Pawnbroker Ramsdens Holdings PLC (AIM:RFX) has increased its full-year profit guidance as “good trading momentum” has continued into the second half of the financial year.
Full-year profit before tax is now expected to be at least £11 million, which would be 9% above the 2023 result and up from prior forecasts of £10.5 million.
Precious metal buying revenue has “increased significantly” year on year, said Ramsdens, thanks to elevated gold prices and increasing customer demand.
Gold in sterling terms has surged nearly 17% over the past six months due to a rush to safe-haven assets in response to heightened geopolitical instability.
Ramsdens’ loan book and foreign exchange revenues remain in line with guidance.
Chief executive Peter Kenyon stated: "Ramsdens' positive trading momentum has continued into the second half of the year, once again reflecting the strengths of our diversified model, trusted brand and the hard work and commitment of our team.
"We continue to benefit from the ongoing investments made in enhancing our multi-channel customer proposition, including our online presence and new Multi-Currency Card, as well as the sustained high gold price, which is encouraging greater awareness and demand for our precious metals buying services."
Ramsdens’ share price rallied 8% in opening Tuesday trades.