Teesside based Ramsdens Pawnbrokers Ramsdens on track for record profits. The Middlesbrough company said it had seen growth across all areas of its operations.
Business Live is reporting that the Teesside firm, whose services also include jewellery sales and foreign currency exchange, said it had traded well during the second half of its financial year and expected profit before tax for the period to be around £10m, up from £8.4m last year.
In a pre-close trading update on the year to the end of September, Ramsdens said its foreign currency revenue increased by 8% while its jewellery income rose 20%, driven by investments in store improvements and online sales.
As well as traditional pawnbroking services, the successful introduction of buying gold and silver, the sale of foreign currency, jewellery and watches has seen Ramsdens develop into a recognised and trusted high street retailer.
The business has diversified into a financial services provider and retailer, operating in the four core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Headquartered in Middlesbrough, and from roots that can be traced back to the 1970s, the Group operates from over 150 stores within the UK (including 2 franchised stores) and has a growing online presence.
Meanwhile, its pawnbroking loan book increased by around 20% to a record £10.3m, with August being a record month for new lending. It said the average loan value was £174 and repayment rates remained in line with historical levels.
The company’s revenues from buying precious metals rose by 50% as people cashed in on damaged or unwanted jewellery due to the higher price for gold.
CEO Peter Kenyon said: “We are pleased with the group’s continued delivery against its long-term growth strategy, with good progress made during the period in each of our diversified income streams. Our recent staff engagement survey results show we have a highly engaged workforce who enjoy working for Ramsdens and serving our growing customer base. I am grateful for our team’s commitment during the year and would like to take this opportunity to publicly thank them all for their efforts.”
“While the economic backdrop is challenging and Ramsdens is not immune to inflationary cost pressures, particularly energy and payroll, the board remains confident that Ramsdens is in a good position to continue its positive momentum into the new financial year underpinned by the group’s proven and diversified business model, strong brand and clear growth strategy.”
During the year, Ramsdens said it had opened eight new stores and acquired a pawnbrokers in Bexleyheath, London, adding that the new outlets had performed well. The Middlesbrough-based group now has 161 stores around the UK, including two franchised sites.
Ramsdens said it expects to release its annual financial report next January.