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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Fishing Rep. | LSE:FISH | London | Ordinary Share | GB00BY7RY763 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 5.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMFISH
RNS Number : 6352R
Fishing Republic PLC
25 September 2017
25 September 2017
AIM: FISH
FISHING REPUBLIC PLC
("Fishing Republic" or "the Company" or "the Group")
A leading UK fishing tackle retailer
Interim results for the six months ended 30 June 2017
KEY POINTS
Operational
-- Excellent progress with growth strategy to build out 'destination' store format and online presence
-- Store network significantly increased - 5 stores opened in H1, and a further 2 in August. Total store estate now stands at 19
- total store sales up 83% to GBP3.17m with like-for-like sales up 21%
- 'destination' stores opened in Milton Keynes, Ipswich, Reading, Kings Lynn, Clavering Lakes in Essex, Gloucester and Huntingdon
- geographic reach extended into new regions, including South East Midlands and East Anglia -- Transition to own website sales (from third party platform sales) progressing well - own website sales up 140% and accounted for 57% of all online sales (2016: 29%) - enhanced www.fishingrepublic.net site launched on 1 March 2017
Financial
-- Results in line with management expectations -- Revenues up 64% to GBP4.09m (2016: GBP2.50m) - with like-for-like sales up by 22%
-- Capital investment of GBP0.88m (2016: GBP0.28m) to support store expansion and online strategy
-- Loss before tax of GBP0.12m (2016: profit before tax of GBP0.16m) - reflected accelerated investment into store and online initiatives
-- Reported loss per share of 0.25p (2016: earnings per share of 0.47p)
-- Group remains very well-positioned for further growth, with acquisitions under active consideration
James Newman, Chairman, commented:
"Fishing Republic continues to deliver on its ambitions to materially expand its presence, both physically and online, in the fishing tackle marketplace. This is evident in the strong revenue growth achieved in the first half of the year, as store sales rose by 83% and sales via the Company's own website grew by 140% in the period.
"The opportunity for Fishing Republic to establish a dominant position in its highly fragmented sector is exciting and the Group remains very well-positioned for ongoing growth, both in store and online."
Steve Gross, CEO, commented:
"I am delighted with the progress we have made so far this year. We have continued with the expansion of our 'destination' store network, opening five new stores in the period with a further two opened in August. Our estate now stands at 19 stores and covers new geographic regions, including South East Midlands and East Anglia, which will also help to support our online strategy.
"Online sales are also a key focus and we continue to transition away from third party platforms to our own websites, particularly www.fishingrepublic.net. Sales via our own sites grew by 140% and we are supporting them with significant new investment in our site functionality and services. The average customer basket value on our own site was GBP70.59, compared to GBP14.54 average basket generated by third party marketplaces.
"We remain excited about the opportunity for consolidation, given the fragmented nature of the sector, and continue to consider complementary acquisitions, as well as organic growth opportunities.
"We look forward to a second half of continuing strong progress."
Enquiries: Fishing Republic plc T: 020 3178 6378 Steve Gross, Chief Executive (today) Russell Holmes, Finance Director T: 01709 722590 KTZ Communications Limited T: 020 3178 6378 Katie Tzouliadis / Irene Bermont-Penn / Emma Pearson Northland Capital Partners Limited T: 020 3861 6625 Nominated Adviser and Broker Matthew Johnson / David Hignell / Jamie Spotswood (Corporate Finance) John Howes (Corporate Broking)
About Fishing Republic plc
www.fishingrepublic.net
Fishing Republic is one of the largest fishing tackle retailers in the UK by floor space. Established in 1985, the Company caters for all types of anglers: coarse, carp, game and sea fishing. It operates a chain of 'destination' retail stores and has an online presence both through third party online retailers and its own websites (www.fishingrepublic.net and www.yorkshiregameangling.co.uk). Its comprehensive product offering includes own-brand ranges, such as Klobba and Theseus
JOINT REPORT OF THE CHAIRMAN AND CHIEF EXECUTIVE
Introduction
Fishing Republic has made very encouraging progress with its growth strategy and we are pleased to report on the Company's continuing development as we execute our plans to scale the business and significantly increase our share of the highly fragmented fishing tackle market.
