Pawnbroker’s IPO marks partial exit for NorthEdge
A pawnbroker and financial services firm is to list on the AIM market, giving its backer NorthEdge Capital a partial exit after two and a half years.
Ramsdens Holdings operates in the four business segments of foreign currency exchange, pawnbroking loans, the buying and selling of precious metals and selling second hand and new jewellery.
Headquartered in Middlesbrough, the company employs 530 staff and operates from 127 stores, with a growing online presence.
The group, which reported revenues of around £30m last year, said it will raise £15.6m through the flotation, by issuing shares at 86p each. Its market capitalisation on admission will be £26.5m.
Manchester-based NorthEdge Capital has worked with the company since September 2014, when it backed the business in a management buyout of previous owners, the Smith family.
The IPO will represent a partial exit for NorthEdge, which will reduce its stake from 73.9% to 30.7%.
Since its initial investment, NorthEdge has supported the management team in consolidating the store estate, growing foreign exchange services and investing in the retail jewellery offering, with Ramsdens growing its earnings by 61%, in two and a half years.
The listing will give Ramsdens the cash to target further organic growth across its 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. A prospective IPO is an opportunity for the team to further build on a robust platform for growth.”
Peter Kenyon, chief executive 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.”
The existing management team including Peter 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.
Liberum Capital is acting as nominated advisor (NOMAD) and sole broker to Ramsdens on the deal. Addleshaw Goddard’s Manchester corporate team, led by partner Richard Lee, is advising Liberum in its role.
The company is expected to list on AIM on February 15.
