The High Street pawnbroker's trading update has boosted shares 15% in early trading.

Companies: Ramsdens

Ramsdens Holdings (LON: RFX) has seen its shares spike today after a brief trading update outlined their expectations of their Interims and Full Year results, saying they expect the figures to be "significantly ahead of market expectations."


The pawnbroker and Forex provider listed on the AIM market in February this year, with today's spike seeing the Group's share price trading 50% higher than its listing price of 96p earlier this year.


The Group acknowledged that "strong foreign exchange results in the early summer months gained additional momentum through the traditional peak period of July and August", bolstering their performance. Strong gold prices also worked in their favour.


Liberum released a note this morning significantly upgrading their assumptions...


 "We make a 22% upgrade to Adj. PBT & EPS in FY18 and a 19% uplift in FY19. We leave the DPS forecast unchanged for now. 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."

Ramsdens currently trades at a PE ratio of 11x versus the industry median of 15x, with a market cap of £44m.

The information contained within this post is based on personal experience and opinion and should not be considered as a recommendation to trade nor financial advice.