Ramsdens: Pawnbroker raises guidance profit on high gold price
Pawnbroker Ramsdens has raised its profit guidance for the year, boosted by the high gold price and income from jewellery.
It now expects profit before tax for the 2025 financial year, which ends on October 1, to be at least £13m.
This is up from £11.4m last year and £1m ahead of previous expectations.
The company’s share price rose nearly 10 per cent in early trades.
Ramsdens’ profit from the purchase of precious metals increased by 50 per cent year on year in the first half of the 2025 financial year.
Ramsdens said this has been driven by the continued high gold price, coupled with a five per cent increase in the weight of gold purchased.
The price of gold rose by more than 20 per cent during Ramsdens’ first-half trading period, from £2,004 per ounce to £2,409 per ounce.
The metal’s rally has since paused amid the market turmoil caused by Trump tariffs.
Jewellery retail gross profit for the first half increased 15 per cent on the prior period, ahead of expectations, Ramsdens added.
Peter Kenyon, CEO of Ramsdens, said: “We are pleased to have delivered a strong performance during the first half of the year, underpinned by our diversified model as well as benefitting from investments made across our four operating segments, including the launch of new dedicated customer websites and services.
“This positive trading momentum, together with the continued benefit to the Group presented by the sustained high gold price, has led the Board to increase profit expectations for FY25.
“We look forward to building on this positive performance throughout the second half of the financial year.”
Panmure Liberum analysts rated the stock a ‘Buy’ and increased their target price from 320p to 340p. The stock was worth 210p per share when Ramsdens announced the profit upgrade.
“Ramsdens’ update has delivered yet another upgrade, driven by the strong gold price but with a small bump in retail jewellery as well for good measure.
“The upgrade adds the latest leg up in what management refers to as the ‘earnings staircase’… which shows that Ramsdens has delivered consistent upgrades for the last four years and counting.”
“Ramsdens has quietly grown what should be a top 10 jewellery retailer in the UK in the next few years.”