Results for the first six months of the year were in line with management expectations, with Group revenues up by 64% to GBP4.1m. This reflected both strong organic growth and our new store openings. As expected, the Group generated a loss before tax, reflecting the number of new stores opened in the first six months. However, we anticipate moving back into profitability for the full year as the high level of investment in stores and online in the first half begins to pay off in the second half of the year.
The main focus in the period was on both store openings, as we extended the Group's presence into new geographic regions, and on developing our own website sales, continuing our move away from sales via third party sites. More detail on what we have achieved in the period is contained in our Review of Operations.
Looking ahead, we continue to see substantial growth opportunities for the Group, and believe that our multi-channel model, which combines 'destination' stores offering an extensive product range and a leading online offering, supports our growth ambitions. With more than 2,000 mainly owner-managed operators in the market, there is also significant potential for value-accretive acquisitions and we are continuing to actively pursue such opportunities.
Financial Results
Revenues for the six months to 30 June rose by 64% to GBP4,094,700 (H1 2016: GBP2,503,200), with growth generated both organically and through new store openings. On a like-for-like basis (which measures the sales performance of stores operating for six months in H1 2016 with same stores operating for six months in H1 2017), store sales increased by 21% year-on-year. This is very encouraging, with the significant improvement a direct result of our initiatives to extend the product range, and further investment in marketing to grow the Fishing Republic brand. Like-for-like revenues, including online sales, increased by 22% to GBP2,528,000 (H1 2016: GBP2,070,000).
Gross profit rose by 17% to GBP1,462,200 (H1 2016: GBP1,254,700). To support the new openings, we utilised discount offers to promote high value capital items. This led to a negative mix effect in the period as the balance between higher margin consumables and lower margin capital items changed, resulting in the Group gross profit margin in the first half reducing to 35.7% (H1 2016: 50.1%). We anticipate a more normal sales mix, with a higher proportion of consumables sales, in the second half of the year, which also includes the busiest fishing months.
Both selling and distribution, and administrative expenses increased in the first half, by 35% and 57% year-on-year respectively, as additional costs from the prior year's openings were included for the entirety of H1 2017. They were also amplified by investments associated with H1 2017 store openings, and development and marketing activities designed to further accelerate growth in our digital platforms.
As expected, the operating loss in the period was GBP107,700 (H1 2016: profit of GBP165,700). After finance costs of GBP9,800 (H1 2016: GBP8,400), the loss before tax was GBP117,500 (H1 2016: profit of GBP157,300). Reported basic loss per share was 0.25p (H1 2016: 0.47p earnings per share).
Capital expenditure totalled GBP883,000 in the period, with most of the investment directed towards new store fit-outs, upgrades to existing stores, further website development (including the launch of a significantly enhanced www.fishingrepublic.net website), and new management and operating systems. GBP475,800 was invested in working capital in the period (H1 16: GBP217,500), with the majority of the increase attributable to building inventories for the new stores in part offset by higher payables.
At the end of the first half of 2017, the Group's net cash position (being cash and bank balances less loans and borrowings) was GBP681,400 (H1 16: GBP3,651,400), as the Company utilised its cash for new store openings and other investments in the business.
Dividend
The Board remains of the opinion that any surplus cash generated by the business should continue to be reinvested in the Group and therefore, in the short term, the Directors do not recommend dividend payments. This policy will be reviewed on an ongoing basis.
Review of Operations
Stores
As previously reported, we opened three new stores in the first quarter of 2017, in Milton Keynes, Ipswich and Reading, and a further two in the second quarter, in Kings Lynn and Clavering Lakes. Between them, these stores have helped us expand our presence in some regions, including East Anglia, and serve as flagship entries into others, such as Essex. They will also help to drive our online sales and so aid in the execution of our multi-channel growth model.
All the new stores replicate our 'destination' store format, catering for all types of fishing disciplines (coarse, carp, game and sea fishing) with an extensive product range, and are located out-of-town, typically in light-industrial estates with convenient access and good car parking facilities. Offering an extensive product range is a key sales driver, with customers prepared to travel significant distances to our stores. We have therefore continued to expand our relationships with leading brands and have introduced new brands across our store estate.
