LONDON (Alliance News) - Fishing Republic PLC on Wednesday said 2017 revenue fell short of expectations as it swung to a loss ahead of its turnaround plans for the coming year.
Shares in the fishing equipment firm were down 13% Wednesday at a price of 10.60 pence each.
Fishing Republic's revenue for 2017 increased by 58% year-on-year to GBP9.2 million, but the firm said this was below management targets.
The rise in revenue was driven by store openings, with seven opening in 2017 to create a total estate of 19 at the time. Since the start of 2018, however, Fishing Republic has closed five stores as part of its review of operations.
Like-for-like sales growth for 2017 was 12%.
Online sales more than doubled from its own website during the year, with overall online sales now making up 66% of group sales from 40%, but growth was "significantly" below expectations.
The company recorded a pretax loss of GBP2.3 million for 2017 compared to a profit of GBP402,901 in 2016. This was driven by inventory write-downs, higher administrative expenses, and re-organisation costs. Exceptional items for 2017 totalled GBP1.3 million from none the year before.
Fishing Republic said turnaround plans finalised in the last quarter of 2017 are now in place as the company looks to change its fortunes.
In November, former chief executive Steve Gross left, as did operations director Zoe Gross and IT director Paul Hagerty. Ex-finance director Russell Holmes left in February. The hunt for a new CEO continues.
Executive Chairman James Newman said: "We are taking firm action to address the group's disappointing performance and have made significant changes to the group's management and organisational structure.
"Our comprehensive review, started at the end of 2017, has already resulted in positive steps forward, and we are working on further initiatives to improve the group's position and create firmer foundations to take advantage of the market opportunity that exists. The fundraising of GBP1.3 million in a share placing in January 2018 will support our actions."
Newman added: "2018 is going to be a year of transition with competitive market conditions, changes to our business model and a new and strengthened management team."
