Ramsdens Holdings PLC (LON:RFX) saw its shares top the market gainers today after the firm said it expects both its interim and full year pre-tax profits “to be significantly ahead of market expectations.”
In a brief trading update, the pawnbroker and financial services provider – which listed on AIM in February – said “strong foreign exchange results in the early summer months gained additional momentum through the traditional peak period of July and August.“
READ: Ramsdens sees sharp rise in profits as recently-listed pawnbroker posts maiden full-year results
The firm continued: “In addition, the Group is benefiting from its jewellery retail initiatives and these, along with the continued strong gold price, has helped the precious metals buying and pawnbroking segments.”
Peter Kenyon, Ramsdens CEO commented: "We are delighted to report a strong trading period across all the Company's core business segments and in particular a strong peak trading period for foreign exchange.”
Liberum ups target price to 190p
In an initial note to clients, analysts at ‘house’ broker Liberum Capital hiked their target price for Ramsdens’ shares to 190p from 162p and reiterated a ‘buy’ rating on the stock.
In early trading, Ramsdens shares jumped 15%, or 22p higher to 165.5p.
The Liberum analysts said: “Following today’s trading update we have revised our assumptions. This results in a 22% upgrade to Adj. PBT & EPS in FY18 and a 19% uplift in FY19.”
They added: “The upgrade is driven by an improvement in underlying trading and an absence of new store openings in H1'18.
“We are encouraged by the update and see the group as being very well positioned in a market whose competitive dynamics are improving.”
Cyber breach revealed in July
On July 14, Ramdens had revealed it was the subject of a cyber breach as it reported that strong trading during the early part of the financial year has continued into the important summer period.
READ: Ramsdens Holdings reveals cyber breach as it reports strong trading into the important summer period
In a statement, Ramsdens said: "Based on its current assessment, the company anticipates minimal disruption to its business and trading performance and a small financial cost due to additional IT software and procedures.”
The group – which is the shirt sponsor for relegated Premier League football team, Middlesbrough FC – made no mention of the cyber breach costs in today’s update.
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