Ramsdens lifts FY26 profit guidance again as pawnbroking and gold support growth

Ramsdens upgrades its profit outlook

Ramsdens Holdings has raised its profit guidance for the financial year ending 30 September 2026, following continued strong trading across several parts of the business.

The diversified financial services provider and retailer now expects FY26 profit before tax to land between £32 million and £35 million. Its previous guidance, reiterated in June, was for between £30 million and £33 million.

That means both ends of the forecast range have increased by £2 million. It is a meaningful further upgrade at this late stage of the financial year, although the forecast remains subject to several assumptions, including no material change in the gold price before year-end.

The update comes while Ramsdens is the subject of a recommended cash acquisition by Chess Bidco Limited, an indirect wholly-owned subsidiary of FirstCash Holdings, Inc. The proposed transaction is intended to take place through a Court-sanctioned scheme of arrangement, which is a formal process allowing a company to complete a takeover with shareholder and Court approval.

The acquisition price and timetable were not disclosed in this trading update.

Ramsdens' key trading figures

Metric	Latest update	Previous position
FY26 profit before tax guidance	£32 million-£35 million	£30 million-£33 million
Pawnbroking loan book	£15.5 million	£14.5 million in May 2026
Loan book increase over six weeks	c£1 million	Not applicable
Multi Currency Card loads	40% ahead year on year	2025 comparison
Gold price movement	More than 20% below January 2026 high	Still elevated compared with 2025
UK store estate	175 stores	Includes one franchised store

Gold continues to provide a profit boost

Precious metals buying and selling remains an important contributor to the upgraded outlook.

The gold price has fallen by more than 20% from its January 2026 peak. However, Ramsdens said it remains elevated compared with 2025, allowing the group to continue benefiting from favourable trading conditions.

The weight of gold purchased in recent weeks has fallen marginally compared with the 2026 weekly run rate. Even so, Ramsdens has gold that has already been purchased and is in the process of being sold to bullion dealers. As a result, management expects the full-year performance of the precious metals segment to be better than previously anticipated.

This is positive for FY26, but it also highlights one of the main uncertainties in the outlook. Ramsdens' profit forecast assumes there will be no material change in the gold price between this announcement and the end of the financial year.

Gold therefore remains both a source of upside and a risk. The company's diversified business model helps, but a sharp move in the price could still affect trading economics and customer activity.

Pawnbroking demand reaches another record

The strongest operational signal in the announcement may be the continued growth of Ramsdens' pawnbroking loan book.

June was another record month for new lending. The loan book has increased from £14.5 million in May 2026 to £15.5 million, a rise of approximately £1 million in six weeks.

Pawnbroking loans are secured against items of value rather than being unsecured credit. Ramsdens said the interest generated by the larger loan book should exceed the board's previous expectations for FY26 and also provide a positive contribution in FY27.

That forward benefit matters. Precious metals profits can be affected by the gold price and the volume of items customers choose to sell, while interest income from an expanded pawnbroking book may offer a more recurring revenue stream.

However, investors should still consider the quality and performance of the growing loan book. The announcement does not disclose redemption rates, impairment levels or the average size and duration of new loans.

Jewellery proves resilient

Ramsdens said its jewellery retail division continues to trade in line with the board's expectations despite the economic backdrop.

That wording is less eye-catching than the record pawnbroking lending or improved precious metals outcome, but resilience is still useful. Jewellery is one of Ramsdens' four core business segments, alongside foreign currency exchange, pawnbroking and precious metals buying and selling.

No jewellery sales growth, margin figures or online trading data were disclosed in the update. Investors therefore have confirmation that the division is meeting expectations, rather than evidence of a fresh acceleration.

World Cup supports currency volumes

Foreign currency trading received a boost from the participation of Scotland and England in the World Cup, which helped June's transaction volumes.

Ramsdens also reported that loads onto its Mastercard Multi Currency Card were 40% ahead of 2025. Card loads represent money placed onto the product for customers to spend in different currencies.

The growth is encouraging because management is trying to develop recurring income streams from the card. There is a trade-off, though. Ramsdens continues to experience some margin pressure as it invests in growing the product.

In simple terms, activity is rising strongly, but the profitability attached to that growth remains under pressure. The announcement does not disclose card revenue, customer numbers or the scale of the margin reduction.

Store expansion remains on track

Ramsdens continues to invest in its physical estate, which currently consists of 175 UK stores, including one franchised location.

New shops in Hereford and Skegness have recently opened. Newark and Peterborough are in the shop-fitting stage, while lease formalities have been completed for sites in Corby and St Helens. Shop fitting at those two locations is expected to begin shortly.

This programme gives the group additional capacity to grow its services, but new stores also require investment and take time to mature. Ramsdens' profit forecast assumes there will be no material change to the planned opening programme during FY26 and no material unplanned capital expenditure.

What does this mean for Ramsdens investors?

The central positive is straightforward: Ramsdens is performing better than management expected only a few weeks ago. The profit guidance upgrade is supported by more than one business line, with precious metals, pawnbroking and foreign currency all contributing.

The increase in the pawnbroking loan book is particularly important because management expects the resulting interest income to support both FY26 and FY27. Meanwhile, resilient jewellery trading adds balance to the update.

There are still reasons for caution. Gold has already fallen by more than 20% from its January high, card growth is creating margin pressure, and several details needed to assess underlying performance were not disclosed.

The takeover situation also changes the context for shareholders. The immediate focus is not only Ramsdens' standalone trading momentum, but also the Court-sanctioned scheme and the associated shareholder process. This announcement confirms improved trading, but it does not provide fresh details about the acquisition terms.

Overall, Ramsdens has delivered a robust update and a clear improvement to near-term profit expectations. The quality of the performance is strengthened by contributions from several divisions, although gold-price sensitivity and the economics of newer growth initiatives remain worth watching.