(Alliance News) - Ramsdens Holdings PLC on Wednesday reported a rise in its earnings for financial 2020, as it expressed confidence in its ability to continue during and after the Covid-19 pandemic.
Ramsdens provides currency exchange, pawnbroking loans, precious metals buying and selling, and second-hand and new jewellery.
The stock was trading 5.0% higher at 148.62 pence each on Wednesday afternoon in London.
For the 12 months ended March 31, Ramsdens posted revenue of GBP59.5 million, up 27% year-on-year from GBP46.8 million. Pretax profit was GBP8.5 million, up 31% from GBP6.5 million.
By segment, foreign currency exchange income was up 13% to GBP13.1 million, jewellery retail revenue grew by 28% to GBP12.6 million, and pawnbroking income was up 19% to GBP9.0 million.
Gross profit from other financial services - such as cheque cashing, Western Union money transfer, franchise fees and credit broking - increased 32% to GBP2.1 million, with the increase credited to the acquisition of the Money Shop stores in March and May 2019.
No second interim dividend was declared in order to conserve cash, resulting in the total payout for the year being the first half dividend of 2.7p. For comparison, in financial 2019, a final dividend of 4.8p was declared, taking the total payout for the year to 7.2p.
Looking ahead, Ramsdens said it expects to benefit from its diversified income streams, also highlighting its ability to quickly generate cash from its retail jewellery stock and foreign currency holding.
"The board is confident that Ramsdens is well-positioned to navigate these unprecedented times, supported by our strong balance sheet, good cash position and an ability, if needed, to quickly convert jewellery stock into cash. It is confident that it has sufficient liquidity within the business and existing bank facilities to trade through the forthcoming transitional period and emerge well-positioned to continue to deliver its long-term growth plans as future economic and social conditions allow," said Chief Executive Peter Kenyon.
As at the end of March, the company had net cash of GBP11.1 million and an undrawn revolving credit facility of GBP10 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Ramsdens Hldgs (RFX)