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(Alliance News) - Ramsdens Holdings PLC on Monday raised its annual dividend as it reported a higher profit but expected its loan book growth to decelerate amid high interest rates.
Ramsdens shares fell 7.4% to 199.00 pence each on Monday morning in London.
The Middlesbrough, England-based financial services provider and pawnbroker said pretax profit jumped 22% to GBP10.1 million in the financial year ended September 30 from GBP8.3 million a year prior.
Revenue grew 27% to GBP83.8 million from GBP66.1 million.
The company raised its final dividend by 13% to 7.1 pence per share from 6.3p a year prior, hiking its total dividend by 16% to 10.4p from 9.0p.
The company's loan book grew 19% in financial 2023 to GBP10.3 million from GBP8.6 million. Looking ahead, Ramsdens does not expect growth to be as high in the current financial year 2024.
"While we are very conscious of the tough economic conditions and the cost pressures of energy pricing, increased interest rates, and paying the real living wage, we have confidence that our long-term strategy, which remains unchanged, will deliver long-term benefits for all stakeholders," Chief Executive Peter Kenyon said.
Chair Andrew Meehan said: "Notwithstanding these cost pressures, the group still has significant opportunities to grow each of its income streams. In the year ahead the ongoing global economic uncertainty is expected to benefit the gold price, which should remain higher than long term averages."
By Tom Budszus, Alliance News slot editor
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