Ramsdens Holdings upgraded its full-year profit outlook on Wednesday after first-half results showed a substantial rise in profitability, with management citing high gold prices and solid trading across its core divisions.
The UK-based financial services group now anticipates profit before tax for fiscal 2026 to be in the range of £30 million to £33 million, above its prior guidance. The company recorded a first-half pretax profit of £16.7 million, a 173% increase that surpassed the total profit for fiscal 2025.
Revenue for the six-month reporting period increased by 62%, a gain the company attributes to strong demand for gold buying and higher jewellery sales.
Within the group, the precious metals division saw the most pronounced improvement, with gross profit rising 130% as sustained high gold prices supported greater volumes of gold purchases. The company also pointed to intensified marketing activity as a factor aiding the division's results.
Ramsdens' jewellery retail arm posted a 26% increase in revenue, while gross profit in that segment climbed 31%. Management said the growth stemmed from solid sales of both pre-owned and new jewellery, with margins holding steady through the period.
Meanwhile, the pawnbroking division recorded an 18% rise in gross profit, bolstered by disciplined lending, an expanding loan book and the onboarding of additional customers.
Overall first-half gross profit reached £40.1 million. Basic earnings per share for the period were reported at £0.38. Reflecting the stronger result, the board approved a 33% increase in the interim ordinary dividend and announced an interim special dividend.
Ramsdens said that the elevated gold price continues to stimulate demand for its gold buying services. The company also cautioned that geopolitical uncertainty could weigh on international travel and consequently on foreign exchange sales going forward.
Context and implications
The upgraded profit range follows a half-year in which operating leverage across Ramsdens' precious metals, jewellery retail and pawnbroking businesses translated higher commodity prices and increased volumes into substantially stronger earnings. The dividend increases reflect the board's response to the improved cash flow and profitability in the period.