viewFishing Republic

Fishing Republic's price target upped after strong trading update

Trading in the first four months of the second half of the year has been strong, and next year will see the new outlet in Birmingham open

This one did not get away ... fishing is Britain's most popular participant sport

Northland Capital Partners has increased its revenue forecast for Fishing Republic (LON:FISH) for the current year in the wake of a strong trading update.

Northland is the fishing tackle retailer's nominated adviser and house broker, so it knows the company well and is not likely to be prone to “fisherman's exaggeration”.

With just over a month of the year left, Northland has upped its sales forecast to £4.0mln from £3.7mln.

The broker expects the additional sales revenue will be invested into sales and marketing to grow the online business, where higher margins can be achieved. As a result, it sticks with its forecast of adjusted underlying earnings (EBITDA) of £345,000. Earnings per share (EPS) for the current year are tipped to be 1.2p, putting the retailer on a price/earnings ratio of around 13.9.

For next year, the revenue forecast goes up from £3.4mln to £5.0mln and the EBITDA estimate from £0.5mln to £0.6mln, as the broker factors in the new Birmingham outlet, which is scheduled to open in March.

The 2016 EPS forecast rises to 1.8p from 1.5p, giving a very cheap projected earnings multiple of around 9.2.

“Positive update from Fishing Republic this morning where the business is clearly seeing the benefits of a listing and where sales in the first four months of the 2H15 to October 2015 showed strong growth,” Northland's Michael Campbell said.

“The new Birmingham store is in line with management’s strategy to grow the business through a combination of organic growth and via acquisition,” Campbell added, as he reiterated his 'buy' recommendation and upped his price target to 31p from 28p.

The shares were trading at 17.05p at 2.00pm, up 0.05p on the day.

Quick facts: Fishing Republic

Price: - -

Market: AIM
Market Cap: -

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



HANetf's Hector McNeil says price of gold is heading towards $3000 by year end

HANeft co-founder Hector McNeil talks to Proactive London's Katie Pilbeam about how the surge in gold above $2000 an ounce is benefiting his company. The platform's largest fund The Royal Mint Physical Gold ETC, which was launched in February has seen huge safe haven flows amid the...

42 minutes ago

2 min read