REG - Ramsdens Holdings - Pre-Close Trading Update

Ramsdens HoldingsAnnouncement

04/04/2023 07:00

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RNS Number : 2304V  Ramsdens Holdings PLC  04 April 2023

 

4 April 2023

Ramsdens Holdings PLC

("Ramsdens" or the "Group")

Pre-Close Trading Update

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

H1 trading ahead of Board expectations driven by strong performances across
diversified income streams

Ramsdens Holdings PLC, the diversified financial services provider and
retailer, announces a pre-close trading update for the six months ended 31
March 2023 (the "Period").

During the Period, Ramsdens has continued to make very good progress across
each of its four key business segments as well as against the Group's broader
long-term strategic objectives.  As a result, the Group delivered a strong
performance for the Period and the Board now expects the FY23 Profit before
Tax to be not less than £9.5m (FY22: £8.3m).

H1 FY23 highlights included:

·    Strong performances across each of the Group's four key diversified
income streams:

o  Jewellery retail gross profit increased by over 20% on prior year
reflecting further growth both in store and online;

o  Foreign currency exchange was up by approximately 40% on the prior year,
with volumes recovering to approximately 70% of pre pandemic levels for the
Period.  Volumes at the end of March in the lead up to Easter were
encouraging;

o  The pawnbroking loan book has increased by 13% from the year-end balance
of £8.6m to £9.7m (HY22: £7.5m), representing a record level for
Ramsdens;

o  The purchase of precious metal volumes has increased by over 20% on prior
year.

·    Continued expansion of the store estate in line with the Group's long
term growth strategy:

o  Six new stores opened in H1 in Bootle, Basildon, Bradford, Croydon,
Maidstone and Warrington;

o  The total store estate at the Period end was 158 stores, excluding two
franchised stores, (H1 FY22: 153 stores).

Peter Kenyon, CEO of Ramsdens commented:

"We are pleased to report an excellent performance in the first half of the
year, resulting in an outcome ahead of the Board's expectations.  This was
achieved by strong trading across all of our key income streams.

The investments made over recent years in our jewellery retail operations
continue to deliver encouraging returns, including notably a record revenue
performance for the key Christmas period.  We continue to see strong customer
demand for premium watch brands and our extensive range of gold chain and
bracelet products.

Our trusted pawnbroking service is providing more and more consumers with a
flexible solution for small sum, short term loans.  We have seen increased
demand from both existing and new customers across the store estate resulting
in record loan book levels for Ramsdens.  Our loan book remains high-quality
with consistently high repayment levels, and we are pleased to be able to
support more and more customers manage in the face of increased living
costs.

Our foreign currency volumes were consistent across the winter season with an
increase in activity seen in the lead up to Easter giving us encouragement
ahead of the key summer trading period.  We continue to invest in this
important business segment for Ramsdens and expect to launch a new foreign
currency focused website and multi-currency card in the second half of the
financial year.

Our gold buying service has also seen greater demand especially with the
higher gold price seen in 2023.

We are successfully executing against our long-held strategic priorities.  We
are focused on driving organic growth by delivering ongoing continuous
improvements to our operations, expanding the store estate - for which we have
a strong pipeline of potential new stores - and investing in our online
offering.  In addition, we are continuing to seek and appraise attractive
consolidation opportunities in what remains a highly fragmented market."

Notice of Interim Results:

The Board expects to release its interim results on 7 June 2023.

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations
2019. The person responsible for making this announcement on behalf of the
Company is Peter Kenyon.

 

Enquiries:

Ramsdens Holdings
PLC
Tel: +44 (0) 1642 579957

Peter Kenyon, CEO

Martin Clyburn, CFO

 

Liberum Capital Limited (Nominated Adviser)              Tel: +44 (0)
20 3100 2000

Richard Crawley

Lauren Kettle

 

Hudson Sandler (Financial
PR)
Tel: +44 (0) 20 7796 4133

Alex Brennan

Emily Brooker

 

About Ramsdens

Ramsdens is a growing, diversified, financial services provider and retailer,
operating in the four core business segments of foreign currency exchange,
pawnbroking loans, precious metals buying and selling and retailing of second
hand and new jewellery.  Ramsdens does not offer unsecured high-cost
short-term credit.

 

Headquartered in Middlesbrough, the Group operates from 160 stores within the
UK (including 2 franchised stores) and has a growing online presence.

 

Ramsdens is fully FCA authorised for its pawnbroking and credit broking
activities.

 

www.ramsdensplc.com (http://www.ramsdensplc.com/)

www.ramsdensforcash.co.uk (http://www.ramsdensforcash.co.uk/)
 

 

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