A sign of the times: Pawnbroker Ramsdens cheers ‘milestone’ year as cash-strapped Brits flog valuables
Pawnbrokers Ramsdens recorded ‘milestone’ full year profits as it was helped by Brits flogging their goods amid the cost of living crisis.
Board members told the market this morning that profit before tax topped a record high of £10.1m, up 22 per cent on last year’s figures.
Revenues also surged 27 per cent to £83.8m, driven by demand for second hand jewellery and watches.
A national cash crunch also drove up demand for small sum short term credit, leading its pawnbroking loan book to increase to £10.6m from the year end position of £10.3m.
Peter Kenyon, chief executive, said: “Ramsdens has had a great year..
“While we are very conscious of the tough economic conditions and the cost pressures of energy pricing, increased interest rates, and paying the RLW, we have confidence that our long-term strategy, which remains unchanged, will deliver long-term benefits for all stakeholders.”
“While the business is very well positioned to build upon its achievements, the Board remains cognisant of the macroeconomic challenges currently impacting consumer-facing businesses in the UK.”
He added: “The group’s diversified income streams provide defensive qualities in the current environment characterised by higher interest rates and levels of inflation.”
The pawn industry is a sector that tends to perform well in times of economic downturn as people grow desperate to shore up extra cash.
Fellow broker, H&T has also enjoyed a buoyant year, reporting a 31 per cent rise in profit before tax to £8.8m back in August.