With the total number of stores at 17 by 30 June 2017 (H1 2016: 10 stores), our store sales grew by 83% to GBP3,165,000 (H1 2016: GBP1,732,000) and accounted for 77% of Fishing Republic's sales in the period. It is especially pleasing to report the strong like-for-like store sales growth of 21%, which was driven by continued marketing activities and a broader product range.
Since the end of this reporting period, we opened two additional stores in August 2017, in Gloucester and Huntingdon. Together with the five stores opened in the first half, these new stores will benefit sales in the second half of 2017 and beyond. At the end of July, we also introduced a customer loyalty card, which has seen very encouraging take up by customers. We expect these numbers to grow, especially as we develop our loyalty offering further.
Online
Historically, online sales have been generated through third party websites. However, since last year, we have been focusing on transitioning the majority of our online sales to our own websites.
As hoped, we saw our own website sales accelerate in the first half of 2017, with sales up by 140% year-on-year. These now account for 57% of all online sales, which compares to 29% in H1 2016. Total online sales, including revenues through third party platforms, rose by 23% to GBP929,400 (H1 2016: GBP753,000), with sales through third party platforms decreasing by 25% in the period.
The advantages of transitioning to online sales via our own sites are two-fold. Firstly, margins tend to be higher when selling straight to the consumer, and, secondly, it enables us to nurture a direct relationship with our customers, giving us the ability to capture not only their details, but also preferences. We are then better able to target those customers in the future, and so encourage incremental and repeat sales as they browse our sites.
We launched our significantly upgraded website (www.fishingrepublic.net) on 1 March 2017. The new site provides for an improved customer experience with new functionality, as well as a more customisable platform and architecture. Along with our comprehensive product range, we now offer Click & Collect and Click, Try, Buy services. Our investment in the new site is yielding results and we anticipate continuing good progress.
Own-brand products
Own-brand sales were GBP278,600 in the period (H1 2016: GBP325,400) and accounted for 7% of Group sales (H1 2016: 13%). The decrease of GBP46,800 was due to our decision to refine our own brand offering as part of our marketing drive to spotlight the increased range of leading brands, both within our new and existing stores. Our own-brand offering remains an important component of our overall offering, and we intend to continue to develop new products under our own brand names.
Staff
We would like to welcome all new staff, who have joined the Fishing Republic team in the first six months of 2017, and thank all our employees for their hard work and dedication.
The Board
On 1 March 2017, we were very pleased to welcome Iain McDonald to the Board as a Non-executive Director. Iain has over 20 years' experience in investment, particularly in retail and e-commerce. He has been investing directly in the online and technology sectors for over a decade, and a number of his long-term investments have become some of the most successful e-commerce businesses in Europe.
Outlook
Prospects for the Group remain very positive. We have already opened a further two stores since the end of June and are pleased with the encouraging response we have received from new customers. We are also making good progress in establishing our new main website as the primary route for online sales, and are working on further developing our online offering.
We will continue to review potential new locations for our 'destination' stores, and believe that there is a significant opportunity to scale the business further, both organically and through accretive acquisitions. Acquisitive growth is a key element of our long-term strategy and we continue to actively review potential targets.
We consider that the Group remains well-positioned to continue to grow and build its market presence, and look forward to reporting on further progress.
