Ramsdens (RFX) H2 2024 earnings summary

Executive summary

• Revenue increased 14% year-over-year to £95.6m, with all four key income streams—foreign currency, pawnbroking, retail jewelry, and precious metals—showing growth.

• Profit before tax rose 12% to £11.4m, with base EPS up 7% to 26.1p and total dividend per share up 8% to 11.2p.

• Net assets strengthened to £53.6m, and the business maintained a robust balance sheet.

• Seven new stores opened, three relocated, and a franchisee acquired, expanding the estate to 169 locations.

• Online presence expanded with new websites, multicurrency card, and digital growth initiatives.

Financial highlights

• Precious metals segment gross profit surged 29% to £11.8m, especially in H2, driven by high gold prices and favorable currency movements.

• Retail revenue and profit grew, with premium watch sales rebounding in H2 and online jewelry revenue up 8% to £7.2m.

• Foreign currency gross profit up 4% to £14.2m, with online FX sales up 23% and increased transaction volume and margin.

• Pawnbroking gross profit up 16% to £11.7m, with a 4% increase in the loan book to £10.7m.

• Admin expenses rose 11%, mainly due to increased staff costs and new stores.

Outlook and guidance

• FY25 has started strongly, with precious metals gross profit up ~40% year-on-year, jewelry retail revenue up over 15%, and foreign currency income up 3%.

• Expectation to open four more stores in FY25, with continued investment in online and physical expansion.

• Employment cost pressures expected to continue, but diversified income streams provide resilience.