Revenue at pawnbroker Ramsdens rockets as Brits cash in on soaring gold prices
Revenue at pawnbroker Ramsdens has risen to a fresh high as Brits take advantage of soaring gold prices.
The London-listed business, which has over 160 stores across the UK, posted a 22 per cent jump in turnover to £117m in the year to end September amid a more than 50 per cent in profit from its precious metals segment.
“We have a lot of customers who come to the counter who say, “Can I sell my gold because I think it’s a great time to sell” but we also get customers say “Gold’s only going one way, can I buy some gold?” so people’s views are a bit mixed,” Ramsdens chief executive Peter Kenyon told City PM.
Rising gold prices help Ramsdens
Rising gold prices also allowed customers to take out bigger loans secured against the value of their jewellery, making pawnbroking a more attractive alternative to bank lending.
“Whereas we might have offered someone £100 for gold before, now we’re offering £140,” Kenyon said.
The County Durham-based business is to issue a final dividend of 9p, bringing total dividends for the year to 16p, a rise of 43 per cent on the previous year.
The firm is planning further expansion in 2026, with another six sites earmarked for store openings in the coming months.
Ramsdens shares slipped 2.1 per cent to 411p in the minutes following the opening bell. The stock is up around 75 per cent over the past year.
Gold prices have rocketed in recent months, with the gold spot price hitting a fresh high of $4,600, a leap of 74 per cent over the past year, as investors piled into the precious metal amid heightened political and economic uncertainty.
“Gold’s ascent reflects geopolitics and fragmentation of the global financial system, particularly as it seems trust in the almighty greenback and Treasuries is being fundamentally questioned,” said Neil Wilson, UK investor strategist at Saxo.