Pawnbroker Ramsdens has upgraded its annual profit forecast after reporting record levels of lending, driven by consumers cashing in on soaring gold prices. The company noted that the precious metal's higher price was boosting demand and profits.
Pawnbroking lending hit record levels in February and continued into March, increasing its loan book by 18 per cent since the financial year ended in September. Ramsdens offers loans secured against jewellery or watches and also purchases unwanted items for resale.
Revenues from its jewellery shops rose by about a quarter year-on-year. The gold price has rallied to record highs in 2026, driven by geopolitical uncertainty and conflict, with a spike in March following escalation in the Middle East, reaching around $5,400 (£4,040) an ounce.
Ramsdens now expects annual pre-tax profit of at least £24 million, potentially rising to £28 million, up from analysts' forecasts of £21.1 million. Chief executive Peter Kenyon said the high gold price was boosting customer demand and profits.
Russ Mould of AJ Bell noted this is the second profit forecast increase of 2026, putting Ramsdens on track for record annual earnings. He highlighted strong jewellery sales and growth in pawnbroking lending, though warned the Middle East conflict could impact the foreign currency exchange business.
