Ramsdens Holdings Plc · LSE:RFX
Ramsdens — FY2021 Earnings Presentation
29 slides from Ramsdens's earnings presentation, Jan 18, 2022
Slide 1: Audited Results for the year ended 30 September 2021
RAMSDENS HOLDINGS PLC Audited Results for the year ended 30 September 2021
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the year ended 30 September 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 accord
Slide 3: Ramsdens overview
Ramsdens overview 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) Boston, Lincolnshire NB. The Group does
Slide 4: The year in summary
The year in summary Resilient trading Resuming our growth strategy • Resilient performance with profit before tax of £0.6m Growth strategy has four pillars: achieved despite international travel restrictions and reduced high street footfall • Drive growth from core store estate • Maintained a health
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Summary profit & loss
Summary profit & loss Background Consolidated profit & loss ▪ In 2020 the Group changed its accounting reference date to 30 September which resulted in an 18-month period for FP20, a period which had approximately 12 months of trading pre pandemic and 6 months of significant FY21 FP20 pandemic impac
Slide 7: Business segments
Business segments Revenue Gross profit Key highlights FP20 FY21 FY21 FP20 £000s (18 months) (12 months) (12 months) (18 months) Restated* • Restrictions on international travel significantly affected volumes Foreign Currency 3,408 14,859 3,257 14,859 • May 2021 volumes approximately 5% of 2019, incr
Slide 8: Cash flow statement
Cash flow statement Key highlights Cash flow statement ▪ Net cash flow from operating activities in FY21 was £1.1m compared to FY21 FP20 £15.8m in FP20 (18 month period) £000s (12 months) (18 months) Restated* ▪ Cash outflows in FY21 include investments in retail stock of £4.0m, partially offset by
Slide 9: Financial position
Financial position Key highlights Balance sheet ▪ Strong liquidity to manage near term Covid-19 pressures As at 30 As at 30 £000s September 2021 September 2020 ▪ Strengthened balance sheet with net assets of £36.1m, including net cash of Restated* £13.0m, at 30 September 2021 Non-current assets Prop
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 STORE ESTATE PRESENCE OPPORTUNITIES WELL INVESTED SYSTEMS MARKETING AND BRAND PEOPLE, CULTURE AND CUSTOMER SERVICE ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) 11
Slide 12: Strategy 1. Drive growth from core store estate
Strategy 1. Drive growth from core store estate Foreign currency Relocations and refurbishments ▪ Maintain competitive exchange rates and manage margins closely ▪ Relocate 7 stores to higher footfall locations to improve convenience, ▪ Increase market share as volumes return. November 2021 volumes a
Slide 13: Strategy 2. Expand store estate
Strategy 2. Expand store estate Retail 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. There is therefore significant opportu
Slide 14: Strategy 3. Grow online presence
Strategy 3. Grow online presence Retail Jewellery - www.ramsdensjewellery.co.uk / Foreign currency and financial services - www.ramsdensforcash.co.uk Jewellery retail website Online retail sales 3,500 ▪ Outstanding progress achieved in the last 12 months, with the online sales of 3,000 jewellery ite
Slide 15: Strategy 4. Capitalise on consolidation opportunities
Strategy 4. Capitalise on consolidation opportunities Pawnbroking ▪ We estimate the number of pawnbroking outlets in the UK remains steady at approximately 870 outlets operated by circa 130 pawnbroking businesses ▪ The South East of England has the highest concentration of pawnbroking outlets in the
Slide 16: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Environmental ▪ Continuous review of environmental impact, with an approach of ongoing improvement ▪ Good progress made in reducing environmental footprint during the year ▪ Ongoing projects to reduce energy use including reduced printing and use of LED lig
Slide 17: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Social ▪ Access to credit for all customers with jewellery assets via transparent and simple pawnbroking loans ▪ Group prides itself on high repeat customer rates, low numbers of complaints and excellent Trustpilot ratings ▪ Supporting local communities thr
Slide 18: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Governance ▪ Highly regulated business: ▪ Pawnbroking is regulated by the Financial Conduct Authority ▪ Foreign currency and cheque cashing are regulated by HMRC ▪ Adhere to the Senior Managers and Certification Regime ▪ Strong track record of compliance ▪
Slide 19: Current trading
Current trading With the difficulty in comparing trading in the prior period to the latest year, the Board felt it appropriate this year to give further detail on Q1 FY22 trading. • Our investments in our jewellery retail operations have continued to produce strong results. o In store retail jewelle
Slide 20: Summary and Outlook
SUMMARY AND OUTLOOK • Resilient performance in the year ended 30 September 2021 with profit before tax of £0.6m • Robust business model with diversified income streams • Strengthened balance sheet with net assets of £36.1m at 30 September 2021 • Strong cash position (net cash of £13.0m at the year e
Slide 21: Appendices
APPENDICES Key segment information Branch estate lease portfolio Change to accounting policy The Ramsdens Board
Slide 22: Foreign Currency Exchange (FX)
Foreign Currency Exchange (FX) ▪ The impact of restrictions on international travel resulting from the UK Government’s red, Segment overview amber and green lists during FY21 was far more severe than in the summer of 2020. With reduced international travellers, Ramsdens’ ability to sell foreign curr
Slide 23: Pawnbroking
Pawnbroking ▪ Pawnbroking gross profit totalled £6.7m in FY21 Segment overview ▪ While the loan book fell in FP20 with the majority of customers repaying their loans, the year end loan book balance included a number of loans where Ramsdens had allowed customers Ramsdens offers loans secured against
Slide 24: Jewellery Retail
Jewellery Retail ▪ Jewellery Retail revenue in FY21 was £18.3m, compared to £17.1m in FP20 (18 month period) and represents an exceptionally robust performance Segment overview ▪ Revenue growth was achieved in FY21 despite both the shorter reporting period and much- publicised difficulties on the UK
Slide 25: Purchase of Precious Metals
Purchase of Precious Metals Segment overview ▪ Total gross profit in FY21 from purchase of precious metals was £4.2m, compared to £9.9m in FP20 (18 month period). FP20 gross profit of £9.9m included non-recurring stock scrapping profit of £0.8m where the stock originated from customer purchases Rams
Slide 26: Branch estate lease portfolio
Branch estate lease portfolio Lease expiry/break position at December 2021 ▪ 150 leased stores as at December 2021 (nb three franchisees and 70 two owned freehold stores) 62 60 ▪ Average lease term remaining (to end of lease or break if earlier) is 20 months (as at October 2020 – 21 months) with no
Slide 27: Change to accounting policy
Change to accounting policy The Group has changed the accounting policy for pawnbroking loans in the course of realisation. Previously these assets were recognised as inventories. The updated policy recognises the value of these assets under IFRS 9 as Trade receivables. Whilst this change in policy
Slide 28: 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 29: 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