Fishing Republic swung into the black in the six months to the end of June with a pre-tax profit of £157,000 (2015: loss of £150,000 after exceptional costs £299,000).
Revenue increased by 34% to £2,500,000 and operating profit before exceptional costs grew by 6% to £165,731.
Capital expenditure in the period amounted to £280,000, with investment being mainly allocated to software development to improve operational efficiency and to store fittings. There was a cash inflow of £3.6m, net of expenses, following the share placing in June 2016, and at 30 June 2016, the Company held cash balances of £3,907,419 (30 June 2015: £683,732). In August 2016, the Company repaid its only bank loan, amounting to £255,000, leaving the Group debt free.
Chairman James Newman said: "Since joining AIM in June 2015, we have made significant progress in working towards our ambition of becoming a dominant player in the highly fragmented fishing tackle market. These results show the Group's continuing encouraging progress.
"The additional funds raised in June support ongoing growth and we are pleased to welcome new shareholders including Bill Currie, Iain McDonald and Sir Terry Leahy.
"With the planned opening of two further stores before the year end, additional investment in our recent acquisition and the increase in resource across key areas, including multi-channel, the Group's cost base will rise significantly in the current financial year.
"This, coupled with lower than expected sales during the latter part of the summer season, means our results for this financial year are now anticipated to be below current market expectations. However, we believe that the benefits of our accelerated investment in both online and across the store network will begin to flow through in 2017 and continue to view the Group's growth prospects very positively."
At 8:10am: (LON:FISH) Fishing Republic Plc share price was -6.5p at 34p