Ramsdens Share Discussion Threads

[phar lap] 15/1/2024 11:08

As mentioned by management a few times in the report, the rise of energy costs and RLW for staff will be a drag on profit growth this year.

[yump] 15/1/2024 10:02

This mornings drop looks like its a charity pot for the market makers.

[hpcg] 15/1/2024 09:38

I was concerned about FX, then in the autumn I got a Ramsden multi-currency card and it has changed the game. No transaction fees and move currency around as required. Wish I'd done it years ago.

Company should be using some of its spare cash for buy backs and not just dividends.

[tp6] 15/1/2024 09:25

There is still steady demand for fx and will be for years to come, cash usage generally has increased a bit as people use it as a simple budgeting tool. As one part of the business goes a bit flat other parts pick up.Well run, profitable, just a bit unfashionable.. plenty of other businesses would be happy to see these levels of growth and profit. Interesting to see what H&T come up with.

[riverman77] 15/1/2024 09:01

While I am a little concerned about the long term prospects of the foreign currency division, this only accounts for 30% of gross profits. The other 70% of the business (pawnbroking, jewellery, etc) is growing very strongly and should command a rating of at least 15x earnings - the value of this part is worth more than the market cap alone so on that basis really not too concerned about the currency side which you're effectively getting for free.

[solarno lopez] 15/1/2024 08:58

Plenty of reasoned comment and however you look at Ramsdens its:

Profitable

Solid asset base

Cash at bank

Regular and sustainable dividend

etc etc etc

[yump] 15/1/2024 08:35

The trading statement is actually balanced. The rating is a mystery, perhaps it is just an income stock and growth investors want something tecchie and with exciting buzzwords.

[yump] 15/1/2024 08:31

Thats just you and thats been going on for years, so there’s no sudden gloom attached to that.

[basem1] 15/1/2024 08:29

Well we have numerous holidays every year and never need any FX All spend is on cashback debit cards at international rate which is better than the exchange rate for FX All family members do the same FX is a thing of the past now This stock is now ex growth imo

[ingham87] 15/1/2024 08:24

This is still an outstanding buy

[bookbroker] 15/1/2024 08:21

Market always a contrarian, watch sales of which are a significant investment by this this company stagnant or falling. Likewise FX not as strong as it could have been, and the largest contributor historically. Sure gold price rising a big positive, but how much gold have people left to pawn or will they hang on to it in a rising price environment. Still a decent business, but the market has never given the company credit. More like a dividend stock!

[hpcg] 15/1/2024 07:55

bookbroker - I can't agree about red flags; I presume you are talking about the trading update at the end of the RNS? With product lines either flat or growing then the business is still moving forward. Last years excellent results aren't reflected in the share price at all, which were better represented by the 260p level of last June.

[yump] 15/1/2024 07:50

The whole report shows the benefit of different parts of the business being a hedge against each other.

FX still not recovered and yet there’s been a jump in profits in a year of challenging economic issues for much of the UK.

I thought that was the whole point of being invested in RFX / its a bit of a hedge against economic downturns.

If it was on a pe of 20 that would mean taking a slightly different view.

[rimau1] 15/1/2024 07:37

Really bookbroker, bit harsh! Pretty consistent messaging throughout 2023 on costs with cost pressures well flagged, FX slightly subdued was a surprise. Net cash of £5m, yielding 5% and on historic 9x earnings and a growing loan book i think its steady as she goes and current trading is in-line. I'd certainly top up if we drop below £2

[bookbroker] 15/1/2024 07:25

Some red flags there!

[18bt] 15/1/2024 07:21

Great set of results, but some caution over the current year. Decent beat of market forecasts and PER of less than 9x. Still loooks lower risk good value with c5% yield.

[lammylover] 12/1/2024 11:57

RFX share price at 212p is a screaming buy. However private investors and funds seem in short supply at the moment. I'm expecting an excellent update on Monday and hopefully some media coverage to bring the buyers back!

[xamf] 12/1/2024 11:11

In October RFX said they anticipate record full year profit (before tax) of over £10m (FY22 £8.4m).



Full year results are out Monday (15th Jan).

[hazl] 05/1/2024 13:19

15 January.

[lammylover] 28/12/2023 07:38

Actually what was noticeable about yesterday's rise was the lack of large sellers.
For a long period now, a couple of funds have been reducing (presumably to pay back private investors withdrawing from said funds) and the fund managers have sold into any price increase to take advantage of the liquidity.

Yesterday that large selling was absent - perhaps due to the holiday period or hopefully because they are now done? Time will tell.

Regardless RFX is still daft cheap at current price - remember these shares hit 265p in the summer on results and I fully expect price to exceed this later this year. Broker target 290p which is achievable in my view.

[tudes100] 28/12/2023 02:28

thin trade

[cravencottage] 27/12/2023 10:40

Tipped somewhere?

[xamf] 20/12/2023 13:52

This was a no brainer around 200 after their update regarding expected record FY profits.

[lammylover] 15/12/2023 16:41

Added a few more today, daft not to at the current price.