Pawnbroker Ramsdens has significantly raised its profit guidance for the 2025 financial year, now expecting a profit before tax of at least £13m, up from £11.4m last year. This marks an increase of £1m over the company’s previous expectations and signals a strong performance amid market volatility. The company’s improved outlook is largely attributed to the continued surge in gold prices and the solid performance of its jewellery retail segment.
In its first-half trading update for the 2025 financial year, Ramsdens reported a remarkable 50% year-on-year increase in profits from the purchase of precious metals. The rise in profits is mainly driven by a steady high gold price, coupled with a 5% increase in the volume of gold purchased during the period. The price of gold, which rose by more than 20% from £2,004 per ounce to £2,409 per ounce, has been a key factor in bolstering the company’s performance. However, the gold rally has paused in recent weeks, impacted by market turmoil linked to tariff escalations under U.S. President Donald Trump.
In addition to the gains in gold, Ramsdens also saw a 15% increase in gross profit from its jewellery retail division, which exceeded expectations. This positive performance further contributed to the company’s improved outlook for the full financial year. Ramsdens attributed its success to its diversified business model and ongoing investments in its operations, including the launch of new customer websites and enhanced services.
Peter Kenyon, CEO of Ramsdens, expressed satisfaction with the company’s first-half results, emphasizing the strong momentum that has carried into the second half of the financial year. “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,” Kenyon said. “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.”
Ramsdens’ stock has also gained attention from analysts. Panmure Liberum analysts have raised their target price for Ramsdens from 320p to 340p, maintaining a ‘Buy’ rating. Currently, Ramsdens shares are valued at 210p per share. According to analysts, the company’s consistent performance, driven by strong gold prices and growing jewellery sales, has led to what they describe as an “earnings staircase,” a pattern of regular upgrades over the past four years. Analysts further believe Ramsdens is on track to become one of the UK’s top 10 jewellery retailers in the near future.
Overall, Ramsdens’ raised profit guidance and solid performance in the first half of the 2025 financial year underscore its resilience in the face of market challenges. The continued strength of the gold market and the growing jewellery retail division position the company for sustained growth as it navigates through uncertain global economic conditions.
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