Ramsdens shares drop despite record profits as Q1 trading slows

15th Jan 2024 08:38

(Sharecast News) - Shares in AIM-listed Ramsdens fell on Monday despite the travel money, pawnbroking and jewellery store chain delivering a "milestone" profit of £10m in its annual results, as the company announced a slowdown in trading in its first quarter.

For Ramsdens' first quarter ended 31 December, the company reported flat foreign exchange gross profits with currency purchases from returning holiday makers "still subdued". Revenues in the jewellery retail division were also said to be flat.

The company, which has 165 stores across the UK, reported a record pre-tax profit of £10.1m for the 12 months to 30 September, up 22% on last year, with revenues rising 27% to £83.8m.

Foreign currency gross profit increased 8% to £13.6m, back ahead of pre-covid levels, jewellery retail revenue increased 23% to £33.5m, while the active pawnbroking loan book increased by almost 20% to £10.3m.

Ramsdens said higher gold prices have helped precious metals buying volumes and values, with revenue across this segment surging by almost 50% to £23.5m.

The company increased its final dividend by 13% to 7.1p, lifting its full-year dividend by 16% to 10.4p.

The stock was down 8% at 197.5p by 0831 GMT.