LONDON (Alliance News) - Ramsdens Holdings PLC on Wednesday reported a drop in interim profit on higher administrative expenses and despite a rise in revenue, but the company still declared a hike in dividend payout.
Ramsdens is a financial services provider and retailer operating in foreign currency exchange, pawnbroking loans, precious metals buying and selling, and the retailing of second-hand and new jewellery.
For the six months to September 30, the company's pretax profit decreased 3.8% to GBP5.0 million from GBP5.2 million, on revenue up 9.6% to GBP23.9 million from GBP21.8 million.
The company's administrative expenses increased 7.3% to GBP11.7 million from GBP10.9 million. The rise was attributed to increased staff costs as the company opened more stores.
Ramsdens increased its interim dividend 9.1% to 2.4 pence from 2.2p paid out last year.
"The group has had a good first half, reflecting the strengths of our diversified business model and outstanding value-for-money customer offering," said Chief Executive Peter Kenyon.
"Whilst there have been headwinds for the foreign currency exchange market in the UK driven by 'staycation' trends over the summer, our investments in pawnbroking, jewellery retail and the store estate have delivered positive results and helped to underpin an overall first half performance in line with the board's expectations."
The firm's FX division posted a revenue decrease of 2.7% to GBP7.3 million from GBP7.5 million.
The Pawnbroking division's interest income net of impairments from accounting methods was up 5.7% to GBP3.7 million from GBP3.5 million.
The company's Jewellery Retail division saw a 29% growth in revenue in the period to GBP4.5 million from GBP3.5 million.
Kenyon added: "The collective performance of the new stores opened from late 2017 onwards has been ahead of expectations and we have made a solid start to the second half of the year across our business segments.
"We have momentum to take us into the seasonally important Christmas period for jewellery retail and, underpinned by the strength of our business model and brand, the board remains confident of delivering further progress on its strategic objectives and achieving its expectations for the year."
In the financial year ended March 31, Ramsdens posted pretax profit of GBP6.3 million on revenue of GBP39.9 million.
Shares in Ramsdens were up 1.2% Wednesday at 163.00 pence each.
Ramsdens Hldgs (RFX)