REG - Ramsdens Holdings - Annual Results - year ended 30 September 2025
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RNS Number : 7746O Ramsdens Holdings PLC 14 January 2026
14 January 2026
Ramsdens Holdings PLC
("Ramsdens", the "Group", the "Company")
Annual Results for the year ended 30 September 2025
and
Q1 FY26 trading update
Another record year with a 43% increase in profit before tax to £16.2m and
revenue exceeding £100m
Ramsdens, the diversified financial services provider and retailer, today
announces its Annual Results for the year ended 30 September 2025 (the
"Period").
FY25 FY24
% change
Revenue £116.8m £95.6m 22%
Gross Profit £60.7m £51.5m 18%
Profit before tax £16.2m £11.4m 43%
Net Assets £62.9m £53.6m 17%
Basic EPS 37.0p 26.1p 42%
Final ordinary dividend 9.0p 7.6p 18%
Special dividend 2.0p -
Total ordinary dividend 13.5p 11.2p 21%
Total special dividend 2.5p -
Full year total dividend 16.0p 11.2p 43%
FY25 Highlights:
● Record Group revenue and profit driven by progress in all four key income
streams as well as continued benefit from the sustained high gold price.
● Very strong performance delivered by the purchase of precious metals segment,
with volume and value supported by the high gold price. Gross profit for
this segment increased 52% to £17.9m (FY24: £11.8m).
● Pawnbroking gross profit increased 9% to £12.7m (FY24: £11.7m) with the
growth in the loan book being primarily in H2.
● Jewellery retail gross profit increased 18% to £15.7m (FY24: £13.3m), with
increased input costs in light of the high gold price being carefully managed.
Pre-owned jewellery performed particularly well, with revenue from pre-owned
jewellery increasing by 35%.
● Total currency exchanged increased 1% to £429m. Foreign currency gross profit
decreased 3% year on year to £13.8m (FY24: £14.2m) as more customers
migrated to online ordering and currency cards which generate lower margins.
● As planned, we maintained the size of our store estate, ending FY25 with 168
stores plus one franchised store. The Group opened in Burton and Grantham
during the year, closed its Teesside airport kiosk and merged its two central
Glasgow stores.
● The Board is recommending a final ordinary dividend of 9.0p per share, plus a
second special dividend for FY25 of 2.0p per share, for approval at the
forthcoming AGM. This takes the total dividend for the Period to 16.0p per
share (FY24: 11.2p) an increase of 43%, reflecting the Board's commitment to a
progressive dividend policy and rewarding shareholders from the beneficial
trading from the high gold price.
Q1 FY26 Trading update:
The Board is pleased to provide an update on Q1 FY26 trading (1 October to 31
December 2025):
● The purchase of precious metals segment continued to perform very strongly
with gross profit increasing by over 50%.
● In our pawnbroking segment, the momentum seen in H2 FY25 has continued, with
the loan book now at £12.8m (£11.4m as at 30 September 2025) with record
lending levels seen month on month across the quarter. We continue to lend
very conservatively with our lending on gold jewellery being approximately 55%
of the gold intrinsic price at the year end.
● Jewellery retail revenue increased by more than 20% on the prior year. Our
retail performance in October was extraordinarily high with that month seeing
more customers purchasing gold coins.
● Foreign currency (FX) gross profit decreased by approximately 5% on prior
year. While sales of FX have remained flat, the Group has seen the
continuation of a move to online and card sales which are at a lower margin.
● Following the year end, we have opened a new store in Wakefield and have three
new stores currently undergoing shop fit ready for opening in January and
February. In addition, in December, we completed the purchase of a small
pawnbrokers, Gemini, based on the Isle of Sheppey.
● As with many other businesses, the Group faces rising operating costs in 2026.
The main increase is in employment costs as the Board sees investment in its
people as crucial to the Group's future success and is committed to paying the
Real Living Wage (RLW) as our entry level pay. The RLW has increased by 6.7%
and will be paid from April 2026. We will also maintain the hourly rate
differentials across our pay grades which will lead to an increase in
employment costs ahead of inflation. In addition, FY26 will bear the full
year costs of the changes to the rate and thresholds relating to employer's
national insurance.
While still early in the new financial year, trading performance to date has
been positive. We enjoy multiple investment opportunities as a result of our
strong cash generation and have a tried and tested growth strategy. The gold
price has remained high in Q1 and this, coupled with the continued momentum
seen across the Group, has resulted in the Board currently expecting profit
before tax for FY26 to exceed £18m.
Peter Kenyon, Chief Executive, commented:
"Our record performance in FY25 once again demonstrates the strength of our
diversified business model, trusted brand and exceptional team. Group revenue
exceeded £100m for the first time, resulting in a pre-tax profit increase of
43% to £16.2m, marginally ahead of market expectations. As a consequence of
this strong performance and the Board's confidence in the future, we are also
delighted to recommend a 43% increase to the total dividend for FY25.
"We have a highly relevant customer proposition and are looking forward to
opening eight to 12 new stores in the year ahead whilst also continuing to
strengthen our online proposition, which is offering more customers
opportunities to use our trusted services. I would like to thank the whole
Ramsdens team for their continued hard work and dedication to supporting our
customers, whether they are treating themselves or a loved one to some
jewellery, looking to raise cash from their own jewellery through a loan or
sale, or exchanging currency to enjoy a holiday. We look forward to another
year of good progress in FY26."
The Company confirms that the Annual Report and Financial Statements for the
year ended 30 September 2025, together with notice of the Company's 2026
annual general meeting, will be published and posted to shareholders shortly
and will be available to view on the Company's investor relations
website: https://www.ramsdensplc.com/investor-relations/reports-and-presentations
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ramsdensplc.com%2Finvestor-relations%2Freports-and-presentations&data=02%7C01%7Clwollam%40hudsonsandler.com%7C5e65bb6855a840ec736808d6e9028d50%7Ca33bdb157e25438ab1fd5c523a8866f9%7C1%7C0%7C636952594503059063&sdata=Cpng724nGX9wrWhD9NwOlkiZHLeIZZnzg6S71WXuRQE%3D&reserved=0)
, in accordance with AIM Rule 20.
The information contained within this announcement is deemed by the Group to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. The person responsible for making this announcement on
behalf of the Company is Peter Kenyon.
