Monday, November 12, 2018

News: Fishing Republic treading water

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Rotherham-based Fishing Republic, one of the largest retailers of fishing tackle in the UK, has providing a trading update following on from having seen trading in its shares suspended.

The Eastwood company that floated on the AIM stock exchange in 2015 raised millions to help carry out its expansion plans. However, turnaround plans were required during 2017 to tackle "a significant deterioration in trading."

A difficult trading environment continues and certain major shareholders said that they were no longer willing to provide further short-term financial assistance.

An update to the stock exchange said: "The directors have been working with the company's professional advisers to asses a number of options for the future of the group. There does, however, remain a material uncertainty regarding the group's financial position, and the group continues to trade only with the short-term support of key creditors.

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"The company is currently seeking to raise equity finance to fund its immediate and future working capital requirements. If the company fails to raise sufficient equity finance and no other funding becomes available, then there will be a significant doubt as to the group's ability to continue to trade as a going concern.

"A further announcement will be made in due course and by the end of November."

The company's shares remain suspended from trading on AIM.

Reporting its interim results for the six months ended June 30 2018, the company said that it is in a year of transition and that financial results "reflect the challenging period, including the very difficult trading backdrop."

Revenues of £3.4m for the period, down from £4.1m in the same period of 2017, meant that Fishing Republic posted a loss before exceptional items, interest and taxation, depreciation and amortisation of £1.4m, compared to breaking even in the same period last year.

Growth plans had been based on snapping up smaller competitors, opening destination stores and boosting online sales.

Fishing Republic website

Images: Fishing Republic

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