Ramsdens Holdings PLC (AIM:RFX) has upgraded its full-year profit forecast for the second time this year after a surge in the gold price drove bumper returns from its precious metals division.
The operator of a chain of pawnbroking, currency exchange and jewellery businesses said it now expects profit before tax for the year to September 2026 to be at least £24 million and potentially as high as £28 million, well above the previous analyst consensus of £21.1 million.
The average gold price so far this financial year is approximately 50% higher than a year ago, pushing up both margins and volumes in Ramsdens' precious metals buying operation, where the weight of gold purchased is also around 50% ahead year on year.
Jewellery retail revenue is running approximately 25% higher, while pawnbroking, where customers use valuables as security for short-term loans, hit record lending levels in February, with the loan book growing 18% since September to £13.5 million.
Currency exchange has been softer, with commissions around 5% lower as customers shift towards online and prepaid card products, which carry thinner margins.
The group said it remains on track to open between eight and 12 new stores in the current financial year.
Chief executive Peter Kenyon said the business is "once again trading ahead of market expectations," with the high gold price "significantly boosting both customer demand and profits."