Angling Direct Share Discussion Threads

[bookbroker] 18/2/2020 07:26

What is the point in being in business purely to make a loss, this company manages to grow turnover by buying companies with a load of old stock which clearly they have overpaid for, and then taken a hit to the bottom line, what is more disgraceful is that they have burnt through a considerable amount of cash in the process. No wonder Bailey left, he hadn’t got a friggin clue, the chairman not much better. There is no point existing to keep people in a job, in the process putting yourself out of business. This is a very low quality operation, which needs taking by the scruff of its neck and be a good shaking!

[bookbroker] 18/2/2020 07:25

What is the point in being in business purely to make a loss, this company manages to grow turnover by buying companies with a load of old stock which clearly they have overpaid for, and then taken a hit to the bottom line, what is more disgraceful is that they have burnt through a considerable amount of cash in the process. No wonder Bailey left, he hadn’t got a friggin clue, the chairman not much better. There is no point existing to keep people in a job, in the process putting yourself out of business. This is a very low quality operation, which needs taking by the scruff of its neck and be a good shaking!

[bookbroker] 15/2/2020 19:45

That is why I am pleased that Bailey has stepped down, he is not a bean counter or a business man, it’s easy to give stuff away, but running a PLC with a LSE quote requires a bit more nouse. This company works on margins that are not sustainable, if they think turnover is vanity is great, but in my book profit is sanity!

[graham1ty] 15/2/2020 18:48

And wan, what makes that any different to the disaster that was FISH ? ( though the management there was awful). Expansion for expansion sake, vast amounts of stock, heavy discounting from competitors online, and bait is high margin, but a low ticket item.

ANG have got to show they can make a profit

[jamakers] 15/2/2020 17:07

The reward has been removed last week which from what I've heard has stopped people shopping with them.

[wan] 15/2/2020 08:48

I don't think you can compare Angling Direct with the general retail sector.

Specialists/niche players such as Angling Direct do not need to pay high rents/rates to be in prime locations, because their customers are prepared to travel further for the right products and services, or even be in locations not suited to other retail outlets (e.g. next to a lake complex).

With strong growth achieved across ANG's network of stores and online, it appears that the specialist/niche aspect is already playing its part in differentiating ANG from general retail.

ANG is delivering in terms of assembling a strategic mix of well placed stores and increased online presence.

Another factor perhaps overlooked is bait, which a very high percentage of anglers routinely need (probably 99% of anglers), and results in a combination of regularly returning to the store and/or venturing back online to purchase their specialist bait and which usually results in buying more than just bait! All further supported by a loyalty/rewards scheme, which on the last count had more than 5m members.

Let's see what the Trading Update brings.

[kendonagasaki] 15/2/2020 08:16

Yes, especially in this declining armaggeden of the retail sector!!More online growth from competitors, rapidly rising rates and wage costs coupled with a slowdown in the economy!Yes you can only buy growth for so long??

[bookbroker] 13/2/2020 08:38

Would like to see a trading update, not news about another store opening!

[graham1ty] 10/2/2020 11:34

They are getting away with it as they raised an enormous wedge of money, and are buying their way to greater revenue. Have always worried about fiscal discipline and controls. While they still have cash, they do not have to worry. But if they run out ( even if revenue is twice this level) and are not making money, then this will be in real trouble

[bookbroker] 10/2/2020 11:33

He’s resigned, that’s all, Torrance arrived last year most likely as a replacement. Bailey has been there too long, started from the shop floor, it needs a highly qualified chief rather than a shelf stacker, that’s all! The margins here are pathetic and unsustainable, they have got away with it because they are growing the business, now it needs to properly monetise its position in the angling market, better to have a bean counter rather a goafer!

[graham1ty] 10/2/2020 11:15

Was anyone expecting that ? Darren has been the face of ANG for the last few years. “With immediate effect” means something has gone wrong.........

[bookbroker] 10/2/2020 07:30

I think anyone who has worked at a high level for Dnlm. is worth a shout!

[wan] 10/2/2020 07:28

Has critical mass been achieved and the next phase is about growth without the same level of store expansion?

"I am looking forward to consolidating that base and leading the business into the next phase of our exciting growth plans."

[bookbroker] 10/2/2020 07:15

A good appointment!

[gswredland] 29/1/2020 16:53

Is there a date for trading update or results please guys?

[bookbroker] 28/1/2020 16:31

Well a little pricing down, time that new FD bought some shares, but in closed period now, hope Page and his mate Darren know how to run a listed company, certain protocols to follow, but then this AIM, so any bloody thing goes on this exchange!

