Pawnbroker Ramsdens upgrades profit expectations as high gold prices provide boost

High street pawnbroker and jewellery seller Ramsdens has raised profit expectations on the back of strength in its precious metals purchasing business.

The North East-based plc, which has a network of 169 stores across the country, says pre-tax profits for 2025 are now expected to be at least £13m, up from £11.4m last year. Analysts had expected pre-tax profits of about £12m but new strength in gold prices has helped the firm increase gross profits on its precious metals purchasing activity by 50% in the first half of the year.

That comes after the Middlesbrough group launched a dedicated gold buying website last month, which it says will boost awareness of the service and attract new customers. Pawnbroking profits were also up 10% on the same period of 2024, with investments in the brand's website said to be attracting new customers.

Meanwhile gross profit on jewellery retailing increased 15% - ahead of expectations - with bosses saying some old stock had been scrapped. Foreign currency exchange was in line with the previous year though a later Easter holiday period had deferred customer spending.

During the first half, Ramsdens opened new stores in Grantham and Burton, with both said to be trading well. The firm closed a kiosk it had at Teesside Airport and merged two of its central Glasgow stores.

Peter Kenyon, CEO of Ramsdens, said: “We are pleased to have delivered a strong performance during the first half of the year, underpinned by our diversified model as well as benefitting from investments made across our four operating segments, including the launch of new dedicated customer websites and services. This positive trading momentum, together with the continued benefit to the Group presented by the sustained high gold price, has led the Board to increase profit expectations for FY25.

"We look forward to building on this positive performance throughout the second half of the financial year.”