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Home » Ramsdens ‘highly Confident’ In Growth Prospects As It Secures New £15m Funding Facility

Ramsdens ‘highly Confident’ In Growth Prospects As It Secures New £15m Funding Facility

Bosses at pawnbrokers Ramsdens say they are “highly confident” in the group’s growth prospects after seeing strong trading in the last five months.

The Middlesbrough business issued a trading update for the five months ended February 29, reporting growth across the company, which trades in core business segments of foreign currency exchange, pawnbroking loans, buying and selling of precious metals and jewellery retailing. The update, which comes ahead of its AGM, showed continued growth in its pawnbroking loan book, which increased by £400,000 over the period to reach £10.7m, while jewellery retail revenue was broadly flat.

It said the purchase of precious metals gross profit increased by approximately 20%, reflecting growing consumer awareness of the service backed by a relatively high gold price. Ramsdens has also secured a new £15m revolving credit facility (RCF) with Bank of Scotland PLC with a five-year term, which replaces the £10m packaged with Virgin Money on more attractive terms.

Read more: Decline continuing in the North East economy, survey suggests Go here for more North East business news The firm opened two more stores in February, in Romford and Burnley, adding to three others which opened in the period, taking the the total estate to 167 stores including two franchised stores. Meanwhile, it said its foreign currency gross profit increased by around 3% year-on-year with “encouraging momentum building ahead of the key summer trading period”.

In its full year results in January, CEO Peter Kenyon pointed to strong potential in its foreign currency operation amid a predicted boom time for holidays in 2024, and at the end of last year the business also launched the Ramsdens Mastercard Multi-Currency Card to support its foreign currency segment.

The company said today: “Trading during the period has remained strong and in line with the board’s expectations as Ramsdens continues to benefit from its diversified business model and trusted consumer brand. Jewellery retail revenue for the period was broadly flat compared with the prior year.

“As indicated in the group’s full year results in January, the business mix continues to change with growing sales of higher margin second hand and diamond jewellery and lower sales of premium watches; as a result, jewellery retail gross profit in the period was approximately 5% ahead of the prior year. The board remains highly confident in the group’s continued growth prospects and its expectations for the current financial year.”

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