Gain to date: 17.3% Orig­i­nal en­try point: Buy at 142p, 15 June


A BULLISH TRAD­ING up­date from Ramsdens (RFX:AIM) on 1 Septem­ber reaf­firms our be­lief that this a great stock. It said ‘we ex­pect our in­terim and full year profit be­fore tax to be sig­nif­i­cantly ahead of mar­ket ex­pec­ta­tions’.

This has been helped by de­cent for­eign ex­change re­sults through the tra­di­tional peak pe­ri­ods of July and Au­gust aid­ing its of­fer­ing in this area.

The sus­tained strong gold price has also been a boon for the company’s pre­cious metal re­tail busi­ness as well as its pawn­broking ac­tiv­i­ties.

Look­ing for­ward, Justin Bates, an­a­lyst at Liberum, says that Ramsdens’ com­peti­tors ex­it­ing the high street bodes well for the busi­ness, both in terms of or­ganic and ac­quis­i­tive op­por­tu­ni­ties.

This has led Bates to upgrade Ramsdens’ ad­justed pre-tax profit for the year by 22% to £5.9m.

The shares are trad­ing on 11 times 2018’s fore­casted 15.3p per share of earn­ings based

on Liberum’s

es­ti­mates. The bro­ker has also put a 190p price tar­get on the shares, im­ply­ing 12.8% up­side.


Keep buy­ing. (DS)

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