Ramsdens Share Discussion Threads

[qs99] 15/7/2019 10:17

Should this not be reflecting increase in POG more?

[nw99] 08/7/2019 09:25

SCSW nice writeup

[tp6] 07/7/2019 13:23

Big name for travel money on the high street is Thomas Cook with i think about a 5% share of the market. They are shutting 24 shops quite a few in places where Ramsdens have a presence.I can see alot more of TC's shops shutting, due to the business being in free fall - they still have 600+, so maybe a lift for Ramsdens in there.

[rawnsley] 04/7/2019 09:47

great insight tp6, thank you.

[tp6] 04/7/2019 09:43

Dart group (jet2) will put their end of year results out on 11th July. They should also give an insight into progress this year.All the major tour operators were predicting a bit of a blood bath this season but that run of bad weather might have helped get bookings up.Jet2 with its northern emphasis should give some indicators about how the Forex looks for ramsdens.

[rawnsley] 02/7/2019 14:10

Yes, I think the weak summer (so far!) in the UK, will bump up FX numbers, I'm hoping +15% growth. FX is also 38% of our groups GP.

[paleje] 02/7/2019 13:04

Good point on the gold price rivaldo and it looks set to continue.

Jim Mellon gave his view on gold yesterday, extremely bullish, maybe overly and of course there are counter views, but the general direction seems right.

[rivaldo] 02/7/2019 12:28

HAT's move seems to have focused more attention here.

Despite today's move, RFX are barely into a double-figure P/E given 19p EPS forecast this year, alongside net £8m cash and a gold price which has sharply increased since that forecast was made.

[rawnsley] 02/7/2019 11:59

Much higher price paid. Perhaps there were numerous bidders. Seems like some excellent work from RFX to pick up the shops so cheaply.

On reflection they will gain £9m sales and £2.6m PBT, so the purchase does seem very solid here also. Perhaps slightly out of our price range in comparison to H&T.

[ntv] 01/7/2019 17:07

rest of money shops bought by H&T
They have a placing to purchase theirs

[tanneg] 01/7/2019 17:06

Rest of The Money Shop sold to H&T although have paid a lot more per store. I guess Ramsdens had already cherry picked the best!

H&T Group plc ("H&T" or the "Company"), the UK's leading pawnbroker, today announces the proposed acquisition (the "Acquisition") of 65 trading stores (the "Trading Stores") and a further 29 pledge books (the "Pledge Books", together the "Assets"), from The Money Shop, the trading name for Instant Cash Loans Limited and TM Sutton Limited (the "Vendor").

[rawnsley] 01/7/2019 10:52

A bad UK summer so far should help out the FX part of the business. Gold is also up, which is another bonus.

[rndm355] 25/6/2019 18:48

RFX discussed with H&T at 1:40 of this:

[podgyted] 23/6/2019 12:49

Might have already cherry-picked the ones it wanted - interesting development - since it ceased payday loans it was in fact a direct competitor by the looks of things.

[rawnsley] 21/6/2019 17:56

No wonder we bought the Money Shop stores at such good value.

[rimau1] 21/6/2019 13:05

This must be good news for RFX, i wonder if we will step in to purchase more stores at a knock down price and hopefully save some jobs along the way. Irrespective its a nice recovery here, gold price must be helping business too. Staying patient for a big rerate. Quality diversified company for all weather!

[muzmanoz] 21/6/2019 12:42

Money shop to shut.htTps://www.thisismoney.co.uk/money/markets/article-7166393/Hundreds-jobs-risk-payday-lender-Money-Shop-shuts-shop.html

[pillion] 21/6/2019 12:08

Good find Rivaldo

[rivaldo] 20/6/2019 13:27

Ta henryatkin, interesting comparison.

Gold is up above $1380 now. Good news for RFX.

[ntv] 18/6/2019 15:10

what over lap in stores is there?
Ramsden a bit short of stores down south
plenty of room for organic growth
gold wants to break free

[henryatkin] 18/6/2019 11:41

Sharescope: Ramsden v H&T bottome couple of pages.

A few extracts: The main difference between the stores is that Ramsden have a much higher proportion of foreign currency exchange carried out in store while H&T has an unsecured loan product. The foreign exchange is offered at better spreads than most of the large banks offer it and it has long been an unspoken truth that banks make outsized profits from customers from wide foreign exchange pricing. So, Ramsden has found it can provide a competitive product to its customers which is highly profitable......

..... as both companies have a significant stock of gold in their inventory any increase in the gold price will increase their profits which I am rather liking. These are defensive stocks to own.

The markets obsession with growth over the last 12 months has led both stocks to depreciate and both now trade on a similar PE ratio of 10.3/10.4X and give a 3.5%-4% yield. However, at Ramsden the ROE is almost double that of H&T implying a much more efficient allocation of capital.

We can see from this table that H&T, with 182 stores has a higher revenue/store (£786k) but with a lower profit contribution per store of under 10% as it has less of the high margin foreign exchange business. Ramsdens 156 stores have a lower turnover per store (£300k) but a higher margin of 12.6%. The cash generated from this extra margin may be the reason that Ramsden is in a net cash position while H&T has a modest amount of gearing.

[ntv] 17/6/2019 22:15

last of the overhang gone today?