Ramsdens Financial

  • Sector Financial Services
  • Location County Durham, UK
  • LTM Revenue c. £30m
  • Deal Type IPO
  • Deal Date February 2017
  • Employees 522
  • NorthEdge Contacts Andy Ball
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Regional News

13 April 2017

NorthEdge achieves 2.5x return on Fine Industries sale

NorthEdge Capital has completed the sale of its chemicals’ manufacturer Fine Industries Limited to Chinese-listed life sciences company Lianhe Chemical Technology Company Limited (Lianhetech). The transaction is NorthEdge’s fourth exit following the sale of Sumo Digital and IPOs of Accrol Group Holdings and Ramsdens Financial, and represents a 2.5x return on investment for NorthEdge Capital […]

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Background

Ramsdens Financial Limited is the UK’s largest independent pawnbroker with 522 employees and 127 branches across North East England, Yorkshire, Scotland and Wales.

Founded in 1987 in Stockton-on-Tees, Ramsdens is a recognised and respected high street retailer of financial services, serving over 700,000 customers nationwide. The business 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.

NorthEdge Exit

NorthEdge initially backed the business in a management buyout in September 2014. The firm successfully floated the company on the Alternative Investment Market (AIM) of the London Stock Exchange in February 2017. The IPO represented 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, said: “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. The IPO is an opportunity for the team to further build on a robust platform for growth.”

Peter Kenyon, CEO of Ramsdens, said: “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.”