Regulatory Story
Go to market news section View chart   Print
RNS
Ramsdens Holdings PLC  -  RFX   

Annual Results for the year ended 31 March 2018

Released 07:00 07-Jun-2018

RNS Number : 5711Q
Ramsdens Holdings PLC
07 June 2018
 

 

Ramsdens Holdings PLC

("Ramsdens", the "Group", the "Company")

Annual Results for the year ended 31 March 2018

 

A year of further growth underpinned by strong performances in Foreign Currency Exchange and Jewellery Retail

 

Ramsdens, the diversified financial services provider and retailer, today announces its Annual Results for the year ended 31 March 2018 (the "period").

 

Financial highlights:

 

Year ended 31 March

2018

Year ended 31 March

2017

Increase

 
 

Group Revenue

£39.9m

£34.5m

16%

 

Underlying EBITDA*

£7.9m

£6.0m

31%

 

Underlying Profit Before Tax*

£6.5m

£4.0m

60%

 

Basic EPS*

16.3p

10.1p

61%

 

Dividend

6.6p

1.3p

 

 

 

·      Net assets up £4.2m to £27.6m, including cash of £14.6m

·      Net cash of £12.7m (FY17: £9.5m)

 

Operational highlights:

·      Continued growth across all business segments with the Group serving more than 800,000 customers during the year (FY17: more than 730,000):

FX revenue increased 26% to £11.3m (FY17: £9.0m) with FX customers rising 13% to more than 680,000

Pawnbroking revenue rose 14% to £7.0m (FY17: £6.1m) 

Precious Metals revenue up 1% to £10.9m (FY17: £10.8m)

Retail Jewellery sales rose 35% to £8.0m (FY17: £5.9m) 

·      Retail estate increased to 131 stores, including 4 franchised (FY17: 127 stores including 3 franchised), four stores relocated and one store completely refurbished

·      E-commerce jewellery sales rose by 242% and Click and Collect currency exchanged grew by 117%

 

*The underlying figures above are adjusted for the share based payments charge and excluding exceptional IPO costs in FY17.  The FY17 EPS uses closing number of shares and is adjusted for exceptional IPO costs. 

 

Peter Kenyon, Chief Executive, commented: "It is a great pleasure to report another year of strong growth.  We are seeing the benefits of the investments made in the Ramsdens brand, staff training, stock levels, presentation of retail jewellery, e-commerce and store relocations come through in the delivery of a strong financial performance. Adjusted* underlying profit before tax of £6.5m represents a 60% increase on the prior year.

 

We have seen very good growth across the Group with foreign currency commission increasing 26% to £11.3m (FY17: £9.0m), retail jewellery gross profit rising 24% to £4.1m (FY17: £3.3m) and pawnbroking interest growing by 14% to £7.0m (FY17: £6.1m).

 

We have a strong platform on which to continue to build.  The determination of my colleagues to be successful at what they do and their commitment to our loyal and growing customer base alongside the strengths of our improving retail proposition, well invested stores and IT infrastructure all give the Board confidence for the future. I am confident in Ramsdens' ability to deliver on our strategic objective and continue to grow.

 

I would like to take this opportunity to thank each of my colleagues across the business for their contribution, dedication and effort during this outstanding year."

 

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 131 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                             

 

 

CHAIRMAN'S STATEMENT

 

INTRODUCTION

I am delighted to report to the Group's stakeholders on what has been another very good year for the Ramsdens business.  This is the Group's first full financial year as a public company and we have continued to make great progress in improving the performance across our core income streams. 

 

Ramsdens has a strong and trusted brand, a diversified product offering and a loyal and growing customer base. This has enabled the Group to deliver strong growth in profit before tax, significantly ahead of the Board's initial expectations for the year.  We are very pleased with this result, which reflects the growing appeal and awareness of the Ramsdens offering.

 

OUR BUSINESS

Ramsdens is a growing and diversified financial services provider and retailer. The Group operates 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. During the last financial year, the Group served more than 800,000 customers across its different services.

 

The business is headquartered in Middlesbrough and has a proud heritage.  The first Ramsdens store opened in Stockton-on-Tees in May 1987.  In addition to our recognised and trusted brand, we have a well-invested store estate. As at the year end, the Group operated from 131 stores (including 4 franchised stores) within the UK (FY17: 127 stores including 3 franchised stores), supported by a growing online presence.

 

In a market where trust is critical, Ramsdens is an increasingly recognised brand in each of our four key business segments and our continued investment in marketing, store appearance and store location remain key factors in supporting the Group's growth.

 

FINANCIAL RESULTS & DIVIDEND

Group reported revenue increased by 16% to £39.9m (FY17: £34.5m).  This growth was primarily driven by strong performances in foreign currency where the value of foreign currency exchanged grew by 18% to £483m (FY17: £408m), and retail jewellery sales, which increased by 35% to £8.0m (FY17: £5.9m).

 

We are delighted that the Group delivered an underlying* Profit Before Tax of £6.5m (FY17: £4.0m). This was significantly ahead of the Board's initial expectations for the year.  Earnings per share were 16.3 pence (FY17:7.8 pence).

 

The Group's financial position remains strong.  We have a strong asset base, good cash generation and positive indicators for growth.

 

The Board is recommending a final dividend of 4.4 pence per share which, if approved at the shareholders AGM, will take the full year dividend to 6.6 pence per share (FY17: 1.3 pence). Subject to approval at the AGM, the final dividend is expected to be paid on 20 September 2018 to those shareholders on the register as at 24 August 2018.

 

The Strategic Report and Financial Review that follow provide a more in-depth analysis of the trading performance and financial results of the Group.

 

OUR TEAM

Central to Ramsdens' continued success is our fantastic team of highly skilled and committed people. I never cease to be amazed by the infectious energy of the people I meet in stores and at head office.  I would like to take this opportunity to thank everyone in the Ramsdens team for their continued hard work and dedication during this outstanding year. 

 

THE FUTURE

The FY18 financial year has started well and in line with the Board's expectations. 

 

The macroeconomic environment remains uncertain and the short to medium term headwinds facing UK retailers have been well documented.  The overall weakness of sterling continues to benefit the sterling gold price which in turn supports both our pawnbroking and precious metal buying segments. 

 

The Group will continue to execute its clear growth strategy and expand our presence through new store openings whilst also appraising attractive acquisition and consolidation opportunities.  

 

Customer demand for our products across our key business segments remains strong. We have a diversified business, strong asset base, a loyal and growing customer base, a committed team and a strong brand. These qualities give us confidence to successfully deliver on the Board's clear growth strategy and make further progress in the year ahead.

 

Andrew Meehan

Non-Executive Chairman

6 June 2018

 

*The underlying figures above reflect Earnings before interest, tax, depreciation and amortisation (EBITDA) and Profit before Tax (PBT), adjusted for the share based payments charge and excluding exceptional IPO costs.

 

 

 

CHIEF EXECUTIVE'S REVIEW

 

ANOTHER YEAR OF STRONG GROWTH

It is a great pleasure to report another year of strong growth.  We are seeing the benefits of the investments made in the Ramsdens brand, staff training, stock levels, presentation of retail jewellery, e-commerce and store relocations come through in the delivery of a strong financial performance. Adjusted* underlying profit before tax of £6.5m represents a 60% increase on the prior year.

 

We have seen very good growth across the Group with foreign currency commission increasing 26% to £11.3m (FY17: £9.0m), retail jewellery gross profit rising 24% to £4.1m (FY17: £3.3m) and pawnbroking interest growing by 14% to £7.0m (FY17: £6.1m).

 

DELIVERING OUR CLEAR GROWTH STRATEGY

The Ramsdens' growth strategy remains unchanged and built on the following pillars:

1.     Continuing to improve the performance of our core estate

2.     Expanding the Ramsdens branch footprint in the UK

3.     Developing our online proposition

4.     Continuing to appraise market opportunities presented by operating in a challenging market.

 

The Board believes that the strong balance sheet and growing positive cash flows underpin the Group's ability to leverage the strength of a recognised high street brand with a diversified offering. The Board is confident that Ramsdens can continue to adapt and prosper, and is focused on delivering strong and ongoing capital and income returns for investors. 

 

*The underlying figures above reflect Earnings before interest, tax, depreciation and amortisation (EBITDA) and Profit before Tax (PBT), adjusted for the share based payments charge and excluding exceptional IPO costs.

 

During the financial year, we have continued to make good progress against our strategy and mission:

 

Strategic pillar

Key developments in FY18

KPIs

Continuing to improve the performance of our core store estate

The Group has a continuous improvement philosophy. This has resulted in initiatives to

·      Increase staff skills, motivation and performance rewards

·      Increase the foreign currency margin and the average transaction value

·      Improve retail operations to generate more from the pawnbroking loan book

·      Increase the retail jewellery stock whilst maintaining close control of stock turnover and discounting older stock lines

·      Investing in the retail jewellery proposition

·      Cross selling services across the customer base

·      Review store capacity and location

·      Develop the new international money transfer service.

 

By increasing the performance of the existing stores, the Group will improve the return on capital employed.

·  During FY18, the Group closed one store, merging it with a nearby store in Middlesbrough.

·  Relocated four stores from suburban or secondary locations to high street locations to reflect the shift from pure pawnbroker to diversified FX and retail operator.   

· Group revenue grew by 16% to £39.9m

·  Revenue by business segment
- Foreign currency £11.3m (only commission is recognised as revenue net of delivery costs and exchange rate movements)
- Pawnbroking £7.0m
- Purchase of precious metals £10.9m
- Retail jewellery sales £8.0m
- Other services £2.8m

·  Gross profit was £28.3m

·  Gross profit by segment
- Foreign currency  £11.3m
- Pawnbroking £7.0m
- Purchase of precious metals £4.4m
- Retail jewellery sales £4.1m
- Other services £1.6m

Expanding the branch footprint in the UK

The Group has the opportunity to infill within existing geographic territories, "ripple out" from existing territories or seek new territories as it has in the past with growing branch estates in Wales and Scotland.

 

Our medium-term strategy remains to grow the estate by 12 stores per annum. 

·  During the year, the Group opened new stores in Workington, Newton Mearns, Braehead and Northallerton.  Northallerton was the acquisition and conversion of a jewellers into a Ramsdens branch.

·  Excluding franchised stores, the Group operated from 127 stores at the year-end

Developing our online proposition

Investment has been made in developing the www.ramsdensjewellery.co.uk website which is a transactional website focused on jewellery retail only.

 

Investment has also been made in selling jewellery on eBay.

 

The website www.ramsdensforcash.co.uk has been adjusted to have greater focus on foreign currency exchange. 

 

The above investments are the start of a journey to improve the online proposition from Ramsdens in order for the business to become multi-channel.

 

·  The ecommerce retail 'branch' was the best performing gross retail jewellery sales branch in FY18.

