Ramsdens Holdings: Trading Update Shows Accelerating Momentum

Ramsdens has issued a notably strong trading update, upgrading expectations for FY26 profit before tax to more than £21mn, ahead of prior market forecasts of £18.6mn and up from £16.2mn in FY25.

That is a substantial step-up, particularly this early in the year.

The shares rose around 9 per cent on the day of the announcement. However, that move largely recovers the ground lost since my previous update. In that sense, the market reaction feels more like a reset than exuberance.

Precious Metals

The purchase of precious metals segment remains the principal driver.

Gold has reached new record highs in 2026, around 20 per cent above the level at the start of the financial year. The company also reports very strong volumes since the start of calendar 2026.

Higher gold prices encourage customers to sell unwanted jewellery. In addition, there is typically a lag — often around four weeks — between Ramsdens purchasing gold and selling it on. If the gold price rises during that period, the realised margin benefits. In a rising market, that timing effect is helpful.

This combination of elevated prices, strong throughput and favourable short-term price momentum explains the bulk of the earnings upgrade.

Gold remains a cyclical variable, but Ramsdens is clearly well positioned to capture upside when conditions are supportive.

Jewellery Retail

Jewellery retail continues to perform strongly both in-store and online. The new re-platformed jewellery website went live at the end of January.

Ramsdens’ value positioning — particularly in pre-owned jewellery — appears well aligned with a still cost-conscious consumer. Online improvements should aid stock efficiency and conversion over time.

This division adds margin and diversification beyond pure gold exposure.

Pawnbroking

Pawnbroking lending reached record levels in January. Importantly, management emphasises that lending remains conservative relative to the gold price.

That discipline matters as in a rising gold environment, stretching loan-to-value ratios can flatter short-term growth but increase risk. Ramsdens appears to be prioritising sustainability.

The growing loan book supports recurring interest income and enhances customer retention.

FX

Foreign currency volumes are flat year on year, with continued migration to click-and-collect and the Ramsdens Mastercard multi-currency card. Margins are lower in these channels, but they reflect shifting consumer behaviour rather than weakness.

Estate Expansion

New stores in Wakefield and Hull are trading well, and the Isle of Sheppey acquisition has been refurbished and is performing in line with expectations. The group remains on track to open as many as 12 new stores in FY26.

Estate growth remains measured and cash generative.

Valuation

A move from £16.2mn to over £21mn in profit before tax implies growth of roughly 30 per cent. That justifies the positive share price reaction since the January results.

Given the increase in the share price, much of this trading strength is already reflected in the rating. The shares no longer look overlooked.

However, they do not look stretched either. On upgraded earnings, Ramsdens trades on a reasonable multiple with a supportive yield. The market appears to be discounting some normalisation in gold conditions, which is prudent.

On balance, this looks like a good business at a fair price.

Conclusion

The latest update from Ramsdens Holdings PLC reinforces the picture of a diversified operator benefiting from favourable gold dynamics while continuing to execute well across pawnbroking, jewellery and store expansion.

Gold remains the key sensitivity. A reversal would temper profits. But with volumes strong, lending disciplined and expansion ongoing, the underlying business appears to be strengthening.

Recommendation: Buy.

The author owns shares in Ramsdens Holdings at the time of writing. This post is not advice.