MIDAS SHARE TIPS: Nothing tasty in the Budget? Relax...and fish for a profit with Angling Direct
Budgets come and go, but fishing remains a constant refuge for enthusiasts up and down the country. There are 900,000 licensed anglers in the UK, while many more unofficial dabblers also enjoy the odd day on the water.
All told, angling is a top five pastime in Britain and Angling Direct is ideally placed to benefit. The largest specialist fishing tackle retailer in the UK, Angling floated in the summer at 64p. The shares are 78p today and are likely to increase as the company expands.
Angling’s founders, Martyn Page and William Hill, started out in 1986, acquiring fishing tackle shops in Norfolk. Keen anglers both, they expanded over the years and in May 2000 launched the website Angling Direct.
Fishing for a profit: Angling is a top five pastime in Britain and Angling Direct is ideally placed to benefit
Today, the group has 20 stores and a flourishing online business. Page remains at the helm as chairman, supported by chief executive Darren Bailey, who was just 16 when he began working weekends in a Norfolk store. That was in 1986 and he has been there ever since.
Page and Bailey have big ambitions for Angling Direct. The fishing tackle business is dominated by thousands of small, one-man stores, many of which are redolent of another era. Some anglers enjoy the old-fashioned feel of these places but, for many of their owners, business is tough, not least because online competitors are driving down prices.
Angling Direct is a pioneer in the online fishing tackle world. It has had years to work out how best to make money from the web.
Today, half its revenues are generated online and there is even a Youtube channel, ADTV, to enthuse viewers about the joys of angling.
The group also uses data gleaned from the web and online customers to find out what kinds of fishing anglers are into at any given time, what products they are most keen to buy and where fishing is most popular.
This, in turn, allows Page and Bailey to assess where best to open new stores or acquire existing shops. Earlier this month, for example, they made two significant acquisitions in North-West England. Last month they opened a new store in Slough and announced the opening of another in Stoke-on-Trent.
The company is not just at the forefront of the online fishing tackle sector, it is also determined to bring stores into the 21st Century, so they are bright, well-stocked and staffed by knowledgeable anglers. Brokers expect maiden annual revenues of ￡27.3 million for the year to January 31, 2018, a 30 per cent increase year on year. Profits are forecast to rise by 42 per cent to ￡1 million, moving to ￡1.6 million in 2019.
On the revenue front, Page and Bailey are targeting ￡50 million turnover within the next few years. Further out however, they are hoping to take sales to more than ￡100 million by opening new stores, making selected acquisitions and driving more customers to the web.
Next year too, there are plans to increase overseas sales. Customers from Germany, France and the Benelux countries are already using Angling Direct, benefiting from sterling weakness, and multilingual websites should be up and running over the coming months.
Midas verdict: Angling is a popular hobby but it is big business too. Average annual expenditure is around ￡750 per head and Angling Direct expects to sell a substantial amount of tackle this weekend, through Black Friday and pre-Christmas deals. The company is well run and the management is ambitious.
At 78p, the shares are a good long-term buy.
Traded on: AIM Ticker: ANG Contact: anglingdirect.co.uk/corporate or 07496 853 413
Will the Budget help you ...or anyone? Listen to the This is Money Podcast?
It was billed as a make or break Budget, so did the Chancellor pitch it right??
In this week’s podcast, Simon Lambert, Rachel Rickard Straus and Georgie Frost pick apart the Budget to try to find out who the winners and losers will be.
From an up to ￡5,000 tax saving on a first home, to railcards for the under-30s, zero mentions of the word saver, and whether Just Eat can really solve the productivity puzzle, they round-up what you need to know.
Plus, what exactly was Simon’s stamp duty idea that drew 296 reader comments – of which about 295 were calling him an idiot? Listen to the podcast to find out.
Most watched Money videos
- Big Money Questions show: What is a dividend?
- Exciting preview displays the Lamborghini Urus at high speed
- How to invest a pension pot in retirement
- Watch the evolution of the Range Rover model from 1969 to 2018
- Lars Kroijer: You can't beat the market, so invest passively
- Award winning 412GW Next Base dash cam records in 1440p resolution
- Life hack: Save money by installing foil behind your radiators
- Buy banks, not beer: How to invest for higher inflation
- Big Money Questions:Will economists foresee the next crisis?
- Big Money Questions: Can you live well for cheap?
- How to invest like Warren Buffett in the UK
- SEAT's new smart car featuring protection against drunk driving
The comments below have not been moderated.
The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.
By posting your comment you agree to our house rules.