Ramsdens Holdings PLC (AIM:RFX) said it expects to swing to a first-half profit as each of its divisions delivered strong results.
The pawnbroker and currency exchange services provider hopes to report an interim profit before tax of roughly £2mln for the six months to the end of March.
For the previous year to end-September, pre-tax profits tumbled to £564,000 from £9.2mln, with a loss of £0.1mln in the first half.
In its trading update, the company said the pawnbroking loan book was £7.5mln at the end of March, compared to £5.7mln a year ago, mirroring the normalisation of customer spending and growing need for short-term lending.
Precious metal buying volumes increased for the six months, with March volumes returning to pre-pandemic levels, aided by high gold price.
As a result of strategic investments in stock and improved merchandising, jewellery retail revenue increased by more than 50% year on year. Foreign currency volumes also recovered due to a easing in international travel restrictions.
"Whilst being mindful of the impact of current macroeconomic events and well-publicised inflationary pressures, the board is encouraged by the growing demand for Ramsdens' services and believes that the strong momentum reported today will continue over the coming months," said chief executive Peter Kenyon.
"Demand for Ramsdens' foreign currency services in particular is expected to grow significantly as more people travel abroad this summer, and we are confident that the group's ongoing strategic investment in its jewellery proposition will continue to deliver strong results both in store and online."