Ramsdens Holdings Plc · LSE:RFX
Ramsdens — 12M to 31 March 2020 Earnings Presentation
26 slides from Ramsdens's earnings presentation, May 27, 2020
Slide 1: Ramsdens Holdings PLC
Ramsdens Holdings PLC Second Interim Results for the twelve months ended 31 March 2020 (due to change in accounting reference date)
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the twelve months ended 31 March 2020 (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 a
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 Western Union and cheque cashing) NB. The
Slide 4: Financial highlights
Financial highlights Profitable growth Continued double digit growth in core segments • Reported Profit Before Tax up 30% to • Foreign Currency Exchange income up • Pawnbroking income less impairment up £8.5m 13% to £13.1m 19% to £9.0m Foreign currency Loan book capital (£'000s) • Underlying Profit
Slide 5: Covid-19: where are we
Covid-19: where are we Lockdown Position Coming out of Lockdown • We will be re-opening stores in June on a phased basis subject to • All stores temporarily closed on 23 March Government guidance • Furloughed c700 staff • Stores already have segregated tills and glass screens, therefore • Applying f
Slide 6: Financial Review
FINANCIAL REVIEW
Slide 7: Summary profit & loss
Summary profit & loss ▪ Underlying profit before tax up 19%, in line with expectations Consolidated profit & loss ▪ Administrative expenses increased 18%, primarily as a result of increased staff costs and overheads arising from the Group’s % new and acquired stores £000s (twelve months ended 31 Mar
Slide 8: Business segments
Business segments Diversified and growing revenue streams Revenue Gross profit £000s (twelve months ended 31 March) 12M 20 FY19 % Change 12M 20 FY19 % Change Foreign Currency Exchange (FX) 13,115 11,585 13% 13,115 11,585 13% 1 Pawnbroking 13,634 10,544 29% 8,967 7,520 19% 2 Jewellery Retail 12,553 9
Slide 9: Cash flow statement
Cash flow statement Strong cash generation ▪ Strong cash generation continues with £13.1m in EBITDA Cash flow statement generated in the twelve months ▪ £0.4m increase in inventories with new stores partially offset by £000s (twelve months ended 31 March) 12M 20 FY19 the non-recurring scrapping of s
Slide 10: Financial position
Financial position ▪ Strong liquidity to manage near term Covid-19 pressures Balance sheet ▪ Strengthening balance sheet with net assets of £35.0m including net cash of £11.1m £000s (As at 31 March) 12M 20 FY19 Non-current assets ▪ Intrinsic value of metals underpinning the inventory value, as Prope
Slide 11: Operational Review and Outlook
OPERATIONAL REVIEW AND OUTLOOK
Slide 12: Clear growth strategy
Clear growth strategy CAPITALISE ON DRIVE GROWTH FROM GROW ONLINE EXPAND STORE ESTATE CONSOLIDATION CORE ESTATE PRESENCE OPPORTUNITIES WELL INVESTED SYSTEMS MARKETING AND BRAND PEOPLE, CULTURE AND 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 ▪ Foreign Currency Exchange income up 13% to £13.1m ▪ During the Period approximately 784,000 customers exchanged £521m of foreign Ramsdens offers FX services through its currency. Given the ongoing consumer un
Slide 14: Strategy 1. Drive growth from core estate: Pawnbroking
Strategy 1. Drive growth from core estate Pawnbroking Segment overview ▪ Pawnbroking gross profit up 19% to £9.0m ▪ Past due levels had normalised prior to the coronavirus pandemic which resulted in Ramsdens offers loans secured against store closures from 23 March 2020 and consequently increased le
Slide 15: Strategy 1. Drive growth from core estate: Jewellery Retail
Strategy 1. Drive growth from core estate Jewellery Retail Segment overview ▪ Jewellery Retail revenue grew by 28% to £12.6m. Online sales (including ex-pledge items) grew by 94% in the year and amounted to 6% of all jewellery sold (FY19 5%) Ramsdens retails new and second-hand ▪ Growth achieved des
Slide 16: Strategy 1. Drive growth from core estate: Purchase of Precious Metals
Strategy 1. Drive growth from core estate Purchase of Precious Metals Segment overview ▪ Gross profit up 53% to £7.3m including the non-recurring stock scrapping profit of £0.8m where the stock originated from customer purchases Ramsdens purchases unwanted jewellery ▪ The average sterling gold price
Slide 17: Strategy 1. Drive growth from core estate: Other Services
Strategy 1. Drive growth from core estate Other Services Segment overview ▪ Growing performance from the Other Services has primarily been driven by the acquisition of The Money Shop stores (immediately prior to end of FY19) which have a higher average cheque cashing and Western Union income per sto
Slide 18: Strategy 2. Expand the store estate
Strategy 2. Expand the store estate Paused until normality resumes Retail store estate (April 2020 – 159 managed stores) ▪ Six new stores have opened in the year. Barnsley, Doncaster, Guisborough, Harrogate, Chippenham and Teesside Airport ▪ Four Money Shop stores were acquired during the year, two
Slide 19: Branch estate has a flexible lease profile
Branch estate has a flexible lease profile Lease expiry/break position at April 2020 ▪ 159 trading stores as at April 2020 (excluding franchisees but includes 50 47 46 Boston not yet open) 45 ▪ Average lease term remaining (to end of lease or break if earlier) is 24 40 months 35 30 30 ▪ No store has
Slide 20: Strategy 3. Grow online presence
Strategy 3. Grow online presence Retail Jewellery - www.RamsdensJewellery.co.uk ▪ Gross jewellery sales up 94% on FY19 and now accounting for 6% Gross jewellery sales by month (£) of all jewellery sold 250,000 ▪ Gross jewellery sales increased 12% in H1 however significant growth in H2 with gross je
Slide 21: Strategy 3. Grow online presence
Strategy 3. Grow online presence Currency - www.RamsdensCurrency.co.uk ▪ Online FX gross amount purchased grew by 32% on FY19 to £42.4 million ▪ Increased usage of affiliate / price comparison sites to grow awareness and volumes ▪ Currency card market has been thoroughly researched. Project has been
Slide 22: Strategy 3. Customer Feedback - Trustpilot
Strategy 3. Customer Feedback - Trustpilot www.RamsdensCurrency.co.uk www.RamsdensJewellery.co.uk Best rates on the High Street – “Best rates on the High Street. Quality watch – “I had been searching for a quality watch, for over a Great service too. Would recommend every time” year now and have res
Slide 23: Summary and outlook
Summary and outlook • Strong performance in the 12 months ended 31 March 2020 • Benefit of diversified income streams • Acquired, new and relocated stores trading ahead of expectations • Good pipeline of further stores though expansion paused • Continued investment in e-commerce activities and digit
Slide 24: Appendices
APPENDICES <
Slide 25: 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 26: The Ramsdens NEDs
The Ramsdens NEDs Andrew David Meehan, Non-Executive Chairman Andy is a highly experienced retail executive with over 30 years' experience including CEO and CFO roles at the Co-Operative Retail Services, Storehouse plc and Sears plc. Since 2006 he has held a number of chairmanships and non-executive
Ramsdens Holdings — 12M to 31 March 2020 Earnings Presentation on 6ix