Shares in Ramsdens (RFX) jumped 9% to 441p after the pawnbroker once again upgraded FY26 guidance off the back of the booming gold price.
The firm now expects pre-tax profits to top £21m. That’s up from FY25’s £16.2m and comfortably above the £18.6m called for by consensus.
| Share price: 441p (+9%) | PE: 9.9x |
| Market cap: £131m | Yield: 4.4% |
Led by canny CEO Peter Kenyon, Ramsdens continues to benefit from the high gold price. Profits from the purchase of precious metals segment are tracking ‘significantly ahead of expectations’.
The volume of gold purchased has been particularly strong since the start of 2026, said Ramsdens, and this is being supported by good performances across the diversified group’s other income streams.
Momentum across the Middlesbrough-based outfit’s pawnbroking business has been maintained with lending at record levels in January.
‘We continue to lend conservatively in relation to the gold price,’ stressed Ramsdens.
A boost from bling
Beyond gold, Ramsdens’ jewellery retail operations continue to shine both in store and online, with a re-platformed dedicated jewellery website going live at the end of January.
Investors were also delighted to hear about positive progress in expanding the brick and mortar estate. New stores in Wakefield and Hull are ‘trading well’.
Ramsdens called out a ‘strong’ pipeline of further new stores and remains on track to open between 8 and 12 new outlets in FY26.
Value-for-money proposition
Kenyon commented: ‘Ramsdens’ excellent value-for-money proposition continues to resonate strongly with consumers whether they’re looking for new or used jewellery, seeking the best rates for money to take abroad, looking to secure a short-term asset backed loan, or wanting to get cash for their unwanted gold.
‘Whilst still relatively early in the financial year, as a result of the strong momentum across our business, the board now anticipates profit before tax for FY26 to be ahead of current market expectations.’
Ramsdens’ upgrade cycle continues to be driven by the soaring price of the yellow metal. Although there is no telling how long this run of positive earnings revisions will last, we remain positive on the story.
The company is more than just a play on the gold price. Its revenues are diversified across pawnbroking loans, foreign currency exchange and the retail of new and second-hand jewellery.
Demand for its value-for-money services should remain robust in these testing economic times and Ramsdens could draw a premium-priced takeover bid in time.
Keep in mind larger pawnbroking rival H&T was acquired by US-based FirstCash last year for 650p a share. That represented a 44% premium to the undisturbed share price.
Disclaimer: James Crux has a personal investment in Ramsdens.
Read the press release here: https://www.ramsdensplc.com/investor-relations/reports-and-presentations
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