Ramsdens Share Discussion Threads

[ivanborsky] 05/10/2023 07:39

Some real devious trading by the market over the last couple of days to instill fear into holders.Record profits to come in at over £10m !!! Market makers knew, just hope not too many small shareholders fell for the trickster gameplay !!

[lammylover] 05/10/2023 07:34

A record £10m profit. Happy with that.

[hazl] 05/10/2023 07:33

Record profits reflecting continued progress across the Group's diversified income streams

Ramsdens Holdings PLC, the diversified financial services provider and retailer, announces a pre-close trading update for the year ended 30 September 2023 ("FY23" or the "Period").

The Group continued to trade well during the second half of the Period, benefiting from the strength of its diversified business model. As a result, the Board anticipates Profit Before Tax for the Period to be a record result of more than GBP10m (FY22 GBP8.4m).

FY23 Highlights

- Foreign currency revenue increased year on year by approximately 8%. The important summer trading period saw a mixture of increased transaction volumes, lower average transaction values and, as expected, a slight reduction in margins. We successfully launched our multi-currency card in September 2023 and are encouraged by initial sales and load volumes.

- Jewellery retail revenue again enjoyed strong growth benefiting from the investments the Group has made to enhance its retail proposition both in store and online during recent years. Revenue increased more than 20% year on year supported by particularly strong momentum online.

[hazl] 04/10/2023 19:53

Again I disagree with riverford....jewellery is not necessarily cyclical.

Sometimes people have to sell their jewellery to raise cash.

I believe there was a lot of new money sloshing aound before the pandemic.

The people that opened restaurants and wine bars in the city doing very nicely.

What's the thing they often get when they have a bit of new found wealth?

After the house... car ..it can often be a rolex, high end jewellery.
These are often the first things to go, when times are hard.

I feel really sorry for people.
By investing here I don't feel I am taking advantage of people like some shares might, but at least they are getting something back.

[eeza] 04/10/2023 17:53

I agree with Lammy, re-read the interims from June.

[lammylover] 04/10/2023 17:24

Johny - the share price is just a snap shot in time and just reflects general fear in the market and people selling indiscriminately. Nothing to do with RFX or its business performance.

Its like going to the fruit and veg market on Wed afternoon at 4pm, when its raining hard, all the customers gone home and the storekeepers are shutting up shop. You can probably buy everything for half price, so they don't have to pack up and take it home.
Next morning at 10am, sun is shining, busy market and you pay full price! You choose how you want to buy? Personally I love a bargain and these are over 30% down on peak price.

[lammylover] 04/10/2023 17:24

Johny - the share price is just a snap shot in time and just reflects general fear in the market and people selling indiscriminately. Nothing to do with RFX or its business performance.

Its like going to the fruit and veg market on Wed afternoon at 4pm, when its raining hard, all the customers gone home and the storekeepers are shutting up shop. You can probably buy everything for half price, so they don't have to pack up and take it home.
Next morning at 10am, sun is shining, busy market and you pay full price! You choose how you want to buy? Personally I love a bargain and these are over 30% down on peak price.

[riverman77] 04/10/2023 17:00

The pawn side should do well, but this makes up only part of the business. The other parts are more cyclical (travel money, jewellery, etc). HAT provides more of a pure play pawnbroker, with a pledge book around 10 times the size of RFX.

[johnv] 04/10/2023 16:47

In times of economic downturn, RFX should be booming, but not according to the share price, down 7%.

[hazl] 04/10/2023 14:05

Post
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Conversation
RAMSDENS
@ramsdenscash
Did you know at Ramsdens you can sell or get a loan on your jewellery or luxury watch to get some extra cash?

To find out more, visit your nearest branch: or online:

T&Cs apply.

[hazl] 04/10/2023 14:00

Market share concentration of the Pawn Shops industry in the UK

Market share concentration for the Pawn Shops industry in the UK is moderate, which means the top four companies generate between 40% and 70% of industry revenue.

The average concentration in the Retail Trade sector in the United Kingdom is 27%.




Large pawnbrokers can leverage high degrees of trust to win business

Collateralised loans require consumers to hand over assets for a duration of time. Consumers having high confidence in the pawnbroker is essential for winning business.

[hazl] 04/10/2023 13:52

Just as a few examples.
Nothing is written in stone.

[hazl] 04/10/2023 13:50

'Pawn Shops industry in the UK outlook (2023-2028)

Market size is projected to increase over the next five years.
Trends and Insights

Pawnbrokers benefit from post-pandemic recovery and increased borrowing costs
Income from pawnbroking loans is likely to rally as pawnbrokers recover deferred payments because of the COVID-19 pandemic and a rising cost of borrowing.'

[hazl] 04/10/2023 13:44

'In times of economic downturn, the pawn industry often thrives as people strive to secure extra funds. H&T noted that customers are repaying their loans sooner, with the average repayment period decreasing to 97 days from last year's 108 days.8 Aug 2023'

Google

[dogwalker] 04/10/2023 13:33

The gold price behaviour can have a disproportionate impact on pawnbrokers, I believe.

[riverman77] 04/10/2023 12:30

Not sure higher rates would automatically mean that pawn customers get less, but happy to be corrected by anyone with more knowledge of the sector.

[hazl] 04/10/2023 11:06

The Dow looking more positive premarket that ought to help.

[ichitrader] 04/10/2023 10:22

All valid points. I guess we find out in the update shortly...

[bookbroker] 04/10/2023 10:15

Trick to work out this one, watch sales might have fallen off a cliff, folk might want to pawn stuff, but with higher rates they will get less, RFX has to fund that short term loan, likely pushes their costs up.

[ichitrader] 04/10/2023 10:06

Let's hope so! There's an awful lot of volume going through yet price is recovering hence not all selling. If this isn't a treeshake, I don't know what is (steps back to wait for the market to show me that I'm wrong again!) haha

[hazl] 04/10/2023 09:31

Ha you could be right!

I have seen that many a time.

8-)

[ichitrader] 04/10/2023 09:24

Trading update due any day. Suspect that the expectation is that it will be positive so MMs trying to stock up at bargain prices as already suggested. Fingers crossed anyway! :-)

[hazl] 04/10/2023 09:23

Things like that will become apparent in time.