Ramsdens Holdings Plc · LSE:RFX
Ramsdens — FY2024 Earnings Presentation
29 slides from Ramsdens's earnings presentation, Jan 14, 2025
Slide 1: Audited Results for the year ended 30 September 2024
RAMSDENS HOLDINGS PLC Audited Results for the year ended 30 September 2024 RAMSDENs CURRENCY . PAWNBROKERS
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the year ended 30 September 2024 (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: Contents
CONTENTS Summary Key income streams Financials Strategic overview APPENDICES Who we are Lease portfolio The Board
Slide 4: Another record year with a 12% increase in Profit Before Tax to £11.4m
Another record year with a 12% increase in Profit Before Tax to £11.4m (FY23: £10.1m) Financial highlights Continuing to deliver on our growth strategy • Gross profit from the purchase of precious metals 1. Growth from core estate increased by 29% to £11.8m (FY23: £9.2m) • Growth across all core inc
Slide 5: Key Income Streams
‘Ge KEY INCOME STREAMS
Slide 6: Purchase of precious metals – gross profit increased 29% year on year
Purchase of precious metals – gross profit increased 29% year on year History Opportunities and risks £000s FY24 FY23 Change % + Sterling gold price – expectation is for price to remain high in short to medium Revenue 31,151 23,522 32% term Gross profit 11,822 9,161 29% + Economic conditions creatin
Slide 7: Foreign currency exchange – gross profit increased 4% year on year
Foreign currency exchange – gross profit increased 4% year on year History Opportunities and risks + Income from sales of FX notes increased by £ FY24 FY23 Change % 6% YOY but income from the purchase of FX Total currency exchanged 423m 408m 4% fell by 13% YOY Gross profit 14.2m 13.6m 4% + Competiti
Slide 8: Pawnbroking – gross profit increased 16% year on year
Pawnbroking – gross profit increased 16% year on year History Opportunities and risks £000s FY24 FY23 Change % + General economic climate – demand for loans / threat to repayment rates Revenue 13,408 11,877 13% + Sterling gold price Gross profit 11,657 10,043 16% + Consumer awareness of the service
Slide 9: Jewellery retail – gross profit increased 10% year on year
Jewellery retail – gross profit increased 10% year on year History Opportunities and risks + H2 had much stronger premium watch sales providing momentum for £000s FY24 FY23 Change % FY25 Revenue 35,607 33,474 6% + Growth in second hand jewellery with Gross profit 13,293 12,058 10% inflationary costs
Slide 10: Financials
FINANCIALS
Slide 11: Summary profit & loss
Summary profit & loss Key highlights Consolidated profit & loss ▪ Gross revenue increased 14% to £95.6m (FY23: £83.8m) with growth across each of the four key income streams £000s FY24 FY23 Change % ▪ Gross profit increased 13% to £51.5m (FY23: £45.8m) Revenue 95,608 83,805 14% Foreign currency 14,8
Slide 12: Cash flow statement
Cash flow statement Key highlights Cash flow statement ▪ Net cash inflows from operating activities were £11.9m (FY23: £3.3m) ▪ Working capital outflows in the year include a £1.9m increase in £000s FY24 FY23 inventories and a £0.9m increase in trade and other receivables due to growth of the pawnbr
Slide 13: Financial position
Financial position Key highlights Balance sheet ▪ Strong balance sheet with net assets of £53.6m (£48.2m As at 30 September As at 30 September at September 2023), including cash of £15.8m (£13.0m at £000s 2024 2023 September 2023) Non-current assets Property, plant and equipment 8,853 7,949 ▪ Invent
Slide 14: Strategic Overview
STRATEGIC OVERVIEW
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 Young stores, relocations and refurbishments ▪ Momentum in all key income streams ▪ Ongoing maturity of young stores will assist growth ▪ Purchase of precious metals - FY25 expected to continue to ▪ Relocations to higher footfall l
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 revenue (£'000) ▪ FY24 had a mixed online retail performance with H1 impacted by softer premium H1 (Oct-Mar) H2 (Apr-Sep) 8,000 watch sales, a pattern also reported by other watch retailers. However, H2 wa
Slide 19: Strategy 4. Acquisition opportunities
Strategy 4. Acquisition opportunities Pawnbroking ▪ The number of pawnbrokers remains consistent year on year. H&T, Cash Converters and Ramsdens together have c650 stores. We estimate the remaining c130 pawnbroking business have c220 stores. ▪ The Group’s expansion strategy into the South East is ai
Slide 20: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) ENVIRONMENTAL SOCIAL GOVERNANCE Embrace green initiatives, People Set a standard for transparency safeguard our tomorrow with Champion wellbeing and growth, & compliance, weaving ESG into every choice we make today. crafting a workplace where every the fabr
Slide 21: Summary and outlook
Summary and outlook • Great performance in the Year, generating We have made a good start to FY25. record profit before tax of £11.4m (FY23: £10.1m), with growth in all key income • Aided by the strong gold price, gross profit streams from purchase of precious metals has increased by approximately 4
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 • 169 stores including one franchised store (September 2024) • Mainly located in Northern England, Scotland and Wales • Over 800 employees • Key services are; • Foreign Currency • Pawnbroking • Retail
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% • Average Transaction Values and Margins is selling €s, 10% is selling US$s and 5% all other currencies) • New jewellery – ATV c. £150, margin c. 40% • 95% of the c
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 September 2024 ▪ 166 leased stores as at September 2024 (nb one franchisee and two 100 90 owned freehold stores) 90 80 ▪ Average lease term remaining (to end of lease or break if earlier) is 16 70 months (as at September 2023 – 18 months) 60 50 ▪
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
Slide 29: The Ramsdens Board
The Ramsdens Board Karen Ingham, Non-Executive Director Karen joined the board of the Company on 1 November 2022. Karen has extensive experience across several leading consumer-facing and financial services businesses as well as a proven track record in developing and improving brands’ customer expe