Angling Direct Share Discussion Threads

[tole] 15/5/2024 07:46

https://www.thearmchairtrader.com/uk-shares/angling-direct-profits-tough-year/

[dubby] 14/5/2024 22:16

Over 50% of the market cap is cash, i'm no rocket scientist, either buy your own shares back or be taken over by people who can better make use of the cash and assets.

[dexterburt1] 14/5/2024 20:33

Some interesting points in the results today:1. "...we have signed an agreement with a leading UK retailer to trial retail space within its existing estate where it is mutually beneficial to both parties."2. "In Q4 FY24, the UK business committed to a seven- figure capital investment in an automated UK packaging solution, to drive further efficiencies and reduce exposure to further significant living wage inflation."The rate of expansion might feel unambitious and the European expansion remains an issue but to give credit they're sticking to the strategy. The only rationale for holding onto this much cash is to entice a potential suitor in my view...

[my retirement fund] 14/5/2024 09:20

As a standalone business, it wouldn't be able to support the expensive executive board structure with CRR, CFO, non execs, nomad, additional accounting and listing costs, so that's a problem.

[pireric] 14/5/2024 07:43

Almost half of PBT is still coming from interest income, rental income and insurance proceeds, so only generating about £750-800k of pre-tax profit

There is value here, but with a meagre 4% Q1 revenue growth, it's hard to get excited that profit would efen be up this year, or that we should be valuing the cash balance at par when it seems they don't know what to do with it.

A real capital allocator would come in, close down Europe, return a significant amount of cash back to shareholders and ride the re-rating up a chunk. Although then left with a more mature UK business so needs an unambitious operational management team.

Eric

[dexterburt1] 28/4/2024 20:50

Still don't understand why this business is persisting with European expansion. Appears that their scale in the UK does not translate into any advantage (or vice versa) and they have plenty of room to grow in the domestically. Closing the EU cash incinerator translates to 4% EBIT margin on an LTM basis.

[darrin1471] 28/2/2024 08:51

I don't know how, but I missed last weeks trading update. Maybe others did also because the opening of the first European store is a noteworthy event.

[argylerich] 26/2/2024 10:40

Dexter yeah the cash is an interesting one. They raised it during covid @50p and have expressed reluctance about returns/buybacks etc below that level.
Whilst that was happening their Euro expansion was twisted by Brexit resulting in the warehouse at Venlo and plans for Euro aquistions to bring them up to break-even quicker.
From the recent info that they're opening their own store it would appear that they're not getting sellers at the price they want so they're proving that they will also do it themselves, adding pressure.
The new CFO is very deal orientated so I'd still expect something on that front. In the meantime I'd hope that they're getting a decent return on the cash, a question always ignored at meetings.

[dexterburt1] 23/2/2024 12:03

Fair point.

They need to do something with the cash. If they have no plans to invest it, give it back to shareholders who can put it to work!

[argylerich] 14/2/2024 09:47

Because it's not financially significant? Which actually can be taken as a positive as it reflects how much they've grown the UK side.

It's Europe we're waiting for now.

[dexterburt1] 14/2/2024 09:24

Why no RNS!

[evoque92] 12/2/2024 15:36

hxxps://angling-international.com/2024/02/10/angling-direct-announces-acquisition-and-opens-49th-store/

Acquisition and a greenfield store

[mattafc] 30/1/2024 10:47

A little bit of interest here today

[pojscott] 29/12/2023 14:56

Up and down she goes.

[darrin1471] 28/12/2023 08:46

ANG was tipped by Ken Wotton of Gresham house in "This is Money" as a top tip for the next 12 months



Gresham house owns 26% of ANG
Laurence Hulse of Dowgate Wealth used to work for Gresham house.(5.67%)

Its worth watching the youtube video in post 415 to see why they hold.

[mattafc] 28/12/2023 08:14

Have joined the ANG party this morning, looks like there's other opening interest also

[argylerich] 18/12/2023 10:13

Nice find Darrin, cheers

[darrin1471] 17/12/2023 13:06

Laurence Hulse of Dowgate Wealth talking about their investment thesis in ANG

From 9:20


Adds more meat on the bones of previous interviews

Sycamore Partners completed its acquisition of Pure Fishing(US)from Newell Brands in January 2019.


and Svendsen sports in 2022

[darrin1471] 29/11/2023 19:57

ANG want that cash as a buffer, to expand in the UK and to test the concept further in Europe.
ANG have already talked about the the short lease on the European warehouse and the likely short lease on their first store.

Without checking, I assume a share buyback would require shareholder approval.

[dubby] 29/11/2023 19:47

"Kelso also believes that Angling has surplus capital and that some of the GBP17.6 million of net cash, being c.60% of the market cap, should be used to buy back a portion of its equity whilst the shares are at or close to the current level."

Kelso are smart cookies, a buyback as they suggest could double the share price, i think we will see major movement sometime soon.

[dexterburt1] 29/11/2023 14:59

D’oh. Yes - 3%!

[argylerich] 29/11/2023 10:58

Does explain nicely where the shares have been going, although the threshold is 3%. Notification is the responsibility of the owner so we should be expecting something when they reach their intended position. It may also be that they actually have 2.9999999999% in which case they don't have to.
Good to have a new investor for the next phase.