Pawnbroker Ramsdens boosts dividend as cash-strapped Brits fuel profit surge

Cash-strapped Brits flogging their valuables for a quick quid helped profit at pawnbroker Ramsdens grow by eight per cent this year.

Over the six months to March, revenue at the Middlesbrough-based business also grew by 12 per cent to £43.4m. 

A national cash crunch also drove up demand for small sum short term credit, leading its pawnbroking loan book to jump by 12 per cent  to £10.8m. 

Peter Kenyon, chief executive at Ramsdens, said: “We are very pleased with the Group’s good further progress during the first half of FY24 which once again demonstrates the strength of Ramsdens’ diversified business model.”

As a result, and reflecting our confidence in the outlook, we are pleased to announce a nine per cent increase in the interim dividend.”

“We are continuing to invest in our long-term growth including opening carefully selected new stores, investing in our exceptional team, and further developing our customer proposition. This includes our new service-specific websites that will launch in the second half as well as the recently launched pre-paid travel card.”

He added: “These investments are ensuring that we continue to provide the best possible service to our growing customer base irrespective of which Ramsdens service they choose and through which channel they come to us.”

“Underpinned by our proven diversified business model, trusted brand and market leading team, the Board remains highly confident that Ramsdens is well positioned to further grow our profitability in FY24 and beyond, continue to deliver on our progressive dividend policy, and, ultimately, create value for all stakeholders.”

The pawn industry is a sector that tends to perform well in times of economic downturn as people grow desperate to shore up extra cash. 

Ramsden said it is also opening three new stores this year, taking its total number of sites to 170. 

The Board has approved a nine per cent increase in the interim dividend to 3.6 pence per share.