Ramsdens Holdings Plc · LSE:RFX
Ramsdens — H1 FY2023 Earnings Presentation
28 slides from Ramsdens's earnings presentation, Jun 7, 2023
Slide 1: Ramsdens Holdings Plc Unaudited Interim Results for the six months ended 31 March 2023
RAMSDENS HOLDINGS PLC Unaudited Interim Results for the six months ended 31 March 2023
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the six months ended 31 March 2023 (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: Contents
CONTENTS Summary Key income streams Financials Strategic overview APPENDICES Who we are Lease portfolio The Board
Slide 4: Strong performance driven by growth across all of the Group's key income streams
Strong performance driven by growth across all of the Group’s key income streams Financial highlights Continuing our growth strategy • A strong performance with Profit Before Tax increasing 1. Drive growth from core estate 68% to £3.7m (HY22: £2.2m) • Three stores relocated in the Period • Jewellery
Slide 5: Key Income Streams
KEY INCOME STREAMS
Slide 6: Foreign currency exchange – gross profit increased 41% year on year
Foreign currency exchange – gross profit increased 41% year on year History Opportunities and challenges HY23 HY22 FY22 + Positive news on summer holiday bookings £’m (6 months) (6 months) (12 months) Total currency exchanged 134m 94m 364m + Reduced competition Gross profit 4.9m 3.4m 12.7m + Diversi
Slide 7: Pawnbroking – loan book increased 29% year on year
Pawnbroking – loan book increased 29% year on year History Opportunities and challenges £000s HY23 HY22 FY22 + Cost of living crisis and economic climate – demand/repayment rates (6 months) (6 months) (12 months) Revenue 5,645 4,248 8,967 + Reduced numbers of alternative providers of small sum short
Slide 8: Jewellery retail – revenue increased 32% year on year
Jewellery retail – revenue increased 32% year on year History Opportunities and challenges + Benefit of recent investments in stock HY23 HY22 FY22 £000s (6 months) (6 months) (12 months) levels and presentation Revenue 17,323 13,085 27,107 + Staff training and development of Gross profit 6,287 4,923
Slide 9: Purchase of precious metals – gross profit increased 28% year on year
Purchase of precious metals – gross profit increased 28% year on year History Opportunities and challenges £000s HY23 HY22 FY22 + Sterling gold price – expectation is for (6 months) (6 months) (12 months) price to remain high in short to medium Revenue 10,457 7,779 15,847 term Gross profit 3,983 3,1
Slide 10: Financials
FINANCIALS
Slide 11: Summary profit & loss
Summary profit & loss Consolidated profit & loss Key highlights ▪ Gross revenue increased 33% to £39.0m (HY22: £29.3m) driven HY23 HY22 6m change FY22 £000s by strong growth across all four key income streams (6 months) (6 months) % (12 months) Revenue 38,991 29,265 33% 66,101 ▪ Gross profit increas
Slide 12: Cash flow statement
Cash flow statement Key highlights Cash flow statement ▪ Net cash flows from operating activities in HY23 was an inflow of £1.1m compared to an outflow of £0.6m in HY22 HY23 HY22 FY22 £000s (6 months) (6 months) (12 months) ▪ Working capital cash outflows in HY23 include growth in the loan book of £
Slide 13: Financial position
Financial position Key highlights Balance sheet ▪ Strong balance sheet with net assets of £43.0m (£41.8m £000s As at 31 As at 31 As at 30 March 2023 March 2022 September 2022 at September 2022), including cash of £11.4m (£15.3m at Non-current assets September 2022) Property, plant and equipment 7,55
Slide 14: Strategic Overview
~ & rot a 2 = 4 $2 i STRATEGIC OVERVIEW 7 if
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 Improve key income streams Relocations and refurbishments ▪ Momentum in all key income streams ▪ Three stores relocated in the Period and plans to relocate a further two stores in 2023 ▪ Foreign currency - volumes to improve in summer with some margin pressu
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 the UK, there are over 350 locations with a population of greater than 30,0
Slide 18: Strategy 3. Grow online presence
Strategy 3. Grow online presence Jewellery retail website (www.ramsdensjewellery.co.uk) Online jewellery retail sales (£'000) ▪ Online jewellery retail sales increased 89% year on year to £3.7m (HY22: £2.0m) 4,000 and represented 21% of total jewellery sold (HY22: 15%) 3,500 3,000 ▪ Focus on maintai
Slide 19: 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 860 outlets operated by circa 120 pawnbroking businesses ▪ The South East of England has the highest concentration of pawnbroking outlets in the
Slide 20: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) ENVIRONMENTAL SOCIAL GOVERNANCE • Sustainability and recycling • All staff paid at least the Real • Adhere to all aspects of the theme throughout services Living Wage FCA’s Senior Manager offered Regime and Conduct Rules • 2022 staff survey: • Conscious eff
Slide 21: Summary and outlook
Summary and outlook • Strong performance in the Period, generating profit before tax of £3.7m, with growth in all key income streams • Robust business model with diversified income streams • Strengthened balance sheet with net assets of £43.0m at 31 March 2023, including cash of £11.4m (including £7
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 • 158 managed stores plus two franchised stores • Mainly located in Northern England, Scotland and Wales • Over 800 employees • Key services are: • Foreign Currency • Pawnbroking • Retail Jewellery •
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 2023 70 63 ▪ 156 leased stores as at March 2023 (nb two franchisees and two owned freehold stores) 60 52 ▪ Average lease term remaining (to end of lease or break if earlier) is 18 50 months (as at September 2022 – 20 months) with no trading
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