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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Ramsdens Holdings Plc | LSE:RFX | London | Ordinary Share | GB00BDR6V192 | ORD GBP0.01 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
2.00 | 1.06% | 190.00 | 185.00 | 195.00 | 190.00 | 187.50 | 190.00 | 94,384 | 14:27:49 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Finance Services | 83.81M | 7.76M | 0.2451 | 7.75 | 60.12M |
TIDMRFX
RNS Number : 8793B
Ramsdens Holdings PLC
15 June 2021
15 June 2021
Ramsdens Holdings PLC
("Ramsdens", the "Group", the "Company")
Interim Results for the six months ended 31 March 2021
Resilient performance and well positioned to resume our growth strategy
Ramsdens, the diversified financial services provider and retailer, today announces its Interim Results for the six months ended 31 March 2021 (the "Period").
The first UK national lockdown was introduced on 23 March 2020, and so the comparable period for the six months to 31 March 2020 was not substantially impacted by these restrictions.
6 months ended 31 March 2020 18 months ended 6 months ended 31 March 2021 (unaudited) 30 September (unaudited) HY21 HY20 2020 (audited) Gross Revenue GBP20.8m GBP27.0m GBP76.9m ------------------ --------------- ----------------- Gross Profit GBP10.5m GBP16.7m GBP47.1m ------------------ --------------- ----------------- Profit/(Loss) before tax (GBP0.1m) GBP2.3m GBP9.2m ------------------ --------------- ----------------- Net Cash GBP15.0m GBP11.1m GBP15.9m ------------------ --------------- -----------------
Highlights:
-- Resilient performance against challenging trading conditions caused by Covid-19 restrictions, with pre-tax losses limited to GBP0.1m (HY20: GBP2.3m profit)
-- Gross revenue decreased 23% to GBP20.8m (HY20: GBP27.0m)
-- Jewellery retail revenue increased 14% to GBP8.1m (HY20: GBP7.1m) despite the regional lockdown periods. Online revenue doubled year on year and now represents 17% of total jewellery sold
-- Pawnbroking gross profit decreased 26% to GBP3.5m (HY20: GBP4.7m) as a result of the loan book falling as customers repaid their loans during lockdown and subdued demand for new loans
-- Foreign Currency Exchange severely impacted by the Covid-19 travel restrictions resulting in income down 78% to GBP1.0m (HY20: GBP4.7m)
-- Gross profit from purchases of precious metals decreased 28% to GBP2.3m (HY20: GBP3.2m), reflecting reduced high street footfall during the regional lockdown periods
-- Administration expenses decreased 26% to GBP10.4m (HY20: GBP14.2m) with overheads well controlled. The Company received GBP0.9m under the CJRS furlough scheme which is presented as a reduction to salary costs.
-- Net Assets increased GBP0.5m to GBP35.5m (31 March 2020: GBP35.0m)
-- At the Period end, net cash was GBP15.0m and the Company's revolving credit facility of GBP10m was undrawn
Given the ongoing impact of the Covid-19 pandemic and the impact on profitability in the Period, as well as the Group's continuing use of Government support schemes, the Board believes it is prudent and in the long-term interests of shareholders to preserve the Group's available cash resources. Consequently, the Board is not recommending an interim dividend for the Period. As restrictions ease, the Board expects the business to return to profitability and allow it to recommence the payment of dividends, in accordance with its dividend policy.
Peter Kenyon, Chief Executive, commented:
"We are pleased to have delivered a resilient performance during the Period despite the difficult trading conditions experienced. This is a testament to the strength of Ramsdens' diversified business model, our loyal customer base, and the commitment of our employees, whom I would like to thank fo r their continued dedication to serving our local communities throughout the pandemic.
We are encouraged by the current easing of restrictions across the UK including the re-opening of non-essential retail and the lifting of some international travel restrictions.
Whilst the UK Government 'green list' for tourism is currently very limited, meaning we are unable to provide guidance for this summer's FX trading, we believe there is significant underlying consumer demand for international travel which the Group is well positioned to capitalise on.
