TIDMRFX
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 GBP9.5m (FY22: GBP8.3m).
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 GBP8.6m to GBP9.7m (HY22: GBP7.5m),
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
www.ramsdensforcash.co.uk
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END
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