From today's paper (Lex column):
“Making new friends has never been high up the list of reasons to go fishing. Angling, with its implicit social distancing, is one of the few outdoor activities permitted under relaxed lockdown rules in England. Anglers were already preparing. Angling Direct, an Aim-listed tackle retailer, said online sales in April were 24 per cent higher than last year.
Angling Direct aims to drive profits growth by consolidating a retail business dominated by small independents. The offering is targeted towards coarse anglers. Their budgets may be lower than fly-fishing hedge fund managers with £1,000 fly rods from Farlows of Pall Mall. But they still buy a lot of gear — as evidenced by a product called “the tackle barrow”.
Speculative casts from investors reversed nearly all Angling Direct's losses in February's market sell-off. The share price remains essentially unmoved from 2017's IPO price. To keep investors hooked, Angling Direct needs to start hauling in a few profits. If new boss Andy Torrance can do that in a tough retail environment, it will be no mean feat.
Predecessor Darren Bailey focused on sales growth; expected revenues of £53m last year would be more than double 2016 level. Profits are still the one that got away though; an ebitda loss of £500,000 is likely for 2019. Store acquisitions have played a big part in sales growth. That strategy needs re-evaluation. Angling Direct's online presence (half of sales) gives it an edge in the current environment. Competition remains fierce.
Mr Torrance's record is a clue to where he may prove most effective. In previous roles, he oversaw operations at Dunelm, among other businesses. A tight network of suppliers is one way the soft furnishings group achieves gross margins of 50 per cent.
Part of the fun of fishing is the uncertainty — otherwise it would be called catching. But hope triumphs over experience more easily for anglers than investors. Angling Direct lacks a compelling proposition and is fishing in the same pool as hobbyist retailers with limitless patience and a tolerance for low returns.”
“Making new friends has never been high up the list of reasons to go fishing. Angling, with its implicit social distancing, is one of the few outdoor activities permitted under relaxed lockdown rules in England. Anglers were already preparing. Angling Direct, an Aim-listed tackle retailer, said online sales in April were 24 per cent higher than last year.
Angling Direct aims to drive profits growth by consolidating a retail business dominated by small independents. The offering is targeted towards coarse anglers. Their budgets may be lower than fly-fishing hedge fund managers with £1,000 fly rods from Farlows of Pall Mall. But they still buy a lot of gear — as evidenced by a product called “the tackle barrow”.
Speculative casts from investors reversed nearly all Angling Direct's losses in February's market sell-off. The share price remains essentially unmoved from 2017's IPO price. To keep investors hooked, Angling Direct needs to start hauling in a few profits. If new boss Andy Torrance can do that in a tough retail environment, it will be no mean feat.
Predecessor Darren Bailey focused on sales growth; expected revenues of £53m last year would be more than double 2016 level. Profits are still the one that got away though; an ebitda loss of £500,000 is likely for 2019. Store acquisitions have played a big part in sales growth. That strategy needs re-evaluation. Angling Direct's online presence (half of sales) gives it an edge in the current environment. Competition remains fierce.
Mr Torrance's record is a clue to where he may prove most effective. In previous roles, he oversaw operations at Dunelm, among other businesses. A tight network of suppliers is one way the soft furnishings group achieves gross margins of 50 per cent.
Part of the fun of fishing is the uncertainty — otherwise it would be called catching. But hope triumphs over experience more easily for anglers than investors. Angling Direct lacks a compelling proposition and is fishing in the same pool as hobbyist retailers with limitless patience and a tolerance for low returns.”
In reply to Post #1
Their share price has more than doubled since it's lows at the beginning of April!
Their share price has more than doubled since it's lows at the beginning of April!
In reply to Post #2
Thats the key word in all this for me, shareholders £
Here's another, ruthless
And another, machine
Thats the key word in all this for me, shareholders £
Here's another, ruthless
And another, machine
In reply to Post #3
correct.... nobody gives a s*** about the actual business, it's all fundamentals and whether there is growth in earnings/balance sheet activity. Angling Direct is purely a name to investors, especially when you are doing relative valuation against other stocks in the same peer group/index - which is normally the main investment method for stock selection/picking.
correct.... nobody gives a s*** about the actual business, it's all fundamentals and whether there is growth in earnings/balance sheet activity. Angling Direct is purely a name to investors, especially when you are doing relative valuation against other stocks in the same peer group/index - which is normally the main investment method for stock selection/picking.
In reply to Post #4
You know Tom
You know Tom
In reply to Post #1
i bought some shares in angling direct in april and so far they have only gone up
... Need to keep an eye on it now though.
i bought some shares in angling direct in april and so far they have only gone up
... Need to keep an eye on it now though.
In reply to Post #1
I hope this suggests that AD may not dominate the Independent ‘hobbyists with infinite patience' over time.
My vote goes to those dealers who have shown an ability to survive in this new web-retail world, especially JohnsonRoss, Tacklebox etc.
Fingers crossed......
I hope this suggests that AD may not dominate the Independent ‘hobbyists with infinite patience' over time.
My vote goes to those dealers who have shown an ability to survive in this new web-retail world, especially JohnsonRoss, Tacklebox etc.
Fingers crossed......
In reply to Post #7
Agree, the people with a real passion, who do it because they love it as well as earning a living
The day commercialism killed carpfishing as we once knew it, another knife
Agree, the people with a real passion, who do it because they love it as well as earning a living
The day commercialism killed carpfishing as we once knew it, another knife
In reply to Post #7
I use the tacklebox regularly, and have done so since they first opened. They aren't cheap, and a lot of people just go for the cheapest deal they can get. Unfortunately most of the tackle shops I used to use have closed down. Six actually. Coarse fishing shops I'm talking about. It's getting harder to buy maggots and worms also sea baits. Use it or lose it people.
I use the tacklebox regularly, and have done so since they first opened. They aren't cheap, and a lot of people just go for the cheapest deal they can get. Unfortunately most of the tackle shops I used to use have closed down. Six actually. Coarse fishing shops I'm talking about. It's getting harder to buy maggots and worms also sea baits. Use it or lose it people.
In reply to Post #9
I've always found The Tacklebox slow at shipping/delivery and very over-priced, so stopped using them. AD is what it is - many will not like them, but they almost always have the best prices and delivery is free on most things and very quick. I only use them for larger purchases and pray nothing goes wrong, as their customer service is sh1t. Else, Johnson Ross all the way for me and my local tackle shop, who get first dibs for most consumable purchases... like leads, line, hooks, etc, etc..
I've always found The Tacklebox slow at shipping/delivery and very over-priced, so stopped using them. AD is what it is - many will not like them, but they almost always have the best prices and delivery is free on most things and very quick. I only use them for larger purchases and pray nothing goes wrong, as their customer service is sh1t. Else, Johnson Ross all the way for me and my local tackle shop, who get first dibs for most consumable purchases... like leads, line, hooks, etc, etc..
In reply to Post #7
I agree and found the terminology rather insulting towards the tackle trade. Patient hobbyists....what a patronising label.
I agree and found the terminology rather insulting towards the tackle trade. Patient hobbyists....what a patronising label.
In reply to Post #6
Sell before there's another crash which could be soon
Sell before there's another crash which could be soon
In reply to Post #10
Funny that, i never even consider Angling Direct, i couldn't tell you why either. Johnson Ross are so reliable that i never need to look elsewhere.
Funny that, i never even consider Angling Direct, i couldn't tell you why either. Johnson Ross are so reliable that i never need to look elsewhere.