Ramsdens Reports Record Half-Year Profits, Raises Dividend
Why we think this is very good
The financial services provider has delivered exceptional results, with a 54% increase in profit before tax to a record £6.1m. Revenue growth of 18% and gross profit growth of 20% demonstrate strong performance across all segments. The purchase of precious metals segment has been particularly strong, benefiting from high gold prices. The company's outlook is positive, with full-year profits expected to exceed £15m. The balance sheet remains strong, and the increased dividend reflects management's confidence. While there are potential risks from gold price fluctuations and economic conditions, the current performance and outlook are overwhelmingly positive.
Key Points
- Record profit before tax of £6.1m, up 54% year-on-year
- Revenue increased by 18% to £51.6m
- Gross profit up 20% to £27.1m
- Purchase of precious metals segment gross profit increased 53% to £7.6m
- Jewellery retail revenue up 18% to £20.7m
- Pawnbroking gross profit increased by 11% to £6.2m
- Net assets increased to £54.7m
- 25% increase in interim dividend plus special dividend announced
- Full year profits expected to exceed £15m
Summary
Ramsdens Holdings PLC has reported exceptional interim results for the six months ended 31 March 2025. The company saw a 54% increase in profit before tax to a record £6.1m, driven by strong performance across all segments. Revenue increased by 18% to £51.6m, with gross profit up 20% to £27.1m. The purchase of precious metals segment performed particularly well, with gross profit increasing 53% to £7.6m, benefiting from high gold prices. The company's balance sheet remains strong with net assets increasing to £54.7m. Looking ahead, Ramsdens expects full year profits to exceed £15m. The Board has approved a 25% increase in the interim dividend to 4.5 pence per share, plus a special dividend of 0.5 pence per share, reflecting confidence in the company's performance and outlook.