Ramsdens Holdings Plc · LSE:RFX
Ramsdens — FY2023 Earnings Presentation
28 slides from Ramsdens's earnings presentation, Jan 15, 2024
Slide 1: Audited Results for the year ended 30 September 2023
RAMSDENS HOLDINGS PLC Audited Results for the year ended 30 September 2023
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the year ended 30 September 2023 (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 Summary and outlook APPENDICES Who we are Lease portfolio The Board Image credit: Andrew Heptinstall Photography
Slide 4: Strong performance driven by growth across all of the Group's key income streams
Strong performance driven by growth across all of the Group’s key income streams Financial highlights Continuing our growth strategy • A great performance achieving record Profit Before Tax 1. Drive growth from core estate of £10.1m (FY22: £8.3m), an increase of 22% • Two stores relocated in the Yea
Slide 5: Key income streams
KEY _ INCOME , STREAMS
Slide 6: Foreign currency exchange – gross profit increased 8% year on year
Foreign currency exchange – gross profit increased 8% year on year History Opportunities and risks + Positive news on 2024 summer holiday £’m FY23 FY22 Change % bookings with more people expected to travel Total currency exchanged 408m 364m 12% + Competitive landscape year on year neutral Gross prof
Slide 7: Pawnbroking – loan book increased 19% year on year
Pawnbroking – loan book increased 19% year on year History Opportunities and risks £000s FY23 FY22 Change % + General economic climate of higher bills – demand for loans / threat to repayment rates Revenue 11,877 8,967 32% Gross profit 10,043 7,533 33% + Reduced numbers of alternative providers of s
Slide 8: Jewellery retail – revenue increased 23% year on year
Jewellery retail – revenue increased 23% year on year History Opportunities and risks + Benefit of recent investments in stock levels and presentation £000s FY23 FY22 Change % + Staff training and development of Revenue 33,474 27,107 23% new staff Gross profit 12,058 10,263 17% + Awareness of new je
Slide 9: Purchase of precious metals – gross profit increased 38% year on year
Purchase of precious metals – gross profit increased 38% year on year History Opportunities and risks £000s FY23 FY22 Change % + Sterling gold price – expectation is for price to remain high in short to medium Revenue 23,522 15,847 48% term Gross profit 9,161 6,626 38% + Economic conditions creating
Slide 10: Financials
FINANCIALS
Slide 11: Summary profit & loss
Summary profit & loss Key highlights Consolidated profit & loss ▪ Gross revenue increased 27% to £83.8m (FY22: £66.1m) with £000s FY23 FY22 Change % growth across each of the four key income streams Revenue 83,805 66,101 27% ▪ Gross profit increased 20% to £45.8m (FY22: £38.2m) Foreign currency 14,0
Slide 12: Cash flow statement
Cash flow statement Key highlights Cash flow statement ▪ Net cash inflows from operating activities in FY23 were £3.3m (FY22: £2.9m) £000s FY23 FY22 ▪ Working capital cash outflows in FY23 include significant investment in EBITDA 14,657 12,514 stock of £4.7m and the growth of the loan book, this has
Slide 13: Financial position
Financial position Key highlights Balance sheet ▪ Strong balance sheet with net assets of £48.2m (£41.8m As at 30 September As at 30 September at September 2022), including cash of £13.0m (£15.3m at £000s 2023 2022 September 2022) Non-current assets Property, plant and equipment 7,949 6,681 ▪ Invent
Slide 14: Strategic overview
| § STRATEGIC “ OVERVIEW >> Trustpilot Be Bele BEBE
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 Relocations and refurbishments ▪ Momentum in all key income streams ▪ Two stores relocated in the year and plans to relocate a further two ▪ Foreign currency – currency card launched, expectation to stores in 2024 maintain FX sales
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 smaller locations ▪ In the UK there are over 350 locations with a population
Slide 18: Strategy 3. Grow online presence
Strategy 3. Grow online presence Online jewellery revenue (£'000) Jewellery retail website (www.ramsdensjewellery.co.uk) 7,000 ▪ Online jewellery retail sales increased 70% year on year to £6.7m (FY22: £3.9m) 6,000 and represented 20% of total jewellery sold (FY22: 14%) 5,000 ▪ Approximately 50% of
Slide 19: Strategy 4. Capitalise on consolidation opportunities
Strategy 4. Capitalise on consolidation opportunities Pawnbroking ▪ We estimate the number of pawnbroking outlets in the UK remains steady at approximately 870 outlets operated by circa 130 pawnbroking businesses ▪ The South East of England has the highest concentration of pawnbroking outlets in the
Slide 20: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) ENVIRONMENTAL SOCIAL GOVERNANCE People Embrace green initiatives, safeguard Champion wellbeing and growth, Set a standard for transparency our tomorrow with every choice we crafting a workplace where every & compliance, weaving ESG into make today. individu
Slide 21: Summary and outlook
Summary and outlook • Great performance in the Year, generating record profit before tax of £10.1m, with growth in all key income streams • Strengthened balance sheet with net assets of £48.2m at 30 September 2023 • 16% increase in total dividend for FY23 to 10.4p per share (FY22: 9.0p per share) •
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 • 162 stores including two franchised stores (Sept 23) • Mainly located in Northern England, Scotland and Wales • Over 800 employees • Online offering for all core services including a high growth jew
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. £170, 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 2023 ▪ 158 leased stores as at September 2023 (nb two franchisees and two 70 owned freehold stores) 60 56 53 ▪ Average lease term remaining (to end of lease or break if earlier) is 18 months (as at September 2022 – 20 months) 50 40 ▪ 56
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