Ramsdens Holdings (LON:RFX) – record results due next Monday
This £70.5m valued group, which is based in Middlesbrough, operates through some 159 stores, with another 2 as franchised units, as well as with an online activity.
It has four main core businesses – pawnbroking loans, selling and buying of second hand and new jewellery, precious metals buying, and finally foreign currency exchange.
In its Pre-Close Trading Update issued in early October last year, the company guided that its second half year saw continued strength.
CEO Peter Kenyon stated that:
"We are pleased with the Group's continued delivery against its long-term growth strategy, with good progress made during the Period in each of our diversified income streams.
While the economic backdrop is challenging and Ramsdens is not immune to inflationary cost pressures, particularly energy and payroll, the Board remains confident that Ramsdens is in a good position to continue its positive momentum into the new financial year underpinned by the Group's proven and diversified business model, strong brand and clear growth strategy."
Analysts James Allen and Nick Anderson at Liberum Capital rate the shares as a Buy, looking for 290p as their Price Objective.
They are going for the group’s sales to have grown to £78.6m (£66.1m), while its pre-tax profits could come in at £10.0m (£8.3m), lifting earnings up to 23.6p (20.7p) and covering a raised dividend of 10.4p (9.0p) per share.
It expects to announce its Annual Results for the year to end September 2023 in a week’s time, on Monday 15th January, while it will be holding its AGM on Monday 11th March.
The group’s shares hit 230p on Wednesday of last week before closing on Friday night at just 212.50p.
I feel that the group could well declare some better profits than Liberum Capital are going for, which will make the shares rate even cheaper still.
They touched 272p in June last year, putting down a clear marker as to investor aspirations in due course as they recover in price following next week’s figures.
(Profile 07.11.19 @ 204p set a target Price of 250p*)
Journeo (LON:JNEO) – compelling offering showing growth
This ‘intelligent transport systems’ group’s shares have been showing through well of late, touching 279.16p at their best in the middle of last week.
Dealing activity has been healthier too – perhaps investors are feeling more confident that the business is on an upwards climb now.
The group is the provider of tailored solutions to the transport community, solving complex operational requirements both on and off the vehicle, especially for today’s public transport industry, including several of Europe’s largest operators.
The end November issued Trading Update for the 2023 year indicated that it had experienced both organic and acquired growth in its final half of the year.
Accordingly, the guidance is now for revenues of around £46m, which will be ahead of market expectations.
Analyst Andrew Renton at Cavendish Capital Markets is very positive about the group’s prospects, setting a 385p Price Objective on its shares, which closed at 271p on Friday night.
His estimates for the 2023 year to end December are for revenues of £46m (£21.1m) to see adjusted pre-tax profits leap to £3.9m (£1.0m) and in the process doubling earnings to 20.6p (10.3p) per share.
Capitalised at just £44.6m, this little group could well see its shares improving still further over the next few weeks, ahead of possibly another Update early next month.
Its finals are due to be announced in late March.
I repeat what I suggested just a month ago – the shares are ready to jump over the 300p level and then trade in the 280p to 350p range in the first half of this year.
(Profile 07.04.21 @ 95.5p set a Target Price of 120p*)
Foxtons (LON:FOXT) – worth a punt ahead of Update?
This group, which was founded in 1981, is London's leading estate agency and largest lettings agent, with a portfolio of over 27,000 tenancies.
It operates from a network of over 60 interconnected branches, offering a range of residential property services across three business segments: Lettings, Sales and Financial Services.
The company’s growth is focused upon non-cyclical and recurring revenues from its Lettings and Financial Services refinance activities, supplemented by market share growth in its Sales.
Analyst Greg Poulton at Singer Capital Markets rates the group’s shares as a Buy, looking for 63p to be achieved this year.
Ahead of the group declaring its 2023 Year End Trading Update later this month, on Thursday 25th, he is estimating that group revenues will show through at £142.0m (£140.3m) while its adjusted pre-tax profits could come in at £11.2m (£13.0m), worth 2.71p (3.0p) in earnings and treble covering an unchanged 0.9p dividend per share.
Benefitting from recent acquisitions, Poulton is looking for the current year to show £156.9m revenues, lifting profits to £16.9m, worth 4.1p in earnings and a 1.1p dividend.
Last Friday saw the group’s shares close down 5.0% at 49.25p, valuing the whole enterprise at £148m.
With the 2023 finals Update due to be announced within the next couple of weeks, I do see the possibility of some investor attention to the group’s shares.
Accordingly, in the hope of a positive statement from the company, I consider that the shares could well be worth a small speculation ahead of its issue.
My previous Target Price has yet to be achieved, however I feel a lot more confident about setting 61p as my new aim.
(Profile 07.07.21 @ 60p set a Target Price of 76p)
(Profile 08.01.24 @ 49.25p set a new Target Price of 61p)
(Asterisks * denote that Target Prices have been achieved since Profile publication)