Fishing Republic warns of expensive year as it invests in growth

FISHING REPUBLIC has had a strong half year but due to expansion costs, management is predicting that the remainder of 2016 may not reel in what it had forecast previously.

Revenue increased by 34% to £2.5m for the half year to 30 June 2016, compared to a £1.9m in the same period last year.

Profit before tax reached £157,000 – after a £150,000 loss in the comparable half year in 2015 when it was still a private company, which the company said was down to exceptional costs of £299,000.

Two stores in Birmingham and Crewe were launched, with two more planned this year as well as the addition of Fantackletastic in Lincoln, and the company has been investing in its online presence to move away from third party retailers.

A £3.75m share placing in June (a full year after its stock market debut) saw new shareholders including Bill Currie, Iain McDonald and Sir Terry Leahy enter the business.

The company said it was aiming to become the dominant player in a “fractured” market, but that major investments would mean the group’s cost base would rise, affecting its full year results which will be below current market expectations.

Chairman James Newman said: “”With the planned opening of two further stores before the year end, additional investment in our recent acquisition and the increase in resource across key areas, including multi-channel, the Group’s cost base will rise significantly in the current financial year.

“This, coupled with lower than expected sales during the latter part of the summer season, means our results for this financial year are now anticipated to be below current market expectations.

Steve Gross, chief executive, said that despite this: “We expect the benefits of this investment programme to come through in 2017. The Group has a strong balance sheet and we are confident about growth prospects and will continue to consider further acquisitions and selective store openings.

“We look forward with confidence to reporting on the Group’s ongoing growth.”