Ramsdens Holdings Plc · LSE:RFX
Ramsdens — FY2017 Earnings Presentation
23 slides from Ramsdens's earnings presentation, Jun 7, 2017
Slide 1: Ramsdens Holdings PLC Results for the year ended 31 March 2017
Ramsdens Holdings PLC Results for the year ended 31 March 2017
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the financial year ended 31 March 2017 (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 Ramsdens is a growing diversified financial services provider and retailer Business segments 1 Foreign Currency Exchange (FX) 2 Pawnbroking 3 Purchases of Precious Metals 4 Jewellery Retail 5 Other Services (including cheque cashing) 3
Slide 4: Strategic & Operational Highlights
Strategic & Operational Highlights Successful IPO and admission to AIM • Full FCA authorisation obtained • Over 730,000 registered customers transacted in FY17 • International Money Transfer service introduced • Jewellery Retail website relaunched • 4 stores acquired from a competitor in December an
Slide 5: Financial Highlights
Financial Highlights Revenue & Gross Profit grew in all 4 core business segments • Gross Profit grew by 12% to £24.3m (FY16: £21.6m) • Operating Profit before exceptional expenses grew by 43% to £4.6m (FY16: £3.2m) • Adjusted EBITDA grew by 27% to £6.0m* (FY16: £4.7m) • Adjusted PBT grew by 73% to £
Slide 6: Financial Review
ie) RAMSDENS FINANCIAL REVIEW
Slide 7: Summary profit & loss
Summary profit & loss • Strong revenue & gross profit growth generated by all four core Consolidated profit & loss segments. • Operating profit shows growth year on year of 43% • Exceptional items £000s (31 March year end) FY 15 FY 16 FY 17 • FY17 - IPO costs £1.1m Revenue 29,280 29,978 34,516 • FY1
Slide 8: Business segments
Business segments Diversified and growing revenue streams Revenue Gross profit £000s (31 March year end) FY 15 FY 16 FY 17 FY 15 FY 16 FY 17 Foreign Currency Exchange (FX) 5,363 7,586 8,971 5,363 7,586 8,971 1 Pawnbroking 5,505 5,731 6,128 5,505 5,731 6,128 2 Jewellery Retail 3,275 4,807 5,909 2,233
Slide 9: Cash flow statement
Cash flow statement Strong cash generation • Good cash generation continues with £6.0m Adjusted EBITDA (£4.9m Cash flow statement plus £1.1m exceptional IPO costs) • Tax and Interest £1.3m £000s (31 March year end) FY 15 FY 16 FY 17 • Net £0.1m cash outflow on IPO (£5.0m raised, £4.0m loan notes rep
Slide 10: Balance sheet
Balance sheet • Capital structure changed on IPO with £5.0m of equity raised and Balance sheet £4.0m loan notes repaid • Strengthening balance sheet with net assets of £23.4m including £000s (31 March year end) FY 15 FY 16 FY 17 net cash of £9.6m Non-current assets Property, plant and equipment 5,85
Slide 11: Operational & Strategic review
Operational & Strategic review Drive growth from core Capitalise on consolidation Expand store estate Grow online presence estate opportunities Well invested systems Marketing & Brand People, culture & 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 • Largest segment of the business, contributing 37% of gross profit • Significant operating leverage as FX sales continue to grow Ramsdens offers FX services through its • Growth in FX has contributed to Ramsde
Slide 13: Strategy 1. Drive growth from core estate: Pawnbroking
Strategy 1. Drive growth from core estate Pawnbroking Segment overview • Pawnbroking contributes 25% of gross profit • Ramsdens’ loan book provides recurring and stable revenues Ramsdens offers loans secured against • Increased proportion of defaulted pledges now re-sold via retail operations, as op
Slide 14: Strategy 1. Drive growth from core estate: Jewellery Retail
Strategy 1. Drive growth from core estate Jewellery Retail Segment overview • Jewellery retail accounts for 14% of gross profit • Ramsdens has developed its offering in recent periods with an increased focus on its Jewellery Retail proposition and investment in retail stock levels Ramsdens retails n
Slide 15: Strategy 1. Drive growth from core estate: Purchases of Precious Metals
Strategy 1. Drive growth from core estate Purchases of Precious Metals Segment overview • The purchase of precious metals selling for intrinsic value represents 18% of gross profit • Revenue and gross profit benefited from the average higher gold price through FY17 Ramsdens purchases unwanted jewell
Slide 16: Strategy 1. Drive growth from core estate: Other Services
Strategy 1. Drive growth from core estate Other Services Summary • Other Services account for 6% of gross profit and include: • Cheque cashing – Ramsdens provides immediate clearance for cheques to customers who do not wish to wait for bank clearance or who may not have a bank account Ramsdens also
Slide 17: Strategy 2. Expand the store estate
Strategy 2. Expand the store estate • 127 stores, including 3 franchised outlets • Aim to open 12 new stores per annum over the medium term Retail store estate (March 2017) • Opportunity to relocate suburban stores to higher footfall locations to maximise FX and jewellery retail • Heads of terms agr
Slide 18: Strategy 3. Grow online presence
Strategy 3. Grow online presence • Dedicated Travel Money website www.RamsdensCurrency.co.uk. • Dedicated jewellery retail website www.RamsdensJewellery.co.uk plus eBay as a distribution channel • Mobile friendly • Mobile friendly • Click & Collect and Home Delivery available • Click & Collect and H
Slide 19: Strategy 4. Capitalise on consolidation opportunities
Strategy 4. Capitalise on consolidation opportunities • Acquired 4 stores in Scotland from a competitor in December 2016 • Rebranded stores as Ramsdens • Applications for building warrants submitted to refurbish and include jewellery windows • Foreign exchange, pawnbroking and gold buying all ahead
Slide 20: Summary & Outlook
Summary & Outlook Strong performance in FY17 ahead of the Board’s initial expectations Growth delivered across all core business segments We have made a strong start to the early part of the current year across all core segments. We are about to enter our seasonally important Summer period and are c
Slide 21: Appendices
APPENDICES ie) RAMSDENS 21
Slide 22: The Ramsdens team
The Ramsdens team Peter Edward Kenyon (52), 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 fo
Slide 23: The Ramsdens NEDs
The Ramsdens NEDs Andrew David Meehan, (62) Non-Executive Chairman Andy is a highly experienced retail executive with over 30 years' experience in roles at the Co-Operative Retail Services, Storehouse plc and Sears plc. For the last 10 years he has held a number of chairmanships and non- executive p