Fishing Republic plc (LON:FISH) – CORP: Interims
Market Cap: £4.4m; Current Price: 18.5p
Healthy increase in margins
- Maiden interim results in line with management expectations, H1 revenue +2% YoY to £1.9m (£1.8m). Gross margin improved by 590bps to 38.5% YoY which was a reflection of improved procurement and more efficient use of working capital.
- As a result, profit before tax (PBT) was +38% YoY to £149,000 and earnings per share (EPS) showed similar YoY growth to 0.79p (0.57p). There was a net cash outflow of £203,000 mainly due to the usual seasonal increase in stock. The group raised £953,000 after expenses at IPO in June and cash as at the end of June was £684,000.
- Trading in the 2H15 has been good as alluded to in the pre-close statement on 21 July and the company is looking to expand operations through smaller bolt on acquisitions as per the admission document at time of IPO. The company is also making progress regarding opening a new store in the Birmingham area, which has one of the largest angling clubs in the UK. Furthermore, a key element of the group’s strategy is growing online sales, especially sales generated by the group’s own websites as opposed to sales via third party online retailers. Sales from own websites accounted for 20% of online sales compared to 10% in the same period last year.
- Northland Capital Partners acts as Nominated Adviser and Broker to Fishing Republic plc and full coverage will follow in due course.
Hummingbird Resources (LON:HUM): Extension to bridge loan
Market Cap: £26m; Current Price: 24.8p
From Yesterday: US$5m extension to Taurus Bridge loan
- Hummingbird Resources has reached an agreement for a US$5m extension to the US$10m bridge facility with Taurus Funds Management to fund on-going development work at the 1.8moz Yanfolila Gold Project, located in Mali.
- Plant earthworks are now completed ahead of full-scale construction.
- The funds will be used to commence dewatering of the initial pit, land acquisition around the mine site and finalisation of due diligence in preparation for full draw down.
- Forecasts, rating and price target remain under review pending the finalisation of the recently completed technical studies that have indicated an improvement to the project’s economics.
NORTHLAND CAPITAL PARTNERS VIEW: This extension to the Taurus bridge loan allows Hummingbird Resources to continue to advance the construction of the 1.8moz Au Yanfolila Gold Project, located in Mali. The due diligence process is taking longer than we would have expected but the extension to the bridge facility demonstrates that Taurus remains committed to the project.