Despite restrictions, during the Period we continued to focus on delivering against our long-term growth strategy. We currently have six new Ramsdens stores in the pipeline including debut sites in London and the South East and will continue to appraise new site opportunities in line with our expansion plans."
SEnquiries:
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
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. Ramsdens does not offer unsecured high cost short term credit.
Headquartered in Middlesbrough, the Group operates from 154 stores within the UK (including 3 franchised stores) and has a growing online presence.
Ramsdens is FCA authorised for its pawnbroking and credit broking activities.
www.ramsdensplc.com
www.ramsdensforcash.co.uk
www.ramsdensjewellery.co.uk
CHIEF EXECUTIVE'S REPORT
This interim report covers the six months ended 31 March 2021 (the "Period"). The Period was undoubtedly challenging, with the Group operating for four months of the Period under lockdown restrictions in one or all parts of the UK. This contrasts sharply to the comparable prior period, with the majority of the six month period to 31 March 2020 being unaffected by the Covid-19 pandemic.
Our strategic priorities during this unusual Period have been to:
1. operate a secure and safe environment for our staff, customers and the local communities we serve;
2. accelerate the Group's online strategic objectives; 3. maintain a healthy financial position; and
4. prepare to capitalise on changes across the sector arising from the disruption caused by Covid-19.
FINANCIAL REVIEW
Despite all of the challenges, the Group broadly broke even with a reported Loss Before Tax of GBP0.1m (HY20: profit of GBP2.3m). Gross profit for the Period decreased 37% to GBP10.5m (HY20: GBP16.7m) as a result of the impact of Covid-19 restrictions.
Administration expenses were reduced by 26% to GBP10.4m (HY20: GBP14.2m) with overheads well controlled and the UK Government CJRS furlough grants of GBP0.9m presented as a reduction to salary costs.
The Group's balance sheet remained strong with net assets of GBP35.5m (HY20: GBP35.0m), broadly consistent with the position reported at 30 September 2020 (GBP35.6m). The Group's main assets are cash (including foreign currency), pawnbroking loans secured on gold jewellery and watches, and retail jewellery stock. Net cash as at 31 March 2021 was GBP15.0m. The Group also has the benefit of a GBP10.0m revolving credit facility, which is currently undrawn. The facility was extended for a further year during the Period and expires in March 2024.
Capital expenditure in the Period of GBP0.9m (HY20: GBP0.5m) includes the cost of relocating stores, store refurbishments and the purchase of two store freehold properties for GBP0.15m.
Given the ongoing impact of the Covid-19 pandemic, no profitability in the Period and the Group continuing to receive UK Government support in the form of furlough to protect jobs, the Board believes it is prudent and in the long-term interests of shareholders to preserve its available cash resources. Consequently, the Board is not recommending an interim dividend. As Covid-related restrictions ease, the Board expects the business to return to profitability and allow it to recommence the payment of dividends, in accordance with its dividend policy.
SEGMENTAL REVIEW
Foreign Currency Exchange
The foreign currency exchange (FX) segment primarily comprises the sale and purchase of foreign currency notes to holiday-makers. Ramsdens also offers prepaid travel cards and international bank-to-bank payments.
HY21 HY20 YOY Total Currency exchanged GBP20m GBP181m (89%) -------- --------- ------ Income GBP1.0m GBP4.7m (78%) -------- --------- ------ Online click & collect orders GBP1.6m GBP18.5m (91%) -------- --------- ------ % of online FX 8% 10% (2%) -------- --------- ------ Percentage of GP 10% 28% (18%) -------- --------- ------
The restrictions on international travel due to the Covid-19 pandemic and the associated quarantine regulations put in place by governments across the globe have severely impacted the demand for international holidays and, as a result, the demand for foreign currency exchange.
The Group has successfully managed commission margins in order to minimise the impact on profitability of the reduction in total currency exchanged.
As we look forward, the income from this service is anticipated to grow with the easing of restrictions and the return of international travel. We strongly believe that customers' desire to travel abroad remains high. While we have seen more people use card payments in the UK, we are confident that the need for foreign currency cash will remain high given the popular holiday destinations and known spending patterns while abroad.