James Newman OBE
Chairman
Steve Gross
Chief Executive
Income Statement
for the six months ended 30 June 2017
Hot Features
Premium
Six months Six months Twelve
to 30 to 30 months
June June 2016 to 31
2017 Unaudited December
Unaudited 2016
Audited
GBP GBP GBP
----------------------------- ------------ --- ------------ --- --------------
Revenue 4,094,653 2,503,175 5,799,065
Cost of sales (2,632,451) (1,248,445) (3,038,895)
----------------------------- ------------ --- ------------ --- --------------
Gross profit
1,462,202 1,254,730 2,760,170
Other income
11,006 3,013 5,155
Selling and distribution
costs (814,088) (604,714) (1,303,721)
Administrative expenses (766,849) (487,298) (1,041,638)
----------------------------- ------------ --- ------------ --- --------------
Operating (Loss)/ profit (107,729) 165,731 419,966
Finance costs (9,815) (8,383) (17,065)
(Loss)/ profit on ordinary
activities before taxation (117,544) 157,348 402,901
Income tax 23,509 (31,470) (82,130)
----------------------------- ------------ --- ------------ --- --------------
(Loss)/ profit after
taxation (94,035) 125,878 320,771
Basic (loss)/ earnings (0.25) 0.47 0.99
per share (pence)
Diluted (loss)/ earnings (0.24) 0.46 0.96
per share (pence)
----------------------------- ------------ --- ------------ --- --------------
Statement of Comprehensive Income
for the six months ended 30 June 2017
Six months Six months Twelve
to to months
30 June 30 June to
2017 2016 31 December
Unaudited Unaudited 2016
Audited
GBP GBP GBP
------------------------------ ----------- ----------- -------------
Profit for the period (94,035) 125,878 320,771
------------------------------ ----------- ----------- -------------
Other comprehensive
income - - -
Total comprehensive
(loss)/ profit for
the period attributable
to the equity shareholders (94,035) 125,878 320,771
============================== =========== =========== =============
Statement of Financial Position
at 30 June 2017
As at As at As at
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP GBP GBP
------------------------------- ------------ --- ------------ --- -------------
Non-current assets
Intangible assets 613,880 154,092 445,283
Property, plant & equipment 1,412,847 365,762 795,495
2,026,727 519,854 1,240,778
Current assets
Inventories 5,286,718 3,293,632 4,256,630
Trade and other receivables 453,261 183,536 205,678
Cash and cash equivalents 681,409 3,907,419 2,055,699
------------------------------- ------------ --- ------------ --- -------------
6,421,388 7,384,587 6,518,007
------------------------------- ------------ --- ------------ --- -------------
Total assets 8,448,115 7,904,441 7,758,785
------------------------------- ------------ --- ------------ --- -------------
Non-current liabilities
Interest bearing loans - 231,977 -
and borrowings
Current liabilities
Trade payables 1,599,443 722,633 800,437
Other payables and accruals 82,237 206,959 79,369
Deferred Tax Liability 17,880 - 41,389
Non-interest bearing
loans from directors 250 76,425 250
Interest bearing loans
and borrowings - 24,000 -
------------------------------- ------------ --- ------------ --- -------------
1,699,810 1,030,017 921,445
------------------------------- ------------ --- ------------ --- -------------
Total liabilities 1,699,810 1,261,994 921,445
------------------------------- ------------ --- ------------ --- -------------
Equity
Called up share capital 378,562 378,268 378,268
Share premium 5,057,639 5,052,933 5,052,933
Reserves 1,312,104 1,211,246 1,406,139
------------------------------- ------------ --- ------------ --- -------------
6,748,305 6,642,447 6,837,340
Total equity and liabilities 8,448,115 7,904,441 7,758,785
------------------------------- ------------ --- ------------ --- -------------
Statement of Changes in Equity
For the six months ended 30 June 2017
Share
Share Premium Retained
Capital account Profit Total
GBP GBP GBP GBP
------------------ ---------- ------------ ------------ ------------
At 1 January
2016 268,750 1,574,649 1,085,368 2,928,767
Profit for the
period - - 125,878 125,878
Share issue 109,518 3,676,108 - 3,785,626
Share issue
costs - (197,824) - (197,824)
At 30 June 2016 378,268 5,052,933 1,211,246 6,642,447
Profit for the
period - - 194,893 194,893
At 31 December
2016 378,268 5,052,933 1,406,139 6,837,340
Loss for the
period - - (94,035) (94,035)
Share issue 294 4,706 - 5,000
At 30 June 2017 378,562 5,057,639 1,312,104 6,748,305
------------------ ---------- ------------ ------------ ------------
Statement of Cash Flows
for the six months ended 30 June 2017
Six months Six months Twelve
to 30 to 30 months
June June to 31
2017 2016 December
Unaudited Unaudited 2016
Audited
GBP GBP GBP
------------------------------- -------------- --- ------------ --- ------------
Operating activity
Operating (loss)/ profit (117,544) 157,348 402,901
Depreciation and Amortisation 97,214 27,153 70,962
