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Ramsdens sees FY profits 'comfortably ahead' of expectations
8th Jan 2020 09:37
(Sharecast News) - Financial services provider and retailer Ramsdens expects full-year pre-tax profits to be "comfortably ahead" of market expectations after delivering a "strong" trading performance during the Christmas period.
The AIM-listed group said profits derived from the purchase of precious metals had been higher than previously anticipated, reflecting recent high gold prices, while its pawnbroking and foreign currency segments also continued to produce "good" results.
Ramsdens' jewellery retail segment continued to perform well both in store and online as the Christmas period saw double-digit revenue growth. New jewellery sales increased significantly year-on-year over the peak Christmas period and sales of premium watch brands and second-hand jewellery pieces were also strong.
Ramsdens also said it expects to record a one-off profit of approximately £800,000 after scrapping some slower moving jewellery stock in order to capitalise on current gold prices.
Chief executive Peter Kenyon said: "We are encouraged by the strong momentum across the business and, as a result, the board now anticipates full-year profits will be comfortably ahead of current market expectations.
"We are very pleased with the performance of our jewellery retail business over Christmas, both in-store and online. This reflects the growing reach and recognition of Ramsdens as a jewellery retailer, and the appeal of our new jewellery products, premium watches and unique second-hand pieces as great value Christmas gifts."
As of 0935 GMT, Ramsdens shares were up 5.10% at 247.50p.
The AIM-listed group said profits derived from the purchase of precious metals had been higher than previously anticipated, reflecting recent high gold prices, while its pawnbroking and foreign currency segments also continued to produce "good" results.
Ramsdens' jewellery retail segment continued to perform well both in store and online as the Christmas period saw double-digit revenue growth. New jewellery sales increased significantly year-on-year over the peak Christmas period and sales of premium watch brands and second-hand jewellery pieces were also strong.
Ramsdens also said it expects to record a one-off profit of approximately £800,000 after scrapping some slower moving jewellery stock in order to capitalise on current gold prices.
Chief executive Peter Kenyon said: "We are encouraged by the strong momentum across the business and, as a result, the board now anticipates full-year profits will be comfortably ahead of current market expectations.
"We are very pleased with the performance of our jewellery retail business over Christmas, both in-store and online. This reflects the growing reach and recognition of Ramsdens as a jewellery retailer, and the appeal of our new jewellery products, premium watches and unique second-hand pieces as great value Christmas gifts."
As of 0935 GMT, Ramsdens shares were up 5.10% at 247.50p.