·  The development of the online retail jewellery proposition has also assisted visibility of stock across the branch network allowing branches to sell stock not in their store and thereby increase branch sales.

 

·  E-commerce jewellery sales grew by 242%

·  Click and Collect foreign currency exchanged grew by 117%

Continuing to appraise market opportunities presented by operating in a challenging market

The pawnbroking market was more stable in 2017 than it had been in previous years following significant regulatory changes imposed on pay day lenders. 

 

Banks and travel agents are closing locations which results in customers seeking new local providers for travel money.

 

Retail jewellery trading is challenging with some independent jewellers closing.

 

· During the year, the Group has considered various small pawnbroking acquisition opportunities but did not acquire any.  The fact that businesses are being offered for sale and / or simply closing reinforces our belief that pawnbroking competition will continue to fall.

· Over 800,000 customers used Ramsdens in FY18. By segment:

· Foreign Currency 687,000

· Pawnbroking 34,000

· Purchase of precious metals 67,000

 

 

 

OUR PEOPLE

At the heart of our growth strategy is a continuous improvement ethos.  This can only be imbedded across a business by the people within it sharing a common mission, having a willingness to develop, being motivated to work hard and maintaining a focus on the customer.

 

Our people are well trained and highly skilled which allows the business to devolve decision making to staff close to the customer.  This empowerment helps Ramsdens' people to better engage with, and be part of, the local community, which is a key contributor to the Group's strong customer relationships, high repeat business, growing customer base and growing product penetration across services. It is notable that the main source of customer acquisition remains customer recommendation.

 

I would therefore like to take this opportunity to thank each of my colleagues across the business for their contribution, dedication and effort during this outstanding year.

 

THE RAMSDENS BRAND

During the year, the Group continued to invest in sports sponsorship and TV advertising.  This continues to contribute to growing awareness of, and further establishing, the Ramsdens brand. 

 

From next season, Ramsdens will no longer be the main shirt sponsor of Middlesbrough FC but will remain involved as their currency partner and the Ramsdens name will appear on the reverse of the shirt. The Group has a number of other marketing opportunities that it is exploring to continue expanding the brand's awareness, increase customer recognition and support the Group's growth. 

 

The high repeat customer base for foreign currency exchange and pawnbroking loans demonstrates the trust customers have in Ramsdens to provide a great price for their foreign currency and to look after their jewellery whilst in pledge.

 

IT AND INFRASTRUCTURE

During the first half of the year, we had an unauthorised access to our IT system which did not impact any day to day operations nor result in any confirmed data loss.  We reviewed our IT infrastructure and further invested in our IT hardware, software and team to improve security and support our long-term growth plans.

 

During the year, the Group has also focused on preparing for GDPR which came into effect on 25 May 2018. I am pleased that the Group has demonstrated its agility and flexibility to fully prepare for the new legislation ahead of its introduction.

 

OUR DIVERSIFIED BUSINESS MODEL: SALES CHANNELS

The Group has a loyal and growing customer base.  Our well invested and established store estate served more than 800,000 registered customers in our last financial year.

 

Stores

The Group has a diverse portfolio of 131 stores (including four franchised outlets). The Group has a regular programme of maintenance that ensures Ramsdens' stores are in good order.  The growth strategy is to locate stores in higher footfall locations representing the shift from 'pure pawnbroker' to a diversified retailer.  One of the new stores to open was in Braehead, an Intu owned shopping centre near Glasgow.  This store has lifted the brand's appearance and awareness.  New stores were also opened in Newton Mearns, Workington and Northallerton.  All stores are situated in the main shopping areas.  In addition, two suburban stores were merged in Middlesbrough and four other stores relocated to higher footfall locations, namely, Scunthorpe, Hamilton, Lancaster and Stockton.  Stockton was relocated to the town centre shopping centre after 30 years in the same location having been the original Ramsdens Pawnbrokers store.  The Group has a strong pipeline moving into the current financial year and is committed to approximately 12 store openings per annum over the medium term. 

 

E-commerce

The Group's primary trading website is www.ramsdensforcash.co.uk which focuses on foreign exchange services and allows customers to buy, on a click and collect basis, pre-paid travel cards or exchange currency. In addition, the website acts as a portal to the international money transfer service where payments can be made online.  The home delivery service trial was stopped during FY18. 

 

The Group's second e-commerce site, www.ramsdensjewellery.co.uk, was launched in September 2016 and is focused on selling new and second-hand jewellery.

 

Both sites are user friendly and operate on mobile and tablet devices.

 

OUR DIVERSIFIED BUSINESS MODEL: PRODUCT OFFERING

Ramsdens operates in the four core business segments of: foreign currency exchange; pawnbroking loans; precious metals buying; and jewellery retail.

 

Foreign Currency Exchange

The foreign currency exchange segment primarily comprises of the sale and purchase of foreign currency notes to holiday makers. Ramsdens also offers prepaid travel cards and international bank to bank payments.

 

In FY18, Ramsdens served almost 687,000 foreign currency exchange customers and continues to enjoy a high rate of repeat customers with customer recommendation remaining the biggest source of new customers.   We estimate that we have an average 12% market share in foreign exchange in the towns where we operate with the opportunity to continue grow this share.

 

The foreign currency exchange service is the largest segment of the business at 40% of total gross profit (FY17: 37%).  The volume of foreign currency notes sold or purchased, including travel card "loads" and "top ups" grew by 18% to £483m (FY17: £408m) and, with a focus on margin pricing, the commission generated increased by 26% to £11.3m (FY17: £9.0m).   

 

Improvements to the currency website proposition (www.ramsdenscurrency.co.uk and www.ramsdensforcash.co.uk) has led to an increase in click and collect volumes of 117% to £20.8m (FY17: £9.6m).

It should be noted that in FY18 the Group benefited from two pre-Easter holiday periods whereas there will not be one in FY19 due to the late Easter in 2019. 

 

Pawnbroking

Pawnbroking is a small subset of the consumer credit market in the UK and a simple form of asset backed lending where an item of value, known as a pledge (in Ramsdens' case, jewellery and watches), is given to the pawnbroker in exchange for a cash loan. Customers who repay the capital sum borrowed plus interest receive their pledged item back. If a customer fails to repay the loan, the pawnbroker sells the pledged item to repay the amount borrowed plus interest and selling expenses. Pawnbroking is regulated by the FCA in the UK and Ramsdens is fully FCA authorised.

 

Pawnbroking income has provided recurring and stable revenues for the Group in recent years and represents 25% of total gross profit (FY17: 25%). 

 

The improvements in the retail activities of the Group has enabled the Group to offer customers higher loan amounts relative to the value of the pledged jewellery.  This has led to an increased loan book.  The quality of the loan book has been maintained with redemption percentages in line with previous years and the expired portion of the book well controlled.

 

The capital value of the pawnbroking loan book increased from £6.0m to £6.4m, an increase of 8%.  Interest income, which includes the ultimate realisation of jewellery sold or scrapped from forfeited pledges, increased by 14% to £7.0m (FY17: £6.1m) and represented a 112% yield on the average loan book during the year. 

 

Purchases of precious metals

Through its 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. Ramsdens has various second-hand dealer licences and other permissions and adheres to the Police approved "gold standard" for buying precious metals.

 

Once jewellery has been bought from the customer, the Group's dedicated jewellery department decides 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 items not retailed are sold to a bullion dealer for their intrinsic value and the proceeds are reflected in the accounts as precious metals buying income.

The sterling gold price remained steady throughout FY18, which was ahead of the Board's budgeted expectations.  The weight of gold purchased was flat and profits were broadly flat at £4.4m (FY17: £4.3m - actual year on year difference £20k), representing 15% of total gross profit (FY17: 18%).  

 

The Group has continued its strategy to increase jewellery retail stock levels to assist jewellery sales. 

 

Jewellery Retail

Ramsdens offers a value for money proposition in new and second-hand jewellery, and the Board believes there is significant growth potential for Ramsdens in this segment by leveraging its retail store estate, its e-commerce operations as well as by cross-selling to customers of other services.

 

Jewellery retail revenue increased by 35% to £8.0m (FY17: £5.9m) and gross profit increased by 24% to £4.1m (FY17: £3.3m).  The gross margin fell from 56% to 52%.  This was a result of a combination of: increased investment in high quality watches which are high ticket but low margin sales; more new stock which is at lower margin than refurbished jewellery bought from customers; and general discounting to sell older and slower moving stock. 

Jewellery retail now represents 15% of the Group's total gross profit (FY17: 14%). 

 

Other services

In addition to the four core business segments, the Group also provides additional services in Cheque Cashing, Western Union money transfer, Sale and buy back of Electronics, Franchise Fees and Credit Broking.

Revenue from these services in FY18 was £2.8m (FY17: £2.7m) resulting in £1.6m of gross profit (FY17: £1.5m). This represented 5% of the Group's total gross profit (FY17: 6%-).

 

LOOKING AHEAD

We have a strong platform on which to continue to build.  The determination of my colleagues to be successful at what they do and their commitment to our loyal and growing customer base alongside the strengths of our improving retail proposition, well invested stores and IT infrastructure all give the Board confidence for the future. I am confident in Ramsdens' ability to deliver on our strategic objective and continue to grow.

 

Peter Kenyon

Chief Executive Officer

6 June 2018

 

 

FINANCIAL DIRECTOR'S REVIEW

 

FINANCIAL RESULTS

 

Gross profit was £28.3m for the year ended 31 March 2018, an increase of 17% on the prior year (FY17: £24.3m) driven by growth in all four core segments.

 

The Group's administrative expenses increased by 11% to £21.9m (FY17: £19.7m).  This increase primarily reflects an increase in staff costs to support the growth of the business and costs associated with being a PLC.

Finance costs have reduced by 71% to £0.2m (FY17: £0.6m) reflecting the repayment of shareholder loan notes upon IPO in February 2017.

 

Profit before tax increased 115% to £6.3m (FY17: £2.9m).

 

To provide a meaningful comparison to the prior financial period and for future reporting periods, share based payments and exceptional expenses which consist of IPO related costs in FY17 have been removed to give the following underlying results.

 

The underlying profit before tax was £6.5m an increase of 60% on the prior year of £4.1m.

 

The underlying EBITDA increased by 31% to £7.9m from £6.0m in the prior year.

 

A reconciliation between the Underlying and Statutory results is provided below.     

 

000's

FY18

FY17

Statutory profit before tax

£6,312

£2,936

Share based payments

£161

£7

Exceptional items

-

£1,110

Underlying profit before tax

£6,473

£4,053

Finance costs

£177

£614

Gain on fair value of derivative liability

(£79)

(£107)

Depreciation, amortisation and loss on disposal

£1,319

£1,450

Underlying EBITDA

£7,890

£6,010

 

 

EARNINGS PER SHARE AND DIVIDEND

The statutory basic and diluted earnings per share for the year is 16.3p and 16.0p respectively up from 7.8p and 7.6p in the previous year.

