Update Note added 11/06/18 for Ramsdens RFX; did not have the time last week to complete my wandering fag-packet thoughts. On the chart below I have included a few notes on increasing ROCE, increasing EBIT margin and an excellent Net Debt progression that now stands at an impressive minus £12.7m. We also have the comfort of a proposed dividend yield of 3.3%.
As ever, this is not investment advice and is just me sharing my thoughts on a stock.
Although I am not a great lover of the PE ratio due to its susceptibility for massaging, the accounts seem reasonably clean and taking into consideration the cash, the PE falls from 12 to a very attractive 9.5. That all looks interesting and attractive but what does not look so bullish is the meagre broker's forecast for 2019 which has only been revised up by the slightest tad recently. A viewing of CEO’s Peter Kenyon’s discussion of the results, link below, paints a much more upbeat future than the brokers estimate projects and I rather think these expectations will be revised upwards as the year unfolds.
Link to results video : www.brrmedia.co.uk/broadcasts/5b180e2df0b0144f05917d16/ramsdens-holdings-plc-full-year-results
My scratchings of the chart:-