Ramsdens Holdings (LON:RFX)

Only came across this company yesterday when reading Graham's report of 27/11/17 covering the interims to 30/9/17.

After doing a bit of research I've decided I really like this company although it has less than 1 year on AIM. Its reports and presentations are well written, down to earth and you can easily see where they are going. So I dipped my toe into the water at 182p today.

When Stockopedia updates their page for the interims the TTM will show EPS normalised of 14.3p leaving the 2018E EPS figure of 15.3p looking very, very conservative - even allowing for the fact that the second half is always the weakest.

Allowing for a further rise in SGA expenses of 8% in the second half (probably a bit high) the 15.3p forecast only assumes a 5% revenue increase to last years second half revenue figures compared with the first half growth of 18%. If growth continues along the lines of the first half then the EPS comes out at 18p+ for a PER of 10. It will be between these two figures but I suspect closer to 18 than 15.3.

The 2019E figures look way out of date on this basis.

As normal this is my opinion, not advice and please, especially in this case DYOR as its a simple company with little complication.

Phil







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