SECTOR: OIL & GAS; LEISURE
Fishing Republic (FISH.L)
SECTOR – LEISURE GOODS
RATING – CORP*
MARKET CAP – £6.4m
CURRENT PRICE – 12.25p#
TARGET PRICE – UNDER REVIEW
ANALYST – MIKE JEREMY
Year-end Dec
2015A
2016A
2017A
Revenue (£’000)
4,124
5,799
9,153
No forecasts
available
EBITDA (£’000)
336
491
(710)
Adj. pre-tax Profit (£’000)
305
403
(2,256)
Adj. EPS (p)
1.3
0.9
(5.85)
DPS (p)
-
-
-
Net Cash/(Debt) (£’000)
379
2,056
360
P/E (x)
9.1
12.7
-
Dividend yield (%)
-
-
-
EV/EBITDA (x)
6.9
4.7
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Fishing Republic and therefore this information should be viewed as a Marketing Communication.
FY17 results: Revenue of £9.2m, EBITDA loss of £0.71m. Focus on restructuring.
NORTHLAND VIEW
- For the year to 31st December 2017, Fishing Republic reported revenues of £9.15m, an increase of 58%YoY but below management targets. Like-for-like store sales grew 12.4%.
- Gross profit, excluding an exceptional inventory write-down, was £2.98m (FY16: £2.76m), a 32,6% margin compared to 47.6% a year earlier. This was attributed to increased competition and a significant deterioration in Q4 trading. EBITDA was a £0.71m loss compared to a profit of £0.49m a year earlier.
- Online sales doubled to £1.59m but fell short of management expectations. Post period-end the company relaunched its website with the addition of social media and promotional functions. It also closed five stores up to May 2018, taking the total to 14 form 19 in August 2017.
The emphasis is on a comprehensive review of operations, initiated in late 2017. This is aided by funds raised in January 2018, involving management and organisational changes as well as an emphasis on online sales.
COMPANY DESCRIPTION
Specialist fishing tackle retailer, providing leading branded and own-branded equipment and products via stores and online. Focused on out-of-town large format ‘destination’ store expansion and sector consolidation.
Clontarf Energy (CLON.L)
SECTOR – OIL & GAS
RATING – CORP*
MARKET CAP – £2.5m
CURRENT PRICE – 0.4p
ANALYST – DR RYAN D. LONG
Year-end Dec
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(0.2)
(2.8)
Adj. pre-tax Profit (£m)
(0.2)
(2.8)
Adj. EPS (p)
(0.04)
(0.48)
DPS (p)
-
-
Net Cash/(Debt) (£m)
(0.3)
(0.6)
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at market close, 21/09/2017. *Northland Capital Partners Limited acts as Nomad and Broker to Clontarf Energy and therefore this information should be viewed as a Marketing Communication.
Interim results
NORTHLAND VIEW
- During FY17 LBT totaled £2.8m up from £0.2m during FY16, the increase was a result of an increase in administrative expenses and a £2.55m impairment associated with joint venture partner Union Oil returning Block 183 in Peru to the State.
- Net debt totaled £615k in FY17 compared to £266k in FY16.
- In Ghana the Company submitted the licence for approval to the cabinet in Accra but no time scale has been finalised. Following cabinet approval, the next step would be parliamentary approval.
- In Equatorial Guinea, negotiations on the detailed terms of the Production Service Contract (PSC) for Block-18 (EG-18) continue, if finalized these will be subject to final approval by the Minister and the President.
Clontarf Energy continues to be conservatively run, with a modest LBT of £226k excluding impairments. Agreeing detailed terms for PSC EG-18 would be a major milestone for the business as the Northern Rio Muni Basin is a prolific play along the Atlantic Margin and could offer similar potential in Equatorial Guinea.
COMPANY DESCRIPTION
Clontarf Energy is an Oil & Gas Exploration Company with a 3% royalty in Peruvian Block 183 and a 60% interest in the Tano 2A Block located in offshore Ghana.