Ramsdens Share Discussion Threads

[igoe104] 06/3/2019 07:50

Simon Thompson take.

Ramsdens’ smart bolt-on acquisition
Middlesbrough-based Ramsdens (RFX:170p), a diversified financial services company whose main activities encompass foreign currency exchange, retail jewellery, pawnbroking and a precious metals buying and selling service, has acquired 18 stores trading as The Money Shop for £1.5m in cash. The acquired stores are primarily located in the North West of England and Scotland and will be rebranded as Ramsdens over the coming weeks. The acquisition boosts Ramsdens' presence in the UK market to over 150 stores.
Chief executive Peter Kenyon believes there is significant potential to build upon the company’s existing foreign exchange proposition in these new stores, to improve their performance through the expertise of the Ramsdens’ shrewd management team, and to enhance their growth potential by introducing its growing jewellery retail offering into the majority of the acquired stores.
The bolt-on deal is also earnings enhancing as it will add around £600,000 to operating profits in the financial year to end 31 March 2020. Analysts at Liberum Capital now expect pre-tax profits and EPS to both increase by 11 per cent to £7.3m and 18.9p, respectively, to support a payout of 7.8p a share in the 2019-20 financial year. I would also flag up that Ramsdens’ balance sheet is cash rich with proforma net funds likely to be around £9.3m post the acquisition, a sum worth 30p a share. This cash pile not only provides ample firepower for the management team to cherry pick further earnings accretive bolt-on purchases, but also means that Ramsdens’ double digit earnings growth is being valued on a cash-adjusted forward price/earnings (PE) ratio of 7.4. Add to that a prospective dividend yield of 4.6 per cent, and I see 50 per cent share price upside, having included the shares in my 2019 Bargain Share Portfolio at just below the current offer price. Buy.2

[igoe104] 06/3/2019 07:44

Broker Forecast -

Liberum Capital today reaffirms its buy investment rating on Ramsdens Holdings Plc (LON:RFX) and raised its price target to 241p (from 214p).

[rp19] 05/3/2019 10:33

It is, but RFX have only bought 18. The Money Shop have significantly more than 18 stores.

[pillion] 05/3/2019 10:26

Is it this lot ?

[rp19] 05/3/2019 09:45

Oldham and Altrincham are two of the 18 stores. Be interested if anyone else can identify the others (understand that they are primarily in the North West and Scotland).

[yump] 05/3/2019 09:41

Adding approx. 10% to earnings in 2021. That's the nice thing about cash, rather than placings - there's no problem trying to work out whether earnings growth will just be cancelled out by dilution.

[stevegrass777] 05/3/2019 09:24

Adding 18 stores and a big chunk of new customers is good in my book.
Bolt on earnings should start showing through quicker than buying new and waiting for the customers to come through the door.
The will probably have to be re branded at some stage but if the shops are earning already they can do this at there own pace.
Could have 22 stores added this year if we count these at least if you ask me.

[rawnsley90] 04/3/2019 10:28

We have cash in the bank, so this makes sense. I'm not sure it's price changing stuff, but I trust the management here more than in many other companies, so I am treating it as positive.

Hopefully results soon with a positive online growth continuation, as this is key for diversification away from bricks and mortar, albeit this part of the business is still prospering.

[igoe104] 04/3/2019 07:59

Ramsdens Holdings PLC

("Ramsdens", the "Group", the "Company")

Acquisition of 18 stores trading as The Money Shop

· Ramsdens announces the acquisition of the business and certain operating assets of a selected portfolio of stores currently trading as The Money Shop for a consideration of £1.5million, payable in cash.
· The 18 acquired stores will be rebranded as Ramsdens in the coming weeks and will incorporate the full breadth of the Group's customer proposition.
· The acquisition supports the Group's continued delivery of its growth strategy to expand Ramsdens' reach across communities in the UK.

