Investing.com UK - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Daily Grime - RFX; MERC

ByJeremy Grime
Published 03/12/2019, 09:00
Updated 09/07/2023, 11:32

News

  • Hansard (LON:HSD) appoints new NED from Willis. He has also been Director for International markets at Lloyds (LON:LLOY) of London, where crucially he was responsible for overseeing Japan alongside other countries.

  • New River REIT acquires Bravo Inns for £17.9m, being 6.8X EBITDA

  • Randall & Quilter (LON:RQIH) Director, Mark Langridge stepping down. He will continue part time advising on legacy companies.

  • Woodford’s stake in Eddie Stobart logistics off loaded at 6p vs the suspension price of 71p equating to a write down of £56m for the Woodford Equity Income fund and the Income Focus fund.

    • Ramsdens Holdings PLC (LON:RFXR) – 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.
    • 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

  • 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.

    • Mercia Asset Management – Acquisition

    Share Price 32p

    Market Cap £97m

    Conflict Disclosure: No Holding

  • Acquisition Acquires VCT fund management business NVM for up to £25m, £16.6m up from 75% in cash, 25% in shares. That is up to 9% of the £270m AUM, 3.5X revenue and 6.25X EBITDA. The company is raising £30m at 25p/share.

  • Estimates Mercia was is forecast to make £2.1m EBITDA to March 2020 so this is transformational.

  • Valuation The market cap will be £130m which is 15X historic EBITDA, but at the 25p placing price it is 12.5X

    • Conclusion Of every £ of AUM at NVM 2.3% turns up in NVM’s EBITDA which is breathtaking profitability. If this can grow the shares will be a good investment.

    Latest comments

    at the market sector place to the trading of the good investment could growth too
    Install Our App
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.