Ramsdens, the Teesside-based pawnbroker and jeweller, has upgraded its full-year profit forecast to at least £28.5 million, up from prior expectations of about £24 million, despite concerns over jet fuel shortages and volatile gold prices. The company now expects pre-tax profits could reach £31.5 million if favorable gold prices persist and summer currency exchange volumes match last year's levels.
Strong Trading Across the Network
The chain, which operates more than 170 sites, reported strong trading across its pawnbroking, jewellery retail, and foreign currency exchange services. Bosses highlighted that global instability, including anxiety over summer holidays due to jet fuel shortages, has not dampened performance. The soaring price of gold, currently about 40% higher than last year, has driven more customers to sell gold, while jewellery retail revenue is approximately 25% ahead year-on-year, with slightly improved gross margins.
Record Pawnbroking Lending
Ramsdens told investors on the London Stock Exchange that demand for pawnbroking loans remained robust, leading to record new lending in March and April. The pawnbroking loan book has grown 24% since September last year, reaching £14.1 million. Newly opened shops in Hull, Sheerness, and Wakefield are trading well, with additional sites in Ashford and Abergavenny recently launched. Two more locations in Hereford and Newark are set to open later this month, with another two in the pipeline. The company plans to open between 10 and 12 new shops in its 2026 financial year.
CEO Comments
Chief Executive Peter Kenyon said: "We have had a strong start to the year given the economic backdrop, with our pawnbroking, jewellery retail, and foreign currency exchange services all performing well. In addition, we have had an exceptional half year for our purchase of precious metals segment due to the continued benefits of a sustained high gold price and the increased weight being purchased. As a result of the continued strong performance across our diversified income streams and the additional benefit of the very high gold price, we are once again trading ahead of market expectations and currently anticipate profit before tax for FY26 to be in a range of £28.5m to £31.5m."