Pawnbroking
Pawnbroking is a small subset of the consumer credit market in the UK and a simple form of asset backed lending dating back to the foundations of banking. In a pawnbroking transaction an item of value, known as a pledge (in Ramsdens' case this is jewellery and watches) is held by the pawnbroker as security against a six-month loan. Customers pay interest on this loan, repay the capital sum borrowed and recover their pledged item. If a customer defaults on the loan, the pawnbroker sells the pledged item to repay the amount owed and returns any surplus funds to the customer. Pawnbroking is regulated by the FCA in the UK and Ramsdens is FCA authorised.
000's HY21 HY20 YOY Gross profit GBP3,480 GBP4,706 (26%) --------- --------- ------ Total loan book GBP5,749 GBP7,747 (26%) --------- --------- ------ Past due GBP893 GBP1,115 (20%) --------- --------- ------ In date loan book GBP4,856 GBP6,632 (27%) --------- --------- ------ Percentage of GP 33% 28% 5% --------- --------- ------
The various national lockdowns have impacted the borrowing patterns of our customer base, in reducing their borrowing needs alongside an increase in customers repaying their loans. If, as we expect, the borrowing pattern is similar to that following lockdown in 2020, we will see normal lending volumes return in the summer and the loan book will rebuild over time. The typical pawnbroking customer is cautious; they know that the item pledged is their store of wealth and that this enables them to borrow when needed.
The average loan value as at 31 March 2021 was GBP265 (30 September 2020: GBP248). The loan book is considered to be of high quality with a low loan to value ratio of approximately two thirds of the gold price at the Period end. Where loans are not repaid, the current high gold price enables an improved recovery of interest where goods that are not appropriate for retailing are scrapped.
The online pawnbroking facility has continued to be popular amongst customers to make loan repayments. This facility allows the customer to save interest by repaying when they have the funds and prior to any store visit. Only a limited number of customers have chosen to borrow via the website because the goods still need to be posted to Ramsdens.
Jewellery Retail
The Group retails new and second-hand jewellery to customers both in store and online. The Board continues to believe there is further growth potential for Ramsdens in this segment which can be achieved by leveraging the Group's store estate and e-commerce operations and by cross-selling to existing customers and acquiring new customers.
Retailing of new jewellery products complements the Group's second-hand offering to give our customers greater choice in breadth of products and price, and enables the Group to attract some customers who prefer not to buy second-hand. New jewellery items now account for 39% (HY20: 31%) of jewellery retail revenue.
000's HY21 HY20 YOY Revenue GBP8,074 GBP7,054 14% ---------- --------- ----- Gross Profit GBP3,168 GBP3,113 2% ---------- --------- ----- Margin % 39% 44% (5%) ---------- --------- ----- Jewellery retail stock GBP10,810 GBP8,919 21% ---------- --------- ----- Online sales* GBP1,560 GBP779 100% ---------- --------- ----- % of sales online* 17% 9% 8% ---------- --------- ----- Percentage of GP 30% 19% 11% ---------- --------- -----
* based on total jewellery sold which includes ex-pledge items
Store sales have been limited through the Period due to varying restrictions during the lockdown periods. However, we have seen an increase in demand for higher value items, in particular premium watches where sales were up 13%. The ongoing development of the premium watch sales offering continues to generate higher cash margin per product sold but at a lower percentage margin. The Board continues to believe that watch sales represent incremental revenue and profit for the Group.
The investment in our online retail jewellery website, www.ramsdensjewellery.co.uk continues to deliver improved results. The total jewellery sold through our ecommerce activities doubled to GBP1.6m (HY20: GBP0.8m) for the Period. We are continuing to make further investments in improving the customer experience, retargeting campaigns, pay per click campaigns, affiliate schemes and search engine optimisation. The ecommerce department is managed as a separate business unit and is profitable.
We believe there is an ongoing opportunity for improving and growing our jewellery retail business. Our investment in strengthening the retail team, each with a product category focus, is supporting ongoing growth. Additionally, t he Group has focused on enhancing the appeal of its jewellery stock offering through better displays, range expansion and regular replenishment of the new jewellery range, increased investment in pre-owned premium watches, and undertaking targeted promotional activity to reinforce the Ramsdens brand's value-for-money reputation.
