Ramsdens (RFX) Shares Rallied 7.95% on a Pre-Close Statement

The Ramsdens Holdings PLC (LON: RFX) share price rallied 7.95% after announcing its pre-close trading update for the year ended 30 September 2023, also known as fiscal year 2023. The Group noted that it had traded well during the second half of the fiscal year and benefitted from the robustness of its diversified business model.

Due to the robust trading, the company’s board expects to generate a record profit before tax of over £10 million compared to the £8.4 million recorded in the 2022 financial year. The company’s foreign exchange revenues increased by about 8% compared to last year. 

The company noted that it had mixed trading results during the crucial summer trading period, where it recorded a mixture of lower transaction values but with increased volumes. The firm also registered a slight reduction in margins, as expected. 

The company also launched its multi-currency card in September 2023; initial sales and load volumes are encouraging. Ramsdens Holdings jewellery retail revenue again enjoyed substantial growth as a result of the investment made by the Group to enhance its retail proposition both in-store and online in recent years. 

Revenues from its jewellery trading segment increased by more than 20% compared to the previous year, driven by exceptionally robust online momentum. The company’s active pawnbroking loan book grew by about 20% to a record £10.3 million as of 30 September 2023, compared to £8.6 million in fiscal 2022. 

Ramsdens’ precious metals buying revenue rose by about 50% yearly as consumer demand for realising the value of damaged or unwanted jewellery soared in response to the higher gold price in Sterling. 

Peter Kenyon, CEO of Ramsdens, commented: “We are pleased with the Group's continued delivery against its long-term growth strategy, with good progress made during the Period in each of our diversified income streams. Our recent staff engagement survey results show we have a highly engaged workforce who enjoy working for Ramsdens and serving our growing customer base.  I am grateful for our team's commitment during the year and would like to take this opportunity to publicly thank them all for their efforts.”

Ramsdens Holdings (RFX) share price. 

The Ramsdens Holdings (RFX) share price rallied 7.95% to trade at 210.50p, from Wednesday’s closing price of 195.00p.