ENDS
Enquiries:
Ramsdens Holdings PLC
+44
(0) 1642 579957
Peter Kenyon, CEO
Martin Clyburn, CFO
Cavendish Capital Markets Limited (Nominated Adviser and Broker) +44 (0) 20 7220 0500
Jonny Franklin-Adams /Marc Milmo / George Lawson (Corporate Finance)
Tim Redfern (Corporate Broking)
Hudson Sandler (Financial PR) +44 (0) 20 7796 4133
Alex Brennan
Emily Booker
CHAIRMAN'S STATEMENT
I have great pleasure in presenting my first report as Chair of Ramsdens,
having served as a Non-Executive Director since the Company's IPO. It has
been another great year of progress for the Group, with revenue exceeding the
£100m mark for the first time, at £116.8m (FY24: £95.6m), and a record
profit before tax of £16.2m (FY24: £11.4m).
The Group's success continues to be built on very strong foundations - a
customer-centric culture, fantastic people, a trusted brand, and a diversified
financial services and retail model which provides resilience and growth
opportunities throughout the economic cycle. We also delivered encouraging
strategic progress across our business, with notable developments in our
online proposition to support the Group's increasingly omni-channel model.
During the year, the price of gold increased consistently, which materially
benefitted our income stream from the purchase of precious metals. This core
income stream saw profits increase 52% in the period, driven largely by the
sustained high gold price but also supported by our progress in creating
greater awareness of this service through our new dedicated website. By
contrast, as with all gold jewellery retailers the high gold price meant that
we had to navigate increased input costs in our jewellery retail income
stream, but our strong value for money offer has led to an increase in
jewellery retail gross profit of 18%.
Our pawnbroking service is trusted by customers who need a small sum loan for
a short period of time. Following the launch of our new pawnbroking website
in November 2024, in the second half of FY25 we saw increased demand for
larger value loans. This has led to the pawnbroking loan book growing 7% in
the year. Our foreign currency segment continues to make good progress with
total foreign currency exchanged increasing against what was tough comparative
period in FY24.
There is a strong culture within the Group to do the right thing for all of
our stakeholders - from employees and shareholders, to customers and the
communities in which we operate. By consistently acting with the highest moral
ethics and living our values, the Ramsdens team continues to be engaged,
motivated and look after our customers with great skill and care. I would
like to recognise the great job our people do and publicly thank each staff
member for their ceaseless hard work and invaluable contribution to the
Group's continued success.
In recognition of the Group's continued underlying progress during the year as
well as the impact of the exceptional gold price on profits, the Board is
recommending both an ordinary final dividend and a special dividend for
approval at the forthcoming AGM. The recommended ordinary final dividend is
9.0p (FY24: 7.6p) in line with our progressive dividend policy and the
recommended final special dividend is 2.0p (FY24: nil). Pending shareholder
approval, the full year ordinary dividend of 13.5p (FY24: 11.2p) would
represent an increase of 21% year on year. Including the special dividends
announced this year, the total dividend for FY25, if approved, would be 16.0p
and represents a 43% increase on last year. Subject to shareholder approval,
both the final dividend and the special dividend are expected to be paid on 20
March 2026 for those shareholders on the register on 13 February 2026. The
ex-dividend date will be 12 February 2026.
FY25 FINANCIAL RESULTS & DIVIDEND HIGHLIGHTS:
£000's FY25 FY24
Revenue £116,804 £95,608
Gross profit £60,712 £51,533
Profit before tax £16,209 £11,362
Net assets £62,896 £53,606
Net cash* £6,948 £7,395
Basic EPS 37.0p 26.1p
Final ordinary dividend 9.0p 7.6p
Special dividend 2.0p -
Total ordinary dividend 13.5p 11.2p
Total special dividend 2.5p -
Total dividend 16.0p 11.2p
*cash minus bank borrowings
LOOKING AHEAD
The Group operates an increasingly multi-channel model across its four income
streams. The Group benefits from a consistent and successful strategy which
delivers dependable cash generation, a strengthening balance sheet, growing
profitability, progressive dividend and shareholder returns.
A stable and very talented management team supported by exceptional colleagues
and a robust team ethos throughout have built a strong platform, from which
the Group continues to deliver on its strategic objectives in growing the
business and generating shareholder returns.
This success also provides a rewarding career path and enjoyable working
environment for its people, while giving back to contribute to the communities
in which it operates. The new financial year has started well, and we remain
confident in meeting and delivering against our expectations for FY26.
I therefore remain confident that Ramsdens is well placed to continue its
profitable growth in the years ahead.
Simon Herrick
Non-Executive Chair
13 January 2026
CHIEF EXECUTIVE'S REVIEW
The Group has had another strong year delivering record profit before tax of
£16.2m (FY24: £11.4m) and an increase in its net assets to £62.9m (FY24:
£53.6m). The Group's performance continues to benefit from its diversified
income streams which provide growth opportunities and resilience in most
economic trading conditions.
We are pleased to report strong strategic progress across each area of our
business during the year. The gold price experienced a sustained upward
trajectory throughout FY25, which has benefitted profitability and demand in
our purchase of precious metals segment, where gross profit increased 52% year
on year and the weight of gold purchased increased by 14% year on year.
Our diversified model means that a higher gold price does also drive cost
inflation within our retail jewellery segment. However, the Group has managed
this and delivered growth in retail jewellery gross profit of 18%. The
pawnbroking segment delivered another solid performance with 9% growth in
gross profit. In our foreign exchange income stream, while the total currency
exchanged increased by 1%, the gross profit decreased marginally by 3%. Our
currency card continued to perform well, with more than 40,000 cards now in
circulation and the launch of our in-house international money transfer
service is now operational.
The Group's proven growth strategy remains unchanged. We aim to continue to
improve the performance and profitability of each of our existing stores and
improve and develop income streams from our four dedicated core service
websites. Following a planned reduction in store openings in FY25, we are
returning to opening new stores with plans of between eight and 12 openings in
FY26, supporting our long-term growth strategy.
I am exceptionally proud of the Ramsdens team's dedication and commitment and
wish to publicly thank them for their continued effort and recognise their
contributions to our success.
BUSINESS REVIEW
The business has strong foundations which underpin the financial results being
reported as well as the Group's consistent growth over recent years.
First and foremost, we have a strong customer-centric culture and ethos which
enables the business to grow sustainably by doing the right thing. Covered
in more detail in the review of our pawnbroking segment below, our FY25
project to improve our customer support has been successfully implemented and
further strengthens positive customer outcomes. This initiative has had a
short-term cost, but it will pay off in the long term with more returning
customers.
The Group purchased a second head office at the end of FY24 to facilitate our
growing business. The departments are now well established in their new
offices with an improved working environment. The objective of having the
additional office capacity allowed the introduction of in-house jewellery
repair capability together with more space to enable our jewellery retail
operations to have greater capacity to process and refurbish more jewellery
stock. This enabled the Group to invest more into our jewellery stock to
drive increased jewellery retail sales. This plan is working with the volume
of pre-owned jewellery sales increasing by 18% during the year.
