Ramsdens (RFX) , a financial services provider and retailer, released annual results for the year ended September 30, 2023 (FY23). Revenues increased by 27% to £83.8m and profit before tax rose 20% to £38.2m from last year, driven by strong performance across RFX's four key income streams - foreign currency exchange, retail jewellery, pawnbroking, and purchase of precious metals.

Foreign currency gross profit rose 8% year-on-year to £13.6m, ahead of pre-Covid levels, and jewellery retail revenue increased 23% to £33.5m. Demand of the group's pawnbroking loans continued to grow, with its active loan book rising 20% over FY22 to £10.3m. The higher price of gold bolstered Ramsdens' precious metals buying volumes, with revenues in the segment up 50% to £23.5m.

Basic EPS increased by 17% to 24.5p/share and the board recommended a final dividend of 7.1p/share, taking the total dividend for FY23 to 10.4p/share, up 16% from last year's 9.0p/share.

 

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A strong showing by Ramsdens in FY23, delivering record profit before tax of £10.1m and revenues in excess of £80m, with strong momentum in all core business segments. The strong results were driven by the group's diversified income streams, higher price of gold during the period, and investments made in its retail activities over the past few years. Pending approval, the full-year dividend of 10.4p would represent a 16% increase year-on-year and 42% of the EPS.

The group's momentum in FY23 carried over to Q1 FY24 (October-December 2023). Foreign currency gross profits remained flat, the pawnbroking loan book increased by another £0.3m, jewellery retail revenues remained flat but with gross profit 5% ahead of last year, and purchase of precious metals saw gross profits climb by 10% thanks to growing brand awareness and continued strength in the price of gold. Post year-end, Ramsdens opened new stores in Cardiff, Poole, and Blackburn, taking its store estate to 165 stores. As of Q1 FY24, the group is trading in line with management expectations.

Ramsdens also launched its new currency website in July 2023, noting positive early results. Additionally, a new pawnbroking website will go live in Q1 FY24 and a new gold buying website shortly thereafter. These product-focused websites should support improved SEO performance, thereby improving overall profitability.

 

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