Angling Direct Share Discussion Threads

[darrin1471] 30/12/2022 16:57

This is the only Annual summary of rod licence sales I could find.



In the previous decade up until the financial year 2019 to 2020, the number of people that went fishing and bought licences had declined each year. This led to a fall in our fishing licence income by approximately 12% and a drop in licence sales by over a third.

In 2020 to 2021 COVID-19 affected society. As the country entered ‘lockdown’ in March 2020 the ‘Stay at home’ messaging and policy effectively put an end to the majority of outdoor sporting activities, including most fishing. Fishing was one of the first activities to be allowed back on a wider scale when lockdown restrictions were eased on 13 May. Angling then experienced a recovery in participation rates. Subsequently in the financial year 2020 to 2021 we sold 1,090,068 licences to 958,279 individual anglers.

[dicktrade] 30/12/2022 12:45

darrin
If you dont fish the first place you should look for guidance is sales of UK fishing rod licences

[darrin1471] 30/12/2022 12:08

Dried up rivers and lakes in the summer and frozen in winter.
Fundamentally a bad 6 months but unlikely to effect long term outlook for fishing in general.
Tough times likely to remove weaker competition.
Omnichannel retail is a trend which is proving successful for Next, Frasers and M&S. Worth watching for a trend as it may become an investment fad with ANG being a second tier beneficiary.
Not holding ANG at the moment. Falling knife, poor weather yet to feed through to results. Favourable weather should make year on year results look good from the summer on.
I don't fish so I need to research monthly trends

[dicktrade] 30/12/2022 09:44

In a very recent trade magazine article Andy Torrance CEO was quoted as saying that AD were 'finding trading difficult at the moment' . Apart from the general COL problems the terrible weather would have had a big impact on trade

[darrin1471] 30/12/2022 09:33

10% off everything at Fishing Direct.
Is this a normal sale event for ANG? Not convinced it is a good strategy if it is a regular event and may indicate overstocking if its a one off

[stpalm] 20/12/2022 15:13

I agree ALS its about time Directors remuneration came under the spotlight. This is the caase at so many co's, but when you have another co's directors deciding how much their peers are paid you have an incestuous conflict of interests. Since 2008 theyve gone up a gear and now its just a case of how long us mug owners of companies will put up with it. The voting system needs changing first to allow a p.i. to have the same clout as a fund manager, they will always vote yes on remuneration.

[arthur_lame_stocks] 18/12/2022 12:07

These have just come up on one of my value screens and they look interesting but I would agree there is no rush to buy.

One thing that did strike me from a very quick look at the AR is just how well paid the board are. In total they're taking about £1m a year out of this business. That seems like an awful lot to me.

[johnfreeadvfn] 21/11/2022 15:02

Hello CJohn

Ref the enterprise value - this isn't really an area I know much about, but if you're going to add in the lease liabilities to get £14m - which seems perfectly reasonable - wouldn't you also add the lease payments of £2m or so back to the ebitda? So the ev/ebitda would be only about 3.

So certainly not dear, but maybe UK profits seem unlikely to recover until second half of 2023, so perhaps not much positive newsflow for a year - though if they walked away from the Euro venture, losses of £1m pa would be eliminated. This looks to me like a stable and conservatively-run business, could well be attractive to bidders, though that might be dependant on the attitude of the founders, I suppose. Not sure how much they still hold.

[argylerich] 17/11/2022 11:48

Baring speculative dabbling on retail gossip, the trading update in February is the only scheduled news here. As you say CJohn, no pressing reason to buy yet.

[cjohn] 17/11/2022 11:17

Hello mdchand,

just referring back to your posting 252, you've counted the £17m cash twice!

Once to come up with an enterprise value of £4m.

But you've then included it again in NAV. Then compared the EV with the NAV! To come up with a not surprisingly very cheap share, if you count the £17m cash twice.

I make current P/TBV around 0.7.

And the enterprise value is very low at £4m. However, to get a more robust EV figure, you'd need to add in the operating lease liabilities, currently over £10m. So on this more conservative measure, EV is above £14m.

Overall, they look reasonably cheap to me, but trading is likely to be difficult in the next year at least, so I see no pressing reason to buy, when there are other more robust bargains on offer.

[argylerich] 20/10/2022 16:41

Looks like they took the Octopus sell

[gary1966] 20/10/2022 15:45

Gresham House increasing further, they like Angling Direct.

[fevertreeman] 19/10/2022 08:32

Excellent analysis- chimed with my own take. Stunning value, notwithstanding cost of living crisis, and rubbish equity markets. Worth noting the average transaction value is c£40, so we're not talking big ticket white goods items.
Sooner or later s/o whther its an overseas outdoors retailer, or a P/E group is going to do the same analysis. Somewhat ashocked that the Board is not backing the managemtn and buying shares....

[mdchand] 12/10/2022 11:46

Hi those assets are net of liabilities as disclosed in the Rns today.

[kingston78] 12/10/2022 10:50

I don't agree with the analysis by mdchand. There are two sides to the balances sheet, namely assets and liabilities. The directors have chosen to highlight the strong points, providing selective numbers. We don't know the liabilities of the company.

Take for example, if you delay paying your trade creditors you will have more cash in the bank. However, you will also have significantly higher trade creditors. The so-called net cash figure could be misleading.

[mdchand] 12/10/2022 10:31

Hmmm - £21m mkt cap supported by £17m in cash with an estimated ebit of £2.2m (no doubt to be revised down in future). So stripping out cash, your looking at a business worth £4m supporting an ebit of 2m with an NAV of £37m (split 18m inventory / £17m cash).

In theory, you could buy the business, strip out the cash, sell the inventory at a 50% loss and still walk away with £5m profit.

That does seem awfully cheap. But in this market, whose to say it won't get cheaper.

[farrugia] 12/10/2022 08:44

bought some more to put in the drawer. It is rough out there!

[argylerich] 12/10/2022 07:29

They've not burnt any cash since April, they've actually added. Cash has gone from £13.4m 30/04/22 to £17.1m now.

[currencytrader1] 12/10/2022 07:07

Nasty profit warning,will be burning through that cash...

[privileged] 12/10/2022 07:03

Almost valued at cash now with todays fall and a roughly 30-40% discount to net tangible assets .Is very cheap below 40p imo

[darrin1471] 12/10/2022 06:11

the Board believes it prudent to reduce its expectations for both revenue and pre-IFRS 16 EBITDA for FY 2023.
The Board is confident that revenue and pre-IFRS 16 EBITDA for the year ending 31 January 2023 will be not less than GBP73.8m and GBP2.2m respectively.

[argylerich] 11/10/2022 18:10

One fund sold yesterday, update tomorrow.