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Ramsdens anticipates small interim loss as lockdowns weigh on footfall
9th Apr 2021 08:50
(Sharecast News) - Financial services provider Ramsdens Holdings said on Friday that it had delivered "a resilient performance" during the six months ended 31 March but still anticipates reporting a small loss for the period despite trading cash positively.
However, Ramsdens stated that stronger restrictions imposed since its last update in December had "significantly reduced" high street footfall, while additional international travel restrictions had further weakened demand for its foreign currency exchange services.
The AIM-listed group stated it had maintained "a prudent approach to controlling costs and protecting resources" during the half, whilst operating almost 90% of the Ramsdens store estate in a Covid-secure way and continuing to invest in its online jewellery retail proposition, where revenue more than doubled year-on-year.
Chief executive Peter Kenyon said: "We are encouraged by the vaccine roll-out, the expected re-opening of non-essential retail in England next week and the most recent UK Government announcements on international leisure travel as 'sticking to the road map'. Whilst the lack of current detail regarding certain country restrictions and quarantine conditions means we are unable to provide guidance for this summer's FX trading, we do believe there is significant underlying consumer demand for international summer travel which is encouraging.
"Subject to no changes to the expected easing of social restrictions, we believe that our next financial year should see more normal trading patterns return and therefore anticipate opening new stores over the next six months as part of our long-term growth strategy."
As of 0850 BST, Ramsdens shares were down 4.35% at 165.0p.
However, Ramsdens stated that stronger restrictions imposed since its last update in December had "significantly reduced" high street footfall, while additional international travel restrictions had further weakened demand for its foreign currency exchange services.
The AIM-listed group stated it had maintained "a prudent approach to controlling costs and protecting resources" during the half, whilst operating almost 90% of the Ramsdens store estate in a Covid-secure way and continuing to invest in its online jewellery retail proposition, where revenue more than doubled year-on-year.
Chief executive Peter Kenyon said: "We are encouraged by the vaccine roll-out, the expected re-opening of non-essential retail in England next week and the most recent UK Government announcements on international leisure travel as 'sticking to the road map'. Whilst the lack of current detail regarding certain country restrictions and quarantine conditions means we are unable to provide guidance for this summer's FX trading, we do believe there is significant underlying consumer demand for international summer travel which is encouraging.
"Subject to no changes to the expected easing of social restrictions, we believe that our next financial year should see more normal trading patterns return and therefore anticipate opening new stores over the next six months as part of our long-term growth strategy."
As of 0850 BST, Ramsdens shares were down 4.35% at 165.0p.