(Alliance News) - Pawnbroker Ramsdens Holdings PLC on Wednesday confirmed pretax profit for year to March-end will be in line with guidance, but warned Covid-19 will result in a material reduction in foreign exchange services revenues in the near term due to a significantly reduced demand for international travel.
"At the start of February, we were looking forward with optimism to accelerating our growth plans. Just a few weeks later, we have no visibility on how long the current international travel disruption will last and how this will impact our Foreign Exchange income stream in the year ahead," Chief Executive Peter Kenyon said.
Ramsdens noted that it continues to benefit from diversified income streams and a strong balance sheet, including GBP10 million of cash and an undrawn GBP10m revolving credit facility.
The company's other divisions continue to trade well. Pawnbroking unit loan book remains of good quality and Precious Metals segment is benefiting from the strong gold price.
Gold was quoted at USD1,491.90 an ounce at the London equities close, down from USD1,527.67 late Tuesday.
Shares in Ramsdens closed 0.3% lower at 90.75 pence each in London on Wednesday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Ramsdens Hldgs (RFX)