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Falling price of gold https://www.bullionbypost.co.uk/gold-price/1-year-gold-price-chart-ounce-gbp/
Any idea on the reason for all the sales today?
There was a short article today in todays paper commenting on the number of pawnbrokers that are being "debanked" under the guise of money laundering. Such liklihood of this hapenning to either H&T or RFX is slender but far from opening the market up to provide choice for desperate consumers, it provides some monopoly economic protection.
Yes, there were issues with pay-day lenders but I am pretty certain that analysis of pawnbrokers records will see the same names cropping up all the time. A little more investigation and those laundering money would be easy to discover.
FWIW, I am considering emigrating due to the punitive taxes that are imposed in the UK that are simply propping up governments with muddled strategy, infrastructure which is crumbling, productivity that lags most developed countries, Police that cannot investigate the simplest of crimes, schools, hospitals and public buildings that are falling down, housing that has ballooned in price relative to wages and shrunk in size while we need to pay for inflated pensions of civil servants.
The website I use for capital transfers of foreign exchange is XE.com - competitive with balances under £50k but with transactions greater than £250k much better. If there is a change of Government in the UK and wealth is under focus, it will take a few months, and I have no problem in taking a haircut when selling real estate, the allure of a more attractive jurisdiction is compelling.
I have used cash, a Caxton card and credit cards, with credit cards being used most. All can be lost, but a lost card should not give the finder access to your cash (unless your PIN number is with the card!) Credit cards are convenient but transaction charges are generally highest and charges are made at the currency exchange rate on the day of the transaction. Cash and Caxton lock in an exchange rate which provides certainty but this may act for or against you, depending on how the currency rate fluctuates. Cash is accepted by virtually everyone while cards may not be, eg in places like Cuba. In short, each option has advantages and drawbacks and like most things in life one pays one’s money and takes one’s choice. In my view take some cash and at least one card, while bearing in mind that Mastercard and Visa are more widely accepted than some others such as Amex and Diners.
My travel is mainly Europe, but occasinally further afield - I take a Caxton Card which is loaded with different currencies (usually the equivalent of £5,000 in $, € and $AUD. That sort of amount will get my wife and I back to UK from anywhere in the world and cover most emergencies. Generally allow for £300 per day spending money in local currency.
Provided there is internet access, I can always top the card up using a laptop or, if necessary telephone through to Bank to make necessary arrangement. Might be in the minority as I have only been on one package holiday in my life, and that was ghastly and never to be repeated.
From my limited experience, I take some cash in the local currency but largely rely on my debit or credit card to make purchases. I do not really notice the currency fees on the transactions on the cards and it is more convenient, however I may be the exception.
Ramsdens have considered this trend as they are introducing a card for their customers to use abroad. I assume the card will be loaded with the amount in sterling bought via Ramsdens and then used for local currency transactions at a competitive exchange rate like a debit card until the sterling balance runs out. There are clearly benefits for those on a budget but disadvantages too (like losing the card after too many beers!). It will be interesting to see how the foreign exchange business fares in years to come.
Someone recently posted on a chat thread that the trend for tourists is moving towards phone and card payments. I've given up on foreign travel so have no idea which is the most convenient method of buying and paying for goods and services abroad these days. Anyone on here got a take on that - will tourists continue to buy foreign currency or do Visa and Mastercard supply or their needs? (Incidentally, in Kenya you don't need cash. Even the poor folk use virtual cash through Mpesa on their phones. They're way ahead of us :)
Alas,
Yes I agree.
My earlier comment was a reply to the suggestion that the company shares were a buy because pawnbroking profits were on the rise. That may not be so at the moment.
I have shaken off my laziness: the full year accounts for 2022 (to Sept 2022) show PROFITS for each division as follows:
Foreign exchange: (ie travel money): £12.7m
Jewellery sales: £10.263m
Pawnbroking: £7.53m
The interim financial statement to 31st March 2023 provides a mixture of revenue and profit for the various divisions and now adds in precious metal sales so it is difficult to get a proper comparison.
