Pawnbroker Ramsdens has significantly upgraded its annual profit forecast, now expecting at least £24 million, potentially reaching up to £28 million, for the year ending in September. This marks a substantial boost from previous estimates, driven by record levels of pawnbroking lending across its operations.
Surge in Pawnbroking Lending and Gold Prices
The company's loan book has increased by 18 per cent since the financial year ended in September, reflecting a growing trend among Brits turning to pawnbrokers for financial solutions. High gold prices are a key driver behind this surge, stimulating customer demand for loans against jewellery and enhancing profits from the purchase of precious metals.
Strong Retail Performance and Analyst Insights
Ramsdens also reported robust performance in its retail division, with revenues from its jewellery shops rising by approximately a quarter year-on-year. Analysts have noted that this represents the second profit forecast increase for 2026, highlighting the company's strong underlying progress alongside the favourable conditions in the gold market.
This upward revision underscores the resilience and growth potential of the pawnbroking sector, particularly as economic factors like inflation and market volatility push more consumers to seek alternative financial services. The combination of strategic lending practices and a thriving retail arm positions Ramsdens for continued success in the coming months.
