Ramsdens Holdings – yesterday’s price fallback offers good buying opportunity, shares now 367.50p, brokers upped their Target Price to 450p (385p)

Mark Watson-Mitchell - 09.10.2025

Just nine days ago I featured Ramsdens Holdings (LON:RFX) ahead of its Pre-Close Trading Update for its year to end-September.

The shares of the £120m-capitalised diversified financial services provider and retailer were then 375p.

Yesterday they hit 395p, with heavy trading volumes of nearly five times the daily average, following the group’s latest statement, before then dipping to 367.50p on profit-taking.

The Pre-Close Trading Update

The group anticipates that its FY25 profit before tax will be slightly ahead of analyst expectations, which were previously at £15.4m.

That positive outlook is driven by strong performance across its core income streams and the benefit of high gold prices.

The purchase of precious metals segment saw a 50% increase in gross profit year-on-year, supported by a 15% increase in the weight of gold purchased.

The pawnbroking loan book grew by 8% to £11.5m.

Jewellery retail gross profit increased by approximately 15% year-on-year.

The company's multi-currency card has nearly 40,000 cards in issue, up from 17,000 at the end of FY24.

On the overall retail side, the company plans to open eight to twelve new stores per year from FY26.

Management Comment

CEO Peter Kenyon stated that:

"FY25 has been another good year of progress for Ramsdens, as we continue to reap the benefits of our diversified income streams.

Whilst we have benefited from the sustained high gold price within our purchase of precious metals segment, we've also continued to make good progress across our other income streams.

In particular, our continued success in jewellery retail highlights a growing awareness of our value for money proposition.”

Analyst Opinions

At Panmure Liberum, analysts Ross Luckman and Rae Maile are extremely positive about the group and its prospects.

Accordingly, they have upped their Buy rating Target Price for the group’s shares from 385p to 450p.

The brokers state that:

“The continued strength of the gold price underpins Ramsdens’ performance in the last year, but it is far from the only positive feature.

Across the business, the company has performed well with the benefits being seen following investment in stock levels, in e-commerce and in staff training.

The positive business momentum and management’s confidence in continued delivery is apparent into the new financial year too with an acceleration in expected store openings.

On revised estimates the shares trade on a current financial year PER of 10.9x with an estimated yield, on our ordinary dividend estimate, of 3.7% with dividend cover of 2.5x.

This is not, we believe, an exacting rating for a company where the trading performance has been strong, where the outlook remains positive and where estimates remain, in our view, conservatively struck.”

In My View

I remain a long-term fan of this business and continue to rate its shares, at 367.50p, as an excellent constituent for most investor portfolios.

(Profile 07.11.19 @ 204p set a Target Price of 250p*)