We have an industry leading IT operating system bespoke to our needs. This
has been invested in over many years and continues to be developed by our
in-house team of programmers. This in-house capability has facilitated the
launch of the international money transfer service and the integration of our
new websites.
During the year we launched dedicated websites for pawnbroking and gold
buying. Furthermore, we have transitioned our legacy website to be a signpost
for our core services and an information point for visitors. The pawnbroking
website, www.ramsdenspawnbrokers.co.uk (http://www.ramsdenspawnbrokers.co.uk)
launched in November 2024. The gold buying website,
www.ramsdensgoldbuying.co.uk (http://www.ramsdensgoldbuying.co.uk) launched in
February 2025. The legacy website, www.ramsdensforcash.co.uk
(http://www.ramsdensforcash.co.uk) was refreshed onto our new platform and
re-launched in August 2025. Additionally, during the year we progressed the
re-platforming of our jewellery retail website which will re-launch in January
2026.
We intentionally temporarily slowed our store opening programme during the
year, anticipating the potential for changes in the operating environment in
both the October 2024 and November 2025 Government Budgets. During the year we
opened two new stores in Grantham and Burton and, despite their infancy, both
stores are already trading profitably. During the year we also closed two
stores, refurbished one store and relocated one store. Our Teesside Airport
kiosk closed, and we merged our two stores in Glasgow city centre. We took
the decision to close our Glasgow Argyle Street store, despite it being
profitable, due to the deterioration of that location. I am pleased to
report that the combined store in Argyll Arcade is more profitable than the
two separate stores as the majority of our customers from the closed store
have seamlessly transitioned across. Our Musselburgh store was refurbished
to follow our traditional store model appearance. This has proved a better
environment for customers and staff plus we have seen a welcome increase in
our jewellery retail from that store. Our Elgin store had an enforced
relocation due to the shopping centre closing its doors, but we are now
re-open on the high street and have restored profitability.
We continue to have full confidence in the long-term profitable growth
opportunities for our branch network, underpinned by diversified income
streams and supplemented by a growing online presence. As a result, we are
now accelerating our store opening programme and expect to add eight to 12 new
locations in FY26.
OUR DIVERSIFIED BUSINESS MODEL: PRODUCT OFFERING
Ramsdens operates in the four core business segments of: jewellery retail;
pawnbroking; purchase of precious metals and foreign currency exchange. The
performance of each of the Group's key income streams is set out in greater
detail below.
Jewellery Retail
The Group manages its retail jewellery operations in three key categories;
pre-owned jewellery, new jewellery and premium watches. The Board continues to
believe there is significant growth potential in this segment by leveraging
Ramsdens' retail store estate and ecommerce operations.
The retailing of new jewellery products complements the Group's pre-owned
offering to give our customers greater choice in breadth of products and price
points. In addition, new jewellery retailing enables the Group to attract
customers who prefer not to buy pre-owned jewellery.
000's FY25 FY24
Revenue £42,564 £35,607
Gross profit £15,738 £13,293
Margin % 37% 37%
Jewellery retail stock £32,037 £23,937
Online sales £8,190 £7,200
Percentage of sales online 19% 20%
Percentage of Group gross profit 26% 26%
We are pleased with the progress we have made in the period with a 20%
increase in revenue and 18% increase in gross profit, when considering the
challenging economic conditions and increased cost inflation for this division
during the year.
Pre-owned premium watch prices have been stable throughout FY25 and the
momentum we had in H2 FY24 continued throughout FY25 with revenue from premium
watch sales increasing by 13% and margins remaining consistent with the prior
year. The average premium watch transaction value has increased to £4,454
(FY24: £4,289) and premium watch sales represented c36% of our retail
revenue.
The sustained increase in the gold price caused higher input prices far more
than rates of inflation for new jewellery from wholesalers and manufacturers.
The Group's retail prices have been increased twice during the year to help
absorb some of this cost inflation and revenue from new jewellery has
increased by 10%. The average transaction price has increased to £184
(FY24: £165) and is lower than pre-owned due to the range of new silver
jewellery items sold. Margins have again remained consistent and new jewellery
sales represent c26% of our retail revenue.
Revenue from pre-owned jewellery has increased by 35% and now accounts for
c38% of all jewellery revenue, with transaction volumes increasing by 18%.
Over the year, the gross margin from pre-owned jewellery has remained
consistent as prices have been adjusted in line with a rising gold price.
The average transaction value has increased to £410 (FY24: £354).
Our online retail sales are only where goods are shipped direct to customers.
Customers who source online but transact in store are accounted for within
our branch sales. In addition to being a profitable sales channel, the
jewellery website also serves as a catalogue for our branches, assisting our
staff with serving customers where stock choice in a branch may be limited.
There are over 16,000 items available on the Ramsdens jewellery website.
Over 60% of online revenue is from premium watch sales.
During the year we commenced a project to re-platform our retail jewellery
website. The new platform underpins our currency, pawnbroking and gold
buying websites and is seen as more effective for digital advertising. The
opportunity has also been taken to re-write our search function logic, which
will make finding the right jewellery item for our customers more efficient.
In relation to stock, during FY24 we concentrated on improving stock
forecasting, making sure we have the right stock, in the right quantity, in
the right location which resulted in FY24 stock levels being relatively flat
on FY23. Having undertaken this exercise, we have invested an additional
£8m in our retail jewellery stock over the year. Part of this increase is
cost inflationary, some of it is additional stock being prepared for our
increased programme of new store openings and part is simply more stock with a
broader customer appeal for our stores and online offering. The increase in
stock has also contributed to our excellent retail results.
Ramsdens remains a value for money retailer across each of its key product
areas. We believe there is an ongoing opportunity, both instore and online
(especially with the new retail website), across our product categories, to
further develop and grow our jewellery retail business.
Pawnbroking
Pawnbroking is a small subset of the consumer credit market in the UK and a
simple form of asset backed lending which dates back to the foundations of
banking. In a pawnbroking transaction an item of value, known as a pledge,
(in Ramsdens' case, jewellery and watches), is held by the pawnbroker as
security against a six-month loan. Customers who repay the capital sum
borrowed plus interest receive their pledged item back. If a customer fails to
repay the loan, the pawnbroker sells the pledged item to repay the amount owed
and returns any surplus funds to the customer. Pawnbroking is regulated by
the FCA in the UK and Ramsdens is fully FCA authorised.
If consumers have assets to pledge, pawnbroking can provide a short-term
solution or give the customer time to put in place longer term financial
arrangements. Pawnbroking is simple to understand and is quick and easy to
arrange. The customer's debt is capped at the value of the goods pledged and
therefore there are no further debt consequences should the customer be unable
to repay the loan. Ramsdens works with its customers to try and ensure
repayment where possible so the customer can borrow again should they need to.
