4th Jun 2025 10:29
(Alliance News) - Ramsdens Holdings PLC on Wednesday raised profit guidance for the second time in two months as a higher gold price boosts revenue, helping the firm deliver a record first-half.
The Middlesbrough, England-based financial services provider and pawnbroker now expects full-year pretax profit to exceed GBP15 million. This would represent growth of 32% from GBP11.4 million in the year to September 30, 2024.
In response, Panmure Liberum raised its full-year pretax profit forecast to GBP15.4 million from GBP13.1 million and raised its share price target for Ramsdens to 385 pence from 340p.
In April, Ramsdens predicted full-year pretax profit of at least GBP13.0 million, ahead of consensus at the time of GBP12.0 million.
The latest upbeat news saw shares in Ramsdens rise 5.8% to 349.00p in London on Wednesday morning.
The company said pretax profit jumped 54% to a record GBP6.1 million in the six months to March 31 from GBP4.0 million a year prior.
Revenue increased by 18% to GBP51.6 million from GBP43.8 million a year ago boosted by rising jewellery sales and the higher gold price.
Gross profit in the precious metals segment leapt 53% to GBP7.6 million from GBP5.0 million year-on-year.
Jewellery retail revenue increased by 18% to GBP20.7 million from GBP17.5 million, with retail gross profit rising 18% to GBP7.9 million from GBP6.7 million a year prior.
Pawnbroking gross profit grew by 11% to GBP6.2 million from GBP5.6 million supported by the new dedicated pawnbroking website launched last November 2024.
Reflecting the positive trading momentum and confidence in the full-year outlook, the company increased the interim dividend by 25% to 4.5p per share from 3.6p a year ago.
In addition, a 0.5p per share special dividend was declared to reflect the "exceptional performance of the purchase of precious metals segment in the first half of the year."
Ramsdens said the sustained exceptionally high gold price, coupled with the investment in the new gold buying website, is attracting new customers and increasing the weight of gold purchased.
"In the short term, we expect the gold price to remain high," the company said.
Momentum in retail jewellery has continued into the second half with margins maintained despite the increased gold price, it said.
Demand for pawnbroking loans remains "robust" with May being a record month for the value of loans issued, while foreign exchange services continue to trade well and in line with management expectations, Ramsdens said.
Following a planned reduced store opening programme in financial 2025, Ramsdens said it expects to return to opening six to eight new stores each year from the current financial year onwards.
Chief Executive Peter Kenyon said Ramsdens is "well placed with continued opportunities to grow".
"We have a strong balance sheet and good cash generation which provides options to how we allocate our capital," he added.
By Jeremy Cutler, Alliance News reporter
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