Adrian Hargrave, CEO of SEEEN, explains how the Company is now funded through to profitability. Watch the video here.
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Canaccord have more than doubled their holding here - they now have 10.7% with 3.3m shares, up from 5.2%:
Https://uk.advfn.com/stock-market/london/ramsdens-RFX/share-news/Ramsdens-Holdings-PLC-Holdings-in-Company/81510834
Nice coverage for such a small cap in today's Times market report:
Https://www.thetimes.co.uk/edition/business/westminster-council-takes-wrecking-ball-to-british-land-plan-vp6rbpgdq
"There was better news among smaller stocks. Ramsdens, the pawnbroker and foreign exchange business, said that pre-tax profits for the year to the end of March would be “comfortably ahead” of forecasts. Punters rushed to snap up its second-hand Rolexes, while the company has taken advantage of the soaring gold price to scrap jewellery that has been sitting in its stores. The news sent the share price climbing by 11½p, or 4.9 per cent, to a record high of 247p."
It's also worth remembering that RFX have £12.3m and rising net cash, against the £76m m/cap, which reduces the ex-cash P/E even further.
Really good stock to hold - good growth, strong share price & a nice divi
Lovely news today :o))
"As a result of strong trading across the business the Board now expects full year PBT to be comfortably ahead of market expectations"
Great to see no leakiness in the share price either.
Hopefully we'll see new highs today:
Https://uk.advfn.com/stock-market/london/ramsdens-RFX/share-news/Ramsdens-Holdings-PLC-Trading-Update/81483508
Interview with the CEO yesterday in the Scotsman reads well - just a couple of snippets:
Https://www.scotsman.com/business/the-big-interview-ramsdens-chief-executive-peter-kenyon-1-5065550
"Growth – the firm had just 19 premises at the start of 2008 – has also been inorganic, with Kenyon responsible for more than 25 acquisitions for the group, including a selection of stores from The Money Shop.
This backed its stated medium-term growth strategy of expanding its presence across target regions in the UK at a pace of 12 outlets a year. Its next milestone is 200, Kenyon states, which it should reach in three or so years at that pace.
He is able to leverage the knowledge of finance he gained in the 17 years he spent with Yorkshire Bank...."
"Now, as 2020 moves into striking distance, “we’ve got our business into great shape, we have a very strong balance sheet, a great cash position – we are a good, solid little business”.
Https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-solid-state-loungers-codemasters-and-more/?utm_source=Daily+Bulletin&utm_campaign=019843b5db-Daily_Bulletin_20191206&utm_medium=email&utm_term=0_25eff0bb7f-019843b5db-34898813
"Ramsdens (LON:RFX) – far too early to redeem
For the half-year to end-September the porn broker reported pre-tax profits were up 23% at £6.2m on the back of a 30% rise in revenue to £32.5m. Earnings were up 22% at 15.9p, while the dividend was just 13% better at 2.4p per share.
The diversified financial services provider and retailer has already had a good start to the second half so the company is confident of meeting expectations.
Closing up 6p on the week at 217p, the shares look inexpensive and capable of a much higher price. My profile 07.11.19 @ 204p set an end-2020 target price of 250p."
The latest 12 page Liberum note out this week summarises as follows (with a 248p target) FYI:
"We welcome a confident outlook statement and dividend raise after hitting H1 expectations, even excluding the extra profit from gold sales. EPS estimates unchanged. Our focus should remain on what the company can do with the 22 stores and 17 loan books recently acquired from The Money Shop. We view this company both as a mid to high single digit space grower and as an industry consolidator, with weakening competition, hence think 8.2x calendar 2020 ex cash is too low a multiple. BUY.
A diversified, low risk model
Ramsdens is a retailer making better use of its network, but not reliant on any one strand. The value proposition is strong in jewellery new and used and in retail FX.
Building on the TMS deals
The Money Shop deals were an accretive good use of cashflow. We believe inorganic growth will recur, but in a smaller way. We note A&B shutting stores late in this period.
Organic growth business
Ramsdens has aimed to grow mid-to-high SD organically. This remains the trend, though store openings will slow just for 2020 as the acquisitions receive investment.
Very cheap
RFX is a great retailer of diverse goods and services, growing organically and by consolidation, with net cash and 19% RoE, yet on 8.2x CY’20 ex cash with a 4.1% yield."
