Ramsdens shares shine as outlook lifted on surging gold price

(Sharecast News) - Shares in Ramsdens shone on Tuesday as the pawnbroker lifted its full-year profit outlook on the back of surging gold prices. The company, which buys jewellery or gold from customers and then sells it on to individuals or bullion dealers, said it now expected annual pre-tax profits of £13m for fiscal 2025 compared with the £11.4m previously forecast by analysts.

Gold prices have hit record highs above $3,000 an ounce as investors seek safe havens in response to US President Donald Trump's plan to hammer all trading partners with import tariffs, sending equity and bond markets into turmoil.

In a first-half trading update, Ramsdens said its precious metals segment had continued to perform very strongly with gross profit increasing 50% year on year.

"This has been driven by the continued high gold price, coupled with a 5% increase in the weight of gold purchased. The group launched its dedicated gold buying website in March 2025 which is expected to increase awareness of this service and attract new customers," the company said.

Jewellery retail gross profit rose 15%, ahead of expectations and despite the scrapping of some aged stock. Its pawnbroking service - where people can take out a loan against the value of a piece of jewellery or a watch - reported a 10% increase in gross profits.

Reporting by Frank Prenesti for Sharecast.com