 

To aid comparison, prior year EPS, using the closing number of shares and the profit after tax adjusted for exceptional IPO costs, was 10.1p. 

 

The Board is recommending a final dividend of 4.4 pence per share in respect of FY18 (FY17: 1.3 pence per share).  This brings the total dividend for FY18 to 6.6 pence per share (FY17: 1.3 pence per share).

 

Subject to approval at the AGM, the final dividend is expected to be paid on 20 September 2018 to those shareholders on the register as at 24 August 2018.

 

This dividend is in line with the Board's progressive dividend policy reflecting the cash flow generation and earnings potential of the Group. On the basis that there are sufficient distributable reserves available at the time, the Board intends to continue to pay an interim dividend in February and a final dividend in September in the approximate proportion of one third and two thirds respectively. 

 

CASH FLOW AND CASH POSITION

The net cash flow from operating activities was £5.6m. This is after growing trade and other receivables by £1.3m (principally the Pawnbroking loan book) and increasing our inventory levels by £2.2m (jewellery stock to facilitate higher jewellery sales and stock for new branches) offset by an increase in trade and others payables of £2.4m.

 

£2.0m of the £7.0m revolving credit facility from Yorkshire Bank was drawn (£1.9m net of borrowing costs) as at 31 March 2018 (FY17: £2.5m drawn, £2.3m net of borrowing costs). 

 

The overall increase in cash and cash equivalents was £2.7m bringing the total to £14.6m (FY17: £11.9m). This, together with an additional £5.0m being available to draw down from the revolving credit facility provides the Group with substantial funds to deliver its current stated strategy.       

 

CAPITAL EXPENDITURE

During the financial year, the Group acquired a jeweller's and paid a goodwill premium of £80,000. The Group invested £1.2m opening four new stores, relocating four existing stores and in other leasehold improvements, fixtures and fittings and IT equipment.    

 

TAXATION

The tax charge for the year was £1.3m (FY17: £0.9m) at an effective rate of 20.2% (FY17: 31.5%). The effective rate is higher than the standard UK rate of corporation tax of 19% (FY17: 20%) due to non-deductible expenses (notably IPO exceptional expenses in FY17) and the timing difference between depreciation charges and capital allowances. A full reconciliation of the tax charge is shown in note 10 of the financial statements.

 

SHARE BASED PAYMENTS

The share based payment expense in the period was £161,000 (FY17: £7,000). This charge relates to the Long Term Incentive Plan (LTIP) which is a discretionary share incentive scheme under which the Remuneration Committee can grant options to purchase ordinary shares at a nominal 1p per share cost to Executive Directors and other senior management subject to certain performance and vesting conditions. The LTIP commenced with an initial grant in March 2017, further details of which are given in note 25 of the financial statements.

 

 

Martin Clyburn

Chief Financial Officer

6 June 2018

 

 

Consolidated statement of comprehensive income

 

 

For the year ended 31 March 2018

 

 

 

 

 

 

 

 

 

 

 

2018

 

Notes

 

 

 

 

 

£'000

 

 

 

 

 

 

 

 

Revenue

5

 

39,942

Cost of sales

 

 

(11,595)

(10,228)

 

 

 

 

Gross profit

5

 

28,347

 

 

 

 

Administrative expenses

 

 

(21,937)

(19,735)

 

 

 

 

Operating profit before exceptional expenses

 

 

6,410

 

 

 

 

Exceptional expenses

7

 

-

 

 

 

 

Operating profit

 

 

6,410

 

 

 

 

Finance Costs

6

 

(177)

 

 

 

 

Gain on fair value of derivative financial liability

14

 

79

107

 

 

 

 

Profit before tax

 

 

6,312

 

 

 

 

Income tax expense

10

 

(1,278)

(926)

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

5,034

2,010

 

 

 

 

 

Other comprehensive income

 

 

-

 

 

 

 

Total comprehensive income

 

 

5,034

2,010

 

 

 

 

 

 

 

 

 

Earnings per share in pence

8

 

16.3

7.8

 

 

 

 

Diluted earnings per share in pence

8

 

15.9

 

 

 

 

 

 

Consolidated statement of financial position

 

 

 

 

As at 31 March 2018

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

Assets

Notes

 

 

£'000

 

Non-current assets

 

 

 

 

 

Property, plant and equipment

11

 

 

4,302

 

Intangible assets

12

 

 

429

 

Investments

13

 

 

-

 

Deferred tax assets

10

 

 

84

 

 

 

 

 

4,815

4,739

 

Current Assets

 

 

 

 

 

Inventories

15

 

 

7,567

 

Trade and other receivables

16

 

 

10,613

 

Cash and short term deposits

17

 

 

14,619

11,864

 

 

 

 

 

32,799

26,564

 

Total assets

 

 

 

37,614

31,303

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

18

 

 

5,793

 

Interest bearing loans and borrowings

18

 

 

1,883

 

Accruals and deferred income

18

 

 

1,281

 

Income tax payable

18

 

 

633

305

 

 

 

 

 

9,590

7,239

 

Net current assets

 

 

 

23,209

19,325

 

Non-current liabilities

 

 

 

 

 

Interest bearing loans and borrowings

19

 

 

1

 

Accruals and deferred income

19

 

 

300

 

Derivative financial liabilities

19

 

 

40

 

Deferred tax liabilities

19

 

 

115

137

 

 

 

 

 

456

669

 

Total liabilities

 

 

 

10,046

7,908

 

Net assets

 

 

 

27,568

23,395

 

Equity

 

 

 

 

 

Issued capital

20

 

 

308

 

Share premium

 

 

 

4,892

 

Retained earnings

 

 

 

22,368

18,195

 

Total equity

 

 

 

27,568

23,395

 

The financial statements of Ramsdens Holdings PLC, registered number 8811656, were approved by the directors and authorised for issue on 6 June 2018 and signed on their behalf by:

 

M A Clyburn

 

 

 

 

 

Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

                     

 

Consolidated statement of changes in equity

 

 

For the year ended 31 March 2018

 

 

 

 

 

 

 

 

 

 

 

 

Share Capital

Share premium

Retained earnings

Total

 

Notes

 

 

 

 

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

As at 1 April 2016

 

247

-

16,181

16,428

Profit for the year

 

 -

 -

2,010

2,010

Total comprehensive income

 

-

-

2,010

2,010

 

 

 

 

 

 

Bonus issue of share capital

 

3

-

(3)

-

Issue of share capital

 

58

4,942

-

5,000

Costs associated with issue of share capital

 

-

(50)

-

(50)

Share based payments

25

-

-

7

7

As at 31 March 2017

 

308

4,892

18,195

23,395

 

 

 

 

 

 

As at 1 April 2017

 

308

4,892

18,195

23,395

Profit for the year

 

-

 -

5,034

5,034

Total comprehensive income

 

-

-

5,034

5,034

 

 

 

 

 

 

Dividends paid

21

-

 -

(1,079)

(1,079)

Share based payments

25

-

-

161

161

Deferred tax on share based payments

 

-

 -

57

57

As at 31 March 2018

 

308

4,892

22,368

27,568

 

 

 

Consolidated statement of cash flows

 

 

 

 

For the year ended 31 March 2018

 

 

 

 

 

 

 

2018

2017

Operating activities

Notes

 

£'000

£'000

 

 

 

 

 

Profit before tax

 

 

6,312

2,936

Adjustments to reconcile profit before tax to net cash flows:

 

 

 

 

Depreciation and impairment of property, plant

 

 

 

 

and equipment

11

 

1,079

1,047

Amortisation and impairment of intangible assets

12

 

211

320

Change in derivative financial instruments

 

 

(79)

(107)

Loss on disposal of property, plant and equipment

 

 

29

83

Exceptional expenses

7

 

-

1,110

Share based payments

 

 

161

7

Finance costs

6

 

177

614

Exceptional expenses - bonus

 

 

-

(172)

Working capital adjustments:

 

 

 

 

Movement in trade and other receivables and prepayments

 

 

(1,251)

(693)

Movement in inventories

 

 

(2,229)

(2,002)

Movement in trade and other payables

 

 

2,350

170

 

 

 

6,760

3,313

Interest paid

 

 

(173)

(614)

Income tax paid

 

 

(999)

(704)

Net cash flows from operating activities

 

 

5,588

1,995

Investing activities

 

 

 

 

Proceeds from sale of property, plant and equipment

 

 

1

-

Purchase of property, plant and equipment

 

 

(1,201)

(451)

Purchase of intangible assets

 

 

(111)

(41)

Net cash flows used in investing activities

 

 

(1,311)

(492)

Financing Activities

 

 

 

 

Dividends paid

21

 

(1,079)

-

Payment of finance lease liabilities

 

 

(8)

(8)

Bank loans drawn down

 

 

1,875

2,310

Repayment of bank borrowings

 

 

(2,310)

(2,900)

Repayment of loan notes

 

 

-

(4,000)

Exceptional expenses - IPO

 

 

-

(938)

Proceeds of issue of ordinary shares

 

 

-

4,950

Net cash flows used in financing activities

 

 

(1,522)

(586)

Net increase in cash and cash equivalents

 

 

2755

917

Cash and cash equivalents at 1 April

 

 

11,864

10,947

Cash and cash equivalents at 31 March

 

 

14,619

11,864

 

 

 

 

 

 

 

Notes to the consolidated financial statements

 

1. Corporate information

Ramsdens Holdings PLC (the "Company") is a public limited company incorporated and domiciled in England and Wales. The registered office of the Company is Unit 16, Parkway Shopping Centre, Coulby Newham, Middlesbrough, TS8 0TJ. The registered company number is 08811656. A list of the Company's subsidiaries is presented in note 13.

 

The principal activities of the Company and its subsidiaries (the "Group") are the supply of foreign exchange services, pawnbroking and related financial services, jewellery sales, and the purchase of gold jewellery from the general public.

 

2. Changes in accounting policies

 

Adoption of new and revised standards

In the current year, the Group has applied a number of amendments to IFRSs issued by the International Accounting Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2017. None of the new or revised standards that have been adopted affected the amounts reported in the financial statements.

 

Amendments to IAS 7

Disclosure initiative

Amendments to IAS 12

Recognition of Deferred Tax Assets for Unrealised Losses

Annual Improvements to IFRSs: 2014-2016

Amendments to: IFRS 12 Disclosure of Interest in Other Entities

 

Standards issued but not yet effective

At the date of authorisation of these financial statements the Group had not applied the following new and revised IFRSs that have been issued but are not yet effective:

IFRS 9

Financial Instruments

IFRS 15

Revenue from Contracts with Customers

IFRS 16

Leases

IFRS 17

Insurance Contracts

Amendments to IFRS 2

Classification and Measurement of Share-Based Payment Transactions

Amendments to IFRS 4

Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts

Amendments to IAS 10 and IAS 28

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

Amendments to IAS 40

Transfer of Investment Property

IFRIC 22

Foreign Currency Transactions and Advanced Consideration

IFRIC 23

Uncertainty over Income Tax Treatments

 

The Directors have considered the likely impact of the above standards on the financial statements of the Group in future periods. Other than IFRS 16 detailed below, the directors do not consider that the standards will have a material impact on the financial statements in future periods.

