Ramsdens Holdings Plc · LSE:RFX
Ramsdens — H1 FY2022 Earnings Presentation
25 slides from Ramsdens's earnings presentation, Jun 8, 2022
Slide 1: Unaudited Interim Results for the six months ended 31 March 2022
RAMSDENS HOLDINGS PLC Unaudited Interim Results for the six months ended 31 March 2022
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the six months ended 31 March 2022 (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 Purchase of Precious Metals Jewellery Retail Other Services (including Western Union and cheque cashing) NB. The Group does not offer unsecured p
Slide 4: The Period in summary
The Period in summary Continued resilience and strategic progress Continuing our growth strategy • A strong performance as trading conditions started to 1. Drive growth from core estate normalise, with Profit Before Tax of £2.2m (HY21: £0.1m loss) • One store relocated in the Period with a further t
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Summary profit & loss
Summary profit & loss Background Consolidated profit & loss ▪ HY20 (six months ended 31 March 2020) – trading substantially took place prior to the onset of Covid-19 £000s HY22 HY21* 6m change HY20* FY21 (6 months) (6 months) % (6 months) (12 months) ▪ HY21 (six months ended 31 March 2021) – feature
Slide 7: Business segments
Business segments Revenue Gross profit Key highlights HY22 HY21* HY20* FY21 HY22 HY21 HY20 FY21 £000s (6 months) (6 months) (6 months) (12 months) (6 months) (6 months) (6 months) (12 months) • Easing of travel restrictions resulted in increasing volumes Foreign • Daily volumes in March 2022 approxi
Slide 8: Cash flow statement
Cash flow statement Key highlights Cash flow statement ▪ Net cash flows from operating activities in HY22 was an outflow of £0.6m compared to an inflow of £1.1m in HY21 HY22 HY21* HY20* FY21 £000s (6 months) (6 months) (6 months) (12 months) ▪ Working capital cash outflows in HY22 include growth in
Slide 9: Financial position
Financial position Key highlights Balance sheet As at 31 As at 31 As at 31 As at 30 ▪ Strong balance sheet with net assets of £37.6m (£36.1m £000s March 2022 March 2021* March 2020* September 2021 at September 2021), including cash of £10.7m (£13.0m at Non-current assets September 2021) Property, pl
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 ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) 11
Slide 12: Strategy 1. Drive growth from core estate
Strategy 1. Drive growth from core estate Foreign currency Relocations and refurbishments ▪ Maintain competitive exchange rates and manage margins closely ▪ Relocate 4 more stores in 2022 to higher footfall locations to improve ▪ Increase market share as volumes return convenience, attract new custo
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 Jewellery retail website (www.ramsdensjewellery.co.uk) Online retail sales 2,500 ▪ Strong growth continued with the total jewellery sold through our ecommerce activities increasing 48% to £2.0m (HY21: £1.3m) in the Period. Online sales now 2,000 account for 15% of al
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) Our people Our customers ▪ Enhanced focus on inclusion and diversity ▪ High repeat customer rates, low numbers of complaints and excellent Trustpilot ratings (4.8 out of 5 with over 5000 reviews) ▪ Reward great performance and long service ▪ Committed to im
Slide 17: Summary and Outlook
SUMMARY AND OUTLOOK • Strong performance in the Period as trading conditions started to normalise, generating profit before tax of £2.2m • Proven and robust business model with diversified income streams • Strengthened balance sheet with net assets of £37.6m at 31 March 2022, including cash of £10.7
Slide 18: Appendices
APPENDICES Key segment information Branch estate lease portfolio The Ramsdens Board
Slide 19: Foreign Currency Exchange (FX)
Foreign Currency Exchange (FX) ▪ The easing of travel restrictions in the UK and abroad has increased confidence and Segment overview encouraged more people to travel and as a result the demand for foreign currency has increased despite the Omicron variant of Covid-19 impacting travel in Q1 Ramsdens
Slide 20: Pawnbroking
Pawnbroking ▪ The pawnbroking loan book has increased from £6.1m at September 2021 to £7.5m at Segment overview March 2022 in line with management expectations as customer’s return to normal spending habits and have a need for short term cash flow assistance Ramsdens offers loans secured against ▪ P
Slide 21: Jewellery Retail
Jewellery Retail ▪ Jewellery Retail revenue in HY22 was £13.1m, up 62% from HY21 (£8.1m) and represents a strong performance even factoring in the retail lockdown restrictions during HY21 Segment overview ▪ Growth has been achieved as a result of continued investment during the Period Ramsdens offer
Slide 22: Purchase of Precious Metals
Purchase of Precious Metals Segment overview ▪ Total gross profit in HY22 from purchase of precious metals was £3.1m, compared to £2.3m in HY21 and £3.2m in HY20 Ramsdens purchases unwanted jewellery ▪ As life has normalised, more people have sold their unwanted jewellery and as our items and scrap
Slide 23: Branch estate lease portfolio
Branch estate lease portfolio Lease expiry/break position at May 2022 ▪ 151 leased stores as at May 2022 (nb three franchisees and two 60 owned freehold stores) 52 50 50 ▪ Average lease term remaining (to end of lease or break if earlier) is 20 months (as at September 2021 – 20 months) with no tradi
Slide 24: 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 25: 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