Business
COVID-19 Trading Update
COVID-19 Trading Update.
About this update from Ramsdens Holdings Plc
[{"type":"text","content":"\n \n \n RNS Number : 6401G\n Ramsdens Holdings PLC\n 18 March 2020\n \n \n \n \n \n Ramsdens Holdings PLC\n \n \n (\"Ramsdens\" or the \"Group\")\n \n \n COVID-19 Trading Update \n \n \n Ramsdens, the diversified financial services provider and retailer, is pleased to announce that it has traded well during the year ending 31 March 2020 (\"FY 2020\") and confirms that it anticipates reporting FY 2020 profit before tax in line with the guidance provided in the Group's Trading Update dated 8 January 2020. \n \n \n The Retail initiatives introduced by the Group during the year have continued to generate good returns, the Group's Pawnbroking loan book remains of good quality and the Purchase of Precious Metals segment has continued to perform well, benefiting from the strong gold price. \n \n \n However, as has been widely reported, since February 2020 the spread of COVID-19 has significantly reduced demand for international travel and, as a result, the Group has experienced a significant decline in customer demand for its Foreign Exchange offer over recent weeks. The extent of the future impact from COVID-19 on this income stream is difficult to predict but will result in a material reduction in FX revenues in the near term.\n \n \n FY2021 Outlook\n \n \n The Group benefits from diversified income streams and a strong balance sheet, including approximately £10m of cash and an undrawn £10m revolving credit facility. At this stage, it is not possible to provide meaningful guidance on the financial performance for FY 2021 but the Board continues to assess the impact of COVID-19 in particular and the uncertain macro-economic background in general on its business and is planning accordingly.\n \n \n Peter Kenyon, CEO of Ramsdens, commented:\n \n \n \"We are in unprecedented times. The COVID-19 situation continues to evolve quickly and the extent and duration of its future impact across all areas of peoples' lives is difficult to assess. Our first concern continues to be the wellbeing of our colleagues and our customers and we have taken actions to protect them.\n \n \n At the start of February, we were looking forward with optimism to accelerating our growth plans. Just a few weeks later, we have no visibility on how long the current international travel disruption will last and how this will impact our Foreign E...