Ramsdens Holdings Plc · LSE:RFX
Ramsdens — H1 2024 Earnings Presentation
28 slides from Ramsdens's earnings presentation, Jun 5, 2024
Slide 1: Ramsdens Holdings Plc Unaudited Interim Results
RAMSDENS HOLDINGS PLC Unaudited Interim Results for the six months ended 31 March 2024
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the six months ended 31 March 2024 (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 acco
Slide 3: Agenda
AGENDA Summary Key income streams Financials Strategic overview APPENDICES Who we are Lease portfolio The Board Image credit: Andrew Heptinstall Photography
Slide 4: Continued growth highlights the strength of the Group's diversified model
Continued growth highlights the strength of the Group’s diversified model Financial highlights Strategic progress • A strong performance with Profit Before Tax increasing 1. Drive growth from core estate 8% to £4.0m (HY23: £3.7m) • Continued maturing of stores opened and • Jewellery retail revenue i
Slide 5: Key Income Streams
KEY INCOME STREAMS
Slide 6: Foreign currency exchange – gross profit increased 3% year on year
Foreign currency exchange – gross profit increased 3% year on year History Opportunities and risks HY24 HY23 FY23 + Positive news on 2024 summer holiday £s (6 months) (6 months) (12 months) bookings with more people expected to Total currency exchanged 142m 134m 408m travel Gross profit 5.0m 4.9m 13
Slide 7: Pawnbroking – gross profit increased 15% year on year
Pawnbroking – gross profit increased 15% year on year History Opportunities and risks £000s HY24 HY23 FY23 + General economic climate – demand for loans / threat to repayment rates (6 months) (6 months) (12 months) Revenue 6,575 5,645 11,877 + Reduced numbers of alternative providers of small sum sh
Slide 8: Jewellery retail – gross profit increased 6% year on year
Jewellery retail – gross profit increased 6% year on year History Opportunities and risks + Benefit of recent investments in stock HY24 HY23 FY23 £000s (6 months) (6 months) (12 months) levels and presentation Revenue 17,528 17,323 33,474 + Staff training and development of Gross profit 6,673 6,287
Slide 9: Purchase of precious metals – gross profit increased 25% year on year
Purchase of precious metals – gross profit increased 25% year on year History Opportunities and risks £000s HY24 HY23 FY23 + Sterling gold price – expectation is for (6 months) (6 months) (12 months) price to remain high in short to medium Revenue 14,113 10,457 23,522 term but could fall back from r
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Slide 11: Summary profit & loss
Summary profit & loss Key highlights Consolidated profit & loss ▪ Revenue increased 12% to £43.8m (HY23: £39.0m) HY24 HY23 6m change FY23 £000s ▪ Gross profit increased 10% to £22.5m (HY23: £20.5m) with (6 months) (6 months) % (12 months) growth experienced across all core income streams Revenue 43,
Slide 12: Cash flow statement
Cash flow statement Key highlights Cash flow statement ▪ Net cash flows from operating activities in HY24 were £5.0m (HY23: £1.1m) HY24 HY23 FY23 £000s (6 months) (6 months) (12 months) ▪ Working capital cash outflows totalled £0.1m in HY24, and comprised growth in the loan book of £0.4m, a reductio
Slide 13: Financial position
Financial position Key highlights Balance sheet ▪ Strong balance sheet with net assets of £47.8m (£48.2m £000s As at 31 March As at 31 March As at 30 September 2024 2023 2023 at September 2023), including cash of £13.6m (£13.0m at Non-current assets September 2023) Property, plant and equipment 8,63
Slide 14: Trustpilot
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Slide 15: Clear growth strategy
Clear growth strategy CAPITALISE ON DRIVE GROWTH FROM EXPAND STORE GROW ONLINE CONSOLIDATION CORE ESTATE ESTATE PRESENCE OPPORTUNITIES WELL INVESTED SYSTEMS MARKETING AND BRAND PEOPLE, CULTURE AND CUSTOMER SERVICE ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) 15
Slide 16: Strategy 1. Drive growth from core estate
Strategy 1. Drive growth from core estate Great platform from which to grow Improve key income streams ▪ Well maintained store estate ▪ Growth to come from recently opened and relocated stores ▪ Industry leading bespoke IT system ▪ Foreign currency – successful card launch, improved website and oppo
Slide 17: Strategy 2. Expand store estate
Strategy 2. Expand store estate Key highlights ▪ The Group has a successful branch-based model and with diversified income streams; stores generate a good return on capital while leveraging off the head office cost base in smaller locations ▪ In the UK there are over 350 locations with a population
Slide 18: Strategy 3. Grow online presence
Strategy 3. Grow online presence Online jewellery retail sales and gross profit Jewellery retail website (www.ramsdensjewellery.co.uk) 6,000 ▪ Online jewellery retail sales decreased 15% year on year to £3.2m (HY23: 5,000 £3.7m) however gross profit remained flat due to product mix, with lower sales
Slide 19: Strategy 4. Capitalise on consolidation opportunities
Strategy 4. Capitalise on consolidation opportunities We continue to actively seek and appraise attractive acquisition opportunities in all key segments ▪ During the Period the Group acquired its franchised store in Bury for cash consideration of £0.6m ▪ Acquisition opportunities must achieve a suff
Slide 20: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) ENVIRONMENTAL SOCIAL GOVERNANCE • Sustainability and recycling theme • All staff paid at least the Real • Adhere to all aspects of the FCA’s throughout services offered Living Wage Senior Manager Regime and Conduct Rules • Conscious effort to reduce energy
Slide 21: Summary and outlook
Summary and outlook Profit before tax (£’000) 12,000 • Robust business model with diversified 10,000 income streams 8,000 • Growing profitability, profit before tax of £4.0m (HY23: £3.7m), with growth in all core income 6,000 streams 4,000 • Strong balance sheet with net assets of 2,000 £47.8m at 31
Slide 22: Appendices
APPENDICES Who we are Lease portfolio The Board
Slide 23: Ramsdens is a diversified financial services provider and retailer
Ramsdens is a diversified financial services provider and retailer • Headquartered in Middlesbrough • 168 stores including one franchised store • Mainly located in Northern England, Scotland and Wales • Over 800 employees • Online offering for all core services including a high growth jewellery reta
Slide 24: Overview of four key income streams
Overview of four key income streams Foreign Currency Retail Jewellery • Predominantly exchanging currency notes for holiday makers (85% • Sale of new and second hand jewellery, including premium watches is selling €s, 10% is selling US$s and 5% all other currencies) • Retail revenue split broadly ev
Slide 25: Overview of four key income streams
Overview of four key income streams Pawnbroking Purchase of Precious Metals • Loans secured against valuable jewellery items • Purchase of unwanted or broken jewellery items from customers • Loan term of six months • Items are either retailed or smelted for sale through wholesale market • Interest r
Slide 26: Branch estate lease portfolio
Branch estate lease portfolio Lease/break position at March 2024 ▪ 164 leased stores as at March 2024 (nb one franchisee and two 70 63 owned freehold stores) 60 57 ▪ Average lease term remaining (to end of lease or break if earlier) is 17 50 months (as at September 2023 – 18 months) with only one tr
Slide 27: The Ramsdens Board
The Ramsdens Board 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 30 acquisitions for the Group. He is responsible for ov
Slide 28: The Ramsdens Board
The Ramsdens Board Andrew David Meehan, Non-Executive Chairman Andy is a highly experienced retail executive with over 30 years’ experience including CEO and CFO in roles at the Co-Operative Retail Services, Storehouse plc and Sears plc. Since 2006, he has held a number of chairmanships and Non-Exec