 

During the year the Directors carried out an impact assessment of IFRS 15 Revenue from Contracts with Customers. All income streams were reviewed against the requirements of IFRS 15 and the review concluded that the current accounting policies were compliant with the new standard. Therefore the introduction of IFRS 15 will not impact on the financial statements in future periods.

 

IFRS 16 establishes principles for the recognition, measurement, presentation and disclosure of leases, with the objective of ensuring that lessees and lessors provide relevant information that faithfully represents those transactions.

 

Under IFRS 16 significant changes are introduced to lessee accounting, with the distinction between operating and finance leases removed and assets and liabilities recognised in respect of all leases (subject to limited exceptions for short-terms leases and leases of low value assets).

 

Upon lease commencement a lessee recognises a right-of-use asset and a lease liability. The right-of-use asset is initially measured at the amount of the lease liability plus any direct costs incurred by the lessee. Under the cost model, a right-of-use asset is measured at cost less accumulated depreciation and accumulated impairment. The lease liability is initially measured at the present value of the lease payment payable over the lease term, discounted at the rate implicit in the lease if that can be readily determined. If that rate cannot be readily determined, the lessee shall use their incremental borrowing rate.

 

IFRS 16 will apply for annual reporting periods beginning on or after 1 January 2019. The Group currently expects to adopt IFRS16 for the year ending 31 March 2020. The Group is currently assessing the impact of accounting changes that will arise under IFRS 16. The changes are expected to have a material impact on the Group Statement of Comprehensive Income and Consolidated Financial Statements. At 31 March 2018 the Group had non-cancellable lease commitments of £10,704,000 as disclosed in note 23. Our assessment indicates these commitments will meet the definition of a lease under IFRS 16 unless they qualify for low value or short-term leases. On adopting IFRS 16, the Group will recognise a right-of-use asset and a related lease liability. In the statement of comprehensive income the lease expense will be replaced with amortisation of the right-of-use asset and a finance charge on the lease liability. The effect on profit will be nil over the life of the lease but may vary throughout the lease term. EBITDA will increase but the changes will have no net cash flow impact.

 

3. Significant accounting policies

 

3.1 Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union.

 

The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments that have been measured at fair value. The consolidated financial statements are presented in pounds sterling which is the functional currency of the parent and presentational currency of the Group. All values are rounded to the nearest thousand (£000), except when otherwise indicated.

 

3.2 Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and all of its subsidiary undertakings (as detailed above). The financial information of all Group companies is adjusted, where necessary, to ensure the use of consistent accounting policies.  In line with IFRS10, an investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

 

3.3 Going Concern

The Directors have made appropriate enquiries and formed a judgement at the time of approving the financial statements that there is a reasonable expectation that the Group has adequate resources to continue in business for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

 

3.4 Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred which represents the fair value of the assets transferred and liabilities incurred or assumed. Acquisition related costs are expensed as incurred and included in administrative expenses.

 

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred over the fair value of the identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in the statement of comprehensive income as a gain on bargain purchase.

 

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group's cash generating units (CGU) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

 

3.5 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is recognised in the statement of comprehensive income when it is incurred.

 

The useful lives of intangible assets are assessed as either finite or indefinite and at each date of the statement of financial position no intangible assets are accorded an indefinite life.

 

Intangible assets with finite lives are amortised over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.

 

Amortisation is calculated over the estimated useful lives of the assets as follows:

•      Customer relationships - 40% reducing balance

•      Software - 20% straight line

 

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of comprehensive income in the expense category consistent with the function of the intangible assets.

 

3.6 Property, plant and equipment 

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses (if any).  All other repair and maintenance costs are recognised in the statement of comprehensive income as incurred.

 

Depreciation is calculated over the estimated useful lives of the assets as follows:

•    Leasehold property    - straight line over the lease term

•    Fixtures & fittings       - 20% & 33% reducing balance

•    Computer equipment - 25% & 33% reducing balance

•    Motor vehicles            - 25% reducing balance

 

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of comprehensive income when the asset is derecognised.

 

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

 

3.7   Impairment of non-financial assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or CGU's fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

 

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

 

The Group bases its impairment calculation on detailed budgets and forecasts which are prepared separately for each of the Group's CGUs to which the individual assets are allocated, which is usually taken to be each individual branch store. These budgets and forecast calculations are generally covering a period of ten years.

 

Impairment losses of continuing operations are recognised in the statement of comprehensive income in those expense categories consistent with the function of the impaired asset.

 

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset's or CGU's recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised.

 

The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation or amortisation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the Statement of Comprehensive income unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.

 

Goodwill

Goodwill is tested for impairment annually as at 31 March and when circumstances indicate that the carrying value may be impaired.

 

Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. Where the recoverable amount of the cash-generating unit is less than their carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.

 

3.8 Inventories

Inventories comprise of electronics, retail jewellery and precious metals held to be scrapped and are valued at the lower of cost and net realisable value.

 

Cost represents the purchase price plus overheads directly related to bringing the inventory to its present location and condition.

 

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs to sell.

 

3.9 Financial instruments - initial recognition and subsequent measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

 

Financial assets

Initial recognition and measurement

In accordance with IAS 39, 'Financial Instruments: Recognition and Measurement' the Group has classified its financial assets as 'loans and receivables'. The Group determines the classification of its financial assets at initial recognition.

 

All financial assets are recognised initially at fair value plus, in the case of assets not at fair value through the statement of comprehensive income, transaction costs that are attributable to the acquisition of the financial asset.

 

Subsequent measurement

The subsequent measurement of financial assets depends on their classification as described below:

 

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. This category applies to trade and other receivables due from customers in the normal course of business and includes pawnbroking receivables which are interest bearing. The accrued interest arising on pawnbroking receivables is included in prepayments and accrued income using the effective rate of interest. All other amounts which are not interest bearing are stated at their recoverable amount, being invoice value less provision for any bad debts.

 

Cash and cash equivalents

Cash and short-term deposits in the statement of financial position comprise cash at banks and on hand, foreign currency held for resale and short term deposits held with banks with a maturity of three months or less from inception.

 

For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash, foreign currency held for resale and short-term deposits as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group's cash management.

 

Impairment of financial assets

The Group assesses, at each reporting date, whether there is any objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred 'loss event'), has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears, fall in value of the secured pledges below the value of the outstanding loans or economic conditions that correlate with defaults.

 

Financial assets carried at amortised cost

For financial assets carried at amortised cost, the Group first assesses whether impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognised are not included in a collective assessment of impairment.

 

The amount of any impairment loss identified is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset's original effective interest rate.

 

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through the statement of comprehensive income, or 'other financial liabilities'.

 

All financial liabilities are recognised initially at fair value and, in the case of other financial liabilities, net of directly attributable transaction costs.

 

The Group's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

 

Subsequent measurement

The measurement of financial liabilities depends on their classification, as follows:

 

Financial liabilities at fair value through the statement of comprehensive income

Only the Group's derivative financial instruments are classified as financial liabilities at fair value through the statement of comprehensive income.

 

Financial liabilities at fair value through the statement of comprehensive income are stated at fair value, with any resultant gain or loss recognised in the statement of comprehensive income. The net gain or loss recognised in the statement of comprehensive income incorporates any interest paid on the financial liability.

 

Other financial liabilities

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method (EIR). Gains and losses are recognised in the statement of comprehensive income when the liabilities are derecognised as well as through the (EIR) amortisation process.

 

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in the statement of comprehensive income.

 

This category generally applies to interest-bearing loans and borrowings.

 

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:

•    The rights to receive cash flows from the asset have expired, or

•    The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement, and either

(a) the Group has transferred substantially all the risks and rewards of the asset, or

(b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the assets

 

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of comprehensive income.

 

Offsetting of financial instruments

Financial assets and financial liabilities are offset with the net amount reported in the consolidated statement of financial position only if there is a current enforceable legal right to offset the recognised amounts and intent to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

 

3.10 Fair value measurement

The Group measures financial instruments, such as derivatives, at fair value at the date of each statement of financial position.

 

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

 

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

 

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

 

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy. This is described, as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

•    Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

•    Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

•    Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

 

3.11 Taxation

 

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Consolidated Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the date of the statement of financial position.

 

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at the date of each statement of financial position and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

 

Deferred tax is calculated at the tax rates and laws that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the Consolidated Statement of Comprehensive Income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax is recognised on an undiscounted basis.

 

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

 

3.12 Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date.

 

For arrangements entered into prior to 1 April 2013, the date of inception is deemed to be 1 April 2013 in accordance with IFRS 1 First-time Adoption of International Reporting Standards.

 

Hire purchase agreements and finance lease agreements

Finance leases and hire purchase agreements that transfer to the Group substantially all of the risks and benefits incidental to ownership of the leased item, are capitalised at the commencement of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. The leased asset is depreciated over the shorter of the lease term and its useful economic life.

 

Obligations under such agreements are included within payables, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated Statement of Comprehensive Income so as to produce a constant periodic rate of interest on the net obligation outstanding in each period.

 

Operating lease agreements

Rentals applicable to operating leases, where substantially all of the risks and benefits or ownership remains with the lessor, are charged to the Statement of Comprehensive Income on a straight line basis over the period of the lease.

Lease incentives are spread over the period of the lease on a straight line basis.

 

3.13 Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured using the directors' best estimate of the expenditure required to settle the obligation at the date of each statement of financial position.

 

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

 

All of the group's premises are leased under operating leases. The majority of the leases include an end of lease rectification clause to return the property to its original state. No provision is made until a board decision has been taken to either terminate or not to renew the lease. Additionally, the group maintains stores to a high standard and completes any necessary repairs and maintenance on a timely basis using the in-house property department and external contractors. These costs are expensed as incurred.

 

3.14 Pensions and other post-employment benefits

The company operates a defined contribution pension scheme. The assets of the scheme are held and administered separately from those of the Group. Contributions payable for the year are charged in the statement of comprehensive income. Total contributions for the year are disclosed in note 9 to the accounts. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the Statement of Financial Position.

 

3.15 Employee share incentive plans

The group grants equity settled share option rights to the parent entity's equity instruments to certain directors and senior staff members under a LTIP (Long term incentive Plan).

