Financial services provider Ramsdens delivers strong performance as demand for foreign currency services grows

Ramsdens Holdings, which employs more than 80 staff in 26 stores in Yorkshire, has published a trading update for the interim period ended 31 March 2022.

Ramsdens said that jewellery retail revenue had grown by more than 50% year on year, driven by strategic investments in stock and improved merchandising.

The pawnbroking loan book continues to recover and as at 31 March 2022 was £7.5m, compared with £5.7m in the same period the year before, reflecting the normalisation of customer spending habits and the growing need for short-term finance.

Precious metal buying volumes increased, with March volumes returning to pre-pandemic levels, supported by the high gold price.

The statement said: " During the period, Ramsdens delivered a strong performance across each of its four segments. As a result of this, the group expects to report H1 profit before tax of approximately £2m."

Peter Kenyon, CEO of Ramsdens commented: "We are pleased with the group’s very strong performance during the period, the first half of a financial year marked by the continued easing of restrictions and consumers’ transition to normality.

"Whilst being mindful of the impact of current macroeconomic events and well-publicised inflationary pressures, the board is encouraged by the growing demand for Ramsdens’ services and believes that the strong momentum reported today will continue over the coming months.

"Demand for Ramsdens’ foreign currency services in particular is expected to grow significantly as more people travel abroad this summer, and we are confident that the group’s ongoing strategic investment in its jewellery proposition will continue to deliver strong results both in store and online.

"We have rewarded our staff with pay rises in excess of inflation, and I would also like to take this opportunity to publicly thank them for their dedication both to the business and to our customers over the last two challenging years.

"We remain on track to open eight new stores in this financial year, and underpinned by our diversified model and well-invested proposition, look forward with confidence to the key summer trading period ahead.”

.Mr Kenyon believes the sector provides an essential financial service, which is particularly valuable during periods of upheaval.

He recently told The Yorkshire Post: "“Two per cent of the population use pawnbrokers. If you use a pawnbroker you don’t need to be worried about debt and it doesn’t affect your credit rating.

“It is a very simple, transparent face to face service, ’’ he added. “Most people pay their loans back. We can help while people are facing gaps in employment or short-term problems with cash flow.

“We help to put food on the table. It gets customers through to pay day.”

Mr Kenyon became CEO of Ramsdens in 2008, as the world plunged into the chaos linked to the financial crisis. He joined Ramsdens seven years earlier, as operations director, after a 17-year career at Yorkshire Bank, where he participated in the bank’s management development programme.

"Yorkshire Bank provided me with great experience, ’’ he said. “Banking is a great background because it tells you about the cashflow of different businesses.”