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Fishing Republic shares suffer as company swings to loss amid 'transition' period
Angling equipment supplier Fishing Republic saw its shares dive on Wednesday after the company said the coming year would be "a period of transition" following disappointing financial results.
The AIM-traded firm reported a pre-tax loss on ordinary activities of £2.23m for the year, down from a profit of £0.42m year before, despite a 57.8% growth in revenue to £9.15m which the company said was below management targets.
At the year ended 31 December the company's net cash position was £0.36m, down 82% on the year before.
James Newman, executive chairman of Fishing Republic, 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."
Fishing Republic launched a strategic review and board shake-up in November after its shares tanked in October, and the company said the move has already yielded "positive steps forward".
The firm raised £1.3m from a placing in January and will seek to use the funds to finance its turnaround plans.
"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," said Newman.
As of 1116 BST, Fishing Republic's shares were down 12.24% at 10.75p.