Ramsdens Holdings PLC (LON:RFX) saw its shares rise on Wednesday as investors cheered a hike in the pawnbroking firm’s interim dividend and sidestepped a fall in first-half profit due to higher administrative expenses.
For the six months to September 30, the AIM-listed firm’s pre-tax profit slipped by 3.8% to £5.0mln, down from £5.2mln a year earlier, although revenue rose by 9.6% to £23.9mln.
READ: Higher sterling gold price helps boost Ramsdens Holdings’ half-year profits
The profit fall came as the financial services provider and retailer - operating in foreign currency exchange, pawnbroking loans, precious metals buying and selling, and the retailing of jewellery – saw its administrative expenses increase by 7.3% to £11.7mln due to increased staff costs as the company opened more stores.
However, Ramsdens still increased its interim dividend by 9.1% to 2.4 pence from 2.2p paid out last year.
Peter Kenyon, Ramsdens chief executive commented: “Whilst there have been headwinds for the foreign currency exchange market in the UK driven by 'staycation' trends over the summer, our investments in pawnbroking, jewellery retail and the store estate have delivered positive results and helped to underpin an overall first half performance in line with the board's expectations."
He added: "We have momentum to take us into the seasonally important Christmas period for jewellery retail and, underpinned by the strength of our business model and brand, the board remains confident of delivering further progress on its strategic objectives and achieving its expectations for the year."
In late afternoon trading, Ramsdens’s shares were 2.5% higher at 165p.