Ramsdens Holdings PLC
("Ramsdens", the "Group", the "Company")
Acquisition of additional four stores trading as The Money Shop and 12 loan books
Ramsdens, the diversified financial services provider and jewellery retailer, is pleased to announce the acquisition of four stores currently trading as The Money Shop and 12 loan books from Instant Cash Loans Limited (the "Acquisition") for a total consideration of £0.5m, which will be satisfied in cash. The purchase price includes the acquisition of £0.3m of pawnbroking loan book.
This announcement follows the Group's successful acquisition of 18 The Money Shop stores and five loan books from Instant Cash Loans Limited in March 2019, and supports the Group's stated growth strategy of expanding its presence across target regions in the UK. The Acquisition will also enable Ramsdens to further leverage the significant investments in brand, IT and people made in recent years. Following the Acquisition, Ramsdens now has 163 stores in the UK.
The acquired stores will be rebranded as Ramsdens over the coming weeks and the full breadth of the Group's customer proposition will be incorporated into the stores. As with the Group's previous acquisition announced in March, the Board believes that there are significant opportunities for Ramsdens to build upon the existing foreign exchange proposition in the acquired stores and to improve their performance through the expertise of the Group's management team.
The Board anticipates that in FY20 there will be a small contribution to PBT as the Group invests in integration costs including those relating to refits, rebranding, training and IT integration. It is expected that this acquisition will contribute approximately £0.3m to Group PBT in FY 2021.
As previously announced, Ramsdens will announce its FY19 financial results on 12th June 2019.
Peter Kenyon, CEO of Ramsdens, commented:
"Following our successful acquisition in March, I'm delighted to announce this acquisition which supports our growth plans. We have a proven track record of effectively integrating and improving the performance of acquired stores as we continue to capitalise on growth opportunities available to the Group as a leading operator in a highly fragmented market.
We welcome our new colleagues and customers to the Ramsdens community".
This announcement contains inside information.
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
Hudson Sandler (Financial PR) Tel: +44 (0) 20 7796 4133
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 163 stores within the UK (including 4 franchised stores) and has a small but growing online presence.
In the FY18 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.
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