000's FY25 FY24
Gross profit £12,706 £11,657
Total loan book* (capital value) £11,406 £10,677
Past due (capital value) £858 £882
In date loan book* (capital value) £10,547 £9,794
Percentage of Group gross profit 21% 23%
*excludes loans in the course of realisation
As a responsible lender, we have always sought to identify the needs of each
individual customer. The revenue generated is re-occurring in nature with
approximately 90% of pawnbroking customers having used Ramsdens before. With
new customers we assess if they want their items back i.e. it is a loan they
need or if they did not want their items back, the items are purchased as part
of the weight purchased in our purchase of precious metals segment. This
philosophy has ensured we maintain a quality loan book and as a result the
volume of loans repaid is consistent with long term averages.
We also understand that customer circumstances change and from time to time
they may need assistance to repay their loans and get their jewellery back.
The initiative mentioned above involved a change in our IT system and staff
training to slightly change the emphasis when a customer wanted more time to
repay and wanted to enter into a new contract. This change in emphasis has
succeeded in that any customer wanting more time to pay, reduces their loan
balance in 90% of all instances as well as paying the interest due. In
addition to this, the Group automatically reduces the customers interest rate
once they borrow for more than 12 months. These lower loan values at lower
interest rates, reduces the interest generated. However, these two activities
have seen the aged part of the loan book fall by almost 15% and helped more of
our customers repay their loan.
The loan book is also very conservatively lent. The Group has not increased
its lending rates in line with the increased gold price. The loan to value
ratio on gold lending is less than 40% of the second-hand retail value and
less than 60% of the gold price. We have recently relaxed our loan to value
rates to 66% of the gold price, which is still conservative, and should the
customer wish to borrow more against their pledged items, this should provide
an opportunity for the Group to grow its loan book into the future.
The average (mean) loan value as at 30 September 2025 was £381, up from £347
as at 30 September 2024, and this figure is £602 in our branches in London,
Kent and Essex. The demographics seen in the southern communities in which
we operate allow for higher loan values with higher carats of gold jewellery
offered as security for a loan. The median loan value for the Group was £200
as at 30 September 2025 (FY24: £187).
The new pawnbroking website was launched in November 2024. The website has
three primary objectives; to be informative about pawnbroking with Ramsdens,
to facilitate any customer with a pawnbroking loan making a part payment or
repaying their loan when it suits them and a customer acquisition channel for
new loans. The website facilitates new leads with the intention of serving
the customer local to them, primarily within a Ramsdens store, although a
minority of customers send goods to Ramsdens to be valued and a loan issued
electronically without the need to visit a store. During the year our SEO
and digital advertising strategy has evolved. This has led to an increased
number of higher value loans in H2 and we are confident that the website will
continue to attract new customers to Ramsdens.
Purchase of precious metals
Through our precious metals buying and selling service, Ramsdens buys unwanted
jewellery, gold and other precious metals from customers. Typically, a
customer brings unwanted jewellery into a Ramsdens store and a price is agreed
with the customer dependent upon the retail potential, weight or carat of the
jewellery. Ramsdens has various second-hand dealer licences and other
permissions and adheres to the Police approved "gold standard" for buying
precious metals.
Once jewellery has been bought from the customer, the Group's dedicated
jewellery department decides whether or not to retail the item through the
store network or online. Income derived from jewellery which is purchased and
then retailed is reflected in jewellery retail income and profits. If the
items are not retailed, they are smelted and sold to a bullion dealer for
their intrinsic value and the proceeds are reflected in the Group's accounts
as precious metals buying income.
000's FY25 FY24
Revenue £44,995 £31,151
Gross profit £17,917 £11,822
Percentage of Group gross profit 29% 23%
The gold price has substantially increased over the financial year and early
into FY26, achieving record levels in both US$ and Sterling. This has led to
a 52% increase in gross profit from this segment to £17.9m (FY24: £11.8m).
The success of this division is underpinned by the weight of gold purchased.
The weight purchased increased by approximately 14% on FY24. The increase
is attributable to; improved in store conversations promoting the service,
additional digital advertising following the launch of the new website
www.ramsdensgoldbuying.co.uk (http://www.ramsdensgoldbuying.co.uk) , and
general media highlighting the increase in the value of gold.
Once the gold is purchased, the Group decides to either sell the gold for its
intrinsic value or refurbish and retail the jewellery. Typically, 80% of all
weight purchased is sold for its intrinsic value and appears in this income
segment. During Q4, more weight was selected for retailing as a result of
having our in-house repair capability and processing capacity together with an
energised new store opening programme.
The gold price at the year-end was £92.33 per gram rising from £65.25 at the
start of the year - an increase of over 40%. The slight uplift in gross
margin is primarily attributable to a consistent monthly increase in the gold
price and the time it takes from purchase to melt and through to sale, a
process taking approximately four weeks.
Given the wider global political and economic situation, we believe the gold
price will continue to remain high in the short to medium term (albeit we
remain prudent with regard to our budgeting in this regard), supporting the
Group's profitability from this segment.
Foreign Currency Exchange
The foreign currency exchange (FX) segment primarily comprises the sale and
purchase of foreign currency notes to holidaymakers but also includes the
Ramsdens Mastercard® Multi-Currency Card. Our international money transfer
service income is only reported under gross profit.
FY25 FY24
Total currency exchanged £429m £423m
Gross profit £13.8m £14.2m
Online/app sales of FX £78.9m £59.6m
Percentage of online/app sales of FX 19% 15%
Percentage of Group gross profit 23% 28%
Our anecdotal evidence is that there may be a slight reduction in
holidaymakers travelling abroad and for slightly shorter holidays. This
accords with a slightly lower average cash transaction of £396 down 2%
compared to £406 last year. Our currency card customers exceeded 40,000 at
the year-end, up significantly from 17,000 last year. The total currency
loaded onto the currency card also increased by 50% with the attrition rates
of dormant cards in line with expectations. There has been an increase in
both click and collect and home delivery orders and values. Card and online
transactions have a lower margin than FX cash sold in stores, and it is this
mix of the sell transactions, cash or card, instore or online, which resulted
in sales commission falling by 1% despite the uplift in volume.
With respect to the purchase of currency from customers, observations from our
customer trends suggest that they are spending most of their cash abroad and
keeping leftover currency for another trip. The purchased value of FX
exchanged has reduced by 6% but commission is only 4% down due to a slightly
better margin across the mix of currencies purchased.
Cash remains a great and favoured way for many consumers to budget, especially
on holiday and in 2024 it was reported that 52% of all transactions in the
Eurozone were in cash. We recognise the ease of card use and as the
holidaying consumer habits slowly change we anticipate a continued
complementary mix of card and cash being provided to customers.
