Ramsdens Holdings Plc · LSE:RFX
Ramsdens — H1 FY2019 Earnings Presentation
24 slides from Ramsdens's earnings presentation, Nov 28, 2018
Slide 1: Ramsdens Holdings PLC Interim Results
Ramsdens Holdings PLC Interim Results for the six months ended 30 September 2018
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the six months ended 30 September 2018 (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 cheque cashing) NB. The Group does not off
Slide 4: Financial Highlights
Financial Highlights Profitable and cash Growing dividend Strong balance sheet generative • Underlying PBT of • Net Assets of £30.3m • Interim dividend £5.1m (up £2.7m on 31 March increased by 0.2p to year end position) 2.4p (9%) • Underlying EBITDA of £5.8m • Net Cash of £12.4m • Basic EPS of 13p •
Slide 5: Strategic and Operational Highlights
Strategic and Operational Highlights PBT H1 FY18 Bridge to H1 FY19 • Excellent jewellery retail progress • Solid pawnbroking performance 6100 • Tough period for FX given 48 388 exceptional UK weather / no 5900 4 comparable Easter 5700 164 • Precious metals weight purchased 152 flat in the establishe
Slide 6: Financial Review
®©) RAMSDENS Ww FINANCIAL LIMITED FINANCIAL REVIEW
Slide 7: Summary profit & loss
Summary profit & loss • Underlying profit before tax down 3%, in line with expectations Consolidated profit & loss • Administrative expenses increased 7% as a result of new stores and increasing HO head count to manage the growth strategy % • Earning per share of 13p £000s (6 months to 30 September)
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 FY19 H1 FY18 % Change FY18 H1 FY19 H1 FY18 % Change FY18 Foreign Currency Exchange (FX) 7,297 7,461 (2%) 11,329 7,297 7,461 (2%) 11,329 1 Pawnbroking 4,013 3,474 16% 6,966 3,657 3,474 5
Slide 9: Cash flow statement
Cash flow statement Strong cash generation • Strong cash generation continues with £5.8m in underlying EBITDA Cash flow statement generated in the half year • £1.2m capex on two relocations, four new stores and IT equipment • £0.9m invested in pawnbroking growth during H1 £000s (6 months to 30 Septe
Slide 10: Balance sheet
Balance sheet • Strengthening balance sheet with net assets of £30.3m including Balance sheet net cash of £12.4m • Intrinsic value of metals underpinning the inventory value £000s (6 months to 30 September) H1 FY19 H1 FY18 FY18 • Trade and other receivables are pawnbroking loans secured on Non-curre
Slide 11: Operational Review & Outlook
OPERATIONAL REVIEW & OUTLOOK 11
Slide 12: Clear Growth Strategy
Clear Growth Strategy Drive growth from core Capitalise on consolidation Expand store estate Grow online presence estate opportunities Well invested systems Marketing & Brand People, culture & customer service 12
Slide 13: Strategy 1. Drive growth from core estate: Foreign Currency Exchange
Strategy 1. Drive growth from core estate Foreign Currency Exchange (FX) Segment overview • Good performance despite challenging overall market conditions with the exceptional UK summer weather leading to less overseas holiday travel and, as a result, less need for holiday money. In addition, last y
Slide 14: Strategy 1. Drive growth from core estate: Pawnbroking
Strategy 1. Drive growth from core estate Pawnbroking Segment overview • Now offering PB loans over a six month term to follow the industry norm • This has had an inflationary influence on the loan book of c£200k over the comparable period but not to interest generated although it has affected the a
Slide 15: Strategy 1. Drive growth from core estate: Jewellery Retail
Strategy 1. Drive growth from core estate Jewellery Retail Segment overview • Very good continued growth reflecting investments in stores, stock and online. • All new stores plus 31 established core stores, have been converted to have a dedicated new jewellery offering separated from pre owned stock
Slide 16: 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 Group has continued its strategy to increase jewellery retail stock levels to assist jewellery sales and create second hand jewellery stock for new and relocated stores • The weight of gold purchased from t
Slide 17: 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 5% of gross profit on an annualised basis and include: • Cheque cashing – The Group provides immediate clearance for cheques to customers Ramsdens also provides additional
Slide 18: Branch estate profile
Branch estate profile Lease expiry/break position at 1 October 2018 35 30 30 29 • 122 of the 123 established* stores are profitable and contribute to head office costs 25 25 20 20 • Average lease term remaining is 30 months. 20 • 16 stores have rolling break options which are those that are lower co
Slide 19: Strategy 2. Expand the store estate
Strategy 2. Expand the store estate Retail store estate (November 2018) Relocations New H2 FY18 New H1 FY19 • Maintained disciplined approach to store openings • 4 new stores opened in the Period, 4 stores opened since the Period end and 3 further leases agreed New H2 FY19 • 2 stores relocated and 4
Slide 20: 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 available • Click & Collect and Home Delivery avail
Slide 21: Summary & Outlook
Summary & Outlook • Solid performance in the first six months of the current financial year. • Early performance of the new stores ahead of expectation. • Good pipeline of further stores • Invested in staff headcount, training and IT systems • Good position as we approach Christmas trading • Confide
Slide 22: Appendices
APPENDICES ®©) RAMSDENS Ww FINANCIAL LIMITED 22
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 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 positi