Importance Score: 25 / 100 🔵
Ramsdens Anticipated to Join Top 10 UK Jewellery Retailers Following Profit Jump
Ramsdens shares experienced a significant surge on Tuesday after the pawnbroking and financial services provider disclosed to investors that increased gold values had propelled profits beyond forecasts in the past year. This positive announcement highlights Ramsdens’ growing position in the UK retail jewellery sector.
Financial Performance Exceeds Expectations
The group, which has revised its financial outlook upwards for the second time in eight months, now projects a pre-tax profit exceeding £13 million for the fiscal year ending March 31. This revised forecast is attributed to robust demand for gold and precious metals.
Currently priced around $3,019 per ounce, gold has appreciated by nearly 30% over the past year, influenced by a turbulent global geopolitical and macroeconomic climate.
Ramsdens, which recently launched a dedicated online platform for gold purchasing last month, reported on Tuesday that gross earnings from precious metal acquisitions were 50% higher in the latter half of the year. This increase was supported by a 5% rise in the volume of gold purchases by weight.
Chief Executive Officer Peter Kenyon commented, “This encouraging trading momentum, together with the ongoing advantages for the group from sustained high gold prices, has prompted the board to raise profit expectations for FY25.”
Analyst Upgrades and Positive Outlook
Analysts at Panmure Liberum have adjusted their target price for Ramsdens upwards from 320p to 340p, reflecting confidence in the company’s future performance.
They stated, “Ramsdens has consistently provided positive updates for the past four years and is expected to continue this trend.
“The outlook for the second half of the year remains favourable. Fiscal year 2026 projections appear conservative based on our assessment of the store portfolio. Furthermore, there is downside mitigation in place should gold prices decline. Ramsdens has steadily developed into what should become a top 10 jewellery retailer in the UK within the coming years.”
Share Price and Sector Growth
Ramsdens shares climbed 16% to 238p this afternoon, bringing year-to-date gains to approximately 27%.
The group also observed a 10% year-over-year increase in pawnbroking gross profits, while jewellery retail revenues surpassed expectations with a 15% rise.
Foreign exchange gross profits aligned with forecasts, and Ramsdens anticipates an upswing due to the Easter holiday period.
Strategic Investments and Future Growth
Kenyon further noted, “We are pleased to have achieved a robust performance in the first half of the year, supported by our diversified business model and benefiting from strategic investments across our four operational segments, including the introduction of new dedicated customer websites and services.”
“We are focused on capitalizing on this positive momentum throughout the second half of the financial year.”
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