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Gold Price Surge Fuels Pawnbroker's Record Profit Forecast
19 Mar
Summary
- Pawnbroker Ramsdens increased its profit forecast due to record lending levels.
- Soaring gold prices have significantly boosted consumer demand for loans.
- The company expects annual pre-tax profit between £24 million and £28 million.
Pawnbroker Ramsdens has increased its annual profit forecast, projecting pre-tax profits of at least £24 million and potentially up to £28 million for the financial year ending September 2026. This upward revision follows a period of record-level pawnbroking lending, with an 18% increase in its loan book since September. The high price of gold, which has reached historic highs due to global geopolitical uncertainty, is a significant factor driving consumer demand for loans against jewellery and watches.
In addition to pawnbroking, Ramsdens is experiencing robust performance in its retail jewellery sales, with revenues up by approximately 25% year-on-year. The average gold price year-to-date is about 50% higher than the previous year, and the company anticipates these elevated prices will continue. Chief executive Peter Kenyon highlighted that the high gold price is boosting both customer demand and profits in the precious metals purchase segment. Analysts had previously forecasted a profit of £21.1 million.
