18 Dec 2015 07:00
AIM: FISH
Fishing Republic plc
("Fishing Republic" or "the Company")
Expansion of store network,
£0.5m share placing,
&
Directorate change
Fishing Republic, the fishing tackle retailer, is pleased to announce that it has acquired the business and assets of FishXL Limited, trading as Cotswold Angling ("Cotswold Angling"), and is opening a new store in Crewe. At the same time, to support this expansion, the Company has raised £0.5 million (gross) through a placing of 3,125,000 new ordinary shares of 1p each ("the Placing Shares") at a price of 16p per Placing Share.
The acquisition of Cotswold Angling establishes Fishing Republic with a presence in the South of England, with the new store in Crewe complementing the Company's existing outlets in the North of England. Both moves are part of the Company's stated strategy to build a significant market presence through acquisition and organic growth. They follow Fishing Republic's announcement, on 23 November 2015, of its expansion into the West Midlands, with the opening of a store in South Birmingham, and the upgrading of its Hull outlet to new larger premises.
Established in 2000 and based near Swindon, Cotswold Angling operates from a 4,100 sq ft site at a light industrial unit and caters for all types of fishing disciplines. In the year to 30 September 2014, Cotswold Angling generated sales of approximately £0.43m and made a marginal operating profit. The total consideration for the acquisition is £170,000 (subject to a stock value of at least £170,000), payable in cash on completion. The co-founder and director of the business, Trevor Gunning, will be joining the senior management team of Fishing Republic as a regional operations manager.
The store in Crewe is an 11,000 sq ft site close to the M6, and located next to a fishery. The store offers an extensive display area and Fishing Republic expects to launch the outlet in March 2016.
Details of the Placing
The Placing Shares will rank pari passu with the existing ordinary shares and application has been made to the London Stock Exchange for admission of the Placing Shares to trading on AIM ("Admission"). The Placing is conditional, inter alia, on Admission, and dealings are expected to commence at 8.00 a.m. on 22 December 2015.
Total Voting Rights
Following Admission, the Company's issued share capital will consist of 26,875,000 ordinary shares with each share carrying the right to one vote. There are no ordinary shares held in treasury. Therefore, in accordance with the FCA's Disclosure and Transparency Rule 5.6.1, the Company confirms that, following Admission, the total number of voting rights in the Company will be 26,875,000.
Directorate Change
The Company also announces the appointment of Russell Holmes, FCCA, as Finance Director. Russell takes over this role from Robert Tippett, with the handover taking effect on 1 January 2016. Russell has been working with Fishing Republic since 2008, prior to which he has held roles in private practice and industry. The Board would like to thank Robert, who will resign from his position on 31 December 2015, for his contribution to the Company, particularly during the IPO process.
Grant of Options
The Company also announces that it has granted options over 235,294 ordinary shares to Russell Holmes, and over 58,824 ordinary shares to Trevor Gunning. The options are exercisable between three and ten years from 17 December 2015 at an exercise price of 17p.
Steve Gross, Chief Executive of Fishing Republic, said:
"I am delighted to announce Fishing Republic's first acquisition since we joined AIM in June and the planned opening of a new store in Crewe. The acquisition of Cotswold Angling establishes our presence in the South of England while the new outlet at Crewe complements our existing store network in the North of England. Both outlets readily fit our 'destination store' model, which is designed to attract fishermen from a wide area.
"Our aim is to build a substantial presence in a market which is highly fragmented, and we will continue to look for further opportunities to expand our geographic footprint whilst also building our online offering."
Additional information on Russell Holmes
The following information is disclosed pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies:
Russell Holmes, aged 31, holds 13,750 ordinary shares in the Company.
There are no other disclosures required in relation to Rule 17 or paragraph (g) of Schedule 2 of the AIM Rules for Companies.
Enquiries:
Fishing Republic plc Steve Gross, Chief Executive | T: 01709 722590
| |
KTZ Communications Limited | T: 020 3178 6378 | |
Katie Tzouliadis | ||
Northland Capital Partners Limited | T: 020 7382 1100 | |
Nominated Adviser and Broker | ||
Matthew Johnson / David Hignell (Corporate Finance) | ||
John Howes / Abigail Wayne (Corporate Broking) |
About Fishing Republic plc
www.fishingrepublic.net
Fishing Republic is one of the largest fishing tackle retailers in the UK by floor space in one of the UK's largest participation sports. Established in 1985, the Company caters for all types of anglers: coarse, carp, game and sea fishing. It operates a chain of 'destination' retail outlets in the North of England and has an online presence through both third party online retailers and its own websites (www.fishingrepublic.net and www.yorkshiregameangling.co.uk). Its comprehensive product offering includes own-brand ranges, such as Klobba and Theseus.