The employee share options are measured at fair value at the date of grant by the use of either the Black- Scholes Model or a Monte Carle model depending on the vesting conditions attached to the share option. The fair value is expensed on a straight line basis over the vesting period based on an estimate of the number of options that will eventually vest.                                                           

 

3.16 Revenue recognition

Revenue is recognised when the entity transfers significant risks and rewards of ownership to the buyer. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The following specific recognition criteria must also be met before revenue is recognised:

 

Pawnbroking revenue

Revenue from pawnbroking comprises interest on pledge loan books and comprises the following two distinct components:

 

Contractual interest earned:

Contractual interest is earned on pledge loans up to the point of redemption or the end of the primary contract term. Interest receivable on loans is recognised as interest accrues by reference to the principle outstanding and the effective rate applicable, which is the rate that discounts the estimated cash receipts through the expected life of the financial asset to that asset's net carrying value.

 

Revenue arising from the disposal of unredeemed pledge contracts:

Revenue is recognised on the disposal of unredeemed pledge contracts when additional interest and transaction fee income is earned.

 

Sale of precious metals and diamonds acquired via over the counter purchases

Gold/Silver - Revenue is recognised at either the prevailing spot price, or in the case of gold, at the fixed amount booked, at the point it is received by the Group's bullion dealer.

Platinum and palladium - Revenue is recognised at the point a confirmed sell instruction is issued to the Group's bullion dealer.

 

Retail sales

Revenue is recognised at the point the goods are delivered to the customer.

 

Currency income 

Revenue is earned in respect of the provision of Bureau de Change facilities offered and represents the margin earned which is recognised at the point the currency is collected by the customer.

 

Other financial income

Other financial income comprises cheque cashing fees, buyback and other miscellaneous revenues. Cheque cashing fees earned are recognised within revenue by reference to the date the transaction takes place. Buyback revenue relates to the sale of items to a customer, either the person who originally sold that item to the business, or to a third party. Revenue is recognised at the delivery of the item to a customer.

 

Dividend income

Revenue is recognised when the Group's right to receive the payment is established, which is generally when shareholders approve the dividend.

 

4. Key sources of estimation, uncertainty and significant accounting judgements

The preparation of the Group's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

 

In the process of applying the Group's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the consolidated financial statements:

 

Revenue recognition - pawnbroking loans interest accrual estimation

The group recognises interest on pawnbroking loans as disclosed in note 3.16. The pawnbroking loans interest accrual (pledge accrual) is material and is dependent on the estimate that the Group makes of both the expected level of the unredeemed pawnbroking loans and the ultimate realisation value for the pledge assets supporting those loans. An assessment is made on a pledge by pledge basis of the carrying value represented by original capital loaned plus accrued interest to date and its corresponding realisation value on sale of unredeemed pledges to identify any deficits. The principle estimates within the loan interest accrual are;

1.       Non Redemption Rate

This is based upon current and historical data held in respect of non - redemption rates

 

2.       Realisation Value

This based upon either;

-       The current price of the metal that will be received through the sale of the metal content via disposal through a bullion dealer.

-       The expected resale value of those jewellery items within the pledge that can be retailed through the branch network.

 

See note 14 for further details on pawnbroking credit risk and provision values.

 

Impairment of property, plant and equipment and intangible assets

Determining whether property, plant and equipment and intangibles are impaired requires an estimation of the value in use of the CGU to which the assets have been allocated. The value in use calculation requires the Group to estimate the future cash flows expected to arise from the CGU and selecting a suitable discount rate in order to calculate present value. The review is conducted annually, in the final quarter of the year. The impairment review is conducted at the level of each CGU, which is usually taken to be each individual branch store.

 

The principal assumptions applied by management in arriving at the value in use of each CGU are as follows:

1.       The Group prepares cash flow forecasts for each branch. Cash flows represent management's estimate of the revenue of the relevant CGU, based upon the specific characteristics of the branch and its stage of development.

2.       The Group has discounted the forecast cash flows at a pre-tax, risk adjusted rate of 12%.

3.       Where the recoverable amount of the CGU was estimated to be less than its carrying amount, the carrying amount of the CGU was reduced to the estimated recoverable amount.

Whilst the impairment review has been conducted based on the best available estimates at the impairment review date, the Group notes that actual events may vary from management expectation.

 

Trade receivables provisioning

Trade and other receivables, with the exception of expired pledges, are stated at their nominal amount less expected impairment losses.

 

For unredeemed pledges, the goods securing the loan are put up for sale as the Group is selling the goods on behalf of the customer to repay the loan. An impairment review of the carrying value for each unredeemed pledge is undertaken and the resultant amount is shown within trade receivables at the lower of:

(i) the original capital loaned together with the accrued primary term interest less the proceeds of any goods sold to date; and

(ii) the current market value of the remaining goods within the pledge that have yet to be realised

 

Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies.

 

5. Segmental analysis

The group's revenue from external customers is shown by geographical location below:

 

 

 

 

2018

2017

Revenue

 

 

£'000

£'000

 

 

 

 

 

United Kingdom

 

 

39,800

34,516

Other

 

 

142

-

 

 

 

39,942

34,516

 

The Group's assets are located entirely in the United Kingdom therefore, no further geographical segments analysis is presented. The Group is organised into operating segments, identified based on key revenue streams, as detailed in the CEO's review.

 

 

 

 

2018

2017

Revenue

 

 

£'000

£'000

 

 

 

 

 

Pawnbroking

 

 

6,966

6,128

Purchases of precious metals

 

 

10,936

10,839

Retail Jewellery sales

 

 

7,960

5,909

Foreign currency margin

 

 

11,329

8,971

Income from other financial services

 

 

2,751

2,669

Total revenue

 

 

39,942

34,516

 

 

 

 

 

 

 

 

 

2018

2017

Gross profit

 

 

£'000

£'000

 

 

 

 

 

Pawnbroking

 

 

6,966

6,128

Purchases of precious metals

 

 

4,356

4,336

Retail Jewellery sales

 

 

4,130

3,321

Foreign currency margin

 

 

11,329

8,971

Income from other financial services

 

 

1,566

1,532

Total gross profit

 

 

28,347

24,288

 

 

 

 

 

Administrative expenses

 

 

(21,937)

(19,735)

Exceptional expenses

 

 

-

(1,110)

Finance costs

 

 

(177)

(614)

Gain on fair value of derivative financial liability

 

 

79

107

Profit before tax

 

 

6,312

2,936

 

Income from other financial services comprises of cheque cashing fees, electronics & buybacks, agency commissions on miscellaneous financial products.

Revenue from the purchases of precious metals is currently from one bullion dealer. There is no reliance on key customers in other revenue streams.

 

The Group is unable to meaningfully allocate administrative expenses, or financing costs or income between the segments. Accordingly, the Group is unable to meaningfully disclose an allocation of items included in the Consolidated Statement of Comprehensive income below Gross profit, which represents the reported segmental results.

 

 

 

 

 

2018

2017

Other information

 

 

£'000

£'000

Tangible & intangible capital additions (*)

 

 

1,312

492

Depreciation and amortisation (*)

 

 

1,290

1,368

 

 

 

 

2018

2017

 

 

 

£'000

£'000

Assets

 

 

 

 

Pawnbroking

 

 

9,421

8,242

Purchase of precious metals

 

 

1,323

773

Retail Jewellery sales

 

 

6,214

4,354

Foreign currency margin

 

 

7,162

6,096

Income from other financial services

 

 

472

480

Unallocated (*)

 

 

13,022

11,358

 

 

 

37,614

31,303

 

Liabilities

 

 

 

 

Pawnbroking

 

 

254

167

Purchase of precious metals

 

 

5

-

Retail Jewellery sales

 

 

1,418

657

Foreign currency margin

 

 

2,814

1,771

Income from other financial services

 

 

422

190

Unallocated (*)

 

 

5,133

5,123

 

 

 

10,046

7,908

 

(*) The Group cannot meaningfully allocate this information by segment due to the fact that all segments operate from the same stores and the assets in use are common to all segments.

Fixed assets are therefore included in the unallocated assets balance.

 

6. Finance costs

 

 

2018

2017

 

 

£'000

£'000

 

 

 

 

Interest on debts and borrowings

 

176

613

Finance charges payable under finance leases and hire purchase contracts

 

1

1

Total finance costs

 

177

614

 

7. Profit before taxation has been arrived at after charging/(crediting)

 

 

 

2018

2017

 

 

£'000

£'000

Depreciation of property, plant and equipment reported within:

 

 

 

-          Administrative expenses

 

1,079

1,047

Amortisation of intangible assets reported within:

 

 

 

-          Administrative expenses

 

211

320

Loss on disposal of property, plant and equipment

 

29

83

Cost of inventories recognised as an expense

 

11,595

10,228

Staff costs

11,256

9,177

Foreign currency gains

(93)

(128)

Operating lease payments

2,726

2,643

Auditor's remuneration - Audit fees

78

89

Exceptional expenses

-

1,110

 

The Company and Group audit fees are borne by a subsidiary undertaking, Ramsdens Financial Limited. There were no fees payable to the Company's auditor in respect of non-audit services.

 

Exceptional expenses in 2017 relates to professional costs incurred in relation to the Ramsdens Holdings PLC listing on the AIM market together with a bonus paid to those members of staff that were employed at the time of the Group's MBO on the 2nd September 2014 in recognition of their loyalty.

 

 

8. Earnings per share

 

 

2018

2017

 

 

£'000

£'000

 

 

 

 

Profit for the year

 

5,034

2,010

 

 

 

 

Weighted average number of shares in issue

 

30,837,653

25,750,444

 

 

 

 

Earnings per share (pence)

 

16.3

7.8

 

 

 

 

Fully Diluted  earnings per share (pence)

 

15.9

7.6

 

 

 

9. Information regarding directors and employees

 

Directors' emoluments

 

 

 

 

2018

2017

 

Emoluments

Pension

LTIP

Total

Emoluments

Pension

LTIP

Total

Executive

 

 

 

 

 

 

 

 

Peter Kenyon

312

15

50

377

194

13

2

209

Martin Clyburn*

207

10

28

245

67

1

1

69

Michael Johnson**

-

-

-

-

84

6

-

90

Kevin Brown**

-

-

-

-

50

42

-

92

Non Executive

 

 

 

 

 

 

 

 

Andrew Meehan

58

-

-

58

32

-

-

32

Simon Herrick***

42

-

-

42

10

-

-

10

Steve Smith***

35

-

-

35

9

-

-

9

Total

654

25

 

78

757

446

62

3

511

 

* Martin Clyburn was appointed to the board in August 2016

** Michael Johnson and Kevin Brown resigned as directors of the Company in February 2017

***Simon Herrick and Steve Smith were appointed to the board in January 2017

 

 

 

 

2018

2017

 

 

£'000

£'000

Included in administrative expenses:

 

 

 

Wages and salaries

 

10,211

8,436

Social security costs

 

738

565

Share option scheme

 

161

7

Pension costs

 

146

169

Total employee benefits expense

 

11,256

9,177

 

The average number of staff employed by the group during the financial period amounted to:

 

 

2018

2017

 

 

No.

