High street pawnbroker Ramsdens reports record profits as grows store network

Pawnbroking and jewellery chain Ramsdens has hailed record pre-tax profits during a year in which it launched seven new stores and expanded into a new head office.

The Teesside-based operator, which provides pawnbroking, jewellery sales and travel money on high streets across the country, saw pre-tax profits rise to £11.36m last year, up from £10.10m in 2023. That came on revenue of £95.6m, up from £83.8m, as operating profit reached £12.46m, up from £10.93m.

In results published to investors on the London Stock Exchange, the Middlesbrough-based firm said growth had come from all quarters of its business, particularly its precious metals buying and selling activities, which were boosted by continued high gold prices. But bosses said that despite appetite for further expansion of its 169-store network, the state of the country's high streets was a cause for concern and that it had reduced planned 2025 openings in the hope of reform to the business rates system which it said could reinvigorate shopping areas.

During the year, Ramsdens opened new locations in Blackburn, central Cardiff, Poole, Romford, Burnley, Telford, and Blackpool. And post year end, in October, a further new store was launched in Grantham. It has also closed a travel money kiosk at Teesside Airport and will merge two Glasgow sites.

Across the firm's pawnbroking business - which accounts for about 23% of gross profits - demand for small sum short term credit was said to have driven growth. Its loan book now stands at £10.9m from the year end position of £10.7m.

Meanwhile sales of foreign currency increased in total value and number of transactions, though the average transaction value decreased by 5% to £406. Ramsdens gross profit from the division was £14.2m, up from £13.6m, with a growing proportion of activity taking place online.

Peter Kenyon, chief executive, said: "Ramsdens' record performance in FY24 - with profit before tax increasing by 12% to more than £11m - once again reflects the strength of the group's diversified business model. We are pleased with the positive momentum achieved across each of the group's income streams, with a particularly strong performance in our precious metals segment where we continued to benefit from the high gold price.