Slide 1: Ramsdens Holdings PLC Results for the year ended 31 March 2018
Ramsdens Holdings PLC Results for the year ended 31 March 2018
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the financial year ended 31 March 2018 (the "Presentation"), has been prepared by, and is the sole responsibility of, Ramsdens Holdings PLC (the "Company"). This Presentation has not been approved by an authorised person in
Slide 3: Ramsdens overview
Ramsdens overview Complementary product offering Ramsdens is a growing diversified financial services provider and retailer Business segments Foreign Currency Exchange (FX) Pawnbroking Purchases of Precious Metals Jewellery Retail Other Services (including cheque cashing) 3
Slide 4: Financial Highlights
Financial Highlights To provide a meaningful comparison to the prior financial year and for future reporting periods, share based payments and exceptional costs which consist of IPO related costs in FY17 have been removed to give the following underlying results. To aid comparison with FY17 EPS, the
Slide 5: Strategic & Operational Highlights
Strategic & Operational Highlights Drive growth from core estate Expand the store estate Grow online presence • Strong growth in FX, • 3 greenfield sites opened, in • Online jewellery sales up Pawnbroking and Retail, Newton Mearns, Braehead and 242% ahead of expectations Workington • Online click an
Slide 6: Financial Review
ie) RAMSDENS FINANCIAL REVIEW
Slide 7: Summary profit & loss
Summary profit & loss • Strong revenue & gross profit growth in foreign currency Consolidated profit & loss exchange, retail and pawnbroking. • Underlying profit before tax growth of 60% • Administrative expenses up following investment in staff and the % £000s (year to 31 March) FY18 FY17 Change co
Slide 8: Business segments: Diversified and growing revenue streams
Business segments Diversified and growing revenue streams Revenue Gross profit £000s (year to 31 March) FY18 FY17 % Change FY18 FY17 % Change Foreign Currency Exchange (FX) 11,329 8,971 26% 11,329 8,971 26% 1 Pawnbroking 6,966 6,128 14% 6,966 6,128 14% 2 3 Jewellery Retail 7,960 5,909 35% 4,130 3,32
Slide 9: Cash flow statement
Cash flow statement Strong cash generation • Strong cash generation continues with £7.9m underlying EBITDA Cash flow statement generated in the year • £2.8m increase in net cash during the year £000s (year to 31 March) FY18 FY17 • £1.3m capex on four new stores, four relocations and IT equipment • £
Slide 10: Balance sheet
Balance sheet • Strengthening balance sheet with net assets of £27.6m including Balance sheet net cash of £12.7m • Intrinsic value of metals underpinning the inventory value • Trade and other receivables are pawnbroking loans secured on £000s (year to 31 March) FY18 FY17 jewellery and watches Non-cu
Slide 11: Operational review and outlook
Operational review and outlook Drive growth from core Capitalise on consolidation Expand store estate Grow online presence estate opportunities Well invested systems Marketing & Brand People, culture & customer service 11
Slide 12: Strategy 1. Drive growth from core estate - Foreign Currency Exchange (FX)
Strategy 1. Drive growth from core estate - Foreign Currency Exchange (FX) Segment overview • Largest segment of the business, contributing 40% of gross profit • Mintel estimate that in the calendar year 2017, total expenditure abroad grew 4%. Ramsdens offers FX services through its • 18% growth in
Slide 13: Strategy 1. Drive growth from core estate - Pawnbroking
Strategy 1. Drive growth from core estate - Pawnbroking Segment overview • Pawnbroking contributes 25% of gross profit • Improvements in retail operations have led to customers being offered higher lending values for their pledged jewellery. This has led to increased loan books and interest income f
Slide 14: Strategy 1. Drive growth from core estate - Jewellery Retail
Strategy 1. Drive growth from core estate - Jewellery Retail Segment overview • Jewellery retail accounts for 15% of gross profit • The reduction in margin is a combination of product mix, pricing initiatives and promotions. This strategy has resulted in improved profitability Ramsdens retails new a
Slide 15: Strategy 1. Drive growth from core estate - Purchases of Precious Metals
Strategy 1. Drive growth from core estate - Purchases of Precious Metals Segment overview • The purchase of precious metals, selling for intrinsic value, represents 15% of gross profit • The average higher gold price in FY17 and FY18 has benefited the business. In our FY18 expectations, we budgeted
Slide 16: Strategy 1. Drive growth from core estate - Other Services
Strategy 1. Drive growth from core estate - Other Services Summary • Stable performance from the Other Services which account for 5% of gross profit and include: • Cheque cashing – Ramsdens provides immediate clearance for cheques to customers Ramsdens also provides additional services who do not wi
Slide 17: Strategy 1. Drive growth from core estate - Relocations & Refurbishments
Strategy 1. Drive growth from core estate - Relocations & Refurbishments Summary Store relocations – Stockton & Lancaster Some of the older Ramsdens network in suburban sites and are ‘old model’ pawnbrokers. Relocating to higher footfall high street / shopping centre stores compliments the strategy
Slide 18: Strategy 2. Expand the store estate
Strategy 2. Expand the store estate • Maintained disciplined approach to store openings • 3 Greenfield sites opened – Newton Mearns, Braehead and Retail store estate (March 2018) Workington • 1 jewellery store acquired in Northallerton and converted to a Ramsdens • Strong pipeline of potential new s
Slide 19: Strategy 2. Expand the store estate
Strategy 2. Expand the store estate Intu Braehead a new concept – Opened March 18 New Stores – Newton Mearns, Workington & Northallerton Newton Mearns 19
Slide 20: Strategy 3. Grow online presence
Strategy 3. Grow online presence • Dedicated Travel Money website www.RamsdensCurrency.co.uk. • Dedicated jewellery retail website www.RamsdensJewellery.co.uk plus eBay as a distribution channel • Mobile friendly • Mobile friendly • Click & Collect • Click & Collect and Home Delivery available • Onl
Slide 21: Summary & Outlook
Summary & Outlook Good progress seen in Continued investment We are in a good Well positioned for FX and retail initiatives in IT Infrastructure, position as we future growth: with the higher gold software and stores. approach the price benefitting important summer • Diversified and pawnbroking and
Slide 22: Appendices
APPENDICES ie) RAMSDENS 22
Slide 23: The Ramsdens team
The Ramsdens team Peter Edward Kenyon (53), Chief Executive Officer Peter joined Ramsdens in November 2001 as Operations Director and was appointed Chief Executive Officer in January 2008. Peter led the MBO in 2014 and has been responsible for over 25 acquisitions for the Group. He is responsible fo
Slide 24: The Ramsdens NEDs
The Ramsdens NEDs Andrew David Meehan, (63) Non-Executive Chairman Andy is a highly experienced retail executive with over 30 years' experience in roles at the Co-Operative Retail Services, Storehouse plc and Sears plc. For the last 10 years he has held a number of chairmanships and non- executive p