(Alliance News) - Ramsdens Holdings PLC on Friday said it expects a "small loss" for its first half, after the jewellery retailer and foreign currency firm was forced to contend with Covid-19 restrictions.
Ramsdens said it saw "significantly reduced high street footfall" and travel restrictions lessened demand for foreign exchange in the six months ended March 31. Back in January, the company said it expected to keep 90% of its UK store estate open, though at reduced hours, after England entered its third national lockdown.
"Against this backdrop, the group maintained a prudent approach to controlling costs and protecting resources, whilst operating almost 90% of the Ramsdens store estate in a Covid-secure way to safeguard staff and customers. We have continued to invest in our online jewellery retail proposition, where revenue has more than doubled year-on-year," the company said.
"As a result of these dynamics, the board anticipates reporting a small loss for the period but still traded cash positively."
Chief Executive Officer Peter Kenyon expects "more normal trading patterns" during the next financial year. Kenyon also earmarked plans for new store openings over the next six months.
Kenyon added: "We are encouraged by the vaccine roll out, the expected re-opening of non-essential retail in England next week and the most recent UK government announcements on international leisure travel as 'sticking to the road map'. Whilst the lack of current detail regarding certain country restrictions and quarantine conditions means we are unable to provide guidance for this summer's FX trading, we do believe there is significant underlying consumer demand for international summer travel which is encouraging."
Ramsdens shares were 4.4% lower at 165.00 pence each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Ramsdens Hldgs (RFX)