Fishing Republic : Final Results

("Fishing Republic" or "the Company" or "the Group")

One of the largest fishing tackle retailers in the UK

• A year of strong progress in line with Board's goal of building a significant position in the fishing tackle marketplace

• Revenue up by 41% to £5,799,000 (2015: £4,124,000) - reflecting store expansion programme and organic growth

• Profit before tax and exceptional items (see reconciliation in the Financial Review) up by 32% to

  £403,000 (2015: £305,000)

  Reported profit before tax up to £403,000 (2015: £6,000)

• Reported earnings per share of 0.99p (2015: loss per share of 0.16p) Underlying earnings per share before exceptional items of 0.99p (2015: 1.36p)

• Store network significantly increased - expansion into new trading regions

  • five new stores added (in Hull, South Birmingham, Crewe, Lincoln and Mildenhall in Cambridgeshire), taking store network to 12 at 31 December 2016

  • total store sales rose by 82% to £4,143,000; like-for-like growth (which measures the sales performance of stores operating for 12 months in FY2015 with same stores operating for 12 months in FY2016) of 16%

  • three further stores opened in Q1 2017, in Milton Keynes, Ipswich and Reading, with an additional three to open over the coming months

• Online sales strategy is progressing well

  • major focus is on transitioning sales away from historic model of third party platforms to own website sales

  • own website sales rose by 132% to £662,000 and accounted for 40% of total online sales (2015: 16%)

• Share placing in June 2016 raised £3,750,000 (gross) to support expansion plans

  • new shareholders include Bill Currie, Iain McDonald and Sir Terry Leahy

• Group remains well placed for further expansion and main fishing season has started well

"Fishing Republic has made strong progress over the year as we continued with expansion plans to build a significant position in the fishing tackle marketplace. Results show very encouraging growth with revenues up by 41% to £5.8m and profit before tax and exceptional items up by 32% to £0.40m.

"The outlook for the Group remains very positive. The fishing tackle marketplace is large but highly fragmented, with over 2,000 mainly owner-operated businesses and we continue to see a substantial growth opportunity for the Group and our multi-channel model."

"It has been another encouraging year of progress. The new funds we raised in late June 2016 helped to support the continuing development and expansion of our store network and have also enabled us to accelerate our plans to develop the Group's online platform and digital strategy, and transition online sales to our own websites, away from our historical model of third party platforms.

"Our store expansion is progressing very well and we have a further three stores earmarked for opening over the coming months which will take the total number of our outlets to 18. The main fishing season, which typically starts in the second quarter of the year, has begun well and we view prospects for ongoing growth very positively as we capitalise on our 'first mover' advantage."

www.fishingrepublic.net

Fishing Republic is one of the largest fishing tackle retailers in the UK by floor space. 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 and has an online presence both through third party online retailers and its own websites (www.fishingrepublic.netandwww.yorkshiregameangling.co.uk). Its comprehensive product offering includes own-brand ranges, such as Klobba and Theseus.

I am pleased to report that the Group has made very good progress over the last year as it has continued with its growth plans to build a significant position in the fishing tackle marketplace. Results show strong revenue growth accompanied by a significant increase in profit before tax and exceptional items, in line with market expectations. The Group's encouraging results reflect both our store expansion programme and organic growth across the existing store network.

The second half of the year was especially active as we began to deploy the funds raised in a major share placing in June 2016. A key area of investment of the proceeds was in the Group's online platform and digital strategy as well as in the ongoing expansion of our store network. Historically, the majority of the Group's online sales have derived from third party websites and the new funds have enabled us to accelerate our strategy to transition sales to our own websites, where margins are higher and where we 'own' the customer relationship. This transition is progressing well and I am pleased to report that our own website sales in the second half more than doubled over the same period in 2015.

The fishing tackle marketplace is large but highly fragmented, with over 2,000 mainly owner-managed operators. Consequently, we see a substantial growth opportunity for the Group, and believe that our multi- channel model, which combines 'destination' stores, offering an extensive product range, and a leading online offering, is well suited to our customers' buying habits. Over the coming year and beyond, we anticipate adding further 'destination' stores to build geographical coverage and investing in the development of our technology platform and digital customer acquisition model.

It should be noted that in the comparative period, the business was in private ownership until 4 June 2015, when the Company joined AIM.

Revenue for the year to 31 December rose by 41% to £5,799,000 (2015: £4,124,000), with the major part of this increase reflecting new store openings. On a like-for-like basis (which measures the sales performance of stores operating for 12 months in FY2015 with same stores operating for 12 months in FY2016), store sales increased by 16% over 2015, benefiting from our investment in increasing the product range and in marketing. Including online sales, like-for-like revenues increased by 4% to £4,175,000 (2015: £4,014,000), which reflected the transition away from third party websites.

Gross profits rose by 47% to £2,760,000 (2015: £1,881,000), helped by our improved purchasing power. Profit before tax and exceptional items (see reconciliation in the Financial Review) increased by 32% to

£403,000 (2015: £305,000) even after the increase in resource across the business as we invested in growth. Reported profit before tax rose to £403,000 (2015: £6,000). Basic earnings per share before exceptional items was 0.99p (2015: 1.36p) and reported basic earnings per share was 0.99p (2015: loss per share of 0.16p).

Capital expenditure over the year, excluding business combinations, totalled £833,000, with the major part of this investment focused on new store fit-outs, upgrades to existing stores, website development and new management and operating systems.

At the end of June 2016, we raised £3,750,000 (gross) through a placing of new ordinary shares. The net proceeds are supporting the Company's continuing expansion, both digitally and via further store openings. We were delighted to welcome a number of new shareholders, who participated in the placing, including Bill Currie, Iain McDonald and Sir Terry Leahy. Their combined holding represents approximately 15.9% of the Company's issued share capital.

The Board is focused on increasing the scale of the Group and is reinvesting all its surplus cash resources back into the business. In the short term, therefore, the Directors do not recommend dividend payments. However, the dividend policy will be kept regularly under review.

On 1 January 2016, we were very pleased to appoint Russell Holmes, FCCA, as Finance Director. Russell has been working with Fishing Republic since 2008 and succeeded Robert Tippett in the role. We would like to thank Robert for his contribution to the business, especially at the time of the AIM flotation.

After the year end, on 1 March 2017, we were also very pleased to welcome Iain McDonald to the Board as a Non-executive Director. Iain has over 20 years' experience in investment, particularly in retail and e- commerce. He has been investing directly in the online and technology sectors for over a decade, and a number of his long-term investments have been into some of the most successful e-commerce businesses in Europe.

Prospects for the Group are very positive. Since the start of the new financial year, we have opened three stores, in Milton Keynes, Ipswich, and Reading, and plan to open a further three stores, in King's Lynn, Huntingdon and Essex, over the coming months. These new stores will take the Company's network of outlets to 18.

Our model is to offer an unrivalled range of product, catering for all fishing disciplines, from typically out-of- town, easy to access, light-industrial locations. Customer service is important to us and we aim to employ staff who share our customers' passion for angling and can offer expert advice on both products and fishing techniques.

The main fishing season, which typically begins in the second quarter of the year, has started well, helped by the recent warm weather, and the Board looks forward to reporting on further progress in due course.