Purchases of Precious Metals
Through the precious metals buying and selling service, Ramsdens buys unwanted jewellery, gold and other precious metals from customers for cash. Typically, a customer brings unwanted jewellery into a Ramsdens store and a price is agreed with the customer depending upon the retail potential, weight or carat of the jewellery. The Group has second-hand dealer licences and other permissions and adheres to the approved "gold standard" for buying precious metals.
Once jewellery has been bought from the customer, the Group's dedicated jewellery department assesses whether or not to retail the item through the store network or online. Income derived from jewellery, which is purchased and then retailed, is reflected in jewellery retail income and profits. The residual items are smelted and sold to a bullion dealer for their intrinsic value and the proceeds are reflected in the accounts as precious metals buying income.
000's HY21 HY20 YOY Revenue GBP5,623 GBP7,499 (25%) --------- --------- ------ Gross Profit GBP2,330 GBP3,214 (28%) --------- --------- ------ Percentage of GP 22% 19% 3% --------- --------- ------
In comparing the two six month periods, the average sterling gold price increased by 14% in HY21.
The weight of gold purchased has decreased primarily due to the reduced high street footfall as a consequence of the lockdowns plus a reduced need for additional cash and a lower volume of foreign currency customers to whom we have traditionally cross-sold this service. We anticipate the weight purchased will increase as trading conditions normalise. In the near term, we believe the gold price will remain high, assisting margins.
Other services
In addition to the four core business segments, the Group also provides additional services in cheque cashing, Western Union money transfer and credit broking and it receives franchise fees.
000's HY21 HY20 YOY Revenue GBP540 GBP1,029 (48%) ------- --------- ------ Gross Profit GBP540 GBP937 (42%) ------- --------- ------ Percentage of GP 5% 6% (1%) ------- --------- ------
Whilst this has been a steady source of income, cheque cashing was and continues to be a service in decline and represents a large proportion of the reduction in gross profit in this segment.
OPERATIONAL REVIEW
The retail estate continues to be actively managed. In the main, landlords have been realistic to the current high street situation. Where appropriate, lease renewals have generally resulted in rent reductions, greater flexibility or sometimes both. Two stores were closed and merged with nearby stores where we could not agree reasonable lease terms with our landlords. Four stores were relocated to take advantage of better locations with higher footfall and two stores were refurbished to provide a better customer experience. During the next twelve months, we anticipate relocating a further six stores and refurbishing six stores.
Our new store opening strategy has recommenced. We have a strong pipeline of target locations and have advanced six locations into various stages of the planning and legal process. This expansion includes - for the first time - locations in London and the South East and we have recruited Deborah Papas, an experienced pawnbroker and jeweller, to head up this geographic expansion opportunity which we believe presents a greater opportunity to acquire independent pawnbrokers. The first store in Kent is scheduled to open in July.
We have promoted Claire Gebski to head up our staff engagement and staff development. This important role will ensure that we continue to focus on our people and develop our culture of seeking continuous improvement. Amongst other things, our staff forum team have been challenged to see how we can further improve our environmental footprint and have recently launched a "Think Green" initiative.
Ernst & Young have been engaged as our auditors for nine years and the Board is grateful for their support and challenge over this period. Following a review, the Board has made the decision to appoint Grant Thornton for the 2021 audit.
I would like to take this opportunity to thank each and every staff member for their dedication, commitment, willingness to strive for continuous improvement and their focus on delivering fantastic service to our customers.
OUTLOOK
Hopefully, we are nearing the time when the UK Government will further ease social distancing measures in the UK and also lift varying restrictions enabling freer but safe international travel.
The Group has a strong financial footing, the benefit of diversified income streams, a growing online presence and a well-invested store network. These attributes, as well as our belief that there is strong underlying consumer demand for our services, gives the Board confidence that Ramsdens is well placed to not only navigate the near term challenges, but also to emerge in a strong position to return to growth and deliver our strategy to create value for all of the Group's stakeholders.