Our international money transfer service is now available online, by telephone
and in our stores giving the Group a broader offer for customers. Having
initially focused on the foundations of operational resiliency and strong
governance, we are looking to scale this business over the next three years
and beyond building on the strong Ramsdens brand for FX.
Other services
In addition to the four core business segments, the Group also provides
additional services in Western Union money transfer and receives franchise
fees from its one remaining franchisee. We have seen a steady decline in the
volume of Western Union transactions in recent years, and we expect this slow
decline to continue in the next financial period.
000's FY25 FY24
Revenue £504 £563
Gross Profit £504 £563
Percentage of Group gross profit 1% 1%
STRATEGY
The Board believes that its existing strategy remains the right one to grow
our business and continue to deliver sustainable value for all our
stakeholders.
We continue to concentrate on:
1. Improving the performance of the existing store estate
2. Developing our online proposition
3. Expanding the Ramsdens branch footprint in the UK
4. Acquisition opportunities
5. Focusing on sustainability through our ESG strategy
1. Improving the performance of the existing store estate
The Group has an ethos of continuous improvement, and every store has an
opportunity to grow sales and profitability further while all new and recently
relocated stores will continue to mature and therefore have the potential for
faster growth.
Our people are our greatest asset and how they communicate with customers and
help them in everyday life, be that; provide a solution for a short term cash
need with a pawnbroking loan, turn that unwanted gold into cash, find that
perfect jewellery gift for themselves or a loved one and provide foreign
currency products to help them have a fabulous holiday, determines our
success. This is why ESG, our culture and looking after our people is the
foundation on which we can grow the Group.
We invest heavily in staff training and communication. By doing this, we can
ensure that the customer experience is outstanding, as demonstrated by our
excellent Trustpilot ratings. We focus on the necessary product skills but
also the customer conversation. We recognise that we ask a lot from our
people given our diversified income streams but are pleased to say that we
continue to receive excellent feedback in our staff engagement surveys and
have great staff retention when compared to the retail sector. When staff
are engaged, have more experience and better skills, customer interactions
improve, leading to customer service improvements and ultimately increased
store profitability.
We have recently reviewed and reset our learning and development strategy for
the next two years. This will continue to enhance our people's skills to
develop the business.
We recognise that the number of customers who use more than one Ramsdens
service is still low and represents an opportunity to grow the business.
This continues to be under the spotlight of customer conversation training
and customer communications. Our improvements in our online offering will
help with this journey capitalising on the cross-selling opportunity across
our stores.
In addition, we continually aim to improve the performance of our key income
streams:
Pawnbroking:
· We will continue to build on the trust and high repeat customer
volumes earned by providing a high-quality service and grow the customer base
through word-of-mouth recommendations.
· Our recently increased loan to value ratios, while still
conservative, will enable customers, to borrow more, if they so wish, which
should grow our loan books and in turn interest generation.
· Our new website continues to establish itself, creating awareness
of the pawnbroking service available at Ramsdens. The website will also
continue to focus on attracting higher value lending and the Group will use
its experienced branch and area managers to offer a bespoke service.
· Our aim is to make Ramsdens the pawnbroker of choice in all towns
in which we operate. We will achieve this by continuing to grow our reputation
for giving customers a fair deal, continuing where required to reduce interest
rates to support customers in financial difficulty to get their pledged goods
back; offering longer term support and continuing to encourage sustainable
repayment programmes improving the likelihood that loans will be repaid and
the pledged jewellery being returned to the customer, and using our growing
retail expertise to obtain the best price possible for their pledged items
which may provide some unexpected money for our customers.
Jewellery retail:
· Our stock investment across FY25 will lead to growing retail sales
across FY26.
· Our investment in a wider range of new jewellery products will
assist FY26 results.
· Improved focus on staff training on jewellery product and selling
skills.
· The benefits of the investment in the new head office, will
continue to improve the Group's processing capacity and assist in improving
the replenishment of each store's stock.
· In store, the re-platformed new jewellery retail website will bring
improved search functionality which will assist branch staff to help the
customers buy as they use the website as their stock catalogue.
· Where appropriate and when opportunities arise, we will relocate to
higher footfall locations and improve the jewellery offer with larger window
display areas.
Purchase of precious metals:
· We are continuing to increase awareness amongst our existing
customer base, primarily foreign currency exchange customers, who are unaware
of the service or the value held in damaged, unwanted or unworn jewellery.
· The dedicated gold buying website launched in February 2025 with
digital advertising support starting in H2. FY26 will benefit from a full
year of this new website, with continued advertising investment. This will
help the Group attract and assist customers looking to sell their unwanted
jewellery.
Foreign currency:
· The three key drivers for foreign currency remain trust,
convenience and price.
o Trust - stock availability and transparent pricing continue to build trust
among consumers.
o Convenience - our stores are conveniently located in high footfall areas,
on high streets and in shopping centres. Customers can order online, receive
their currency at home and we have the convenience of a multi-currency card.
o Price - our exchange rates are competitive online and in store and remain
competitive as we can spread our operating expenses across more services.
· Our dedicated website, www.ramsdenscurrency.co.uk
(http://www.ramsdenscurrency.co.uk) has driven an approximate 20% increase in
the number of click and collect transactions in our stores. While the
average commission rate is lower online, the average transaction value is over
60% greater and when the customer calls in store it provides an opportunity to
help with another service from Ramsdens.
· Our multi-currency travel card customer base has more than doubled
in the year. We are confident this will continue to increase as awareness of
the offering grows and we expect that usage from existing customers will
increase as they build confidence with the product. The card offers
competitive exchange rates and the flexibility and ease of using the card as
you travel using the accompanying app. This allows the Group to capture more
of our customer's holiday spend while abroad.
· The in-house International Money Transfer service launched in FY25
and will grow as the service is promoted, and branch staff gain further
confidence in helping customers with an international payment need. Our
branch network is a differentiator to the online only service of the majority
of the providers.
Like many large employers, staff costs are the biggest overhead of the
business. The Group's entry level pay is the Real Living Wage (RLW) which
increased from £12.00 to £12.60 from April 2025 and will increase a further
6.7% to £13.45 in April 2026. The October 2024 Budget increased the rate of
employer's national insurance contribution and lowered the threshold from
which it is payable, from April 2025. As a result of these factors, the
Group's staff costs have and will continue to rise significantly ahead of the
rate of inflation. However, as stated, our people live and breathe the
Ramsdens purpose and we are committed to ensuring that our staff not only
remain productive but also feel valued and rewarded in their careers at
Ramsdens.
The Group is confident that it is well positioned to continue to make progress
in the underlying profitability despite the increased costs.
