Turnover at pawnbroking group Ramsdens Plc has soared by 17%, after a year of expansion that saw the Middlesbrough company add 25 shops to its portfolio.
Revenue jumped from £39.9m in 2018 to £46.8m for the year ending March 31, while the firm’s operating profit increase by £173,000 to £6.6m.
The majority of the group’s income came from its precious metal business, which brought in £12.3m last year. Meanwhile the firm’s foreign currency and pawnbroking divisions also performed well, bringing in £11.6m and £10.5m respectively.
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Commenting on the company’s results, CEO Peter Kenyon said: “When you think about the back drop, there is Brexit uncertainty, the summer we had last year and the retail outlook. It is a good set of results.
“People like value for money and our retail jewellery has done well, we are very competitively priced for foreign currency and we are growing our customer numbers there.”
Foreign currency is a focus area for Ramsdens, with the division increasing its gross profit over the year by 2%. Currency sales increased despite Mr Kenyon warning that Brexit had the potential to disrupt the market.
He said: “I think you have some people who have kept money in their pockets as they don’t know what the future holds. You have seen Thomas Cook and easyJet give forward looking comments that holidays are down. We can’t sell currency until people go abroad.
“However, our customer numbers are growing as we have an attractive offering. We have that awareness and people continue to use us.
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“I wouldn’t say Brexit is a risk but it could dampen foreign currency going forward, but we are in a good position.”
Ramsden’s results were also boosted from its branch expansion, which was largely carried out by the group’s acquisition of 18 The Money Shop stores.
The deal saw the company buy the 18 shops along with five loan books. In May Ramsdens acquired a further four branches and 12 loan books from the company.
Of the original 18 branches picked up by Ramsdens, the pawnbroking firm has continued to operate 16, while the remaining two have been merged with nearby branches of Ramsdens.
The company is also aware of the difficulties facing high street retailers and is working to relocate a number of its branches to areas with a higher footfall. This strategy was carried out in Peterlee when the company moved its branch to a location roughly 350 metres away from its original site.
Mr Kenyon added: “We are in a good space and we are looking forward despite the challenges and we are investing in the business. We have put in a very solid performance on the High Street.”