[bookbroker] 28/1/2020 10:58

This new FD will hopefully explain to Page and his sidekick that the bottom line does matter, the whole point on an online presence is to brings costs down, but they are hell bent on bricks and mortar retail, I do understand they are selling a lifestyle product and punters need to see and feel the product, but I was always taught that controlling costs was paramount. This lot makes me wonder whether that £13mln in the pot is enjoy the ride. As they say, it is better to travel than to arrive, but hopefully the reverse will be the case here!

[graham1ty] 28/1/2020 10:52

Margins here are going to be crucial, but also costs. In the year to Jan 2021, they are forecast increased margins ( up v 2018 from 32.6% to 33.4%, despite competitive pressures) and that gives gross profit of £22m. Yet, with £22m of gross profit, that translates into just £0.2m of pretax profit after sales costs of £4.1m ( up 130% from 2018) and admin costs of £14.7m, up a staggering 110% since 2018.

In the same period revenue will rise ( according to forecasts) from £30.2m to £66m an increase of 119%. Not much sign ( yet) of any economies of scale

[bookbroker] 28/1/2020 10:37

Interesting posts above, you are correct that having a lot of cash on hand allows them to be complacent, I hope they are not, but the margin is what determines the fate of any business particularly one that depends on its labour force to drive the business. This is fairly basic retailing, selling via stores and the online side, the staff required in the warehouse to despatch orders will be significant. But they need to really watch their costs when you work of skinny retail margins, it can work well if you can keep driving turnover, but any hiccup and it becomes a slam dunk on the downside. It is clear they are simply going for growth, and the bottom line seems slightly irrelevant, I’d rather they focused on costs all the time. I do not know what their best sellers are, but it is likely they do not come with a higher profit margin looking at the figures. It would be a sin if they rattled through that cash with little to show for it, seen it many times before, but more in tech. cos.!

[bookbroker] 28/1/2020 09:36

I find your replies somewhat reassuring Wan, I am of a sceptical nature, I have dipped my toe in here in last day or so, the growth is what has swayed me, and their position in the market. It’ll be interesting to see the next few statements, this company has a good profile, and the online side is what made my decision to purchase a few, and the seeming lack of opportunity elsewhere in the small cap sector.

[graham1ty] 28/1/2020 09:35

My problem with ANG is that it is impossible to value. They are expanding rapidly through news stores, acquisitions, and online. BUT they are not forecast to break even until 2021, and even that is little better than break even.

They were incredibly lucky to raise £20m in 2018 ( Clever or lucky ?) and have far too much money for expansion. That bit is easy, buying revenue. But as we know from G4M, AO. and others, revenue is vanity. It is profit we need.

And at the moment, ANG does not give us “markers”; or KPIs to let us know if they are on track. It is all on trust. We need quite specific targets so that the Board can be held to account for meeting/missing those targets. The targets will include measures of cost, revenue, margin, average spend, balance sheet cash etc.

At the moment, the Company has too much money so can throw money at expansion, or acquisitions, without the usual small company restraints of lack of resources. Why have a meeting to discuss “is this the best use of our money ?”, when every department can have a bit ? I worry about lack of financial discipline.

So, will they get profitable ? Probably. When ? Who knows. How profitable ? Anybody’s guess.

ANG need to get into the market specific targets. Then shareholders can judge if they are on track or not

[wan] 28/1/2020 09:01

I consider the purchase of Eric's Angling as very reasonable. Eric's had revenues in 2018 0f £5.2m and Angling Direct purchased the business for a maximum total cash consideration of GBP1.10 million, including stock which was subject to confirmatory valuation.

I note that the Board believes that the acquisition of Eric's will have a positive impact on ANG's future trading performance over both the short and medium term. I concur.

It also highlights that Angling Direct has competitive clout, and I believe that the opening of a store not far from Eric's played a part, hence my previous comment that
"Given the strength of ANG's offering (which is not standing still), strategic store opening can yield more that just ending up with a new well located store!"

[bookbroker] 28/1/2020 08:20

Concern here is there are giving stuff away, tenners for fivers, this price checker to match prices is just typical of a business desperate to achieve sales at whatever cost, and it always ends badly. The margins are not good Wan, they are very labour intensive in this business, and the living wage is rising in the Spring, definitely need to try and raise them. Seems they sell a lot of low margin products, maybe bait, etc, so perhaps that is the norm but is it sustainable. Growth is good, but sometimes you should take time to catch your breathe, targets all well and good, but land grabbing may not be the best strategy unless you are buying these businesses for peanuts!

[bookbroker] 27/1/2020 15:00

I suppose I look at it subjectively, JD. has the clout to support Go O. in any department should it so choose, but A.D. has the focus on the market in question. My question over margins is related to the admin. costs and cash flow within the business, respecting the investment being currently made.