British high street pawnbroker Ramsdens has reported a significant jump in annual revenue, driven by customers looking to capitalise on record-high gold prices.
Record Revenue and Profit Growth
The London-listed company, which operates more than 160 stores across the UK, announced a 22 per cent increase in turnover to £117 million for the year ending September 2025. The most dramatic growth came from its precious metals division, where profits surged by more than 50 per cent.
Chief Executive Peter Kenyon told City AM that customer sentiment is divided. "We have a lot of customers who come to the counter who say, 'Can I sell my gold because I think it’s a great time to sell' but we also get customers say 'Gold’s only going one way, can I buy some gold?' so people’s views are a bit mixed," he explained.
Bigger Loans and Expansion Plans
The soaring value of gold has also transformed Ramsdens' pawnbroking services. Customers can now secure larger loans against their jewellery, making it a more competitive alternative to traditional bank lending. "Whereas we might have offered someone £100 for gold before, now we’re offering £140," Kenyon said, highlighting the direct impact of the market.
Reflecting its strong performance, the County Durham-based business declared a final dividend of 9p per share. This brings the total dividend for the year to 16p, marking a 43 per cent increase on the previous year. The firm is not slowing down, with plans to open another six stores in 2026 as part of its ongoing expansion.
Market Reaction and Gold's Bull Run
Despite the positive results, Ramsdens' shares experienced a slight dip of 2.1 per cent to 411p in early trading on Wednesday 14 January 2026. However, the stock remains up an impressive 75 per cent over the past 12 months.
This performance is underpinned by a historic rally in the gold market. The spot price for gold has rocketed, recently hitting a new peak of $4,600 per ounce—a leap of 74 per cent in a year. Investors have been flocking to the precious metal as a safe haven amid global political and economic instability.
Neil Wilson, UK investor strategist at Saxo, commented on the trend: "Gold’s ascent reflects geopolitics and fragmentation of the global financial system, particularly as it seems trust in the almighty greenback and Treasuries is being fundamentally questioned."
