Ramsdens Holdings, a diversified financial services provider and retailer backed by NorthEdge Capital, is to seek admission of its shares to trading on the AIM Market of the London Stock Exchange following a successful institutional placing.
Admission is expected to occur on 15 February 2017.
Ramsdens operates in the four core business segments of foreign currency exchange, pawnbroking loans, the buying and selling of precious metals and the retailing of second hand and new jewellery.
Headquartered in Middlesbrough, the company operates from 127 stores within the UK and has a growing online presence, serving over 700,000 customers across its different services in its latest financial year. Ramsdens is fully authorised by the FCA for pawnbroking and credit broking activities.
NorthEdge Capital has worked with the company since September 2014, when it backed the business in a management buyout. The IPO will represent a partial exit for NorthEdge, with the firm retaining a significant minority stake.
Since its initial investment, NorthEdge has supported the management team in consolidating the store estate, growing Ramsdens’ foreign exchange services and investing in the retail jewellery offering. This has resulted in a more diversified business and a robust platform for future growth. The increased investment has also resulted in Ramsdens growing its earnings by 61 per cent, in a little under two and a half years.
The listing will enable Ramsdens to enhance its operations as it looks to target further organic growth across its existing store portfolio, as well as continuing to seek acquisition opportunities and progressing its new store rollout programme.
Andy Ball, founding partner at NorthEdge Capital, says: “Ramsdens has enjoyed sustained growth during the two year and a half years we have been working with the business. The drive and passion of the management team to develop the business has been exemplary. A prospective IPO is an opportunity for the team to further build on a robust platform for growth.”
Peter Kenyon, CEO of Ramsdens, says: “We are delighted by the level of interest and support we have received from high quality institutional investors. We are a very well invested company with an attractive and progressive dividend policy and we look forward to creating value for all of our shareholders in this new and exciting stage in Ramsdens’ development.”
The existing management team including Kenyon (CEO) and Martin Clyburn (CFO) will continue to lead the business. Andrew Meehan, who was introduced to Ramsdens by NorthEdge, will continue in his role as non-executive chairman. In addition, Simon Herrick and Steve Smith have joined the board as non-executive directors.
