High street pawnbroker Ramsdens has told investors that consumers are returning to "normality" and it expects to post a pre-tax profit of £2m for the first half of the year.
The Middlesbrough-based chain said its pawnbroking loan book stood at £7.5m at the end of March, up from £5.7m in 2021, which it said reflected consumers' need for short-term finance and a "normalisation of customer spending habits".
Performance in the first half was driven by increased foreign currency volumes as the travel market recovers and holidaymakers return to their stores, as well as sales of jewellery helped by stock investments and improved merchandising.
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Precious metal buying volumes also increased, and Ramsdens said March volumes returned to pre-pandemic levels, supported by the high gold price.
Peter Kenyon, CEO of Ramsdens, said: "We are pleased with the group's very strong performance during the period, the first half of a financial year marked by the continued easing of restrictions and consumers' transition to normality.
"Whilst being mindful of the impact of current macroeconomic events and well-publicised inflationary pressures, the board is encouraged by the growing demand for Ramsdens' services and believes that the strong momentum reported today will continue over the coming months. Demand for Ramsdens' foreign currency services in particular is expected to grow significantly as more people travel abroad this summer, and we are confident that the group's ongoing strategic investment in its jewellery proposition will continue to deliver strong results both in store and online.
"We have rewarded our staff with pay rises in excess of inflation, and I would also like to take this opportunity to publicly thank them for their dedication both to the business and to our customers over the last two challenging years.
"We remain on track to open eight new stores in this financial year, and underpinned by our diversified model and well-invested proposition, look forward with confidence to the key summer trading period ahead."
Ramsdens will publish its interim report on June 8.
