FISHING REPUBLIC (LON:FISH)
SECTOR – LEISURE GOODS
RATING – BUY*
MARKET CAP – £16.4m
CURRENT PRICE – 43.4p#
TARGET PRICE – 53p (from 47p)
COMPANY DESCRIPTION
Specialist fishing tackle retailer, providing own branded and other branded tackle equipment and products via stores and online.
Store network to expand to eighteen stores in FY17
NORTHLAND VIEW
Store network to expand to eighteen in FY17: FY16 was a year of good progress for the business, where five new stores were added. This took the store network to twelve stores by year end. Three additional stores were added to the network in the 1Q17, which took the total store footprint to over 84,000ft² expanding the store network to fifteen stores. A further three stores are planned for opening during FY17.
New forecasts for FY17E: In our forecasts for FY17E we look for overall revenue growth (stores & online) of 57% YoY to £9.1m. Online is expected to grow +57% to £2.6m and stores revenue similarly by c. 57% to £6.5m, on the back of adding two additional stores (Milton Keynes & Ipswich), previous forecasts included the Reading store. We maintain our 45% gross margin for the business and our EBITDA forecast for FY17E increases by c. 11% to £0.7m (£0.6m), or +43% YoY growth.
Valuation and price target: Our EV / Revenue based valuation points to 47p per fully diluted share, based on revenue of £9.1m for FY17E, though this excludes revenue from the three additional planned stores. Our DCF points to 58p per share and we take the midpoint of the two as our price target at 53p.
The business continues to expand its network of stores, which will grow to eighteen by the end of the current year, and the strategy of increasing sales from own websites continues to take shape. We maintain our Buy rating on the stock.
AMPHION INNOVATIONS (LON:AMP)
SECTOR – HEALTHCARE
RATING – CORP*
MARKET CAP – £5.4m
CURRENT PRICE – 2.6p#
COMPANY DESCRIPTION
Amphion Innovations is a developer of medical, life science, and technology businesses.
Partner Company m2m Imaging merger update
NORTHLAND VIEW
Amphion’s Partner Company, m2m Acquisition Inc, is merging with Polarean Inc. to create Polarean Imaging Limited.
Polarean Imaging Limited announces the closing of its US$2m pre-IPO financing.
Following the merger and pre-IPO raise, Amphion will hold c. 26% of Polarean.
Polarean is a clinical-stage company. The main technology is a drug-device combination product that enables the visualisation of hyperpolarised Xenon129 via magnetic resonance imaging technology with a particular application for the diagnosis of a number of pulmonary indications. It is currently being used at a number of research sites on a pre-Food and Drug Administration clearance basis to facilitate the research and evaluation of lung function, to assist in making improved disease progression assessment, and to clearly visualise the effectiveness of several therapeutics which are under development. Polarean operates in an area of significant unmet medical need, and a number of key inflection points and milestones are expected to be achieved over the next 12 to 24 months. The most important inflection point will be the completion of the FDA Phase III Clinical Trial in the US. The 80 patient non-inferiority trial will take place at two leading US research hospitals. The Trial is expected to commence in H217 and be completed approximately 18 months after.