reported strong EBITDA growth, outpacing sales growth, indicating efficient cost management and operational improvements.

• The company is on track to achieve its medium-term objectives, including a UK business with GBP100 million in revenues by FY28.

• The MyAD loyalty program has grown significantly, with 75% of revenues now transacted through this scheme, enhancing customer retention and insights.

• Angling Direct PLC has a strong balance sheet with surplus liquidity, allowing for strategic investments and acquisitions to drive future growth.

• The company has made progress in reducing European losses, achieving a positive basket contribution for the first time, and opened its first store in Utrecht, Netherlands, to trial its omni-channel proposition.

Negative Points

• Despite strong first-half performance, the company expects weaker second-half margins due to planned additional costs and investments.

• European digital revenues were down 3.2%, with challenges in the competitive landscape and pricing pressures in key markets like Germany and the Netherlands.

• The company faces ongoing cost pressures, particularly in payroll and premises costs, which could impact future profitability.

• Angling Direct PLC's cash generation was down over 60% year-on-year due to accelerated store rollouts and investments in web and own brand capabilities.

• The company has not yet formed a clear strategy for returning surplus liquidity to shareholders, which may concern investors looking for immediate returns.