Ramsdens (RFX) raises FY26 outlook as strong gold prices and lending activity boost trading

Ramsdens Holdings (LSE:RFX) has upgraded its profit guidance for the financial year ending 30 September 2026 following a strong first-half performance. The company now expects profit before tax to reach at least £28.5 million and potentially as high as £31.5 million, well above previous market expectations of £24.1 million.

Trading momentum has been supported by exceptionally strong gold prices, which have increased activity within the group’s precious metals purchasing operations. Jewellery retail sales also remained robust, while pawnbroking loan demand continued to perform strongly.

Diversified operations continue to support growth

Alongside gains in precious metals and lending, Ramsdens reported solid trading within its foreign currency division. The group is continuing to expand its store network despite acknowledging that geopolitical uncertainty, broader economic conditions and travel-related risks could affect future foreign exchange volumes.

Management said the diversified nature of the business continues to provide resilience across varying market conditions.

Strong momentum tempered by cash flow volatility

The company’s outlook is underpinned by improving profitability and strong operational growth. However, investors remain cautious over inconsistent cash conversion and fluctuations in free cash flow generation.

Technical indicators remain supportive, with the shares continuing to trade in a strong upward trend, although some overbought signals suggest the potential for short-term pullbacks.

Valuation remains reasonable despite sector risks

Ramsdens’ valuation is viewed as relatively balanced, supported by a modest dividend yield and stronger earnings guidance for FY26. Management’s positive outlook has added confidence, although the company also highlighted ongoing risks linked to gold price movements and inflationary cost pressures.

More about Ramsdens Holdings

Ramsdens Holdings is a UK-based financial services and retail group specialising in foreign currency exchange, pawnbroking loans, precious metals trading and jewellery retail. Headquartered in Teesside, the FCA-authorised company operates from 175 stores across the UK, including one franchise location, alongside an expanding online platform. The business does not provide unsecured high-cost short-term lending products.