8th Jan 2020 09:37
(Alliance News) - Ramsdens Holdings PLC on Wednesday said it expects its full-year results to comfortably be ahead of market expectations, after the jewellery retailer and financial services firm reported "strong trading" over the Christmas period.
Rising gold prices have seen profits from its precious metals segment climb higher than previously anticipated, with the company's pawnbroking and foreign currency services units also producing "good results".
Ramsdens said: "The group's jewellery retail segment continued to perform well both in store and online. The Christmas period saw double-digit revenue growth in this segment.
"New jewellery sales increased significantly year-on-year over the peak Christmas trading period, reflecting increased demand for our new jewellery products as Christmas gifts."
Sales of premium watches from brands such as Rolex SA and Breitling SA also grew year-on-year, Ramsdens said.
What's more, Ramsdens said it expects full-year results to receive a one-off boost of GBP800,000 after it decided to scrap some of its slower-moving jewellery stock to take advantage of a relatively high gold price.
Chief Executive Peter Kenyon said: "We are encouraged by the strong momentum across the business and, as a result, the board now anticipates full-year profits will be comfortably ahead of current market expectations.
"We are very pleased with the performance of our jewellery retail business over Christmas, both in store and online. This reflects the growing reach and recognition of Ramsdens as a jewellery retailer, and the appeal of our new jewellery products, premium watches and unique second-hand pieces as great value Christmas gifts."
Shares in the company were 5.1% higher at 247.50 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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