Our occupancy costs have been relatively stable during the year with fixed
energy pricing through to February 2026. Overall, we have seen flat rents with
a slight increase in business rates paid.
The increased cost burden on retailers in general and the potential for high
street landscapes to deteriorate means that our focus remains on having a
lease portfolio with flexibility with lease expiry and break dates. However,
we remain highly confident that our stores fulfil a very valuable role in
communities, supported by offering four distinct propositions to customers,
and their performance will continue to be complemented by a strong and
continuously improving online proposition.
2. Developing our online proposition
We see the development of our online capabilities as being complementary to
our store estate and both will benefit from each other as the store estate
expands and the websites generate increased brand recognition.
Jewellery retail website
www.ramsdensjewellery.co.uk (http://www.ramsdensjewellery.co.uk)
Revenue from the online retail jewellery website increased by 14% to £8.2m
(FY24: £7.2m) and contributes 19% of all jewellery revenue. This
performance excludes jewellery sales in branches, which use the in-store
digital facility to access the website as a catalogue of stock of 2,000
premium pre-owned watches, 10,500 unique pre-owned jewellery items and 3,500
new jewellery items.
The website is continually reviewed for improvement. Our search engine
optimisation, pay per click return on investment and affiliate schemes are
constantly reviewed to ensure a profitable return as opposed to seeking
revenue growth. Part of that review led to a major project to re-platform
our jewellery website with the sole focus being an improved customer journey
to help them research and buy that perfect jewellery item. The new website
is expected to go live in January 2026.
The retail website revenue is still low when compared to other retail
jewellery websites and therefore provides an opportunity for growth.
Foreign currency website
www.ramsdenscurrency.co.uk (http://www.ramsdenscurrency.co.uk)
The currency website continues to grow. Click and collect sales via the
website increased by 22% in FY25 to £62.9m (FY24: £51.7m) and home delivery
sales more than doubled to £3.9m (FY24: £1.8m). The average transaction
value is higher for click and collect than in store and increased by 3% in the
year to £678 (FY24: £660). The home delivery average transaction is higher
still at £776 and this figure has remained consistent with the prior year.
Both services are offered at a lower margin than in store but the customer
pays in advance, the transaction is captured and is similar in absolute profit
given the higher average values.
The currency website includes the ability to order and reload the Ramsdens
Mastercard® Multi-Currency Card launched in late 2023. Online card sales
are still only a small proportion of all card sales and we are working with
Mastercard to improve the online buying journey.
The currency website is also the conduit for attracting leads for
International Money Transfers and the digital gateway to making a payment.
Pawnbroking website
www.ramsdenspawnbrokers.co.uk (http://www.ramsdenspawnbrokers.co.uk)
The new pawnbroking website was launched in November 2024. The website has
three primary objectives; to be informative about pawnbroking with Ramsdens,
to facilitate 24/7 access for any customer with a pawnbroking loan making a
part payment or repaying their loan when it suits them and a customer
acquisition channel for new loans.
The website facilitates new leads with the intention of serving the customer
local to them, primarily within a Ramsdens store, as opposed to a truly online
offering where customers send goods to Ramsdens to be valued and a loan issued
electronically.
Digital advertising campaigns have been successful in H2, where the website
generated an increased number of leads for higher value loans. We are
confident that the website will continue to attract new customers to
Ramsdens.
Gold buying website
www.ramsdensgoldbuying.co.uk (https://www.ramsdensgoldbuying.co.uk/)
This new website is dedicated to gold buying and launched in February 2025.
The primary focus of the website is to acquire customers to visit their local
Ramsdens store. Where the customer is not local to a Ramsdens store, the
Group facilitates the transaction by enabling the customer to securely post
their unwanted gold in a pack issued by the centralised Ramsdens team.
The advertising and SEO strategies continue to evolve in these early months.
However, we can see that 80% of all visitors to the website use the branch
locator to find their local Ramsdens store. While we cannot track these
website visitors to an instore transaction, branch feedback is that the
website continues to make a growing impact. We are confident that the
website will continue to attract new customers to Ramsdens.
Legacy website
www.ramsdensforcash.co.uk (http://www.ramsdensforcash.co.uk)
The ramsdensforcash.co.uk website domain authority has been retained and the
website refreshed to become a portal to the above four individual websites for
our key income streams as well as providing background information to who we
are and what we do.
3. Expanding the Ramsdens branch footprint in the UK
The Group ended the financial year with a portfolio of 169 stores offering the
same services in small towns and larger cities. While the proportion
attributed to each key income stream differs across the estate, the sum of the
parts is that all mature stores are profitable and immature stores will grow
their income streams and in turn, increase profitability.
This tried and tested operating model can be replicated in new locations and
allows for leveraging off the centralised costs of the head office support
services.
There are c.350 towns and cities with a population of 30,000 or more in the
UK. We believe that there are significant opportunities to grow the store
footprint over coming years given we have proven, successful stores in towns
with a population of less than 15,000 where we have successfully established a
community of returning customers.
A typical new store is an investment of approximately £0.5m, split equally
into the store design and appearance and working capital assets such as
jewellery and cash. We will continue to open new stores on a geographic
rippling basis to leverage our existing operational strength and capacity.
During the year, we opened two new stores in Grantham and Burton. Although
not yet a year old, both stores are already trading profitably. Following
the year end, a new store was opened in Wakefield and four stores are in, or
about to start their, shop fit in Abergavenny, Hull, Newark and Hereford. In
addition to these five new locations, we have a further seven locations
progressing towards lease completion for opening in 2026.
We also have a strong pipeline of researched towns we are planning to expand
into, where we are awaiting the right unit to become available. Units in
towns are carefully identified by considering footfall and adjacent retailer
quality.
The challenge continues to be the state of some high streets and shopping
centres with temporary lets and voids. We continue to hope for a full reform
of the non-domestic rates system which may encourage more retailers to open
stores and recreate vibrant high streets. Nevertheless, we have full
confidence in our store model and expect to open at least eight stores per
financial year moving forward.
4. Acquisition opportunities
The Group has a successful track record of acquiring one new business per year
in recent years. Any potential acquisition must be considered against the
alternative of opening a new store using our successful branch model.
We continue to have discussions with pawnbrokers and jewellers about acquiring
their stores but currently nothing of a size that will materially move the
business forward. Barriers to completing deals at this time are the low return
on capital generated by our competitors, the investment required in the store
appearances, generally too much old legacy stock and the high gold price
benefitting the industry.
The Group acquired one small pawnbroker in Sheerness after the year end. This
was a retirement sale for the owners, and the branch team has been retained.
We have and will continue to consider vertical integration as and when the
right opportunity at the right price materialises.
