Ramsdens Holdings Plc · LSE:RFX
Ramsdens — H1 FY2020 Earnings Presentation
24 slides from Ramsdens's earnings presentation, Dec 3, 2019
Slide 1: Ramsdens Holdings PLC Interim Results
Ramsdens Holdings PLC Interim Results for the six months ended 30 September 2019
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the six months ended 30 September 2019 (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
Slide 3: Ramsdens overview
Ramsdens overview Complementary product offering 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) NB. The
Slide 4: Financial highlights
Financial highlights Profitable and cash Growing dividend Strong balance sheet generative • Underlying Profit Before • Net Assets of £34.0m • Interim dividend Tax up 12% to £5.7m (up £3.1m on 31 March increased by 0.3p to 2019 year end position) 2.7p (13%) • Reported Profit Before Tax up 23% to £6.2
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Summary profit & loss
Summary profit & loss ▪ Underlying profit before tax up 12%, in line with expectations Consolidated profit & loss ▪ Administrative expenses increased 21% as a result of the expanded store estate % £000s (6 months to 30 September) H1 FY20 H1 FY19* FY19 Change ▪ H1 FY20 finance costs include £0.2m cha
Slide 7: Business segments
Business segments Diversified and growing revenue streams Revenue Gross profit £000s (6 months to 30 September) H1 FY20 H1 FY19* % Change FY19 H1 FY20 H1 FY19 % Change FY19 Foreign Currency Exchange (FX) 8,410 7,297 15% 11,585 8,410 7,297 15% 11,585 1 Pawnbroking 6,937 5,177 34% 10,544 4,261 3,657 1
Slide 8: Cash flow statement
Cash flow statement Strong cash generation ▪ Strong cash generation continues with £8.5m in EBITDA Cash flow statement generated in the half year ▪ £0.6m invested in pawnbroking growth during H1 £000s (6 months to 30 September) H1 FY20 H1 FY19* FY19 ▪ £0.8m decrease in inventories resulting from the
Slide 9: Balance sheet
Balance sheet ▪ Strengthening balance sheet with net assets of £34.0m Balance sheet including net cash of £12.3m ▪ Intrinsic value of metals underpinning the inventory value, as £000s (As at 30 September) H1 FY20 H1 FY19 FY19 demonstrated by the profit achieved on sale of slow moving Non-current ass
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 11
Slide 12: Strategy 1. Drive growth from core estate: Foreign Currency Exchange
Strategy 1. Drive growth from core estate Foreign Currency Exchange (FX) Segment overview ▪ Foreign Currency Exchange income up 15% to £8.4m ▪ c.570,000 customers exchanged £340m of foreign currency during the Period. Against Ramsdens offers FX services through its a backdrop of consumer uncertainty
Slide 13: Strategy 1. Drive growth from core estate: Pawnbroking
Strategy 1. Drive growth from core estate Pawnbroking Segment overview ▪ Pawnbroking gross profit up 17% to £4.3m ▪ Continued loan book growth since 31 March 2019 due to new stores and the Ramsdens offers loans secured against acquisition of pawnbroking loan books in the Period valuable jewellery it
Slide 14: Strategy 1. Drive growth from core estate: Jewellery Retail
Strategy 1. Drive growth from core estate Jewellery Retail Segment overview ▪ Jewellery Retail revenue grew by 22% to £5.5m. Online sales during the Period grew by 12% and amounted to 5% of all jewellery sold Ramsdens retails new and second-hand ▪ Growth achieved despite the much-publicised difficul
Slide 15: 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 up 57% to £4.1m including the non-recurring stock scrapping profit of £0.6m where the stock originated from customer purchases Ramsdens purchases unwanted jewellery ▪ The average sterling gold price
Slide 16: Strategy 1. Drive growth from core estate: Other Services
Strategy 1. Drive growth from core estate Other Services Segment overview ▪ Growing performance from the Other Services has primarily been driven by the acquisition of The Money Shop stores which have a higher average cheque cashing and Western Union income per store Ramsdens provides additional ser
Slide 17: Strategy 2. Expand the store estate
Strategy 2. Expand the store estate Selective approach Retail store estate (November 2019 – 156 stores) ▪ Three new stores opened in the Period (Guisborough, Doncaster and Barnsley), one store opened since the Period end (Harrogate) and two further leases agreed ▪ Over the next 18 months, there are
Slide 18: Branch estate profile including IFRS16
Branch estate profile including IFRS16 Lease expiry/break position at ▪ 156 trading stores as at 30 November 2019 (excluding franchisees) 30 November 2019 60 ▪ Average lease term remaining (to end of lease or break if earlier) is 26 months with no trading stores currently having more than five years
Slide 19: Strategy 3. Grow online presence: Retail Jewellery
Strategy 3. Grow online presence Retail Jewellery ▪ Dedicated jewellery retail website www.RamsdensJewellery.co.uk plus eBay as a distribution channel ▪ Mobile friendly ▪ Click & Collect and home delivery available ▪ Investment in SEO (organic traffic increase of 40% on prior year) and improving the
Slide 20: Strategy 3. Grow online presence: Currency
Strategy 3. Grow online presence Currency ▪ Dedicated Travel Money website www.RamsdensCurrency.co.uk ▪ Mobile friendly ▪ Click & Collect available ▪ Increased usage of affiliate / price comparison sites to grow awareness and volumes ▪ Online FX gross amount exchanged (notes and card) grew by 31% on
Slide 21: Summary and outlook
Summary and outlook • Good performance in the first six months of the current financial year supported by diversified business model • Acquired stores trading as expected • New and relocated stores collectively performing better than expected • Good pipeline of further stores and selective approach
Slide 22: Appendices
APPENDICES <
Slide 23: 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 24: 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