Ramsdens Holdings PLC Acquisition of 18 stores trading as The Money Shop (6678R)
04 March 2019 - 6:00PM
UK Regulatory
TIDMRFX
RNS Number : 6678R
Ramsdens Holdings PLC
04 March 2019
Ramsdens Holdings PLC
("Ramsdens", the "Group", the "Company")
Acquisition of 18 stores trading as The Money Shop
-- Ramsdens announces the acquisition of the business and
certain operating assets of a selected portfolio of stores
currently trading as The Money Shop for a consideration of
GBP1.5million, payable in cash.
-- The 18 acquired stores will be rebranded as Ramsdens in the
coming weeks and will incorporate the full breadth of the Group's
customer proposition.
-- The acquisition supports the Group's continued delivery of
its growth strategy to expand Ramsdens' reach across communities in
the UK.
Ramsdens, the diversified financial services provider and
jewellery retailer, is pleased to announce the acquisition of the
business and certain operating assets of a portfolio of 18 stores
trading as The Money Shop from Instant Cash Loans Limited (the
"Acquisition") for a total consideration of GBP1.5million. The
purchase price includes cGBP0.4m of goodwill and cGBP1.1m of
assets. The Acquisition consideration will be satisfied in cash.
Under the terms of the Acquisition, Ramsdens will acquire the
pawnbroking loan books of the 18 stores and of five other The Money
Shop stores which are to close.
The Acquisition supports the Group's stated growth strategy of
expanding Ramsdens' presence and reach in the UK market and enables
the Group to leverage the significant investments made in recent
years in its brand, IT systems and people. The acquired stores are
primarily located in the North West of England and Scotland and
will be rebranded as Ramsdens over the coming weeks.
The Group believes there is significant potential to build upon
the existing foreign exchange proposition in these stores and to
improve performance through the expertise of the Group's management
team. In addition, the Board believes there is growth potential
arising from introducing the Group's growing jewellery retail
offering into the majority of the acquired stores.
The Board anticipates that the acquired stores will make a small
contribution to Group PBT in FY 2020 after factoring in integration
costs including those relating to refits, rebranding, training and
IT integration and that the acquired stores should contribute
approximately GBP0.6m to Group PBT in FY 2021.
With the Acquisition, Ramsdens is taking on approximately 70 new
employees.
Peter Kenyon, CEO of Ramsdens, commented:
"We are delighted to announce this value-enhancing acquisition
and welcome our new colleagues and customers to Ramsdens. This
acquisition further expands the reach of the Ramsdens brand and our
trusted offering across communities in the UK and demonstrates the
significant growth opportunities available to the Group in the
fragmented UK market.
Ramsdens has a proven track record of acquiring stores and
quickly integrating them into the Group and we will now prioritise
our resources on these acquired stores. We are confident that this
acquisition will deliver value for the Group's shareholders as well
as the local communities where they operate."
This announcement contains inside information.
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
Joshua Hughes
Hudson Sandler (Financial PR) Tel: +44 (0) 20 7796 4133
Alex Brennan
Lucy Wollam
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.
Headquartered in Middlesbrough, the Group operates from 140
stores within the UK (including 4 franchised stores) and has a
small but growing online presence.
In the last financial year, the Group served over 800,000
customers across its different services. Ramsdens is fully FCA
authorised for its pawnbroking and credit broking activities.
www.ramsdensplc.com
www.ramsdensforcash.co.uk
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END
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