However, I think my point is valid: pawnbroking currently generates the least amount of profit for the company even though the company is seen as a pawnbroker.
If financial conditions worsen, although profits will probably rise in pawnbroking, they will probably fall in jewellery sales and travel money making the company less profitable, at least in the short term.
I however really like the company and have it as a long term buy and hold as it expands its shop network.
Not that my opinion matters.
Fincent, my understanding of pawnbroking is based on the guidelines from HMRC. Loan duration is usually not longer than 6 months and simple interest is charged, generally 5% per month. This is the equivalent of APR of 70% in round figures.
The average loan is £170 but slightly higher in South England at £250. Look at the results recently published. The pawnbroking side is ticking along very nicely.
Sorry, I get what you're saying now, didn't read it properly :)
H&T is a pawnbroker.
Barrie,
I am a shareholder here and like the company.
I suspect the general price decline simply reflected overall market conditions and, perhaps, a larger holder reducing their position.
However, I think it important to remember that Ramsdens is not just a pawnbroker (the same applies to H&T).
I admit to being lazy and not looking the numbers up to refresh my memory, but if you look at the company accounts or listen to the company presentations on Investor Meet, you will find that the company breaks down its earnings into 3 sections:
Pawnbroking;
Jewelry and high end watch sales;
Travel money.
As I recall pawnbroking generates the lowest amount of revenue and profit of the three divisions (it certainly doesn't match the other 2).
Therefore it is reasonable to assume that if economic conditions get worse, although pawnbroking will become more profitable, there will be less people buying jewelry and expensive watches or changing money to go on holiday and so company profits would go down rather than up.
That said, the company is still growing - expanding its store base and profit levels - and I like the bluff talking CEO. Long term hold for me.
H&T group saw 31% rise in pre tax profit to £8.8m
Pledge book up to £114.6m from £85.1m in June 22
Lack of alternatives pushed demand
Hard to understand Ramsdens SP decline so I remain a holder
Strange price action at RFX the last couple of days. Normally market makers move RFX price up and down on virtually no volume, but recently it has flatlined at 225ask/220bid (although real share prices are actually 222p/220p)
Clearly there is an overhang to be cleared, but normally market maker would push the bid down harder after just a few more sales, especially when the UK FTSE 100/250 index has been down every session for the 6 days..
Weird. But a good buying opportunity for those who believe RFX as a pawnbroker is a likely beneficiary from economy slowing down further or going into recession..
I notice that OTB gets a mention in news today. That is a holiday company and are seeing increased demand for bookings to Turkey and Egypt through favourable exchange rates.
This sort of news provides confidence that there is activity in one facet of RFX business. On the horology side, watch prices are slipping at the very top end (Patek Philippe etc) at auction which might encourage activity at the next tier down (Rolex, Audemars Piguet etc) to convert stock to cash.
I remain a holder though the share price does seem weak at the moment.
Have taken advantage of todays weakness to add a few more shares today.
With the sniff of a further rise in interest rates and certainly some mortgage holders feeling the pinch, have added a few more shares to my holding today to average up.
Yesterday's UTs were apparently Otus selling a small percentage of its holdings. Otherwise a sea of blue.
Has been marked as a BUY in this weeks IC
Yes Stuart, you're right. When I checked before posting I read what I thought was there :) Common mistake. I sold out this week with a £250 profit which chuffed me after years of misery with WSG. I'm expecting a drop now to the 250p mark where a gap needs to be filled and I hope to jump in again with a much bigger pot. This looks a company with a great future and with a meaty dividend I'd like to see it as a pretty safe place to invest longer term.
Should that read “not woken up”, MT?
Following todays RNS Liberium have upped their TP to 290p. The market still has woken up to the potential here with a PER of only 10.
Really encouraging update and forward looking statements in todays RNS.
https://www.proactiveinvestors.co.uk/companies/news/1017179/ramsdens-on-course-for-record-year-as-profit-and-revenue-jump-1017179.html
With interest rates that have risen again (but IMO have peaked), I suspect that this will help RFX (and their clients that need some support), considerably.