Ramsdens Holdings PLC

FY25 revenue was over GBP 100 million for the first time, up 22%. Gross profit rose 18%, and profit before tax increased 43% to GBP 16.2 million from GBP 11.4 million. Profit after tax was GBP 11.9 million, and basic EPS was 37p. Gross margin in jewelry retail was described as consistent at 37%, while purchase of precious metals gross profit rose 52% and jewelry retail revenue rose 20%. Pawnbroking loan book grew 7% in the year to GBP 11.4 million at year-end, and December quarter loan book was GBP 12.8 million. Net assets were GBP 62.9 million, and cash on the balance sheet was GBP 15 million, including around GBP 9 million of FX in the till. The dividend for the year was 16p in total, including 2.5p special, and total dividend growth was 43%. Looking ahead, management said FY26 has started strongly and expects to exceed GBP 18 million in PBT; the plan is to open 8 to 12 stores in the year.

Peter Kenyon framed FY25 as a strong year for both execution and shareholder returns, saying the company delivered record results and remains in a strong position to keep growing. He emphasized that Ramsdens’ strategy has not changed: grow from the core estate, expand online, and use the balance sheet to fund new stores without structural debt. He also said the business is diversified across four income streams and that the gold price has helped, but the company has taken advantage of the opportunity rather than relying on it.

Martin Clyburn said the 22% revenue increase flowed through to 18% gross profit growth because product gross margins were relatively consistent. Admin expenses rose 12%, with about GBP 3.6 million to GBP 3.7 million of the increase tied to people costs, including higher real living wage and national insurance costs, plus more head office support for websites and retail processing. Finance costs fell 20% due to lower debt and a lower base rate, and he noted the business has no structural debt and currently has 0 drawn on its RCF. On cash, he said the company used more cash for inventory and loan book growth, while tax cash outflow included about GBP 2 million of one-off timing impact from moving to quarterly tax payments in the year. He also highlighted that the GBP 15 million cash balance includes seasonally varying FX cash, and that the dividend of 16p reflects roughly a 43% payout ratio.

Analysts focused on how dependent earnings are on gold prices, and management said the impact is not linear: lower gold prices would reduce gold-buying profits, but could help in retail and FX, while pawnbroking remains conservatively lent. Questions also covered the pause in store openings, and Peter Kenyon said it was a temporary caution after the government budget and higher employer national insurance, not a change in strategy. He said the company still expects 8 to 12 openings this year, with sites in places like Wakefield, Hull Center and Newark already moving ahead. Other questions addressed AIM, possible bullion/coin websites, watches, and the H&T acquisition; management said it has not considered leaving AIM, does not see a near-term plan for a coin-focused bullion site, sees watches as a growing GBP 20 million business, and said H&T’s acquisition does not alter Ramsdens’ strategy.