Ramsdens FY profits seen ahead of expectations

10th Oct 2022 09:28

(Sharecast News) - Financial services provider Ramsdens said on Monday that it had delivered "a strong performance" across each of its four key segments, leading the group to expect full-year pre-tax profits ahead of expectations.

Ramsdens stated foreign currency gross profits grew "significantly" to approximately £12.6m, up from £3.3m a year earlier, while income almost returned to pre-pandemic levels, driven by a recovery in volumes and improved margins.

Revenue generated by the group's jewellery retail segment grew by more than 40% to approximately £26.2m, driven by strategic investments in stock and improved merchandising, while demand for pawnbroking loans grew during the year as a result of the easing of Covid-19 restrictions and fewer alternative options for small sum short-term credit.

Precious metal buying volumes increased throughout the summer, aided by a high gold price and increased footfall, while revenue was up more than 50% to roughly £16.0m, returning to pre-pandemic levels.

Chief executive Peter Kenyon said: "We are pleased with the group's very strong performance during the year, which again reflects the resilience of our business model and the strength of our value-for-money reputation amongst customers.

"Ramsdens has recovered well from the impact of the pandemic, and while the economic backdrop is challenging and we are not immune to external cost pressures, the board is confident that with our diversified income streams, our value-for-money proposition, and growing brand awareness, we are in a good position to continue our positive momentum into the new financial year."

As of 1320 BST, Ramsdens shares were up 2.54% at 202.51p.

Reporting by Iain Gilbert at Sharecast.com