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Excuse my ignorance, but what or who is Wikipenny UK?
they are now covering RFX on their channel
https://discord.gg/YBm85AXHte
Sold 5% - no wonder this has barely moved compared to everyone else
Should be 160p+ once cleared, hopefully before the end of the lockdown
Added to Simon's Bargain shares 2021.
https://www.investorschronicle.co.uk/ideas/2021/02/04/bargain-shares-for-2021/
GLA
https://twitter.com/surprised_trade/status/1352171282708766725
..RFX is categorised as essential. Group expects to keep open more than 90% of its UK store's during the current lockdowns+ services through its e-commerce websites. RFX should also massively benefit when lockdowns ease proving further uplift.
Alas. Indeed it's a win win, unemployment rises then people will come with their gold, watches etc. If they have jobs then lots of foreign currency will be required for the holidays they are desperate for.
Could there already be a large stock of scrap gold to cash in?
I've noticed some massive buys in the last few days.
FWIW, I am not expecting much in the way of news to propel the SP for Ramsdens until the furlough scheme ends. Why? Well, that is the point when financial support from taxpayers dries up and those furloughed employees will discover whether their employer has work for them or not.
Apocrypal stories include claims that several hundred people seek every vacancy, many are not typical employees in such role. If unemployment rises, the bills do not become fewer and priority is given to things that actually matter. That is the point when RFX will begin to see business return, and sad though it is, pledges and sales are going to be more profitable than foreign exchange for the first half of this year and quite possible well into next.
http://www.share-talk.co.uk/announcements/rns/ramsdens-holdings-plc/store-portfolio-update/202101051544346647K
As previously announced by the Group, Ramsdens, the diversified financial services provider and retailer, is a provider of certain services which the UK Government has categorised as essential. As a result, the Group expects to keep open more than 90% of its UK store estate during the current national lockdowns imposed in England, Scotland and Wales, albeit with shortened trading hours.
https://twitter.com/surprised_trade/status/1346382009938169856
Remains open again through this lockdown period & results in December were Revenue growth of 27%, Profit Before Tax of £9.2m, net cash of £15.9m
RFX is a provider of certain services which the UK Government has categorised as essential' The Group's 85 stores in England remained open in the last lockdown and produced very good results two weeks ago.. one to consider for this next period
https://twitter.com/JMichaelCFC/status/1346193320729587715
permitted to stay open
So as an essential service - pawnbroking open but not retail side
not sure about forex - but in this environment - little biz for forex.
https://twitter.com/surprised_trade/status/1341002214400245760
is a provider of certain services which the UK Government has categorised as essential' The Group's 85 stores in England remained open in the last lockdown and produced very good results two weeks ago.. one to consider for this next period
https://twitter.com/surprised_trade/status/1338751692024770560
Results day = vey good - Profit Before Tax of £9.2m growth of 30%, net cash of £15.9m Revenue growth of 27%,
The Board is pleased to report that the Group traded profitably during the Period and, as a result, anticipates reporting Profit Before Tax of approximately £9m in its next audited accounts covering the 18-month period from 1 April 2019 to 30 September 2020. The Group's balance sheet and liquidity remains strong with cash of approximately £16m at the Period end and an undrawn revolving credit facility of £10m.
Called up a H & T shop, after RNS cross-read from RFX - they informed me that pawnbroking side is open but retail is closed. Presumably, RFX will be the same, i.e. no retail. forex is still available it seems but who wants foreex now?. Gold trading still open I would imagine.
I dont hold at present. Just worked out, based on EoY 31/3/20 figures, NTAV £1.09. Current SP 124 (offer price). So SP has effectively £1.09 backing of NTAV. Me thinks solid hold.
Glad to hear all stores in England and Scotland remain open.
Stores in Wales due to reopen on the 9th are currently still operating (presumably online).
Market likes the news. Back to 150p by Christmas.
https://twitter.com/surprised_trade/status/1324262739964010497
new holding RFX stores remain open, profits and cash improved all looks promising
As a result, analyst Jamie Donald at Liberum Capital had predicted a pre-tax loss of £3.5m on revenue of £11m in the six months to 30 September 2020. In the event, Ramsdens has reported a pre-tax profit of £500,000. Having previously changed its financial year end to 30 September 2020, this means that Ramsdens will now report a pre-tax profit of £9m and earnings per share (EPS) of 22.8p for the 18-month period, or 80 per cent higher than analysts had previously forecast. The key drivers for the outperformance are a recovery in retail jewellery sales, and the strength of the gold price on precious metal buying and selling activities, a segment accounting for a fifth of gross profit.
It’s worth noting, too, that Ramsdens’ clients have been repaying their loans, so much so that the company now has net cash of £16m (53p a share). It also has a £10m undrawn revolving credit facility. True, foreign currency commission is 30 per cent of levels a year ago, but there is a silver lining as Ramsdens is taking market share from distressed high street foreign currency exchange operators and earning higher spreads, too.
