Last checked at 8 Jan 2020 07:00
Ramsdens Holdings PLC
("Ramsdens" or the "Group")
Trading Update
As a result of strong trading across the business the Board now expects full year PBT to be comfortably ahead of market expectations
Ramsdens, the diversified financial services provider and retailer, is pleased to announce that the Group has delivered strong trading during the Christmas period, with each of the Group's key business segments performing ahead of the prior year. As a result, the Board now expects the Group's full year profit before tax to be comfortably ahead of market expectations.
Profits derived from the purchase of precious metals segment have been higher than previously anticipated reflecting the high gold price. The Group's pawnbroking and foreign currency segments continued to produce good results.
The Group's jewellery retail segment continued to perform well both in store and online. The Christmas period saw double digit revenue growth in this segment reflecting the value, breadth and appeal of Ramsdens' jewellery proposition. New jewellery sales increased significantly year-on-year over the peak Christmas trading period, reflecting increased demand for our new jewellery products as Christmas gifts. Sales of premium watch brands such as Rolex and Breitling and our unique second-hand jewellery pieces also achieved strong growth.
In its Interim Results, the Group announced that it had taken the decision to scrap some slower moving jewellery stock for its intrinsic value to capitalise on the gold price. The Board now anticipates reporting a one-off profit contribution from stock scrapping of approximately £0.8m for the full financial year, which includes the £0.6m one-off profit contribution previously announced.
Peter Kenyon, CEO of Ramsdens commented:
"We are encouraged by the strong momentum across the business and, as a result, the Board now anticipates full year profits will be comfortably ahead of current market expectations.
"We are very pleased with the performance of our jewellery retail business over Christmas, both in store and online. This reflects the growing reach and recognition of Ramsdens as a jewellery retailer, and the appeal of our new jewellery products, premium watches and unique second-hand pieces as great value Christmas gifts.
"We look forward to updating our stakeholders further following the end of our financial year."
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
Enquiries:
Ramsdens Holdings PLC Tel: +44 (0) 1642 579957
Peter Kenyon, CEO
Martin Clyburn, CFO
Liberum Capital Limited (Nominated Adviser) Tel: +44 (0) 20 3100 2000
Richard Crawley
Joshua Hughes
Hudson Sandler (Financial PR) Tel: +44 (0) 20 7796 4133
Alex Brennan
Lucy Wollam
About Ramsdens
Ramsdens is a growing, diversified, financial services provider and retailer, operating in the four core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Ramsdens does not offer unsecured high cost short term credit.
Headquartered in Middlesbrough, the Group operates from 161 stores within the UK (including 4 franchised stores) and has a growing online presence.
In the last financial year, the Group served over 830,000 customers across its different services. Ramsdens is fully FCA authorised for its pawnbroking and credit broking activities.
www.ramsdensplc.com
www.ramsdensforcash.co.uk