Ramsdens reiterates £32m-£35m FY26 profit target as gold buying booms

Ramsdens Holdings has reiterated its upgraded full-year profit forecast after a strong final quarter, with elevated gold prices providing a substantial boost to its precious metals business.

The diversified financial services and retail group still expects profit before tax of between £32 million and £35 million for the year ended 30 September 2026. That guidance was originally upgraded in July and has now been maintained in this pre-close update.

There was also encouraging progress outside gold buying. Ramsdens reported robust demand for pawnbroking loans, growth in jewellery retail gross profit and the opening of 10 new stores.

However, trading fundamentals are only part of the current investment picture. Ramsdens remains subject to a recommended cash acquisition by Chess Bidco, an indirect wholly-owned subsidiary of FirstCash Holdings. The revised final offer remains subject to competition regulator approval.

Ramsdens FY26 highlights

Metric	FY26 update	FY25 comparison
Expected profit before tax	£32m-£35m	Not disclosed in this update
Average gold price	Up approximately 45%	Baseline year
Average weight of gold purchased	Up 40%	Baseline year
Precious metals gross profit	Approximately £36m	£18m
Pawnbroking loan book	£15.9m	£11.5m
Jewellery retail gross profit	Up approximately 20%	Baseline year
Multi-currency cards in circulation	Approximately 60,000	Not disclosed
New stores opened	10	Not disclosed

Investors can read the original company announcement for the full regulatory wording.

Gold buying delivered the standout performance

Precious metals was the clear engine of FY26 growth.

The average gold price was approximately 45% higher than in FY25, while the average weight of gold purchased increased by 40%. Ramsdens said volumes were supported by the higher gold price and increased investment in website and television advertising.

Volumes peaked during February and March before easing from those exceptional levels. Even so, they remained elevated against longer-run averages.

The result was a doubling of precious metals gross profit from £18 million to approximately £36 million.

That is an excellent outcome, but it also highlights an important risk. Part of the performance benefited from an unusually supportive gold market. The company has strengthened customer acquisition through advertising, but investors will need to distinguish repeatable operational progress from gains linked to the commodity price environment.

Pawnbroking provides momentum for FY27

Demand for pawnbroking loans also remained robust. The year-end loan book, net of part payments, increased from £11.5 million to £15.9 million.

A pawnbroking loan is secured against an item of value, rather than being unsecured borrowing. Ramsdens said repayment rates remained in line with historical performance, while its loan-to-value ratio against the gold price was below 65%.

Loan-to-value measures the size of a loan relative to the value of the asset securing it. A lower figure generally provides more protection if the borrower does not repay or the asset's value falls.

Management described its position as conservative and expects the additional interest generated by the larger loan book to provide positive momentum entering FY27.

This matters because it gives Ramsdens a source of future income beyond the immediate benefit of selling purchased precious metals.

Jewellery margins held firm despite higher input costs

Jewellery retail performed strongly both online and in stores, despite the economic backdrop. Growth covered all three main product categories: new jewellery, pre-owned jewellery and premium watches.

Gross profit was approximately 20% ahead of FY25, with margins maintained despite increased gold input costs.

Maintaining margins is particularly noteworthy. Higher gold prices can help the precious metals purchasing operation, but they also make jewellery inventory more expensive. Ramsdens appears to have managed that tension effectively during FY26.

The broader mix also supports the case for Ramsdens' diversified model. Readers can revisit the company's earlier FY26 profit guidance upgrade for context on how expectations developed during the year.

Currency trading was steady, but margins tightened

The total value of currency exchanged was broadly in line with FY25. Ramsdens accepted keener margins, meaning less profit on each transaction, as part of its effort to drive customer visits.

Growth in loads onto the Ramsdens Mastercard Multi Currency Card offset a small reduction in cash currency exchanged. Approximately 60,000 cards are now in circulation.

This suggests the format of customer demand is evolving rather than disappearing. The trade-off is that the company has used more competitive pricing to support footfall, so future updates will need to show whether that strategy produces worthwhile benefits across its other services.

Store expansion remains on track

Ramsdens opened 10 stores during FY26, meeting its target. These included an acquisition in Sheerness and new locations in Wakefield, Hull, Abergavenny, Newark, Skegness, Ashford, Hereford, Peterborough and Corby.

Stores in St Helens and Leicester are being fitted out, while management reported a solid pipeline of additional locations for FY27.

The group now operates from 179 UK stores, including one franchised location, alongside its online presence. Continued expansion creates an opportunity to grow customer reach, although new branches require investment and time to mature.

For a broader overview, see the dedicated Ramsdens Holdings PLC company page.

The takeover remains central to the investment case

Ramsdens agreed the terms of a recommended cash acquisition by Chess Bidco on 23 June 2026. A revised final offer was announced on 16 July.

The process remains ongoing and subject to approval from the competition regulator. The offer price and expected completion timetable were not disclosed in this trading update.

That means Ramsdens' share price may be driven more by developments in the acquisition process than by changes in underlying trading. Regulatory approval, completion risk and the terms already set out in the separate offer documents remain important considerations.

The £32 million to £35 million profit range is also formally classified as a profit estimate under takeover rules. It is based on internal unaudited management accounts for the completed financial year. The directors confirmed that the estimate remains valid and was prepared consistently with Ramsdens' existing accounting policies.

What investors should watch next

Operationally, this was a strong update. Precious metals gross profit doubled, the pawnbroking loan book expanded significantly, jewellery margins held up and the store-opening target was achieved.

The main questions are how much of the gold-driven performance can be sustained, whether the enlarged pawn loan book continues to perform in line with historical repayment rates and how quickly new stores contribute.

Full-year cash flow, detailed costs, divisional profitability and the final audited result were not disclosed. Those figures would normally help investors judge the quality and repeatability of the profit increase.

For now, Ramsdens has delivered on its upgraded guidance and enters FY27 with a larger store estate and greater interest income potential. But until the acquisition process is resolved, the takeover is likely to remain just as important as the trading numbers.