American Golf swings to record sales, chips in £6m for expansion

By

Nigel TAYLOR

Published
Apr 4, 2022

Golf’s surging popularity in the UK is behind International Leisure Group’s (ILG) growing optimism for the sport with plans to invest £6 million this year in its American Golf business following 12 months of “best-ever” sales and earnings.

ILG, the holding company for the American Golf Trading, American Golf Leisure and International Leisure Brands, has reported sales of £166 million for the 12 months to 30 January, up from the £115.4 million a year earlier and, importantly, ahead of the £141.6 million the group posted in the pre-pandemic year.

The Lancashire-based group, which is backed by private equity firm Endless, added its pre-tax profits also surged from £152,370 to £7.8 million for its latest year. EBITDA before exceptional costs for the financial year totalled £12.8 million, up from £1.6 million in 2021.

It said the figures “represent a remarkable turnaround” for the business, which was losing £3.9 million when it was acquired by Endless in October 2018.

During its latest financial year, the group generated £108.5 million of sales through its 95 American Golf physical retail stores in the UK and Ireland. Meanwhile, online sales amounted to £44.1 million.

The remainder of sales were driven by ILG’s expansion into golf ranges, as well as the company’s International Leisure Brands division, which includes Germany-based golf fashion brand Golfino.

In order to capitalise on the sport’s growth, ILG said it plans to invest £6 million during the next 12 months, which will create 50 new jobs in the UK, taking the group’s headcount to over 1,000.

Expansion will include the purchase of Golf Kingdom in Chadwell Heath, Essex, five new site acquisitions and the refurbishment of 17 stores.

ILG is also planning to add 30 new leisure sites to its portfolio by the end of 2027, consisting of stores, golf ranges, food and beverage and adventure golf offerings.

Last year, ILG also invested in “technology-driven” store refurbishments, including its Greater Manchester’s flagship American Golf store in Trafford.

Gary Favell, CEO of ILG and American Golf, told BusinessLive: “We’ve taken what was an ordinary golf retailer and reimagined the user experience to create immersive, technologically-advanced environments that everyone can enjoy – men, women and children of all ages, backgrounds and abilities – we’ve made the sport accessible to all.

“Couple this with a lively acquisition strategy, of strong, multi-category golf brands and golf courses, and the result is year-on-year double-digit growth since 2019 and a leading market share.”