5. Focusing on sustainability through our ESG strategy
We know that our long-term strategic aims will only be delivered if we have
good sustainable practices built on firm foundations.
Our foundations are:
· Environment - we are very conscious of the impact of our activities
on the environment and our aim is to minimise our energy use and recycle where
we can.
· Social - our people. How we look after our people, their
well-being, our inclusiveness and creating opportunities for all staff to
learn, develop and progress their careers is critical in how we then serve and
help our customers.
· Social - our communities in which we operate. How we look after
customers, suppliers and the wider community, including supporting local
charitable organisations helps define our business.
· Governance - we are committed to having the highest standards of
governance throughout the business. We have a strong structure of oversight
of what we do and how we do it, utilising our market leading in-house bespoke
software to provide the necessary controls and reporting.
OUTLOOK
We continue to concentrate on the longer-term fundamentals to grow our
business by helping and retaining our existing customer base while attracting
new customers:
· Our pawnbroking book is conservatively lent and has a strong repeat
and loyal customer base.
· We have been a strong purchaser of precious metals for many years.
Prices paid to customers are adjusted as the gold price moves and while the
high gold price is encouraging customers to sell now, the growing awareness of
the service should lead to higher weights being purchased.
· Our jewellery retail operations continue to gain traction with our
strong value for money offer. In addition, we have opportunities to enhance
this growth notably through our new dedicated customer website. Should the
gold price fall significantly, we do not envisage retail prices falling across
the sector.
· Our foreign currency cash service is under a little pressure as the
holidaying consumer habits slowly change but we have now embedded the Ramsdens
Mastercard® Multi-Currency Card into our customer offer to gain part of the
customer's spend while abroad. This and our online growth has led to an
increase in the total currency we have exchanged so we are confident that we
have a strong offer for consumers. As costs increase for one service bureaux
de change operators our competitive pricing will be a greater differentiator.
While the international money transfer service is still in its infancy we
have hopes to materially grow this service.
· Lastly, we have always controlled our overheads but at the same
time we pay our staff the Real Living Wage as a minimum and incentivise them
to earn bonuses through their efforts to help us grow our business. We feel
this is important as we are a people-based business.
The gold price is extraordinarily high in the Board's opinion and while
several forecasters predict further upside, we do not expect this high gold
price to last forever, and accordingly we budget prudently. The average gold
price in FY25 was £75.52 per gram. The average gold price for Q1 FY26 was
£98.90 per gram. Given the gold price has been higher at the start of FY26,
we believe the Group will continue to benefit from additional gold buying
profits in the short term.
All the above means the Group is well positioned for the year ahead. We will
build on the continuous improvement culture we have and will always strive to
do the right thing for the long term good of the Group's stakeholders.
We enjoy multiple investment opportunities as a result of our strong cash
generation and have a tried and tested growth strategy. Having regard to the
momentum being seen across the Group, the Board remains confident in its
ability to meet and deliver against its expectations for FY26. Overall, the
Board is optimistic that Ramsdens is well placed to continue to make progress
across all its core income streams.
Peter Kenyon
Chief Executive Officer
13 January 2026
FINANCIAL DIRECTOR'S REVIEW
FINANCIAL RESULTS
For the year ended 30 September 2025, the Group increased revenue by 22% to
£116.8m (FY24: £95.6m), exceeding the £100m mark for the first time. Gross
profit increased by 18% to £60.7m (FY24: £51.5m).
The Group's administrative expenses increased by 12% to £43.6m (FY24:
£39.1m), reflecting an increase in staff costs of 16%, from increases to the
Real Living Wage, variable pay and the changes to the employer's national
insurance rate and threshold. Finance costs have reduced by 20% to £0.9m
(FY24: £1.1m) mainly due to lower interest base rates throughout the year and
lower average borrowing on the RCF facility. Finance costs associated with
property leases were broadly in line with the prior year.
Profit before tax increased to £16.2m (FY24: £11.4m) as the Group continued
to benefit from its diversified business model and investment in its key
services.
The Group's cash position remains strong with £6.9m net cash at the year-end
(FY24: £7.4m). Investments have been made in jewellery stock and the growth
of the pawnbroking loan book to support the Group's increased profitability.
The table below shows the headline financial results:
£000's FY25 FY24
Revenue £116,804 £95,608
Gross profit £60,712 £51,533
Profit before tax £16,209 £11,362
Net assets £62,896 £53,606
Net cash* £6,948 £7,395
Basic EPS 37.0p 26.1p
*Cash less bank borrowings
Final ordinary dividend 9.0p 7.6p
Special dividend 2.0p -
Total ordinary dividend 13.5p 11.2p
Total special dividend 2.5p -
Total dividend 16.0p 11.2p
EARNINGS PER SHARE AND DIVIDEND
The statutory basic earnings per share for FY25 was 37.0p, up from 26.1p in
the previous year.
The Board is recommending a final dividend of 11.0p in respect of FY25 (FY24:
7.6p) comprising a final ordinary dividend of 9.0p and a special dividend of
2.0p due to the additional profits from the purchase of precious metals
supported by the high gold price during the year. Subject to approval at the
AGM, the final dividend is expected to be paid on 20 March 2026 for those
shareholders on the register on 13 February 2026. The ex-dividend date will
be 12 February 2026. This would bring the total dividend for FY25 to 16.0p
(FY24: 11.2p). This dividend is in line with the Board's progressive
dividend policy reflecting the cash flow generation and earnings potential of
the Group.
This dividend represents a 43% pay-out ratio of FY25 basic EPS (FY24: 43%).
The long-term dividend strategy is to move towards approximately 50% of
post-tax profits being distributed subject to the financial performance and
growth opportunities.
FINANCIAL POSITION
At 30 September 2025, cash and cash equivalents amounted to £15.4m (FY24:
£15.8m) and the Group had net assets of £62.9m (FY24: £53.6m).
CAPITAL EXPENDITURE
During the reporting period, the Group invested in the store estate by opening
two new stores, one major store refurbishment and relocating one store.
Capital expenditure for the year was £0.9m (FY24: £2.6m) and acquisitions
were nil (FY24: £0.6m).
CASH FLOW
Working capital outflows in the year include a £10.1m increase in inventories
and growth of the pawnbroking loan book which has resulted in trade and other
receivables increasing by £1.8m. Trade and other payables increased by
£2.9m. The net cash flow from operating activities for the year was £6.1m
(FY24: £11.9m).
During the year the Group transitioned to earlier quarterly tax payments due
to increased profitability and this has therefore had a one-off impact into
the FY25 cashflow with extra payments made during the year.
Net cash at the year-end was £6.9m (FY24: £7.4m).