Ramsden’s strong balance sheet means that it’s well placed to acquire loan books from distressed rivals. Indeed, it purchased two small books (£250,000) at the period end. Also, with the gold price riding a wave, expect an uptick in the pawnbroking business (accounting for a quarter of gross profit) as loan books rebuild by providing short-term relief to cash-strapped, but asset-rich customers pledging their gold and jewellery.
Liberum are forecasting pre-tax profit of £3.9m and EPS of 9.8p for the 12 months to 30 September 2021, but these estimates look very conservative. However, even on this basis, the shares are only rated on a cash-adjusted forward price/earnings (PE) ratio of 7 and offer a prospective dividend yield of 4 per cent based on a 2021 pay-out of 4.9p a share. A price-to-book value of 1.1 times is attractive, too.
So, although the Covid-19 disruption to business this year has sent the share price well below the 165p entry point in my market-beating 2019 Bargain Share portfolio, I fully expect to recoup the paper losses in due course. Bargain basement buy.
Middlesbrough-based Ramsdens (RFX: 127p), a diversified financial services group whose main activities encompass foreign-currency exchange, retail jewellery, pawnbroking and a precious metals buying and selling service, has issued a pre-close trading update that has beaten analysts forecast by a country mile.
In the 12 months to 31 March 2020, Ramsdens reported a 30 per cent increase in pre-tax profits to a record £8.5m on revenue of £59.5m, a result that drove up earnings per share (EPS) from 16.7p to 21.4p (‘Shopping for a bargain buy’, 28 May 2019). The UK lockdown came into force in the last week of March, so had little impact on that trading period. Ramsdens then closed all its 159 stores on 24 March, and furloughed 700 staff until 28 May. It wasn’t until mid-July before they were all open again for business following a phased re-opening.
As a result, analyst Jamie Donald at Liberum Capital had predicted a pre-tax loss of £3.5m on revenue of £11m in the six months to 30 September 2020. In the event, Ramsdens has reported a pre-tax profit of £500,000. Having previously changed its financial year end to 30 September 2020, this means that Ramsdens will now report a pre-tax profit of £9m and earnings per share (EPS) of 22.8p for the 18-month period, or 80 per cent higher than analysts had previously forecast. The key drivers for the outperformance are a recovery in retail jewellery sales, and the strength of the gold price on precious metal buying and selling activities, a segment accounting for a fifth of gross profit.
It’s worth noting, too, that Ramsdens’ clients have been repaying their loans, so much so that the company now has net cash of £16m (53p a share). It also has a £10m undrawn revolving credit facility. True, foreign currency commission is 30 per cent of levels a year ago, but there is a silver lining as Ramsdens is taking market share from distressed high street foreign currency exchange operators and earning higher spreads, too.
Ramsden’s strong balance sheet means that it’s well placed to acquire loan books from distressed rivals. Indeed, it purchased two small books (£250,000) at the period end. Also, with the gold price riding a wave, expect an uptick in the pawnbroking business (accounting for a quarter of gross profit) as loan books rebuild by providing short-term relief to cash-strapped, but asset-rich customers pledging their gold and jewellery.
Liberum are forecasting pre-tax profit of £3.9m and EPS of 9.8p for the 12 months to 30 September 2021, but these estimates look very conservative. However, even on this basis, the shares are only rated on a cash-adjusted forward price/earnings (PE) ratio of 7 and offer a prospective dividend yield of 4 per cent based on a 2021 pay-out of 4.9p a share. A price-to-book value of 1.1 times is attractive, too.
So, although the Covid-19 disruption to business this year has sent the share price well below the 165p entry point in my market-beating 2019 Bargain Share port
Positive update IMO
Profit before tax for 18 month period is £9m. Results to end March 2020 showed £8m pre tax profit, so assume £1m profit for last 6 months whilst shops were shut for 4 months and also FX revenue only at 30% of normal.
Also cash in bank at £16M compared to March when RNS flagged up that Ramsdens had £10m in bank. Customers paying back loans during lockdown is good news.
Overall, looks like the BOD have managed situation pretty well
Expecting share price to pick up this morning on the news
Good luck all holders
Rich
seems odd that this has fallen 6% today, so shortly before the next Trading Update is out.
I decided that I didn't like the look of RFX at 130-150p earlier in the year, but I would be tempted sub 100p. Subject to the TU of course.
Watching and waiting
MMs walking the share price down on no news. People literally giving shares away now at 113p. Daft
Okay travel abroad this year may has been hammered by CV19 so FX will suffer, but high gold price and pawnbroker services are going to bring in serious revenue.
Just a waiting game till trading update is out - some obviously don't have any patience.