Business and Strategy

Business and Strategy

The Directors believe the Group can leverage its existing strengths of a diversified product offering and a recognised brand and the solid financial postilion of a strong balance sheet and positive cash flows, to continue to grow the business both organically and through acquisition, thereby generating capital and income returns for investors.

The Group's strategy is to:

  • continue to improve the operational performance of its core store estate;
  • expand the branch estate in the UK;
  • grow its online presence and improve performance; and
  • capitalise on the opportunity of operating in a challenging market.

Continue to improve the performance of its core store estate

The Directors believe there is an opportunity to increase revenues generated by its existing stores which will
improve the Group’s return on capital employed.

Management will seek to do this by cross selling services to the Group’s existing customer base and by
introducing new products. For example, the Group has recently introduced international bank to bank
payments and is currently considering extending the range of products available under the sale and buy
back service.

Management intends to grow the number of customers using the Group’s services through advertising
campaigns to increase brand awareness and increasing referrals from the existing customer base.
Management also aims to utilise the Group’s customer data to enhance customer insight and develop
targeted communications.

Expand the branch estate in the UK

The Directors believe there is significant opportunity for growth given the Group’s current geographic penetration.

The Directors plan to increase the number of stores by 12 per annum over the medium term, commencing in April 2017. New store openings will follow a tried and tested robust assessment process to ensure that, at the planning stage, the store is expected to achieve the payback and performance required.

Successfully implementing the branch expansion plans will be dependent on finding suitable stores in the right locations and agreeing commercial terms. The Group currently has a target list of 30 locations identified for further research to identify suitable store units.

Grow its online presence and improve performance

The Group recently launched two retail website URLs focusing on foreign currency exchange and jewellery retail services with the intention of increasing the volume of online sales. It is proposed that, following further research and considering the performance of the retail websites, the online offering will be refined in the coming months..

Capitalise on the opportunity of operating in a challenging market

Between 2009 and 2012, Ramsdens and its competitors grew their store portfolios on the back of gold buying profits and, for some, pay day loan income. Following the fall in the gold price in 2013 and significant regulatory changes imposed on pay day lenders, many large competitors have reduced their store estate in the last two years. Cheque Centres Limited decided to close its entire branch estate in December 2016 to concentrate on its online activities. As part of that closure program, the Group acquired 4 stores that complemented its existing store network. The Directors believe that the reduction in the number of competitors in towns in which both the Group and Cheque Centres operated, will give Ramsdens the opportunity to increase revenues by providing services to previous Cheque Centres customers.