Ramsdens Share Discussion Threads

[tole] 07/10/2023 06:41

https://masterinvestor.co.uk/equities/small-cap-catch-up-ramsdens-gateley-and-team-internet/Ramsdens Holdings (LON:RFX) – Record Finals Due In JanuaryYesterday morning's Pre-Close Trading Update from this growing, diversified, financial services provider and retailer declared that the group's second half-year to end September traded very well, enough to anticipate record results when the finals are announced in January next year.Ramsdens operates in the four core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. The Middlesbrough-based group, which operates from 161 stores within the UK (including 2 franchised stores) and has a growing online presence, does not offer unsecured high-cost short-term credit.The group's pawnbroking loan book grew 20% to a record £10.3m at the year end, after its best-ever lending month in August, with the average loan being £174.The foreign currency side revenue was up 8% and in September it launched its own currency card.The higher Sterling gold price encouraged a higher consumer demand to realise value in unwanted or damaged jewellery increasing the precious metal buying division's revenue by some 50%.The 20% increase in revenues in jewellery retail were aided by both the group's online side and its enhanced in store proposition.Peter Kenyon, CEO of Ramsdens commented:"We are pleased with the Group's continued delivery against its long-term growth strategy, with good progress made during the Period in each of our diversified income streams. The group continued to trade well during the second half of the year, benefiting from the strength of its diversified business model.As a result, the Board anticipates the pre-tax profit for the year to be a record result of more than £10.0m (£8.4m). The shares touched 272p in June this year, since when they have eased back considerably to 186p earlier this week, before closing last night at a much better 200p, up 12.5p on the day, some 6.6% better.The shares are rated as a Buy by analysts James Allen and Nick Anderson at Liberum Capital, looking for 290p in due course.They are going for the last year to show a sales figure of £78.6m (£66.1m), profits of £10.0m (£8.3m), earnings of 23.6p (20.7p) and a 10.4p (9.0p) dividend per share.For the current year to end September 2024 they estimate £83.2m sales, £10.5m profits, 24.0p earnings and a dividend of 11.0p per share.The analysts consider that the group's track record of delivery is still not being reflected in its valuation.I continue to rate the shares as a strong hold with attractive upside potential.

[hazl] 06/10/2023 08:55

There is this from yesterday.

[hazl] 06/10/2023 08:54

Anyone got a link?

[hazl] 06/10/2023 08:52

Oh great thanks Lammy!

[primarch1] 06/10/2023 08:36

Probably go down then knowing this market!!great update yesterday deserves a much higher price than this

[lammylover] 06/10/2023 08:01

RFX covered in article in The Times today!

[doobz] 05/10/2023 11:41

Sadly i hopped out at breakeven given the fall, just wasnt willing to hold something coming back against me so strongly. If id have seen this update Id have kept them, now Ive no cash. should be the floor here now
gla

[lammylover] 05/10/2023 09:39

Funny old world...
Ramsdens shares in circulation = 31.7m @ 200p/share values business at £63.4m
In summer net cash was £5.5m (we don't know what it is currently, but its a well run and prudent business, so doubt its much less, maybe more?)
Profit just declared minimum £10m...

The share price at 200p makes absolutely no sense!!

[lammylover] 05/10/2023 09:21

Also its a strange world we live in..
When house prices were at record highs a couple of years ago, people were bending over themselves to put in sealed bids each one higher than the last. Then when property falls 10-15%, no one wants to buy!
Herd instinct its called, I believe. People looking over shoulder and waiting for next person to buy, to give them permission to also buy at a higher price.
Personally I like a bargain, but what do I know?

[lammylover] 05/10/2023 09:16

Early days yet Johny - it may take a few days for word to get around!

[johnv] 05/10/2023 09:10

Yes I agree with your description of the market......except that next morning with sun shining, nobody is buying and the traders have to keep selling the front off at lower prices in the evening.

[johndoe23] 05/10/2023 09:05

I don't disagree! Mcap should be nearer 100m than 50m

[hazl] 05/10/2023 09:04

Lammy this is what he put last time in June.
So ought to be even better this time round perhaps.

[lammylover] 05/10/2023 08:43

RFX is still 20% below summer price of 260p, despite profit being higher than predicted at a minimum of £10m. Yes you may get at a slightly lower price, but then again - this may jump again over next couple of days on broker upgrades; share commentators / tipsters buy recommendations....then you miss out..
In my view you can never buy at bottom or sell at top of market; but getting RFX at 20% discount with biggest ever profit is a steal!

[hazl] 05/10/2023 08:43

Eighth on the leader board.
Give us more visibility.

[hazl] 05/10/2023 08:42

That could change again John.

[johndoe23] 05/10/2023 08:34

Futures are down again this morning. Nearly bought at 209 this morning, gut feel would pay to wait in this market

[hazl] 05/10/2023 08:29

A good finish on the Dow yesterday so that will reflect some gains generally in down trodden stocks, I imagine.

[lammylover] 05/10/2023 08:15

Excellent results - just needs someone like Simon Thompson in Investors Chronicle to give it a push with a strong buy rating. Get some fresh money in and tell PIs its okay to buy (albeit at a higher price!)

[hazl] 05/10/2023 08:12

I would imagine we will have a good day here with great results shown .

[hazl] 05/10/2023 08:04

The outlook is always important to note in these difficult times and they express it well here.


'While the economic backdrop is challenging and Ramsdens is not immune to inflationary cost pressures, particularly energy and payroll, the Board remains confident that Ramsdens is in a good position to continue its positive momentum into the new financial year underpinned by the Group's proven and diversified business model, strong brand and clear growth strategy."

[hpcg] 05/10/2023 07:49

The multi-currency card gives me a lot of confidence in the future prospects for the currency arm. The FX store front is a good place to promote it.



Good closing update on all fronts, always good to hear about strength in the latest period. A good reminder to us that the PoG in dollars is not relevant to those in the UK.

[rimau1] 05/10/2023 07:46

Net of cash RFX is now trading at 7x and i don't recall it ever having such a low rating.

[eeza] 05/10/2023 07:45

The Market will only see "lower average transaction values and, as expected, a slight reduction in margins."

As usual.