Ramsdens Holdings Plc · LSE:RFX
Ramsdens — H1 FY2018 Earnings Presentation
22 slides from Ramsdens's earnings presentation, Nov 27, 2017
Slide 1: Ramsdens Holdings PLC Interim Results for the 6 months ended 30 September 2017
Ramsdens Holdings PLC Interim Results for the 6 months ended 30 September 2017
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the six months ended 30 September 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 Foreign Currency Exchange (FX) Pawnbroking Purchases of Precious Metals Jewellery Retail Other Services (including cheque cashing) 3
Slide 4: Strategic & Operational Highlights
Strategic & Operational Highlights Drive organic growth Expand the store estate Grow online presence • Strong growth in FX, • Continued development of store • Online retail revenue up Pawnbroking and Retail. estate: 331% ahead of expectations • 2 stores relocated • Online click and collect FX • Prec
Slide 5: Financial Highlights
Financial Highlights Strong growth GROSS PROFIT OPERATING PROFIT EBITDA PBT 22% 50% 43% 63% HY18: £16.1m HY17: £13.2m HY18: £5.2m HY17: £3.5m HY18: £6.0m HY17: £4.2m HY18: £5.2m HY17: £3.2m NET ASSETS NET CASH BASIC EARNINGS MAIDEN INTERIM PER SHARE DIVIDEND DECLARED 44% 38% 33% 2.2p HY18: £27.2m HY
Slide 6: Financial Review
ie) RAMSDENS FINANCIAL REVIEW
Slide 7: Summary profit & loss
Summary profit & loss • Strong revenue & gross profit growth in foreign currency Consolidated profit & loss exchange, retail and pawnbroking for the comparable half year • Operating profit shows growth year on year of 50% % • Administrative expenses up following investment in staff and costs £000s (
Slide 8: Business segments: Diversified and growing revenue streams
Business segments Diversified and growing revenue streams Revenue Gross profit £000s (6 months to 30 September) H1 FY18 H1 FY17 % Change FY17 H1 FY18 H1 FY17 % Change FY17 Foreign Currency Exchange (FX) 7,461 5,520 35% 8,971 7,461 5,520 35% 8,971 1 Pawnbroking 3,474 2,944 18% 6,128 3,474 2,944 18% 6
Slide 9: Cash flow statement
Cash flow statement Strong cash generation • Strong cash generation continues with £6.0m EBITDA generated in the Cash flow statement half year • £3.9m increase in net cash during H1 £000s (6 months to 30 September) H1 FY18 H1 FY17 FY17 • £0.3m capex on two relocations and IT equipment • £0.6m invest
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 £27.2m including £000s (6 months to 30 September) H1 FY18 H1 FY17 FY17 net cash of £13.4m Non-current assets • Intrinsic value of me
Slide 11: Operational & Strategic outlook
Operational & Strategic outlook 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 on an annualised basis • Growth rate in FX is greater than increase in travellers abroad. Office of National Statistic’s advise that UK travel
Slide 13: Strategy 1. Drive growth from core estate: Pawnbroking
Strategy 1. Drive growth from core estate Pawnbroking Segment overview • Improvements in retail operations have led to customers being offered higher lending values for their pledged jewellery. This has led to increased loan books and interest income from repaying customers Ramsdens offers loans sec
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 on an annualised basis • 75% of store retail stock is internally supplied from defaulted pawnbroking loans and jewellery bought from customers Ramsdens retails new and seco
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 on an annualised basis • The average higher gold price in FY17 and through H1 FY18 has benefited the business Ramsdens
Slide 16: Strategy 1. Drive growth from core estate: Other Services
Strategy 1. Drive growth from core estate Other Services Summary • Stable performance from the Other Services which account for 6% of gross profit on an annualised basis and include: • Cheque cashing – Ramsdens provides immediate clearance for cheques to customers Ramsdens also provides additional s
Slide 17: Strategy 2. Expand the store estate
Strategy 2. Expand the store estate • Maintained disciplined approach to store openings • 127 stores, including 4 franchised outlets Retail store estate (November 2017) • 2 stores relocated • 2 new store leases signed and an acquisition of a jewellers agreed for completion in January 18 • Strong pip
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: Summary & Outlook
Summary & Outlook Strong performance in Continued investment We are in a good Well positioned for the first six months of in IT Infrastructure and position as we future growth: the current financial software following approach the year. unauthorised access to important Christmas • Diversified and ou
Slide 20: Appendices
APPENDICES ie) RAMSDENS 20
Slide 21: 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 22: 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