Ramsdens strikes gold after price jump boosts profit to record high
Pawnbroker Ramsdens enjoyed a bumper six months as its profit soared on the back of record high gold prices.
Ramsdens’ pre-tax profit jumped 54 per cent to an all-time high of £6.1m. This was up from £4m in the first half of 2024.
The firm said its purchase of precious metals segment performed “very strongly” with gross profit increasing 53 per cent to £7.6m.
Gold hit a series of record highs in the aftermath of President Donald Trump’s ‘Liberation Day’ levies, as investors ditched equities and flocked to the safe haven asset. The metal broke $3,500 per troy ounce for the first time ever in April.
Investor demand jumped 170 per cent year on year, from 204.4 tonnes in the first quarter of 2024, to 551.9 tonnes between January and March this year.
Meanwhile, Ramsdens’ jewellery retail revenue climbed 18 per cent to £20.7m. Net assets swelled to £54.7m, up from £47.8m at the end of 2024.
Ramsdens ups dividends
The firm said following the “positive trading momentum,” its board had approved a 25 per cent increase in its interim dividend to 4.5p per share.
This was a leap from 3.6p per share in the second half of 2024. The board also approved a special dividend of 0.5p per share.
Ramsdens has begun to eye further expansion with the opening of three new stores. It expects to open six to eight new stores each year from 2026 onwards.
The company said boosted trading would help offset the Chancellor’s tax hikes to employer’s national insurance and the national living wage. Full-year profits are expected to be north of £15m.
Ramsdens’ chief executive Peter Kenyon said: “While all of our income streams achieved growth during the first half, our purchase of precious metals segment delivered an outstanding performance, with the well-publicised and sustained exceptionally high gold price encouraging more customers to sell unwanted jewellery.
“We are encouraged by the initial performance from our designated gold buying website which was launched during the Period with traffic significantly ahead of what we had expected.”
He added: “Looking ahead, the group is well placed with continued opportunities to grow.
“We have a strong balance sheet and good cash generation which provides options to how we allocate our capital.”