Hits: 1

  • Morses Club – New CFO comes from e-Serv Global
  • Saga – CEO to retire at the end of the year

Park Group Plc- FY Results

Share Price 68p

Mkt Cap £128m

Conflict Disclosure: I hold

  • Results Revenue decreased “marginally” to £110.4m.  Cash balances were up from £121m to £134m and Adj. Operating profit was £10.9m (2018 A £11.3m). EPS 5.43p (2018 5.5p). Dividend 3.2p. Outlook for the current year is unchanged with good growth in corporate offset by a slower Christmas savings market. The strategic plan continues to be worked on with branding changes, marketing focus, technology investment, office moves and separating the hampers business
  • Estimates Full year estimates look for £111m turnover and £12.5m PBT. EPS 5.4p and a dividend of 4.2p
  • Valuation PER 12.7X Yield 4.7%
  • Conclusion I can’t see the growth here.  I had hoped that we might have had the new product unveiled around now but it continues to be developed. Market testing during H2 this year.  It is really a very secret product. I can see some impatient towel throwing today.

Ramsdens Holdings Plc – FY Results

Share Price 170p

Mkt Cap £52m

Conflict Disclosure: No holding

  • Results Revenue up 17% to £46.8m and EBITDA up 5% to £8.3m. EPS up 2% to 16.7p. FY dividend up 9% to 7.2p. Store numbers increased 19% to 156 during the year.  Net assets £30.9m. Inventory was £12.6m and pledge book £10.9m while the company has net cash. Foreign currency is 25% of revenue. Outlook is “confident”.
  • Estimates £44.8m revenue and 17p EPS was expected. Going forward consensus looks for 15% revenue growth to £51.6m, EBIT of £7.4m and 12% EPS growth to 19p
  • Valuation PER 8.9X yield 4.6%.  1.8X Price/Book for 17% ROE
  • Conclusion  This is a very polished set of results and the shares are cheap.  There are reasons to feel cautious about the currency business this year with a weak pound and consumer nervousness but perhaps the modest rating expects that. It is the cash generative nature of the forex business which allows this pawnbroker to grow without absorbing capital.  Looks very cheap

jeremy@charltonillingworth.co.uk