Ramsdens, the diversified financial services provider and jewellery retailer, is pleased to announce the acquisition of the business and certain operating assets of a portfolio of 18 stores trading as The Money Shop from Instant Cash Loans Limited (the "Acquisition") for a total consideration of £1.5million. The purchase price includes c£0.4m of goodwill and c£1.1m of assets. The Acquisition consideration will be satisfied in cash. Under the terms of the Acquisition, Ramsdens will acquire the pawnbroking loan books of the 18 stores and of five other The Money Shop stores which are to close.

The Acquisition supports the Group's stated growth strategy of expanding Ramsdens' presence and reach in the UK market and enables the Group to leverage the significant investments made in recent years in its brand, IT systems and people. The acquired stores are primarily located in the North West of England and Scotland and will be rebranded as Ramsdens over the coming weeks.

The Group believes there is significant potential to build upon the existing foreign exchange proposition in these stores and to improve performance through the expertise of the Group's management team. In addition, the Board believes there is growth potential arising from introducing the Group's growing jewellery retail offering into the majority of the acquired stores.

The Board anticipates that the acquired stores will make a small contribution to Group PBT in FY 2020 after factoring in integration costs including those relating to refits, rebranding, training and IT integration and that the acquired stores should contribute approximately £0.6m to Group PBT in FY 2021.

With the Acquisition, Ramsdens is taking on approximately 70 new employee

[pillion] 15/2/2019 22:14

Gold is back in fashion
at one month chart

[pillion] 08/2/2019 15:20

Yes, Gold price looks bullish
Might be good for us

[upsillon] 06/2/2019 16:05

Took a position today.

Nice company. Quite like plays on GOLD at the moment with central banks looking like they're pivoting back dovish.

Makt cap/pbt looks ok and so does the balance sheet.

CEO could do with losing a bit of weight. One too many mars bars.

1R position size with a stop at 133 so lots of room to breathe.

Quite like the look of H&T but waiting on a pullback to get a seat at the table.

Bit of volume joining me which I always look for.

See what happens.

Enjoy the ride.

[hiraniha] 31/1/2019 20:52

One of Simon Thompsons Bargain Shares for 2019.Let's see how it performs tomorrow.

[meijiman] 31/1/2019 12:43

Is that Harry Ramsdens?. Would it make sense for them to buy this chip shop company..I imagine that the average Ramsdens customer would be a big consumer.Plus no costly name plate changes necessary.

[yump] 31/1/2019 12:21

Where's that moniker come from ? There's a rip off chip shop in Great Yarmouth called Ramsdens...

[bookbroker] 31/1/2019 11:25

You been saying that since last year, anyway gold and silver will bump their NAV., but can’t get away from its moniker ‘RIP-off Ramsdens’!

[igoe104] 31/1/2019 10:56

Good to see some decent size buys over the last few days, can't see these staying at this level for much longer.

[rawnsley90] 22/1/2019 09:56

I am a holder, although I can't see this moving much in the short term. HAT a competitor, have a slightly lower PE (presumably due to lower growth than RFX) and similar dividend policy.

I think for RFX if we can recover the growth the FX this summer, subject to no exceedingly warm summer then 2019 should be a 15%+ growth year, compared to circa 10% this year, which would get us back on track to a 200p valuation. Perhaps a 6-12 month wait.

Good to see gold back up to June 2018 price as well.

[lammylover] 15/1/2019 22:03

Goes ex dividend 17/1/19 2.4p Nice!

[stevegrass777] 08/1/2019 19:57

I'm expecting rfx to go up shortly when investors cotton on to gold going up.

[lammylover] 07/1/2019 21:29

There must be a big seller of RFX out there somewhere. Day after day, buys exceed sells but price does not rise. Once overhang is cleared, we should start moving up again. gla holders. Rich

[lammylover] 07/1/2019 21:10

There must be a big seller of RFX out there somewhere. Day after day, buys exceed sells but price does not rise. Once overhang is cleared, we should start moving up again. gla holders. Rich

[rcturner2] 03/1/2019 09:43

EI, sorry only just saw your question. Ramsdens is a solid business available at a sensible price. I don't have strong views either way.