High street jeweller and pawnbroker Ramsdens says it is on track for record results after half year profits grew 68%.
The Teesside-based name, which now runs 158 shops across the country, told investors that pre-tax profits jumped from £2.2m to £3.7m in the six months to the end of March as gross revenue was boosted 33% to £39m. Behind the growth were increased jewellery sales - both instore and online - of £17.3m, up from £13.1m and a 29% rise in pawnbroking lending to £9.7m.
Ramsdens said the new appetite for loans came from existing and new customers - making for record lending in January and March this year. The firm said the continued squeeze on household finances would lead to continued demand for small borrowings throughout the rest of the year.
Read more: Timpson hails record results as profits surge 'way beyond our expectations'
Across its new and second hand jewellery business, the firm said it had invested in TV, SEO and pay-per-click advertising to drive interest. There had been growth in premium watch sales and December was said to have seen record performance.
Six new shops opened during the period, including sites in Bootle, Basildon, Bradford, Croydon, Maidstone and Warrington. Lease renewals were generally said to have brought rent reductions and great flexibility, and relocations to take advantage of lower rents and better footfall.
Peter Kenyon, Ramsdens chief executive, said: "We are pleased to report an excellent performance in the first half of the year which was achieved by strong trading across all our key income streams. This momentum puts us on course to deliver record profits for the group in the current financial year.
"We are successfully executing against our long-held strategic priorities. We are focused on driving organic growth by delivering ongoing continuous improvements to our operations, expanding the store estate and investing in our online offering. In addition, we are continuing to seek and appraise attractive consolidation opportunities in what remains a highly fragmented market.
"With our diversified income streams, strong brand and growing customer base, we are highly confident in the group’s growth prospects for the coming years, thereby enabling us to create significant value for all stakeholders.”
READ NEXT:
