Ramsdens Holdings Plc · LSE:RFX
Ramsdens — 18 months ended 30 S Earnings Presentation
25 slides from Ramsdens's earnings presentation, Dec 15, 2020
Slide 1: Ramsdens Holdings PLC Unaudited Preliminary Results for the 18 months ended 30 September 2020
Ramsdens Holdings PLC Unaudited Preliminary Results for the 18 months ended 30 September 2020 (due to change in accounting reference date)
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the 18 months ended 30 September 2020 (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 a
Slide 3: Ramsdens overview
Ramsdens overview Complementary product offering The Group 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 Western Union and cheque cashing) NB. The
Slide 4: 18 months in summary
18 months in summary Exceptional 18 month period impacted by COVID-19 disruption Record trading in pre COVID-19 period up to March 20 • 18 month Profit Before Tax was £9.2m • Profit Before Tax up 30% to £8.5m • Net Assets up £4.7m to £35.6m • Basic EPS up 28% to 21.4p • Enforced store closure in Spr
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Summary profit & loss
Summary profit & loss ▪ Profit before tax increased to £9.2m for the full reporting period Consolidated profit & loss ▪ Gross profit increased to £47.1m and administrative expenses increased to £37.9m for the full reporting period FP20 12M 20 FY19 12 months £000s ▪ The 12 months ended 31 March 2020
Slide 7: Business segments
Business segments Diversified revenue streams Revenue Gross profit FP20 12M 20 FY19 12 months FP20 12M 20 FY19 12 months £000s (18 months) (12 months) (12 months) % Change (18 months) (12 months) (12 months) % Change Foreign Currency Exchange (FX) 14,859 13,115 11,585 13% 14,859 13,115 11,585 13% 1
Slide 8: Cash flow statement
Cash flow statement Strong cash generation ▪ Net cash flow from operating activities in FP20 (18 month Cash flow statement period) was £15.8m compared to £1.5m in FY19 ▪ Cash inflows in FP20 have benefited from a reduction of £1.8m FP20 12M 20 FY19 in trade and other receivables, which was mainly du
Slide 9: Financial position
Financial position ▪ Strong liquidity to manage near term Covid-19 pressures Balance sheet ▪ Strengthening balance sheet with net assets of £35.6m As at 30 As at 31 As at 31 including net cash of £15.9m at 30 September 2020 £000s September 2020 March 2020 March 2019 Non-current assets ▪ Intrinsic va
Slide 10: Operational Review and Outlook
OPERATIONAL REVIEW AND OUTLOOK
Slide 11: Clear growth strategy
Clear growth strategy CAPITALISE ON DRIVE GROWTH FROM GROW ONLINE EXPAND STORE ESTATE CONSOLIDATION CORE ESTATE PRESENCE OPPORTUNITIES WELL INVESTED SYSTEMS MARKETING AND BRAND PEOPLE, CULTURE AND CUSTOMER SERVICE 11
Slide 12: 1. Drive growth from core estate: Foreign Currency Exchange
Strategy 1. Drive growth from core estate Foreign Currency Exchange (FX) ▪ Foreign Currency Exchange income and totalled £14.9m in FP20 Segment overview ▪ In 12M 20, income was up 13% to £13.1m and approximately 784,000 customers used the foreign currency service, up 11% on FY19 Ramsdens offers FX s
Slide 13: 1. Drive growth from core estate: Pawnbroking
Strategy 1. Drive growth from core estate Pawnbroking Segment overview ▪ Pawnbroking gross profit totalled £12.2m in FP20. Gross profit increased by 19% in 12M 20 to £9.0m primarily due to the contribution from the Money Shop loan books acquired in March 2019 Ramsdens offers loans secured against va
Slide 14: 1. Drive growth from core estate: Jewellery Retail
Strategy 1. Drive growth from core estate Jewellery Retail ▪ Jewellery Retail revenue in FP20 was £17.1m with 9% of all jewellery sold being online. Revenue grew by 28% to £12.6m in 12M 20. Segment overview ▪ Growth was achieved in 12M 20 despite the much-publicised difficulties on the UK high stree
Slide 15: 1. Drive growth from core estate: Purchase of Precious Metals
Strategy 1. Drive growth from core estate Purchase of Precious Metals Segment overview ▪ Total gross profit in FP20 from purchase of precious metals was £9.9m ▪ Gross profit increased by 53% to £7.3m in 12M 20, including the non-recurring stock Ramsdens purchases unwanted jewellery scrapping profit
Slide 16: 1. Drive growth from core estate: Other Services
Strategy 1. Drive growth from core estate Other Services Segment overview ▪ Growing performance from the Other Services was primarily driven by the acquisition of The Money Shop stores (immediately prior to end of FY19) which have a higher average cheque cashing and Western Union income per store Ra
Slide 17: 2. Expand the store estate
Strategy 2. Expand the store estate Paused until normality resumes Retail store estate Altrincham progression ▪ Seven new stores have opened in the period: Barnsley, Doncaster, Guisborough, Harrogate, Chippenham, Teesside Airport and Boston ▪ Four Money Shop stores were taken on during the period, t
Slide 18: Branch estate has a flexible lease profile
Branch estate has a flexible lease profile Lease expiry/break position at October 2020 60 ▪ 153 trading stores as at October 2020 (excluding franchisees) 54 ▪ Average lease term remaining (to end of lease or break if earlier) is 21 50 43 months (as at March 2020 – 24 months) with no trading stores c
Slide 19: 3. Grow online presence: Retail Jewellery
Strategy 3. Grow online presence Retail Jewellery - www.RamsdensJewellery.co.uk ▪ The total jewellery sold including ex pawnbroking items through our ecommerce activities totalled £1.9m for the 18 month period and represents 9% of all jewellery items sold ▪ Sales of £846k were delivered in the last
Slide 20: 3. Grow online presence: Currency
Strategy 3. Grow online presence Currency - www.RamsdensCurrency.co.uk ▪ In FP20, the foreign currency purchased online totalled £45.4m and in 12M 20 it was £42.4m (increasing by 32% on FY19) ▪ We have increased usage of affiliate / price comparison sites to grow awareness and volumes ▪ In line with
Slide 21: 3. Customer Feedback - Trustpilot
Strategy 3. Customer Feedback - Trustpilot 21
Slide 22: Summary and outlook
Summary and outlook • Strong performance in the 12 months ended 31 March 2020 • Strong cash position, undrawn RCF and ability to generate cash from stock • Traded profitably through the COVID-19 impacted 6 months to September 2020 • Investments in e-commerce starting to generate good results. Furthe
Slide 23: Appendices
APPENDICES <
Slide 24: The Ramsdens team
The Ramsdens team Peter Edward Kenyon, 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 for ove
Slide 25: The Ramsdens NEDs
The Ramsdens NEDs Andrew David Meehan, Non-Executive Chairman Andy is a highly experienced retail executive with over 30 years' experience including CEO and CFO roles at the Co-Operative Retail Services, Storehouse plc and Sears plc. Since 2006 he has held a number of chairmanships and non-executive
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