Ramsdens Holdings Plc · LSE:RFX
Ramsdens — H1 2021 Earnings Presentation
26 slides from Ramsdens's earnings presentation, Jun 15, 2021
Slide 1: Unaudited Interim Results for the six months ended 31 March 2021
Unaudited Interim Results for the six months ended 31 March 2021
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the six months ended 31 March 2021 (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: Ramsdens overview
Ramsdens overview The Group is a growing diversified financial services provider and retailer Business segments Foreign Currency Exchange (FX) Pawnbroking Jewellery Retail Purchases of Precious Metals Other Services (including Western Union and cheque cashing) Stockton NB. The Group does not offer u
Slide 4: Trading through Covid-19
Trading through Covid-19 Six months ended 31 March 2021 (the “Period”) – “COVID environment” • Operated for four months of the Period under lockdown restrictions in some or all parts of the UK • Traded throughout the Period with a substantial proportion of the branch network open under our essential
Slide 5: Resilient performance and well positioned to resume our growth strategy
Resilient performance and well positioned to resume our growth strategy Resilient trading in the Period Resuming our growth strategy • Resilient performance with Loss Before Tax limited to Growth strategy has four pillars: £0.1m (HY20: £2.3m profit) • Drive growth from core estate • Maintained a hea
Slide 6: Financial Review
FINANCIAL REVIEW
Slide 7: Summary profit & loss
Summary profit & loss ▪ The six months ended 31 March 2020 represented Consolidated profit & loss mainly normal trading conditions, with Covid-19 only impacting the final weeks of the year. In contrast, the six months ended 31 March 2021 were severely impacted HY21 HY20 FP20 6 months £000s by Covid-
Slide 8: Business segments
Business segments Diversified revenue streams Revenue Gross profit HY21 HY20 FP20 6 months HY21 HY20 FP20 6 months £000s (6 months) (6 months) (18 months) % Change (6 months) (6 months) (18 months) % Change Foreign currency margin 1,027 4,705 14,859 (78%) 1,027 4,705 14,859 (78%) 1 2 Pawnbroking 5,5
Slide 9: Cash flow statement
Cash flow statement ▪ Net cash flow from operating activities in HY21 was £1.1m Cash flow statement compared to £1.4m in HY20 ▪ Cash inflows in HY21 have benefited from a reduction of £1.1m HY21 HY20 FP20 in trade and other receivables, mainly due to reduced £000s (6 months) (6 months) (18 months) p
Slide 10: Financial position
Financial position ▪ Continued strong liquidity to manage near term Covid-19 Balance sheet pressures As at As at As at ▪ The balance sheet remains strong with net assets of £35.5m £000s Mar-21 Mar-20 Sep-20 (HY20: £35.0m), which is broadly flat on the position reported at Non-current assets the peri
Slide 11: Operational Review and Outlook
OPERATIONAL REVIEW AND OUTLOOK
Slide 12: 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 12
Slide 13: Strategy 1. Drive growth from core estate: Foreign Currency Exchange
Strategy 1. Drive growth from core estate Foreign Currency Exchange (FX) ▪ Foreign currency exchanged totalled only £20m in HY21, a reduction of 89% from the Segment overview comparable period, as a result of Covid-19 restrictions ▪ The restrictions on international travel and the quarantine regulat
Slide 14: Strategy 1. Drive growth from core estate: Pawnbroking
Strategy 1. Drive growth from core estate Pawnbroking Segment overview ▪ Pawnbroking gross profit totalled £3.5m in HY21 compared to £4.7m in HY20 ▪ The total loan book and associated gross profit has reduced in the period since March Ramsdens offers loans secured against 2020 due to both lower pawn
Slide 15: Strategy 1. Drive growth from core estate: Jewellery Retail
Strategy 1. Drive growth from core estate Jewellery Retail Segment overview ▪ Jewellery Retail revenue in HY21 was £8.1m, an increase of 14% from HY20 (£7.1m) ▪ The investment in our online retail jewellery website, www.ramsdensjewellery.co.uk, Ramsdens retails new and second-hand continues to deliv
Slide 16: Strategy 1. Drive growth from core estate: Purchase of Precious Metals
Strategy 1. Drive growth from core estate Purchase of Precious Metals Segment overview ▪ Gross profit decreased by 28% to £2.3m in HY21 (HY20: £3.2m) due to a fall in the weight of gold purchased arising from reduced high street foot fall (as a consequence of lockdowns), a reduced need for additiona
Slide 17: Strategy 1. Drive growth from core estate: Other Services
Strategy 1. Drive growth from core estate Other Services Segment overview ▪ Whilst other services have been a steady source of gross profit, we believe cheque cashing was and continues to be a service in decline and this represents a large proportion of the reduction in gross profit in this segment
Slide 18: Strategy 2. Expand the store estate
Strategy 2. Expand the store estate Retail store estate ▪ We have recommenced our new store opening strategy with 6 new locations in various stages of the planning and legal process ▪ This expansion includes for the first time London and the South East: ▪ This region provides a greater opportunity t
Slide 19: Branch estate has a flexible lease profile
Branch estate has a flexible lease profile Lease expiry/break position at May 2021 ▪ The retail estate continues to be actively managed. In the main, (excludes freehold property) landlords have been realistic to the current high street situation. 60 Where appropriate, lease renewals have generally r
Slide 20: Strategy 3. Grow online presence
Strategy 3. Grow online presence Retail Jewellery - www.RamsdensJewellery.co.uk ▪ The total jewellery sold including ex pawnbroking items through our ecommerce Total monthly sales activities totalled £1.6m for the Period, which was double the comparable period 350,000 in the prior year 300,000 250,0
Slide 21: Strategy 3. Customer Feedback - Trustpilot
Strategy 3. Customer Feedback - Trustpilot 21
Slide 22: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) ▪ During the Period, the Board has continued to develop Ramsdens’ ESG strategy ▪ We continue to ensure we have a positive impact on society and have endeavoured to minimise the impact of the pandemic on our staff and customers. We offer valued services to o
Slide 23: Summary and outlook
Summary and outlook • Resilient performance in the six months ended 31 March 2021 with Loss Before Tax limited to £0.1m • Strong cash position, undrawn RCF and ability to generate cash from stock • Successfully operated in a secure and safe environment • Growth strategy restarted with new branch exp
Slide 24: Appendices
APPENDICES <
Slide 25: 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 26: 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