Peter Kenyon
Chief Executive Officer
Interim Condensed Financial Statements
Unaudited condensed consolidated statement of comprehensive income
For the six months ended 31 March 2021
6 months 6 months 18 months Ended ended ended 31 March 31 March 30 September 2021 2020 2020 Unaudited Unaudited Audited Note GBP'000 GBP'000 GBP'000 Revenue 2 20,835 26,984 76,938 Cost of sales (10,290) (10,309) (29,789) ---------- ---------------------------- -------------- Gross profit 2 10,545 16,675 47,149 Other Income - - 725 Administrative expenses (10,446) (14,151) (37,858) ---------- ---------------------------- -------------- Operating profit 99 2,524 10,016 Finance Costs 3 (232) (240) (795) ---------- ---------------------------- -------------- (Loss) / profit before tax (133) 2,284 9,221 Income tax expense 29 (592) (2,103) Total comprehensive (loss) / income for the period (104) 1,692 7,118 ---------- ---------------------------- -------------- Basic earnings per share in pence 4 (0.3) 5.5 23.1 Diluted earnings per share in pence 4 (0.3) 5.3 22.5
Unaudited condensed consolidated statement of changes in equity
For the six months ended 31 March 2021
6 months 6 months 18 months ended ended ended 31 March 31 March 30 September 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Opening total equity 35,555 33,962 30,377 Total comprehensive income for the period (104) 1,692 7,118 ---------- ---------- ------------- Transactions with shareholders: Share capital issued 6 - - Dividends paid - (832) (2,313) Share based payments 103 164 398 Deferred tax on share based payments (42) (25) (25) ---------- ---------- ------------- Total transactions with shareholders 67 (693) (1,940) ---------- ------------- Closing total equity 35,518 34,961 35,555 ---------- ---------- -------------
Unaudited condensed consolidated statement of financial position
At 31 March 2021
6 months 6 months 18 months ended ended ended 31 March 31 March 30 September 2021 2020 2020 Unaudited Unaudited Audited Note GBP'000 GBP'000 GBP'000 Assets Non-current assets Property, plant and equipment 5,207 5,354 4,845 Intangible assets 807 1,089 870 Investments - - - Right-of-use assets 8,286 9,009 8,536 Deferred tax assets 76 273 182 ---------- ---------- ----------------- 14,376 15,725 14,433 Current Assets Inventories 13,644 13,055 13,360 Trade and other receivables 7,729 10,147 8,743 Cash and short term deposits 14,996 11,051 15,873 ---------- ---------- ----------------- 36,369 34,253 37,976 ---------- ---------- ----------------- Total assets 50,745 49,978 52,409 ---------- ---------- ----------------- Current liabilities Trade and other payables 6,169 4,551 6,422 Lease liability 1,745 1,818 2,005 Income tax payable 70 809 1,157 ---------- ---------- ----------------- 7,984 7,178 9,584 ---------- ---------- ----------------- Net current assets 28,385 27,075 28,392 ---------- ---------- ----------------- Non-current liabilities Lease liability 7,049 7,647 7,094 Accruals and deferred income 133 - 153 Deferred tax liabilities 61 192 23 ---------- ---------- ----------------- 7,243 7,839 7,270 ---------- ---------- ----------------- Total liabilities 15,227 15,017 16,854 ---------- ---------- ----------------- Net assets 35,518 34,961 35,555 ---------- ---------- ----------------- Equity Issued capital 5 314 308 308 Share premium 4,892 4,892 4,892 Retained earnings 30,312 29,761 30,355 ---------- ---------- ----------------- Total equity 35,518 34,961 35,555 ---------- ---------- -----------------
Unaudited condensed consolidated statement of cash flows
For the six months ended 31 March 2021
6 months 6 months 18 months ended ended ended 31 March 31 March 30 September 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Operating activities (Loss) / profit before tax (133) 2,284 9,221 ---------- ---------- ------------- Adjustments to reconcile profit before tax to net cash flows: Depreciation and impairment of property, plant & equipment 506 686 2,238 Depreciation of right-of-use assets 1,080 1,213 3,523 Amortisation and impairment of intangible assets 76 188 616 Loss on disposal of property, plant and equipment 10 44 185 Share based payments 103 164 398 Finance costs 232 240 795 Working capital adjustments: Movement