Ramsdens Holdings PLC on Thursday said it continued to perform well in the second half of its financial year, expecting annual pretax profit to reach a record level of over £10 million.

The Middlesbrough, England-based financial services provider and pawnbroker said this would be up at least 19% from £8.4 million a year earlier.

Ramsdens’ financial year ended on September 30, this past Saturday. It will release its full results for the year in ‘mid-January’.

Shares in Ramsdens were up 6.1% to 201.60 pence each in London on Thursday morning.

Ramsdens said it continued to trade well in the second half of the year as it benefitted from the ‘strength of its diversified business model’.

For its financial 2023, Ramsdens said foreign currency revenue increased 8% from a year earlier. It noted a mixture of increased transaction volumes, lower average transaction values and an expected ‘slight’ reduction in margins during its ‘important’ summer trading period.

It also noted launching its multi-currency card in September and that it was ‘encouraged’ by initial sales and load volumes.

Jewellery retail revenue rose by more than 20% from a year earlier, supported by ‘particularly strong momentum’ online. Ramsdens pointed to benefits from the investments it made to enhance its retail proposition in-store and online in recent years as contributing to revenue growth in jewellery retail.

Ramsdens said its active pawnbroking loan book rose by around 20% to a record £10.3 million from £8.6 million a year earlier, with August being a record month for new lending. The median loan value was £174, Ramsdens said, while repayment rates remained in line with historical levels.

Precious metal buying revenue rose by around 50% annually, Ramsdens said, as consumer demand for realising value in unwanted or damaged jewellery increased, in part as a result of the higher gold price.

Spot gold was quoted at $1,848.10 on Friday last week, up more than 10% from $1,664 a year before.

Ramsdens also noted opening eight new stores and acquiring a pawnbrokers in Bexleyheath, London during its financial year, saying it was ‘very pleased’ with the initial performances of these stores so far.

‘We are pleased with the group’s continued delivery against its long-term growth strategy, with good progress made during the period in each of our diversified income streams,’ said Chief Executive Officer Peter Kenyon.

‘While the economic backdrop is challenging and Ramsdens is not immune to inflationary cost pressures, particularly energy and payroll, the board remains confident that Ramsdens is in a good position to continue its positive momentum into the new financial year underpinned by the group’s proven and diversified business model, strong brand and clear growth strategy.’

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