Slide 1: Ramsdens Holdings PLC Results for the year ended 31 March 2019
Ramsdens Holdings PLC Results for the year ended 31 March 2019
Slide 2: Disclaimer
Disclaimer This document, which comprises a presentation of the results for the year ended 31 March 2019 (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 accordance
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 GROSS PROFIT UNDERLYING* UNDERLYING* GROWTH ACROSS EBITDA OF £8.3m PBT OF £6.7m ALL SEGMENTS £2.2m 5% 4% FY19 £30.5m FY18: £7.9m FY18: £6.5m FY18: £28.3m NET ASSETS BASIC EPS 16.7 PROPOSED OF £30.9m PENCE PER SHARE FINAL DIVIDEND OF 4.8p £3.3m 2% 9% FY18: £27.6m FY18: 16.3p FY18
Slide 5: Strategic Highlights
Strategic Highlights 1. DRIVE GROWTH FROM CORE 2. EXPAND THE CORE ESTATE ESTATE • Investment in retail stock and • 6 greenfield stores opened in: merchandising produced positive results • Kendal • Preston • 5 stores relocated: • Halifax • Whitehaven • Glasgow • Alloa • Redcar • Castleford • Barrow •
Slide 6: Financial Review
®©) RAMSDENS Ww FINANCIAL LIMITED FINANCIAL REVIEW
Slide 7: Changes in accounting policies
Changes in accounting policies • IFRS 9 adoption has increased pawnbroking revenue and pawnbroking cost of sales by £0.6m with no net effect on gross profit. Revenue was previously reported net of expected credit losses, whereas it is now reported gross with credit losses shown separately as a cost
Slide 8: Summary profit & loss
Summary profit & loss • Revenue up 17% to £46.8m however £3.0m due to adoption of Consolidated Statement of Comprehensive Income IFRS 9 & 15, underlying revenue growth 10%. • Cost sales has also increased by £3.0m due to IFRS 9 & 15 • Gross Profit growth in all four key segments, up £2.2m to £30.5m
Slide 9: Business segments: Diversified and growing revenue streams
Business segments Diversified and growing revenue streams Revenue Gross profit £000s (year to 31 March) FY19 FY18 % Change FY19 FY18 % Change Foreign Currency Exchange (FX) 11,585 11,329 2% 11,585 11,329 2% 1 Pawnbroking 10,544 6,966 51% 7,520 6,966 8% 2 3 Jewellery Retail 9,771 7,960 23% 5,039 4,13
Slide 10: Cash Flows
Cash Flows Strong cash generation • Strong cash generation continues with £8.3m underlying EBITDA Consolidated Statement of Cash Flows generated in the year • Inventory movement of £5.1m • £3.0m increase in stock £000s (year to 31 March) FY19 FY18 • £2.1m accounting reclassification EBITDA 8,039 7,7
Slide 11: Financial Position
Financial Position Consolidated Statement of Financial Position • Strengthening balance sheet with net assets of £30.9m including £000s (year to 31 March) FY19 FY18 Non-current assets cash of £13.4m Property, plant and equipment 5,485 4,302 • £2.1m reclassification of inventory from receivables, rep
Slide 12: Operational review and outlook
Operational review and 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 12
Slide 13: Drive growth from core estate - Foreign Currency Exchange (FX)
Strategy 1. Drive growth from core estate - Foreign Currency Exchange (FX) Segment overview • Largest segment contributing 38% of gross profit • Good performance despite challenging overall market conditions with the exceptional UK summer weather leading to less overseas holiday travel and, as a res
Slide 14: Drive growth from core estate - Pawnbroking
Strategy 1. Drive growth from core estate - Pawnbroking Segment overview • Pawnbroking contributes 25% of gross profit • The move to the industry norm of a 6 month pledge term has had an inflationary influence on Ramsdens offers loans secured against the loan book of c£200k over the prior year but n
Slide 15: Drive growth from core estate - Jewellery Retail
Strategy 1. Drive growth from core estate - Jewellery Retail Segment overview • Jewellery retail accounts for 16% of gross profit • In addition to the growth from new stores, the investment in stock levels, stock presentation and staff training has led to growth across the core estate Ramsdens retai
Slide 16: 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 16% of gross profit • The Group has continued its strategy to increase jewellery stock levels to assist jewellery sales and create seco
Slide 17: 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 and include: • Cheque cashing – Ramsdens provides immediate clearance for cheques to customers Ramsdens also provides additional services who do not wi
Slide 18: Drive growth from core estate - Relocations
Strategy 1. Drive growth from core estate - Relocations Summary Store relocations – Halifax & Barrow Some of the older Ramsdens network in suburban sites and are ‘old model’ pawnbrokers. Relocating to higher footfall high street / shopping centre stores compliments the strategy to grow FX and retail
Slide 19: Expand the store estate
Strategy 2. Expand the store estate • Maintained disciplined approach to store openings Retail store estate • 6 Greenfield sites opened – Alloa, Kendal, Castleford, Preston, Whitehaven and Bristol • Plan to open 6 new stores in FY20, concentrating on converting the acquired Money Shop stores. Ripon
Slide 20: Grow online presence
Strategy 3. Grow online presence • Dedicated jewellery retail website www.RamsdensJewellery.co.uk • Dedicated Travel Money website www.RamsdensCurrency.co.uk. plus eBay as a distribution channel • Mobile friendly • Mobile friendly • Click & Collect • Click & Collect and Home Delivery available • Onl
Slide 21: Capitalising on consolidation opportunities
Strategy 4. Capitalising on consolidation opportunities • Growth opportunities presented by operating in a fragmented market • Selective acquisitions support continued delivery of growth strategy to expand Ramsdens’ reach across communities in the UK • Acquired net 16 stores from The Money Shop in M
Slide 22: Summary & Outlook
Summary & Outlook • Overall a solid performance given the summer weather, Brexit uncertainty and challenges facing high street retail. • Early performance of the new stores ahead of expectation. • Capitalising on consolidation opportunities – acquisition before year end and post year end • Invested
Slide 23: Appendices
APPENDICES ®©) RAMSDENS Ww FINANCIAL LIMITED 23
Slide 24: The Ramsdens team
The Ramsdens team Peter Edward Kenyon (54), 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 25: The Ramsdens NEDs
The Ramsdens NEDs Andrew David Meehan, (64) 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-exec