Market's view on Angling Direct
Published on April 2024
- The company’s first European store opening was highlighted as a significant event that had been overlooked by some.
- The cash reserves were raised during COVID at 50p per share, and there has been reluctance regarding returns or buybacks below that level. The company’s European expansion was affected by Brexit, leading to the establishment of a warehouse in Venlo and plans for European acquisitions to reach break-even more quickly.
- Stock Watchers discussed concerns about what the company plans to do with its cash reserves, with suggestions for returning it to shareholders if there are no plans for its use.
- The company’s growth focus is now on Europe given the UK market’s relative maturity.
- The new CFO is noted to be very deal-oriented, suggesting potential future corporate activity.
- Kelso Group’s acquisition of shares in the company at an average price of 35.1p was mentioned, which accounts for 3.0% of the total issued share capital.
- Another stock watcher pointed out that the company’s cash reserves are viewed as a buffer for UK expansion and further testing of the concept in Europe.
- A recommendation by Ken Wotton from Gresham House, which holds a significant stake in the company, was mentioned as a top tip for investors.
- Stock Watchers expressed a mix of skepticism and optimism about the company’s strategy for expansion in Europe, debating the presence of international retailing expertise on the board and the potential for significant M&A activity to transform the company’s revenues and scale.