Good to see them so positive:
Https://www.charltonillingworth.co.uk/index.php/about/blog/
"Ramsdens Holdings – H1 Results
Share Price 200p
Mkt Cap £62m
Conflict Disclosure: No Holding
Results Statement opens with “on track to meet full year expectations”. Underlying PBT was up 12% to £5.7m. Forex revenue up 15%, Retail up 22% and Pawnbroking up 17%. 3 stores were opened in the period and 4 acquired which add to the 123 established stores. EPS was up 22% to `15.5p and H1 dividend is increased 13%. Net cash is £12.3m. Three further stores expected to open in H2 and the seasonally important H2 has made a solid start. Board is confident.
Estimates FY PBT is expected to be £8m from £53.6m revenue. EBITDA expected to be £9.8m. Given we have underlying PBT of £5.7m in H1 that looks somewhat better than “on track”.
Valuation 2X Book value for an ROE of 17.5%. PER 9.8X Yield 3.6%. H&T trades on 8.6X.
Conclusion The shares have sold off on the back of H&T’s FCA review announced in November. This is a time in the cycle when the stars are aligned for Ramsdens and it looks like an opportunity on a two year view."
Behind a paywall though...
Https://www.investorschampion.com/channel/company-research/ramsdens-modestly-valued-with-plenty-of-dividends-on-the-horizon
"Ramsdens - excellent results from this well-balanced business
Interim results from the diversified financial services provider, whose retailing operations are enjoying a growth spurt, were excellent. However, the shares continue to look modestly valued as our research here highlights.
Ramsdens’ (LON:RFX) presence on UK high streets is accelerating thanks to a big increase of its store estate over the past few years.
Update: excellent interim results to 30 September 2019
Interim Results for the six months ending 30 September 2019 were excellent with a 30% increase in sales to £32.5m translating into a 23% increase in reported pre-tax profits to £6.2m.
Results were helped by the opening of 3 new stores and the acquisition of 4 stores trading as The Money Shop. A further store was opened after the period…..."
https://www.investorschronicle.co.uk/comment/2019/12/03/ramsdens-on-the-money/ Simon has 250p target price. GLA
I've bought some more.
Liberum have conservatively retained their 248p target, and their 20.6p EPS forecast for this year. They note that stripping out the cash pile, RFX are on a current year P/E of only 8.2.
All divisional forecasts are increased or unchanged, except that foreign exchange has been trimmed slightly due to Brexit uncertainty etc.
Given the strong FX performance in H1, and the very confident outlook, I suspect that ceteris paribus the actual results will be at the top end of expectations at worst or perhaps decently ahead.
There was some ridiculous selling because of the RNS issued by HAT in the same sector. RFX doesn't carry out any similar business, and this RNS proves it. A complete over reaction. Plus confirmation that trading remains nicely in line. Back to 210p sharp-ish then:
Https://uk.advfn.com/stock-market/london/ramsdens-RFX/share-news/Ramsdens-Holdings-PLC-Share-price-movement/81181882
Don’t know what’s been said about Ramsdens but they have released a statement.
Ramsdens, the diversified financial services provider and jewellery retailer, notes the recent share price movement and confirms that it does not offer unsecured personal loans nor high-cost, short term credit loans as defined by the FCA.
The Company also confirms that Ramsdens continues to trade in line with the Board's expectations and looks forward to reporting its results for the six months ended 30 September 2019 on 3 December 2019.
Nice tip overnight for RFX here, with a 250p target:
Https://masterinvestor.co.uk/equities/ramsdens-holdings-these-shares-could-easily-redeem-themselves/?utm_source=Daily+Bulletin&utm_campaign=1e13d0b884-Daily_Bulletin_20191105_COPY_01&utm_medium=email&utm_term=0_25eff0bb7f-1e13d0b884-34898813
"Ramsdens Holdings – these shares could easily redeem themselves
By Mark Watson-Mitchell 07 November 2019"
Here's the conclusion:
"This group has a very good cash generation. It has a well-invested branch network, backed up by a good IT system. Importantly it also has a large, growing and high-repeat customer base, and to my mind that all adds up to a very attractive business and investment model.