No.

 

 

 

 

Head Office and management

 

84

66

Branch Counter staff

 

491

486

 

 

575

552

 

10. Income Tax

 

The major components of income tax expense are:

 

Consolidated statement of comprehensive income

 

 

2018

2017

 

 

£'000

£'000

Current income tax:

 

 

 

Current income tax charge

 

1,341

969

Adjustments in respect of current income tax of previous year

 

(14)

57

 

 

1,327

1,026

   Deferred tax:

Relating to origination and reversal of temporary differences

 

(49)

(100)

Income tax expense reported in the statement of comprehensive income

 

1,278

926

 

A reconciliation between tax expense and the product of accounting profit multiplied by the UK domestic tax rate is as follows:

 

 

2018

2017

 

 

£'000

£'000

 

 

 

 

Profit before income tax

 

6,312

2,936

UK corporation tax rate at 19% (2017: 20%)

 

1,199

587

Expenses not deductible for tax purposes

 

93

282

Prior period adjustment

 

(14)

57

Income tax reported in the statement of comprehensive income

 

1,278

926

 

Deferred tax

Deferred tax relates to the following:

 

 

2018

2017

 

 

£'000

£'000

Deferred tax assets

 

 

 

Share based payments

 

84

-

Deferred tax assets

 

84

-

 

 

 

 

Deferred tax liabilities

 

 

 

Accelerated depreciation for tax purposes

 

1

4

Other short-term differences

 

114

133

Deferred tax liabilities

 

115

137

 

 

Reconciliation of deferred tax liabilities net

 

 

 

 

 

2018

2017

 

 

£'000

£'000

 

 

 

 

Opening balance as of 1 April

 

137

237

Deferred tax recognised in the statement of comprehensive income

 

(49)

(100)

Other deferred tax

 

(57)

-

Closing balance as at 31 March

 

31

137

 

Factors affecting tax charge

The standard rate of UK corporation tax for the period was 19% (2017: 20%). Reductions in the rate to 19% from 1 April 2017 and 17% from 1 April 2020 were enacted prior to the date of the statement of financial position and have been applied to the Group's deferred tax balances. This will adjust the Group's future tax charge accordingly.

 

 

11. Property, plant and equipment

 

Leasehold property

Fixtures & Fitting

Computer equipment

Motor vehicles

Total

 

£'000

£'000

£'000

£'000

£'000

Cost

 

 

 

 

 

At 1 April 2017

3,686

2,517

392

40

6,635

Additions

601

387

213

-

1,201

Disposals

(141)

(172)

(94)

-

(407)

At 31 March 2018

4,146

2,732

511

40

7,429

 

 

 

 

 

 

Depreciation

 

 

 

 

 

At 1 April 2017

1,416

877

118

14

2,425

Depreciation charge for the year

586

382

105

6

1,079

Disposals

(141)

(163)

(73)

-

(377)

At 31 March 2018

1,861

1,096

150

20

3,127

 

 

 

 

 

 

Net book value

 

 

 

 

 

At 31 March 2018

2,285

1,636

361

20

4,302

At 31 March 2017

2,270

1,640

274

26

4,210

 

Finance leases

The carrying value of plant and equipment held under finance leases and hire purchase contracts at 31 March 2018 was £15,000 (2017: £19,000). Assets under hire purchase contracts are pledged as security for the related hire purchase liabilities.  Total future obligations under finance leases are £9,000 (2017: £17,000).

 

12. Intangible assets

 

 

Customer relationships

Website

Goodwill

Total

 

 

£'000

£'000

£'000

£'000

Cost

 

 

 

 

 

At 1 April 2017

 

1,344

79

-

1,423

Additions

 

31

-

-

31

Acquisitions

 

-

-

80

80

Disposals

 

-

-

-

-

At 31 March 2018

 

1,375

79

80

 

 

 

 

 

 

Amortisation

 

 

 

 

 

At 1 April 2017

 

876

18

-

894

Amortisation charge for the year

 

195

16

-

211

Disposals

 

-

-

-

-

At 31 March 2018

 

1,071

34

-

 

 

 

 

 

 

Net book value

 

 

 

 

 

At 31 March 2018

 

304

45

80

429

At 31 March 2017

 

468

61

-

529

 

On 5 January 2018 the Group purchased a jewellery business for consideration of £100,000 paid in cash. This comprised £20,000 for tangible fixed assets and £80,000 for goodwill. The store was refurbished and re-branded and opened in March 2018.

 

 

13. Investments

 

The Group has a minor holding in Big Screen Productions 5 LLP.

Big Screen Productions 5 LLP, whilst still trading, has wound down its operations and made a capital distribution equivalent to the value of the carrying value of the investment in 2015. The investment now has a £nil carrying value.

 

Group Investments

Details of the investments in which the group and company holds 20% or more of the nominal value of any class of share capital are as follows:

 

 

 

Name of company

Holding

Proportion of voting rights and shares held

Activity

Subsidiary undertakings

 

 

 

Ramsdens Group Limited

(Registered office: Unit 16 Parkway Centre, Coulby Newham, TS8 0TJ)

Ordinary Shares

100%

Supply of management & strategic services

Ramsdens Financial Limited

(Registered office: Unit 16 Parkway Centre, Coulby Newham, TS8 0TJ)

Ordinary Shares

100%

Supply of foreign exchange services, pawnbroking, purchase of gold jewellery, jewellery retail and related financial services.

 

14. Financial assets and financial liabilities

At 31 March 2018

Fair value through statement of comprehensive income

Loans and receivables

Financial liabilities at amortised cost

Book Value

Fair Value

 

£'000

£'000

£'000

£'000

£'000

Financial assets

 

 

 

 

 

Trade and other receivables

-

9,930

-

9,930

9,930

Cash and cash equivalents

-

14,619

-

14,619

14,619

Financial liabilities

 

 

 

 

 

Trade and other payables

-

-

(7,176)

(7,176)

(7,176)

Borrowings

-

-

(1,883)

(1,883)

(1,883)

Derivative financial liabilities - interest rate swap

(40)

 -

(40)

(40)

Net financial assets/(liabilities)

(40)

24,549

(9,059)

15,450

15,450

 

 

At 31 March 2017

Fair value through statement of comprehensive income

Loans and receivables

Financial liabilities at amortised cost

Book Value

Fair Value

 

£'000

£'000

£'000

£'000

£'000

Financial assets

 

 

 

 

 

Trade and other receivables

-

8,672

-

8,672

8,672

Cash and cash equivalents

-

11,864

-

11,864

11,864

Financial liabilities

 

 

 

 

 

Trade and other payables

-

-

(4,809)

(4,809)

(4,809)

Borrowings

-

-

(2,327)

(2,327)

(2,327)

Derivative financial liabilities - interest rate swap

(119)

 -

(119)

(119)

Net financial assets/(liabilities)

(119)

20,536

(7,136)

13,281

13,281

 

Trade and other receivables shown above comprises trade receivables, other receivables and pledge accrued income as disclosed in note 16.

 

Trade and other payables comprises of trade payables, other payables and accruals as disclosed in notes 18 & 19

Borrowings comprises of bank borrowings, obligations under finance leases, loan notes and other loans as disclosed in notes 18 & 19.

 

Loans and receivables are non-derivatives financial assets carried at amortised cost which generate a fixed or variable interest income for the Group. The carrying value may be affected by changes in the credit risk of the counterparties.

 

Management have assessed that for cash and short-term deposits, trade receivables, trade payables, bank overdrafts and other current liabilities their fair values approximate to their carrying amounts largely due to the short-term maturities of these instruments. Book values are deemed to be a reasonable approximation of fair values.

 

Fair value

The assumptions used by the Group to estimate the fair values are summarised below:

The fair value of the interest rate swaps is based upon the projected interest rate curves, over the life of the interest rate swaps. This valuation falls within level 2 of the fair value hierarchy in IAS39.

The fair value of all other financial instruments is equivalent to their book value due to their short maturities.

 

Financial Risks

The Group monitors and manages the financial risks relating to the financial instruments held. The principal risks include credit risk on financial assets, and liquidity and interest rate risk on financial liability borrowings. The key risks are analysed below.

 

Credit risk

 

Pawnbroking trade receivables

The Group is exposed to credit risk through customers defaulting on their loans. The key mitigating factor to this risk is the requirement for the borrower to provide security (the pledge) in entering a pawnbroking contract. The security acts to minimise credit risk as the pledged item can be disposed of to realise the loan value on default.

 

The Group estimates that the current fair value of the security is equal to the current book value.

 

In addition to holding security, the Group further mitigates credit risk by:

 

1)  Applying strict lending criteria to all pawnbroking loans. Pledges are rigorously tested and appropriately valued. In all cases where the Group lending policy is applied, the value of the pledged items is in excess of the pawn loan.

2) Seeking to improve redemption ratios. For existing customers, loan history and repayment profiles are factored into the loan making decision. The Group has a high customer retention ratio and all customers are offered high customer service levels.

 

3) The carrying value of every pledge comprising the pawnbroking trade receivables in the loan book is reviewed against its expected realisation proceeds should it not be redeemed and any deficits are provided for based on current and historical non redemption rates. In addition a further provision is made in respect of those expired pledges that are in the course of realisation by reviewing the carry value of each pledge against the expected realisation proceeds and writing the pledge down to its recoverable amount. 

 

The Group continually monitors, at both store and at Board level, its internal controls to ensure the adequacy of the pledged items. The key aspects of this are:

- Appropriate details are kept on all customers the Group transacts with;

- All pawnbroking contracts comply with the Consumer Credit Act 2006;

- Appropriate physical security measures are in place to protect pledged items; and

- An internal audit department monitors compliance with policies at the Group's stores.

 

The pawnbroking accrued income is disclosed net of the provision for bad and doubtful debts associated with these financial assets. The movement on these provisions is as follows;

 

 

 

Pawnbroking Trade Receivables

Pawnbroking Trade receivables in the course of realisation

 

 

£'000

£'000

At 1 April 2016

 

301

112

Statement of comprehensive income charge

 

(9)

(46)

At 31 March 2017

 

292

66

Statement of comprehensive income charge

 

50

12

Balance at 31 March 2018

 

342

78

 

 

 

 

Bad Debts written off during the year net of recoveries were:

 

 

 

 

2018

2017

 

£'000

£'000

Pawnbroking Trade Receivables

 

14

12

 

The ageing of the Pawnbroking trade receivables excluding those in the course of realisation is as follows:

 

 

2018

2017

 

£'000

£'000

Within contractual term

 

5,732

5,402

Past due

 

699

572

 

 

6,431

5,974

 

The Group has not provided for the contractually overdue receivables (i.e. loans where the pawnbroking agreement has terminated but the customer has not redeemed the assets) at the reporting date since the realisable value of the security held is greater than the carrying value of the pledge loan as disclosed above. The Group does not start the disposition process of the unredeemed pledges until at least one month after the due repayment date since it is commercial practice to allow additional time for the customers to redeem their pledges.

