Ramsdens Pawnbroker Raises Profit Forecast Again Amid Gold Price Surge
Teesside pawnbroker Ramsdens has raised its profit guidance for a second time, driven by soaring gold prices that are significantly boosting its business operations. The company, which began as a single shop in Middlesbrough, now anticipates pre-tax profits to be substantially higher than initially projected.
Revised Profit Expectations
Originally, Ramsdens expected pre-tax profit to exceed £18 million for the financial year. However, the company has now revised this figure upward by £10 million, indicating a potential profit boost of that amount. In February, the guidance was updated to top £21 million, up from £18.6 million. Currently, the financial services group forecasts pre-tax profits to reach at least £24 million, with the possibility of climbing to £28 million if favorable gold prices and trading conditions persist.
Impact of Record Gold Prices
In an upbeat trading update, Ramsdens highlighted that the average gold price for the year to date is approximately 50% higher than the previous year. This surge has positively impacted the company's purchase of precious metals segment, with the weight of gold purchased also increasing by around 50% year on year. The high gold price is driving customer demand and enhancing profits within this key area of the business.
Strong Performance Across Core Streams
Ramsdens has reported robust performance across its diversified income streams:
- Jewellery retail revenue is about 25% ahead compared to the same period last year.
- Pawnbroking lending reached record levels in February 2026, with positive momentum continuing into the current month.
- The loan book has grown to approximately £13.5 million, an 18% increase from the September year-end position of £11.4 million.
Foreign Currency and Expansion
Total currency exchanged in the first five months of 2026 remained in line with the comparable period in 2025. However, foreign currency commissions are approximately 5% lower year on year, reflecting a shift towards online and currency card sales, which offer lower margins. Regarding geopolitical concerns, Ramsdens noted that while the situation in the Middle East may affect international travel, its primary foreign currency activity—selling Euros to customers holidaying in Europe—appears stable.
The company has also seen successful trading at new stores in Wakefield, Hull, and Sheerness since their openings. Ramsdens remains on track to open between eight and 12 new stores this financial year, with three stores currently in shop fit and three more expected to follow in the coming weeks.
Leadership Perspective
Chief Executive Peter Kenyon commented on the company's performance, stating, "Ramsdens continues to perform well across its diversified business model, reflecting the strength of our trusted brand, value for money proposition, and outstanding team. In addition to underlying progress across the business, we continue to benefit from the high gold price, which is significantly boosting both customer demand and profits within our purchase of precious metals segment. As a result, we are once again trading ahead of market expectations and currently anticipate profit before tax for FY26 to be in a range of £24 million to £28 million."
Interim results are scheduled to be announced in early June, providing further insights into the company's financial trajectory amid the ongoing gold price surge.
