28th May 2019 11:56
LONDON (Alliance News) - Pawnbroker and foreign exchange firm Ramsdens Holdings PLC said Tuesday it has acquired four stores - currently trading as The Money Shop - and 12 loan books from Instant Cash Loans Ltd for a total of GBP500,000.
Ramsdens is a financial services provider and retailer operating in foreign currency exchange, pawnbroking loans, precious metals buying and selling, and the retailing of second-hand and new jewellery.
The new stores will be rebranded as Ramsdens stores in "the coming weeks". Following the acquisition, Ramsdens now has 163 UK stores in total.
As part of the deal, Ramsdens will also buy the pawnbroking loan books of 12 stores, worth GBP300,000.
The new stores are expected to make a "small" contribution to pretax profit in the year ending March 2020. For the year ending March 2021, the stores are anticipated to deliver a GBP300,000 pretax profit boost.
For the year ended March 2018, Ramsdens generated GBP6.3 million pretax profit on revenue of GBP39.9 million. The company is expected to release its 2019 financial year results on June 12.
In early April, Ramsdens said it traded well and in line with management expectations in financial 2019.
"Following our successful acquisition in March, I'm delighted to announce this acquisition which supports our growth plans. We have a proven track record of effectively integrating and improving the performance of acquired stores as we continue to capitalise on growth opportunities available to the group as a leading operator in a highly fragmented market," said Chief Executive Peter Kenyon.
In March, Ramsdens acquired 18 stores trading under the Money Shop pawnbroking brand as well as the pawnbroking loan books of the 18 stores, as well as the loan books of a further five Money Shop stores which are to close, for GBP1.5 million in cash from Instant Cash Loans.
Shares in Ramsdens were up 1.3% Tuesday at 170.75 pence each.
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