Ramsdens Holdings PLC on Tuesday said it expects its annual profit to be greater than the year prior, while noting its performance in the first half is likely to be ahead of expectations.

In a trading update for the six months that ended March 31, the Middlesbrough, England-based financial services provider and pawnbroker said it expects its financial 2023 pretax profit to be no less than £9.5 million, up 15% from £8.3 million a year earlier.

It said this was because during the half-year period, it continued to make ‘very good progress’ each of its four key business segments, as well as against its broader long-term strategic objectives.

Ramsdens noted highlights of the first half of its financial 2023 as including jewellery retail gross profit increasing by over 20%, both in store and online, from a year earlier; foreign currency exchange up around 40%, with volumes recovering to around 70% of pre-pandemic levels for the period and volumes at the end of March in the lead up to Easter being ‘encouraging’.

It also cited its pawnbroking loan book increasing by 13% to £9.7 million from a financial 2022 year-end balance of £8.6 million and by 29% from £7.5 million a year earlier; and the purchase of precious metal volumes rising over 20% from a year earlier.

In addition, it continued expanding its store estate in line with its long-term growth strategy, opening six new stores in the half-year period in Bootle, Basildon, Bradford, Croydon, Maidstone and Warrington.

This took its total store estate at the period end to 158 stores, excluding two franchised stores, up from 153 stores a year earlier.

‘We are successfully executing against our long-held strategic priorities. We are focused on driving organic growth by delivering ongoing continuous improvements to our operations, expanding the store estate - for which we have a strong pipeline of potential new stores - and investing in our online offering,’ said Chief Executive Officer Peter Kenyon.

‘In addition, we are continuing to seek and appraise attractive consolidation opportunities in what remains a highly fragmented market.’

Ramsdens said it expects to release its interim results on June 7.

Shares in Ramsdens were up 6.2% to 231.00 pence each in London on Tuesday morning.

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