Ramsdens Holdings (LSE:RFX) has upgraded its full-year profit expectations for a second time, citing continued strong trading across its diversified operations despite recent fluctuations in gold prices. The improved outlook comes as the company progresses the recommended cash acquisition by FirstCash’s Bidco subsidiary and updates its forecasts in connection with the proposed scheme of arrangement.
Strong trading supports higher earnings outlook
The board now expects profit before tax for FY2026 to be between £32 million and £35 million, reflecting stronger-than-anticipated trading across several of the group’s core business lines.
Performance has been supported by elevated gold prices, continued demand for pawnbroking loans, resilient jewellery sales and higher foreign currency exchange volumes. Travel-related demand also benefited from Scotland’s and England’s participation in the FIFA World Cup, contributing to increased currency transactions.
The latest guidance upgrade highlights the resilience of Ramsdens’ diversified operating model, with strength across multiple revenue streams helping to offset volatility in individual markets.
Diversified model continues to drive growth
Alongside favourable trading conditions, the company has continued to expand its loan book, benefiting from sustained demand for secured lending services.
Activity within its precious metals business has also exceeded expectations, while its ongoing store expansion programme continues to support future earnings growth. Management believes these factors will provide momentum into the next financial year and further strengthen the business ahead of the proposed takeover.
The updated guidance follows the previously announced recommended acquisition by FirstCash and forms part of the board’s revised financial assessment during the transaction process.
Investment outlook
Ramsdens continues to demonstrate strong operational performance, supported by improving profitability, multiple revenue streams and an attractive valuation relative to earnings. The group’s diversified business model has helped reduce dependence on any single source of income while allowing it to benefit from favourable conditions across pawnbroking, jewellery retail, foreign exchange and precious metals.
Although technical indicators remain positive following a sustained share price rally, momentum measures suggest the shares have become relatively overbought, which may temper near-term upside despite the improved earnings outlook.
About Ramsdens Holdings
Ramsdens Holdings is a UK financial services and retail group offering foreign currency exchange, pawnbroking, precious metals trading and the sale of new and pre-owned jewellery. Headquartered in Teesside, the company operates 175 stores across the UK alongside an expanding online platform and is authorised by the Financial Conduct Authority to provide pawnbroking, credit broking and payment services.
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