Interest expense 9,815 8,383 17,065
(Increase/decrease in
inventories (1,030,088) (846,727) (1,809,725)
(Increase)/decrease in
receivables (247,583) 62,060 30,645
Increase/(decrease) in
payables 801,874 567,122 517,339
Net cash generated from
operations (486,312) (24,661) (770,813)
------------------------------- -------------- --- ------------ --- ------------
Investing activity
Purchase of property,
plant and equipment (713,941) (203,924) (612,100)
Acquisition of intangible
assets (169,222) (76,805) (220,901)
Outflows in respect of
business combinations - - (212,462)
Net cash used in investing
activities (883,163) (280,729) (1,045,463)
------------------------------- -------------- --- ------------ --- ------------
Financing activity
Issue of share capital
(net of expenses) 5,000 3,587,802 3,587,802
Loan repayments - (11,700) (267,677)
Interest paid (9,815) (8,383) (17,065)
Repayment of amount
due to directors - (1,213) (77,388)
Net cash (outflow/) inflow
from financing activities (4,815) 3,566,506 3,225,672
------------------------------- -------------- --- ------------ --- ------------
Net increase in cash
and cash
equivalents (1,374,290) 3,261,116 1,409,396
Cash and cash equivalents
at start of period 2,055,699 646,303 646,303
------------------------------- -------------- --- ------------ --- ------------
Cash and cash equivalents
at end of period 681,409 3,907,419 2,055,699
------------------------------- -------------- --- ------------ --- ------------
Notes to the Interim Statement
1. Basis of preparation
The interim financial information has been prepared in accordance with the accounting policies that are expected to be adopted in the Company's full financial statements for the year ending 31 December 2017. These policies are not expected to be significantly different to those set out in Note 1 of the Group's audited financial statements for the year ended 31 December 2016. They are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 30 June 2017. The financial information has not been prepared (and is not required to be prepared) in accordance with IAS 34.
The financial information in this statement relating to the six months ended 30 June 2017 and the six months ended 30 June 2016 has neither been audited nor reviewed by the Auditors, pursuant to guidance issued by the Auditing Practices Board. The financial information presented for the year ended 31 December 2016 does not constitute the full statutory accounts for that period. Full audited financial statements for the year ended 31 December 2016 are available on the company's website.
The Directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of this report. These projections take account of the timing of expected cash inflows and financial commitments over that period. Based upon these projections and the availability of financial resources as required over this period, the Directors have a reasonable expectation that the company will meet its future obligations as they fall due and therefore believe that the going concern basis is appropriate for the preparation of the financial statements.
2. Earnings per share
Earnings per share has been calculated on the attributable profit for the period and the weighted average number of shares in issue during the period.
Six months Six months Twelve
to 30 to 30 months
June June to 31 December
2017 2016 2016
Unaudited Unaudited Audited
(Loss)/ profit for
the period (GBP) (94,035) 125,878 320,771
Weighted average shares
in issue (no.) 37,828,088 27,060,597 32,473,108
Weighted average share
options (no.) 1,506,182 1,681,382 1,596,097
Basic (loss)/ earnings
per share (pence) (0.25) 0.47 0.99
Diluted (loss)/ earnings
per share (pence) (0.24) 0.46 0.96
-------------------------- ----------- ----------- ----------------
The earnings attributable to ordinary shareholders is profit after tax. The weighted average number of ordinary shares in issue during each reporting period is used for the purpose of calculating basic earnings per share. Diluted earnings per share takes into account share options in issue throughout the period as follows;
Unapproved share options for 406,207 shares
EMI share options total 1,099,975 shares
Diluted earnings per share has been calculated using the Treasury Method.
3. Share capital
During the six months to 30 June 2017 the following share issue took place:
An issue of 29,411 ordinary shares at 17 pence per share upon the exercise of options held in the company (23 June 2017).
4. Interim report
Copies of this interim report are available from Fishing Republic plc, Vulcan Works, Chesterton Road, Eastwood Trading Estate, Rotherham, South Yorkshire S65 1SU and on the company's website at www.fishingrepublic.net
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EXLFLDKFXBBF
(END) Dow Jones Newswires
September 25, 2017 02:00 ET (06:00 GMT)
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