in trade and other receivables and prepayments 1,124 833 1,781 Movement in inventories (284) (1,206) (702) Movement in trade and other payables (273) (1,904) 170 ---------- ---------- ------------- 2,441 2,542 18,225 Interest paid (232) (240) (795) Income tax paid (1,066) (929) (1,678) ---------- ---------- ------------- Net cash flows from operating activities 1,143 1,373 15,752 ---------- ---------- ------------- Investing activities Proceeds from sales of property, plant and equipment 10 - 4 Purchase of property, plant and equipment (888) (527) (1,787) Purchase of intangible assets (13) (13) (258) ---------- ---------- ------------- Net cash flows used in investing activities (891) (540) (2,041) Financing Activities Dividends paid - (832) (2,313) Share capital issued 6 - - Payment of lease liabilities (1,135) (1,268) (3,645) Bank loans drawn down - - 2,600 Repayment of bank borrowings - (3,884) (7,900) ---------- ---------- ------------- Net cash flows used in financing activities (1,129) (5,984) (11,258) ---------- ---------- ------------- Net (decrease) / increase in cash and cash equivalents (877) (5,151) 2,453 Cash and cash equivalents at start of period 15,873 16,202 13,420 ---------- ---------- ------------- Cash and cash equivalents at end of period 14,996 11,051 15,873 ---------- ---------- -------------
Unaudited notes to the interim condensed financial statements
For the six months ended 31 March 2021
1. Basis of preparation
The interim condensed financial statements of the group for the six months ended 31 March 2021, which are neither audited or reviewed, have been prepared in accordance with the International Financial Reporting Standards ('IFRS') accounting policies adopted by the group and set out in the annual report and accounts for the year ended 30 September 2020. As permitted, this interim report has been prepared in accordance with the AIM rules and not in accordance with IAS 34 "Interim financial reporting". While the financial figures included in this preliminary interim earnings announcement have been computed in accordance with IFRS's applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as that term is defined in IFRS's.
The financial information contained in the interim report also does not constitute statutory accounts for the purpose of section 434 of the Companies Act 2006. The financial information for the period ended 30 September 2020 is based on the statutory accounts for period ended 30 September 2020 which have been filed with the Registrar of Companies and are available on the group's website www.ramsdensplc.com. The auditors, Ernst & Young LLP, reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The financial information for the 6 months ended 31 March 2020 in respect of the consolidated income statement of comprehensive income is based on the movement between the figures stated in the unaudited interim financial information for the 12 month period ended 31 March 2020 and the unaudited Interim accounts covering the 6 month period ended 30 September 2019. The Consolidated statement of financial position at 31 March 2020 is per the unaudited financial information as at that date.
The Board have conducted an extensive review of forecast earnings and cash over the next twelve months, considering various scenarios and sensitivities given the Covid-19 situation and uncertainty around the future economic environment. At 31 March 2021 the Group had cash resources of cGBP15m and an undrawn RCF facility of GBP10m expiring in March 2024.
The Group's activities include services deemed essential services by the government and therefore the Group's stores are likely to be able to open in the event of a further lockdown. The Group's essential services include pawnbroking, foreign currency, money transfer and cheque cashing. The Group has a strong asset base and the ability to generate cash quickly through the sale of jewellery stock for its intrinsic value or by restricting new pawnbroking lending. The Group has shown resilient trading through the last year of Covid-19 restrictions, assisted by government support.
The Board have a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the interim condensed financial statements.