 

Cash and cash equivalents

The cash and cash equivalents balance comprises both bank balances and cash floats at the stores. The bank balances are subject to very limited credit risk as they are held with banking institutions with high credit ratings assigned by international credit rating agencies. The cash floats are subject to risks similar to any retailer, namely theft or loss by employees or third parties. These risks are mitigated by the security systems, policies and procedures that the Group operates at each store, the Group recruitment and training policies and the internal audit function.

 

 

Market risk

 

Pawnbroking trade receivables

The collateral which protects the Group from credit risk on non-redemption of pawnbroking loans is principally comprised of gold, jewellery items and watches. The value of gold items held as security is directly linked to the price of gold. The Group is therefore exposed to adverse movements in the price of gold on the value of the security that would be attributable for sale in the event of default by the borrower.

 

The Group considers this risk to be limited for a number of reasons. First of all, the Group applies conservative lending policies in pawnbroking pledges reflected in the margin made on retail sales and scrap gold when contracts forfeit. The Group is also protected due to the short term value of the pawnbroking contract. In the event of a significant drop in the price of gold, the Group could mitigate this risk by reducing its lending policy on pawnbroking pledges, by increasing the proportion of gold sold through retail sales or by entering gold hedging instruments. Management monitors the gold price on a constant basis.

 

Considering areas outside of those financial assets defined under IAS 39, the Group is subject to higher degrees of pricing risk. The price of gold will affect the future profitability of the Group in three key ways:

i)             A lower gold price will adversely affect the scrap disposition margins on existing inventory, whether generated by pledge book forfeits or direct purchasing. While scrap profits will be impacted immediately, retail margins may be less impacted in the short term.

ii)            While the Group's lending rates do not track gold price movements in the short term, any sustained fall in the price of gold is likely to cause lending rates to fall in the longer term thus potentially reducing future profitability.

iii)           A lower gold price may reduce the attractiveness of the Group's gold purchasing operations.

 

Conversely, a lower gold price may dampen competition as lower returns are available and hence this may assist in sustaining margins and volumes.

 

Financial assets

The Group is not exposed to significant interest rate risk on the financial assets, other than cash and cash equivalents, as these are lent at fixed rates, which reflect current market rates for similar types of secured or unsecured lending, and are held at amortised cost.

 

Cash and cash equivalents are exposed to interest rate risk as they are held at floating rates, although the risk is not significant as the interest receivable is not significant.

 

Liquidity risk

Cash and cash equivalents

Bank balances are held on short term / no notice terms to minimise liquidity risk.

 

Trade and other payables

Trade and other payables are non-interest bearing and are normally settled on 30 day terms, see note 18.

 

Borrowings

The maturity analysis of the cash flows from the group's borrowing arrangements that expose the group to liquidity risk are as follows:

 

 

 

 

2018

2017

 

 

£'000

£'000

 

 

 

 

Bank borrowings

 

1,875

2,310

 

Amount repayable

 

 

 

In one year or less

 

1,875

2,310

In more than one year but no more than two years

 

-

-

In more than two years but no more than five years

 

-

-

 

 

1,875

2,310

 

The interest charged on bank borrowings is based on a fixed percentage above LIBOR. There is therefore a cash flow risk should there be any upward movement in LIBOR rates. Assuming the £7million revolving credit facility was fully utilised then a 1% increase in the LIBOR rate would increase finance costs by £70,000 pre-tax and reduce post-tax profits by £57,000.

 

Derivative financial instruments comprise of interest rate swap facilities that mature in October 2018. The movement in this liability is shown as a gain on fair value of derivative financial liability in the statement of comprehensive income. For the year ended 31 March 2018 the gain was £79,000 (2017: £107,000)

 

15. Inventories

 

 

 

 

2018

2017

 

 

 

£'000

£'000

New and second hand inventory for resale (at lower of cost or net realisable value)

 

 

7,567

5,338

 

16. Trade and other receivables

 

 

 

2018

2017

 

 

 

£'000

£'000

Trade receivables - Pawnbroking

 

 

6,431

5,974

Trade receivables - Pawnbroking in the course of realisation

 

1,965

1,350

Trade receivables - other

 

 

495

406

Pledge accrued Income

 

 

1,025

917

Other receivables

 

 

14

25

Prepayments and accrued income

 

 

683

690

 

 

 

10,613

9,362

 

17. Cash and cash equivalents

 

 

 

2018

2017

 

 

 

£'000

£'000

Cash and cash equivalents

 

 

14,619

11,864

 

Cash and cash equivalents comprise cash held by the Group and short-term bank deposits.

 

Further details on financial instruments, including the associated risks to the Group and allowances for bad and doubtful debts and fair values is provided in note 14.

 

18. Trade and other payables (current)

 

 

 

2018

2017

 

 

 

£'000

£'000

Bank borrowings

 

 

1,875

2,310

Trade payables

 

 

5,259

3,335

Other payables

 

 

336

297

Income tax liabilities

 

 

633

305

Other taxes and social security

 

 

198

211

Accruals and deferred income

 

 

1,281

773

Obligations under finance leases (note 11)

 

 

8

8

 

 

 

9,590

7,239

 

Terms and conditions of the above financial liabilities:

         Trade and other payables are non-interest bearing and are normally settled on 30-day terms

 

For explanations on the Group's liquidity risk management processes, refer to note 14.

 

Bank borrowings

 

The RCF facility was renewed during the previous year with an increase in facility size from £5m to £7m and an

increase in term for a further 3 years. Details of the facility are as follows:

 

Key Term

Description

 

 

 

 

 

Facility

Revolving Credit Facility with Clydesdale Bank Plc (trading as Yorkshire Bank)

Total facility size

£7m

 

 

 

 

 

Termination date

04/03/2020

 

 

 

 

 

Utilisation

The £7m facility is available subject to the ratio of cash at bank in hand (inclusive of currency balances) to the RCF borrowing exceeding 1.5  as stipulated in the banking  agreement

Interest

Interest is charged on the amount drawn down at 2.5% above LIBOR rate when the initial the drawdown is made and for unutilised funds interest is charged at 1% above Libor rate from the date when the facility was made available.  The LIBOR rate is reset to the prevailing rate every interest period typically three months throughout the facility period

Interest Payable

Interest is payable at intervals to suit the company but typically three months.

Repayments

The facility can be repaid at any point during its term and re-borrowed,

 

Security

The facility is secured by a debenture over all the assets of Ramsdens Financial Ltd and cross guarantees and debentures have been given by Ramsdens Group Limited and Ramsdens Holdings PLC.

Undrawn facilities

At the 31 March 2018 the group had available £5m of undrawn committed facilities.

  

 

Finance lease and hire purchase commitments

The Group has finance leases and hire purchase contracts for one motor vehicle. The Group's obligations under finance leases are secured by the lessor's title to the leased assets. Future minimum lease payments under finance leases and hire purchase contracts, together with the present value of the net minimum lease payments at 31 March 2018 is £9,000 (2017: £17,000).

 

19. Non-current liabilities

 

 

 

2018

2017

 

 

 

£'000

£'000

Obligations under finance leases (note 11)

 

 

1

9

Accruals and deferred income

 

 

300

404

Derivative financial instruments (note 14)

 

 

40

119

Deferred tax (note 10)

 

 

115

137

 

 

 

456

669

 

 

20. Issued capital and reserves

 

Ordinary shares issued and fully paid

 

 

No.

£'000

Ordinary A shares of £1 each

 

 

186,250

186

Ordinary B shares of £1 each

 

 

60,983

61

At 31 March 2016

 

 

247,233

247

Reorganisation of existing share capital and reclassification to 1p shares

 

 

24,723,300

247

Bonus issue of ordinary 1p shares

 

 

300,400

3

Issue of new ordinary 1p shares

 

 

5,813,953

58

At 31 March 2017 & 31 March 2018

 

 

30,837,653

308

 

 

The Company reorganised the issued ordinary share capital during the previous year to unify the 'A' shares & 'B' shares into one class of 1p ordinary shares. As part of this re-organisation a bonus issue of 300,400 ordinary shares was made capitalising £3,000 of reserves.

 

The Company issued 5,813,953 ordinary 1p shares during the previous year at 86p per share. Associated fees of £50,000 were charged to share premium account.

 

Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 18, cash and cash equivalents and equity attributable to the equity holders of the parent, comprising issued capital, reserves and retained earnings.

 

21. Dividends

Amounts recognised as distributions to equity holders in the year:

 

 

2018

£'000

2017

£'000

Final dividend for the year ended 31 March 2017 of 1.3 pence per share

401

-

Interim dividend for the year ended 31 March 2018 of 2.2 pence per share

678

-

 

1,079

-

Amounts proposed and not recognised:

 

 

Proposed final dividend for the year ended 31 March 2018 of 4.4p (2017:1.3p) per share

1,357

401

 

The proposed final dividend is subject to approval at the Annual General Meeting accordingly has not been included as a liability in these financial statements.

 

22. Pensions

The company operates a defined contribution scheme for its directors and employees.  The assets of the scheme are held separately from those of the company in an independently administered fund.

The outstanding pension contributions at 31 March 2018 are £13,000 (2017: £107,000)

 

23. Commitments and contingencies

 

Operating lease commitments - Group as lessee

At the date of the statement of financial position, the Group had outstanding commitments for future minimum rentals payable under non-cancellable operating leases, which fall due as follows:

 

Land and buildings

 

 

 

2018

2017

 

 

 

 

£'000

£'000

Within one year

 

 

 

2,368

2,442

After one year but not more than five years

 

 

 

6,566

7,812

More than five years

 

 

 

1,673

1,335

 

 

 

 

10,607

11,589

 

 

 

 

 

 

Other

 

 

 

2018

2017

 

 

 

 

£'000

£'000

Within one year

 

 

 

61

79

After one year but not more than five years

 

 

 

36

54

More than five years

 

 

 

-

 

 

 

 

97

133

 

Significant operating lease payments represent rentals payable by the Group for rental of store premises. Leases are normally renegotiated for an average term of 10 years at the then prevailing market rate, with a break option after 5 years.

 

24. Related party disclosures

 

Ultimate controlling party

The Company has no controlling party. Prior to 15 February 2017 the Company was controlled by NorthEdge Capital Fund 1 LP which held 73.89% of the issued share capital since 2 September 2014.

