Ramsdens (RFX) H1 2024 earnings summary

Executive summary

• Revenue increased 12% year-over-year to £43.8m for the half, with all key income streams—foreign currency, pawnbroking, retail jewelry, and precious metals—showing growth.

• Profit before tax rose to £4.0m, up 8% year-over-year, supported by diversified income streams and a stronger balance sheet.

• Five new stores opened and the Bury franchise was acquired for £0.6m, with a robust pipeline for further expansion.

• Interim dividend increased by 9% to 3.6p per share, reflecting strong cash generation and commitment to shareholder returns.

• Investments continued in new stores, staff, and digital offerings, including upcoming dedicated pawnbroking and gold buying websites.

Financial highlights

• Gross profit increased to £22.5m from £20.5m year-over-year, with all segments contributing.

• Pawnbroking loan book up 12% to £10.8m; gross profit up 15% to £5.6m.

• Retail jewelry revenue up 1% to £17.5m, gross profit up 6% to £6.7m, driven by strong pre-owned jewelry sales.

• Precious metals revenue up 35% to £14.1m, gross profit up 25% to £5.0m, benefiting from higher gold prices.

• Foreign currency gross profit up 3% to £5.0m; total currency exchanged £142m.

Outlook and guidance

• Board remains confident in further profitable growth for FY24 and beyond, with continued positive trading momentum and a progressive dividend policy.

• Continued focus on core estate growth, online expansion, and new product launches such as the Multi Currency Card.

• Dedicated websites for pawnbroking and gold buying to launch in 2024 and FY25.

• Three more stores expected to open in FY24, with new e-commerce platforms launching in the second half.