Brokers Liberum Capital currently have a ‘buy’ rating on the shares, looking for 248p. I would agree with their view and, with the shares now at 204p, I set my target price at a rounded 250p by the end of next year."
Great to see new recent highs - approaching the all-time highs too.
as per this article:
Https://www.investorschronicle.co.uk/comment/2019/10/14/bargain-shares-golden-opportunities/
"Ramsdens’ board also came out with a trading statement and one which revealed that the company will make an additional £600,000 gross profit from scrapping some of its slower moving jewellery stock in order to take advantage of the relatively high gold price. Taking this one-off gain into account, analysts at house broker Liberum Capital now expect the business to deliver an 18 per cent increase in pre-tax profits and EPS to £7.93m and 20.6p, respectively, in the 12 months to 31 March 2019, to support a dividend per share of 7.4p.
Strip out net cash of 26p a share and Ramdens’ shares are effectively priced on a current year PE ratio of 8, a rating which fails to acknowledge that forecasts are heavily de-risked given the seasonal bias to profits (the first half accounts for typically 75 per cent of the full-year outcome), and solid organic growth prospects, too. Furthermore, with the benefit of a cash-rich balance sheet, the directors have the firepower to continue making bolt-on acquisitions, having acquired 22 Money Shop stores and 17 loan books since March. New highs beckon for the Aim-traded shares which have produced an 18 per cent total return since portfolio launch on 1 February 2019. Strong buy."
Worth noting that Liberum's forecast for the current year is now 20.6p EPS (including the gain on gold), rising to 21.3p EPS next year.
That's with 7.4p and 7.8p dividends respectively.
Liberum retain their Buy and 248p target:
Https://investing.thisismoney.co.uk/broker-views/
Agree, all looks good at RFX. The UK macro outlook should also support the business model well
A pleasing H1 update.
Nicely in line, and in addition a bonus £600,000 profit on sale of gold jewellery. Plus the Money Shop stores are performing well, RFX should benefit from the collapse of ABM, and there's confidence in the H2 outlook.
And there's a hint of more acquisitions too:
Https://uk.advfn.com/stock-market/london/ramsdens-RFX/share-news/Ramsdens-Holdings-PLC-Pre-Close-Trading-Update/80870812
Great to see Naked Trader buying in here. For the record, here's what he says:
Https://www.nakedtrader.co.uk/
"We chatted pawnbrokers and compared H and T with Ramsdens. I made a decent sum on H and T already but am out now.
Ramsdens (RFX) looks the one to be in as it has net cash whereas H and T has some net debt.
With the support of net cash Ramsdens looks to be the better value. I have made some money on this one before and it seems to be very gently rising.
If things go pear shaped this one could even rise as gold would probably go up and I suppose more people will pawn their goods."
They now have over 8%, with 2.49m shares:
Https://www.investegate.co.uk/ramsdens-holdings--rfx-/rns/holding-s--in-company/201909240854533640N/
Albemarle & Bond/Herbert Brown pawnbrokers have closed down 116 stores. https://www.bbc.co.uk/news/business-49690753
Bad news for employees and customers.
I would think business will increase in Ramsdens stores now. Also could be an opportunity to acquire some of these closed stores where Ramsdens are not located.
For the record, Downing said this in their quarterly newsletter covering Apr-June'19:
"In the period, Ramsdens announced a further acquisition of four The Money Shop stores, and 12 loan books. Ramsdens used £0.5 million of cash for the purchases which are expected to be earnings accretive by around 4%, on top of the 9% accretion from the prior acquisition of stores which we talked about last quarter.
We think that this consolidation adds a compelling growth element to the investment thesis on top of a business which has healthy organic growth and self-help margin opportunities. The business retains ample cash to continue selective bolt-ons from failing high street competitors. We note that H&T Pawnbrokers recently undertook a placing to acquire 65 stores and 29 loan books from The Money Shop. This adds credibility to the strategy, and we believe that Ramsdens had the pick of the best stores before H&T picked up the rump.
The results in June met expectations and show further progress against our thesis, with double digit organic growth and improving mix. We continue to believe that the shares are rated too cheaply on sub 6x EV/ EBIT, double digit operating margins; a net cash balance sheet and over 15% free cash flow returns on invested capital."