 

Transactions with related parties

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

 

Transactions with key management personnel

The remuneration of the directors of the company, who are the key management personnel of the Group, is set out below in aggregate:

 

 

 

2018

2017

 

 

 

£'000

£'000

Short term employee benefits

 

 

946

613

Post employment benefits

 

 

43

78

Share based payments

 

 

119

6

 

 

 

1,108

697

 

 

25. Share based payments

As at 31 March 2018 the Company operated a Long-term Incentive Plan (LTIP). The charge for the year in respect of the scheme was:

 

 

 

 

2018

2017

 

 

 

£'000

£'000

LTIP

 

 

161

7

 

The LTIP is a discretionary share incentive scheme under which the Remuneration Committee can grant options to purchase ordinary shares at nominal 1p per share cost to Executive Directors and other senior management. The LTIP commenced in March 2017, details were as follows:

 

 

 

Number of conditional Shares

Weighted average exercise price in pence

Outstanding at the beginning of the year

 

805,554

-

Granted

 

-

-

Forfeited during the year

 

-

-

Exercised during the year

 

-

-

Outstanding at the end of the year

 

805,554

-

 

The options vest according to the achievement against two criteria:

-       Total Shareholder Return - TSR - 50% of options awarded

-       Earnings per Share - EPS - 50% of options awarded

 

The Fair value of services received in return for share options granted is based on the fair value of share options granted and are measured using the Monte Carlo method for TSR performance condition as this is classified as a market condition under IFRS2 and using the Black Scholes method for the EPS performance condition which is classified as a non- market condition under IFRS2. The fair values have been computed by an external specialist and the key inputs to the valuation model were;

 

 

 

TSR Condition

EPS Condition

Model

Monte Carlo

Black Scholes

Grant Date

13/03/2017

13/03/2017

Share Price

£1.06

£1.06

Exercise Price

£0.01

£0.01

Vesting period

3.05 years

3.05 years

Risk Free return

0.2%

0.2%

Volatility

27.0%

27.0%

Dividend Yield

7.5%

7.5%

Fair value of Option (£)

0.39

0.81

 

Early exercise of the options is permitted if a share award holder ceases to be employed by reason of death, injury, disability, or sale of the Company. The maximum term of the share options is 10 years.

 

 

26. Post Balance Sheet Events

There were no post balance sheets events that require further disclosure in the financial statements.

 

Parent Company Statement of Financial Position

As at 31 March 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

2017

 

Notes

 

 

 

 

Assets

 

 

 

£'000

£'000

Non-current assets

 

 

 

 

 

Investments

D

 

 

7,681

7,845

Deferred tax

E

 

 

84

-

 

 

 

 

7,765

7,845

Current assets

 

 

 

 

 

 Receivables

F

 

 

3,511

1,854

Cash and short term deposits

 

 

 

27

207

 

 

 

 

3,538

2,061

Total assets

 

 

 

11,303

9,906

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

G

 

 

302

108

 

 

 

 

302

108

Net current assets

 

 

 

3,236

1,953

 

 

 

 

 

 

Total assets less current liabilities

 

 

 

11,001

9,798

 

 

 

 

 

 

Net assets

 

 

 

11,001

9,798

 

 

 

 

 

 

Equity

 

 

 

 

 

Issued capital

H

 

 

308

308

Share Premium

 

 

 

4,892

4,892

Retained earnings

 

 

 

5,801

4,598

Total equity

 

 

 

11,001

9,798

 

 

 

 

 

 

 

 

 

 

 

 

 

The Profit after tax for the Company for the year ended 31 March 2018 was £2,050,000 (2017: £4,594,000)

 

These financial statements were approved by the directors and authorised for issue on 6 June 2018 and signed on their behalf by:

M A Clyburn

 

 

 

 

 

Chief Financial Officer

 

 

 

 

 

Company Registration Number: 8811656

 

 

 

 

 

 

 

Parent Company statement of changes in equity

For the year ended 31 March 2018

 

 

 

 

 

 

 

 

 

Share Capital

Share premium

Retained earnings

Total

 

 

 

 

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

As at 1 April 2016

247

-

-

247

Profit for the year

-

-

4,594

4,594

Total comprehensive income

-

-

4,594

4,594

 

 

 

 

 

Bonus issue of share capital

3

-

(3)

-

Issue of share capital

58

4,942

-

5,000

Costs associated with issue of share capital

-

(50)

-

(50)

Share based payments

 -

 -

7

7

As at 31 March 2017

308

4,892

4,598

9,798

 

 

 

 

 

As at 1 April 2017

308

4,892

4,598

9,798

Profit for the year

-

-

2,050

2,050

Total comprehensive income

-

-

2,050

2,050

 

 

 

 

 

Dividends paid

-

-

(1,079)

(1,079)

Share based payments

-

-

161

161

Deferred tax on share based payments

-

-

71

71

As at 31 March 2018

308

4,892

5,801

11,001

 

 

A. ACCOUNTING POLICIES

 

BASIS OF PREPARATION

Ramsdens Holdings PLC (the "Company") is a public limited company incorporated and domiciled in England and Wales. The registered office of the Company is Unit 16, Parkway Shopping Centre, Coulby Newham, Middlesbrough, TS8 0TJ. The registered company number is 08811656. A list of the Company's subsidiaries is presented in note D.

 

The principal activities of the Company and its subsidiaries (the "Group") are the supply of foreign exchange services, pawnbroking and related financial services, jewellery sales, and the purchase of gold jewellery from the general public.

 

The separate financial statements of the Company are presented as required by the Companies Act 2006. The Company meets the definition of a qualifying entity under FRS 100 (Financial Reporting Standard 100) issued by the Financial Reporting Council. Accordingly, the financial statements have been prepared in accordance with FRS 101 (Financial Reporting Standard 101) 'Reduced disclosure Framework' as issued by the FRC in September 2015

 

The financial statements have been prepared on the historical cost basis.

 

As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation to business combinations, share-based payment, non-current assets held for sale, financial instruments, capital management, presentation of comparative information in respect of certain assets, presentation of a cash-flow statement, standards not yet effective, impairment of assets and related party transactions.

 

Where required, equivalent disclosures are given in the Group financial statements of Ramsdens Holdings PLC. The Group financial statements of Ramsdens Holdings PLC are available to the public

 

The financial statements have been prepared on a going concern basis as discussed in the Directors' Report.

The particular accounting policies adopted are described below.

 

TAXATION

Current tax

The tax currently payable is based on taxable profit for the year. The Company's liability for current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the date of the statement of financial position.

 

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

 

INVESTMENTS

Fixed assets investments are shown at cost less provision for impairment.

 

FINANCIAL LIABILITIES AND EQUITY

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting liabilities

 

Equity instruments issued are recorded at the proceeds received, net of direct issue costs.

 

DIVIDENDS

Dividends receivable from subsidiary undertakings are recorded in the statement of comprehensive income on the date that the dividend becomes a binding liability on the subsidiary company.

 

Dividends payable are recorded as a distribution from retained earnings in the period in which they become a binding liability on the Company.

 

Employee Share Incentive Plans

Ramsdens Holdings PLC grants equity settled share option rights to the parent entity's equity instruments to certain directors and senior staff members under a LTIP (Long term incentive Plan). The employee share options are measured at fair value at the date of grant by the use either the Black- Scholes Model or a Monte Carle model depending on the vesting conditions attached to the share option. The fair value is expensed on a straight line basis over the vesting period based on an estimate of the number of options that will eventually vest.

 

B. COMPANY STATEMENT OF COMPREHENSIVE INCOME

As permitted by s408 of the Companies Act 2006 the Company has elected not to present its statement of comprehensive income for the year.

 

The auditor's remuneration for the current and preceding financial years is borne by a subsidiary undertaking, Ramsdens Financial Limited. Note 7 to the Group financial statements discloses the amount paid.

C. STAFF AND KEY PERSONNEL COSTS

Other than the Directors who are the key personnel, the Company has no employees, details of their remuneration is set out below

 

 

2018

2017

 

£'000

£'000

Remuneration receivable

654

96

Social security cost

86

11

Value of company pension contributions to money purchase schemes

25

55

Share based payments

78

3

 

843

165

                                                     

Remuneration of the highest paid director:

 

2018

2017

 

£'000

£'000

Remuneration receivable

312

29

Social security cost

42

4

Value of company pension contributions to money purchase schemes

15

53

Share Based Payments

50

2

 

419

88

 

The number of directors accruing retirement benefits under the money purchase scheme is 2 (2017: 2)

 

 

D. INVESTMENTS

Shares in subsidiary undertakings

Total

 

£'000

Cost

 

At 1 April 2017

7,845

Additions - Share based payments

83

Impairment - reduction in capital in Ramsdens Group Limited

(247)

At 31 March 2018

7,681

 

Additions during the year represent share based payment expense recognised in Ramsdens Financial Limited. The impairment was the result of a reduction in capital in Ramsdens Group Limited. This reduction in capital facilitated a dividend paid by Ramsdens Group Limited to Ramsdens Holdings PLC of £250,000.

 

The Investments in Group Companies which are included in the consolidated statements are as follows

 

Name of company

Holding

Proportion of voting rights and shares held

Activity

Subsidiary undertakings

 

 

 

 

 

 

 

Ramsdens Group Limited

(Registered office: Unit 16 Parkway Centre, Coulby Newham, TS8 0TJ)

Ordinary Shares

100%

Supply of management & strategic services

Ramsdens Financial Limited

(Registered office: Unit 16 Parkway Centre, Coulby Newham, TS8 0TJ)

Ordinary Shares

100%

Supply of foreign exchange services, pawnbroking, purchase of gold jewellery, jewellery retail and related financial services.

E. DEFERRED TAX

Deferred tax relates to the following:

 

 

2018

2017

 

 

£'000

£'000

Deferred tax assets

 

 

 

Share based payments

 

84

-

 

 

84

-

 

Reconciliation of deferred tax assets

 

 

 

 

 

2018

2017

 

 

£'000

£'000

Opening balance as of 1 April

 

-

-

Deferred tax credit recognised in the statement of comprehensive income

 

13

-

Other deferred tax

 

71

-

Closing balance as at 31 March

 

84

-

 

 

 

F. RECEIVABLES

 

2018

2017

 

£'000

£'000

Amounts owed by subsidiary companies

3,477

1,816

Prepayments

34

38

 

3,511

1,854

 

 

G LIABILITIES: AMOUNTS FALLING DUE WITHIN ONE YEAR

 

2018

2017

 

£'000

£'000

Trade Payables

10

15

Other Creditors

261

75

Other taxes and Social Security

17

11

Current tax liabilities

14

7

 

302

108

 

 

 

H. CALLED UP SHARE CAPITAL

Details of the called up share capital including share shares issued during the year can be found in note 20 within the Group financial statements of Ramsdens Holdings PLC.

 

I. POST BALANCE SHEET EVENTS

There were no post balance sheets events that require further disclosure in the financial statements.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
FR LLFEDRIIRIIT
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Annual Results for the year ended 31 March 2018 - RNS