| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 43.79 | -17 |
| Intrinsic value (DCF) | 14.64 | -72 |
| Graham-Dodd Method | 0.53 | -99 |
| Graham Formula | 0.36 | -99 |
Angling Direct PLC (LSE: ANG.L) is a leading UK-based specialty retailer of fishing tackle and equipment, operating 39 physical stores and four e-commerce platforms across the UK, Germany, France, and the Netherlands. The company offers a comprehensive range of fishing products, including baits, rods, reels, clothing, and accessories, catering to both amateur and professional anglers. As a key player in the consumer cyclical sector, Angling Direct capitalizes on the growing popularity of recreational fishing, supported by its omnichannel retail strategy. The company's strong online presence and extensive store network provide a competitive edge in the fragmented fishing tackle market. Headquartered in Norwich, Angling Direct has established itself as a trusted brand in the angling community, leveraging its expertise to drive customer loyalty and repeat business. With a focus on expanding its European footprint, the company is well-positioned to benefit from increasing outdoor activity trends post-pandemic.
Angling Direct presents a niche investment opportunity in the specialty retail sector, with a market cap of £33 million and a beta of 0.661, indicating lower volatility relative to the market. The company reported revenue of £81.7 million and net income of £1.2 million for FY 2024, with a diluted EPS of 1.57p. Operating cash flow was healthy at £6.5 million, though capital expenditures of £2.6 million suggest ongoing investments in growth. The balance sheet shows £15.8 million in cash against £11.6 million in debt, providing moderate financial flexibility. However, the lack of dividends may deter income-focused investors. The company's competitive positioning in the fragmented fishing tackle market and its omnichannel strategy are strengths, but reliance on discretionary consumer spending and regional economic conditions pose risks. Investors should weigh its growth potential against sector-specific challenges.
Angling Direct competes in the highly fragmented fishing tackle retail market, where it differentiates itself through a combination of physical stores and e-commerce platforms. The company's omnichannel approach allows it to serve both local and international customers effectively, a key advantage over smaller, single-channel competitors. Its extensive product range and expertise in angling equipment position it as a one-stop shop for fishing enthusiasts. However, the company faces competition from larger sporting goods retailers and online marketplaces that may offer broader product assortments or lower prices. Angling Direct's focus on specialized fishing gear and its strong brand recognition in the UK provide some insulation against these competitors. The company's expansion into Europe presents growth opportunities but also exposes it to competitive pressures in new markets. Its ability to maintain margins while investing in growth will be critical to sustaining its competitive position. The lack of significant economies of scale compared to global retailers remains a challenge, though its niche focus allows for deeper customer relationships.