Fishing Republic PLC Trading Update & Board Changes (2444W)
13 November 2017 - 6:00PM
UK Regulatory
TIDMFISH
RNS Number : 2444W
Fishing Republic PLC
13 November 2017
13 November 2017
AIM: FISH
Fishing Republic plc
("Fishing Republic" or "the Company" or "the Group")
Trading Update and Board Changes
Since the Company last updated the market in September, the
Group has seen a significant deterioration in trading. This
reflects a substantial increase in price competition as major
competitors and independent stores have aggressively sought to
maintain their market share, particularly at the end of the main
fishing season. As a consequence of this change in market
conditions, for the first time this year, monthly like-for-like
store sales reduced, with a decline of 13% in October. This is in
contrast to like-for-like sales growth of 16% experienced in the
nine months up to the end of September.
Our online business has been similarly affected and, whilst
sales via our own website are up 116% and overall online sales are
up 24% in the year-to-date, the transition from third party sites
to our own website is behind our expectations.
Although there are still two important trading months to come,
the Board believes that, unless market conditions change, the
trading performance for the year to 31 December 2017 will not meet
market expectations and will result in an overall loss. The
business remains cash positive and there will be a continuing focus
on driving down stock levels.
Board Changes
Whilst the Company has expanded its store network during the
year, the execution of the online model requires further focus and
acceleration. The Board strongly believes that the fishing tackle
market is well suited to an online model with the obvious
efficiencies this brings in terms of returns on invested
capital.
Consequently, the Board has agreed to appoint Chris Griffin as
acting CEO, reporting to the Board, to conduct a strategic review
with a mandate to explore all options to drive long term value for
shareholders. Chris has a very strong e-commerce, retail and
logistics background and was Director of E-commerce at SuperGroup
plc, owner of the Superdry brand, from 2010 and 2014, during which
time online sales grew from GBP3m to GBP60m. More recently, he
founded and built the revolutionary supply chain software business,
Anatwine Limited.
Chris will be particularly focussed on improving execution of
the e-commerce business and the capital efficiency of the business,
especially in further reducing and making better use of
inventory.
As a consequence of Chris Griffin's appointment, Steve Gross
will step down as CEO today but will remain on the Board as an
Executive Director to support Chris in his strategic review. In
addition, Zoe Gross, Operations Director and Paul Hagerty, IT
Director, will step down from the Board with immediate effect.
James Newman, Chairman of Fishing Republic, said:
"The Board is delighted to welcome Chris to the Company to
conduct his review and move the Company forward. His experience
will be invaluable in driving shareholder value and improving the
execution of our business plan."
Chris Griffin, acting CEO of Fishing Republic, said:
"I am looking forward to addressing the issues in the business
in order to turn around its trading performance. The ongoing
consolidation of the fishing tackle market provides an excellent
opportunity to continue to grow the business, and there is enormous
scope to improve the trading performance in what should be a
natural e-commerce sector."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Enquiries
Fishing Republic plc T: 020 3178 6378 (today)
James Newman, Chairman
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 (Corporate
Finance)
John Howes (Corporate Broking)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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