Ramsdens reports robust trading in year-to-date

11th Mar 2024 13:31

(Sharecast News) - Financial service provider and jewellery retailer Ramsdens reported robust trading in line with its expectations in an update on Monday, buoyed by its diversified business model and trusted consumer brand.

The AIM-traded firm, which was holding its annual general meeting, said that since the start of the financial year on 1 October, foreign currency gross profit saw a year-on-year increase of about 3%, with promising momentum building up ahead of the crucial summer trading season.

It said its pawnbroking loan book saw growth, with an increase of £0.4m, reaching £10.7m by the end of February compared to £10.3m as of 30 September.

While jewellery retail revenue remained relatively stable compared to the prior year, the business mix saw notable changes, marked by increased sales of higher-margin secondhand and diamond jewellery alongside decreased sales of premium watches.

As a result, jewellery retail gross profit for the period was up about 5% compared to the prior year.

The board said the purchase of precious metals gross profit saw a significant upturn of around 20% compared to the prior year, attributed to growing consumer awareness of the service, supported by a relatively high gold price.

In terms of strategic expansion, Ramsdens opened two new stores in February, Romford and Burnley, bringing the total number of new stores opened during the period to five.

As of 29 February, the company's total estate comprised 167 stores, including two franchised stores.

Additionally, Ramsdens said it had secured a new £15m revolving credit facility with Bank of Scotland for a five-year term.

The facility replaced the previous £10m revolving credit facility with Virgin Money, offering more attractive terms.

"The board remains highly confident in the group's continued growth prospects and its expectations for the current financial year," Ramsdens said in its statement.

At 1246 GMT, shares in Ramsdens Holdings were up 6.78% at 192.2p.

Reporting by Josh White for Sharecast.com.