Unaudited notes to the interim condensed financial statements (continued)
For the six months ended 31 March 2021
2. Segmental Reporting 6 months 6 months 18 months ended ended ended 31 March 31 March 30 September 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Revenue Pawnbroking 5,571 6,697 18,911 Purchases of precious metals 5,623 7,499 23,024 Retail Jewellery sales 8,074 7,054 17,109 Foreign currency margin 1,027 4,705 14,859 Income from other financial services 540 1,029 3,035 ---------- -------------------- ------------- Total Revenue 20,835 26,984 76,938 ---------- -------------------- ------------- Gross profit Pawnbroking 3,480 4,706 12,248 Purchases of precious metals 2,330 3,214 9,856 Retail Jewellery sales 3,168 3,113 7,701 Foreign currency margin 1,027 4,705 14,859 Income from other financial services 540 937 2,485 ---------- -------------------- ------------- Total Gross profit 10,545 16,675 47,149 ---------- -------------------- ------------- Other income - - 725 Administrative expenses (10,446) (14,151) (37,858) Finance costs (232) (240) (795) ---------- -------------------- ------------- (Loss) / Profit before tax (133) 2,284 9,221 ---------- -------------------- -------------
Income from other financial services comprises of cheque cashing fees, Electronics & buybacks, agency commissions on miscellaneous financial products.
The Group is unable to meaningfully allocate administrative expenses, or financing costs between the segments due to the fact that these include staff costs who undertake all services in branches. Accordingly, the Group is unable to disclose an allocation of items included in the Consolidated Statement of Comprehensive Income below Gross profit, which represents the reported segmental results.
Unaudited notes to the interim condensed financial statements (continued)
For the six months ended 31 March 2021
2. Segmental Reporting 6 months 6 months 18 months ended ended ended 31 March 31 March 30 September 2021 2020 2020 Unaudited Unaudited Audited Other information GBP'000 GBP'000 GBP'000 Capital additions (*) 1,742 1,610 2,045 Depreciation and amortisation (*) 1,672 2,134 2,854 Assets Pawnbroking 8,557 11,844 9,685 Purchases of precious metals 768 1,765 1,664 Retail Jewellery sales 11,005 9,089 9,707 Foreign currency margin 3,345 9,019 5,692 Income from other financial services 175 90 145 Unallocated (*) 26,895 18,171 25,516 ---------- ------------- 50,745 49,978 52,409 ---------- ---------- ------------- Liabilities Pawnbroking 434 347 375 Purchases of precious metals 3 19 3 Retail Jewellery sales 3,061 1,365 2,130 Foreign currency margin 70 32 471 Income from other financial services 469 31 438 Unallocated (*) 11,190 13,223 13,437 ---------- ------------- 15,227 15,017 16,854 ---------- ---------- -------------
(*) The Group is unable to meaningfully allocate this information by segment due to the fact that all segments operate from the same stores and the assets and liabilities are common to all segments.
Fixed assets are therefore included in unallocated assets and lease liabilities are included in unallocated liabilities.
Unaudited notes to the interim condensed financial statements (continued)
For the six months ended 31 March 2021
3. Finance costs 6 months 6 months 18 months ended ended ended 31 March 31 March 30 September 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Interest on debts and borrowings 42 31 181 Interest on right-of-use assets 190 209 614 Total finance costs 232 240 795 ---------- ---------- --------------- 4. Earnings per share 6 months 6 months 18 months ended ended ended 31 March 31 March 30 September 2021 2020 2020 Unaudited Unaudited Audited Profit for the period (GBP'000) (104) 1,692 7,118 Weighted average number of shares in issue 31,393,207 30,837,653 30,837,653 Earnings per share (pence) (0.3) 5.5 23.1 Fully diluted earnings per share (pence) (0.3) 5.3 22.5 5. Issued capital and reserves Ordinary shares issued and fully paid No. GBP'000 At 30 March 2020 30,837,653 308 At 30 September 2020 30,837,653 308 Share capital issued 555,554 6 At 31 March 2021 31,393,207 314
During the period 555,554 ordinary 1p shares were issued at par pursuant to the Group's Long Term Incentive Plan (LTIP). A further 250,000 share options have fully vested under the LTIP but have yet to be exercised.
Unaudited notes to the interim condensed financial statements (continued)
For the six months ended 31 March 2021
6. Dividends
No dividends have been approved since the 2nd December 2019 as a result of the Coronavirus pandemic.
On 2 December 2019, the directors approved a 2.7 pence interim dividend which equates to a dividend payment of GBP832,000 the dividend was paid on 20 February 2020. The final dividend for the year ended March 2019 of 4.8p per share was paid on 20 September 2019 totalling GBP1,480,000.
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