Angling Direct restructures in preparation for Brexit
The fishing tackle retailer also expects to report a double-digit increase in revenue.
Fishing tackle retailer Angling Direct has restructured its operations to prepare for the fallout from Brexit.
The firm said it has made the move “given the very high percentage of stocks coming from the Far East”.
The company imports from the Far East and is increasingly selling to EU countries as international sales nearly doubled to £4.7 million last year and now account for 21% of group online sales.
The firm recently launched websites in France, the Netherlands, and Germany – which has become Angling’s biggest international market, accounting for 3.6% of total online sales.
The news comes as Parliament is currently in deadlock over Britain’s impending departure from the European Union, having rejected Prime Minister Theresa May’s Brexit deal.
Many companies have taken it upon themselves to restructure to protect against potential disruption to supply chain arrangements.
Angling Direct said inventory numbers are “good” and that it does not foresee any disruption to supply in the next few months, regardless of any Brexit outcome.
Meanwhile, Angling Direct expects to report a 39% increase in revenue for the financial year ended January 31 to £42 million.
In-store sales increased 50% to £19.7 million and like-for-like sales were up 6.2%. Online sales rose 30% to £22.3 million.
The company added that margins have increased slightly compared with last year.
The group said it has entered the new financial year in a strong position to continue to grow both organically and by acquisition, and it remains confident it will meet targets for the year.
Full-year results will be published on May 13.