North East financial services and retail chain Ramsdens has significantly upgraded its profit outlook for the current financial year, attributing the positive revision to sustained record-high gold prices and robust performance across its business segments.
Enhanced Financial Expectations
The Teesside-headquartered company has informed investors that it now anticipates pre-tax profits for the financial year ending September 2026 to exceed £21 million. This represents a substantial increase from the previously forecasted £18.6 million and marks a notable rise compared to the £16.2 million in pre-tax profits reported for the full year 2025.
Chief Executive Peter Kenyon stated: "Whilst still relatively early in the financial year, as a result of the strong momentum across our business, the board now anticipates profit before tax for FY26 to be ahead of current market expectations."
Gold Market Momentum Drives Performance
The revised forecast, which adds more than £2 million to expected profits, comes amid what the company describes as "new record high gold prices in 2026". Ramsdens reports that its precious metals purchasing business has benefited significantly from these market conditions, with strong volumes of gold bought since the beginning of the calendar year.
This development follows impressive full-year results for the period ending September 2025, during which the company achieved:
- Revenue growth of 22% to £116.8 million
- Operating profit increase from £12.4 million to £17 million
- Pre-tax profit growth of 43% from £11.4 million to £16.2 million
Diversified Business Model Shows Strength
Beyond precious metals, Ramsdens continues to demonstrate resilience across its multiple business lines. The company's jewellery retail division has maintained strong performance both in physical stores and through a recently launched e-commerce platform. Specific highlights include:
- Jewellery retail profits increased by 18% to £15.7 million in the previous financial year
- New stores in Wakefield and Hull are reportedly trading well
- The pawnbroking operation achieved record lending levels in January 2026
- Foreign currency exchange volumes remained stable year-on-year
Kenyon emphasised the company's diversified approach: "Whilst there remain uncertainties in the wider macroeconomic backdrop, our diversified business model and strong foundations give the Board every confidence in Ramsdens' opportunities to continue to grow and deliver for all stakeholders."
Expansion and Employment Impact
The company remains on track with its expansion strategy, planning to open between eight and twelve new stores during the 2026 financial year. This growth will extend Ramsdens' network beyond its current portfolio of nearly 170 shops across the UK.
This expansion is expected to support job creation in the North East, where Ramsdens has recently enlarged its head office operations. The company's growth trajectory reflects its successful navigation of current economic conditions while maintaining its value-focused proposition across jewellery retail, foreign currency exchange, and pawnbroking services.
Ramsdens' positive outlook underscores how traditional financial services businesses can thrive in challenging economic environments by leveraging favourable commodity markets and maintaining diversified revenue streams.