The Group has a £15m revolving credit facility (RCF) with Bank of Scotland
PLC expiring in March 2029. The facility has three covenants: flexible cash
cover to the amount drawn, a cash and jewellery stock cover in relation to
amount drawn, and gross borrowings ratio in relation to EBITDA. As at 30
September 2025, this facility was £8.5m drawn to support the currency cash
held. The cash position and headroom on the bank facility provide the Group
with the funds required to continue to deliver its current stated strategy.
TAXATION
The tax charge for the year was £4.3m (FY24: £3.1m) representing an
effective rate of 27% (FY24: 27%). A full reconciliation of the tax charge is
shown in note 10 of the financial statements.
SHARE BASED PAYMENTS
The share-based payment expense in the year was £513,000 (FY24: £504,000).
This charge relates to the Long-Term Incentive Plans (LTIP) and Company Share
Option Plans (CSOP). Both schemes are discretionary share incentive schemes
through which the Remuneration Committee can grant options to purchase
ordinary shares. The shares under option in the LTIP scheme can be purchased
at a nominal 1p cost to Executive Directors and other senior management,
subject to certain performance and vesting conditions. The shares under
option in the CSOP scheme can be purchased at their issue prices of 230.0p and
205.0p.
During the year, the LTIP award from 2022 met the performance criteria and
297,900 share options vested.
GOING CONCERN
The Board has conducted an extensive review of forecast earnings and cash over
the next 12 months, considering various scenarios and sensitivities given the
ongoing economic challenges and has concluded that it has adequate resources
to continue in business for the foreseeable future. For this reason, the
Board has been able to conclude the going concern basis is appropriate in
preparing the financial statements.
Martin Clyburn
Chief Financial Officer
13 January 2026
Consolidated Statement of Comprehensive Income
For the year ended 30 September 2025
2025 2024
Notes
£'000 £'000
Revenue 5 116,804 95,608
Expected credit loss charges 14 (1,364) (1,751)
Other cost of sales (54,728) (42,324)
Total cost of sales 5 (56,092) (44,075)
Gross profit 5 60,712 51,533
Administrative expenses (43,621) (39,068)
Operating profit 17,091 12,465
Finance costs 6 (882) (1,103)
Profit before tax 16,209 11,362
Income tax expense 10 (4,315) (3,065)
Profit for the year 11,894 8,297
Other comprehensive income - -
Total comprehensive income 11,894 8,297
Basic earnings per share in pence 8 37.0 26.1
Diluted earnings per share in pence 8 36.0 25.7
Consolidated Statement of Financial Position
As at 30 September 2025
2025 2024
Notes £'000 £'000
Non-current assets
Property, plant and equipment 11 7,813 8,853
Right-of-use assets 11 8,931 10,066
Intangible assets 12 773 903
Investments 13 - -
17,517 19,822
Current assets
Inventories 15 39,749 29,649
Trade and other receivables 16 18,224 16,432
Cash and cash equivalents 17 15,361 15,782
Income tax receivable 100 -
Deferred tax asset 143 -
73,577 61,863
Total assets 91,094 81,685
Current liabilities
Trade and other payables 18 10,035 7,225
Interest bearing loans and borrowings 18 8,413 8,387
Lease liabilities 18 2,443 2,350
Income tax payable 18 - 1,731
20,891 19,693
Net current assets 52,686 42,170
Non-current liabilities
Lease liabilities 19 6,192 7,328
Deferred tax liabilities 19 - 158
Provisions 21 1,115 900
7,307 8,386
Total liabilities 28,198 28,079
Net assets 62,896 53,606
Equity
Issued capital 22 324 319
Share premium 4,892 4,892
Retained earnings 57,680 48,395
Total equity 62,896 53,606
The financial statements of Ramsdens Holdings PLC, registered number 08811656,
were approved by the directors and authorised for issue on 13 January 2026 and
signed on their behalf by:
M A Clyburn
Chief Financial Officer
Consolidated Statement of Changes in Equity
For the year ended 30 September 2025
Issued capital Share premium Retained earnings Total
Notes
£'000 £'000 £'000 £'000
As at 1 October 2023 317 4,892 42,958 48,167
Profit for the year - - 8,297 8,297
Total comprehensive income - - 8,297 8,297
Transactions with owners:
Dividends paid 23 - - (3,298) (3,298)
Issue of share capital 22 2 - - 2
Share based payments 26 - - 504 504
Deferred tax on share based payments - - (66) (66)
Total transactions with owners 2 - (2,860) (2,858)
As at 30 September 2024 319 4,892 48,395 53,606
As at 1 October 2024 319 4,892 48,395 53,606
Profit for the year - - 11,894 11,894
Total comprehensive income - - 11,894 11,894
Transactions with owners:
Dividends paid 23 - - (3,584) (3,584)
Issue of share capital 22 5 - - 5
Share based payments 26 - - 513 513
Deferred tax on share based payments - - 462 462
Total transactions with owners 5 - (2,609) (2,604)
As at 30 September 2025 324 4,892 57,680 62,896
Consolidated Statement of Cash Flows
For the year ended 30 September 2025
2025 2024
Operating activities Notes £'000 £'000
Profit before tax 16,209 11,362
Adjustments to reconcile profit before tax to net cash flows:
Depreciation and impairment of property, plant
and equipment 11 1,900 1,644
Depreciation and impairment of right-of-use assets 11 2,135 2,270
Profit on disposal of right-of-use assets 7 (5) (48)
Amortisation and impairment of intangible assets 12 130 141
Loss on disposal of property, plant and equipment 7 54 49
Share based payments 26 513 504
Finance costs 6 882 1,103
Working capital adjustments:
Movement in trade and other receivables and prepayments (1,766) (889)
Movement in inventories (10,100) (1,925)
Movement in trade and other payables 2,883 870
Movement in provisions 21 215 563
13,050 15,644
Interest paid (882) (1,199)
Income tax paid (6,058) (2,565)
Net cash flows from operating activities 6,110 11,880
Investing activities
Proceeds from sale of property, plant and equipment 9 -
Purchase of property, plant and equipment 11 (923) (2,576)
Payment for acquisition - (631)
Net cash flows used in investing activities (914) (3,207)
Financing activities
Issue of share capital 22 5 2
Dividends paid 23 (3,584) (3,298)
Payment of principal portion of lease liabilities 20 (2,038) (3,117)
Increase in bank borrowings 20 - 500
Net cash flows used in financing activities (5,617) (5,913)
Net (decrease) / increase in cash and cash equivalents (421) 2,760
Cash and cash equivalents at 1 October 15,782 13,022
Cash and cash equivalents at 30 September 17 15,361 15,782
Notes to the consolidated financial statements
1. Corporate information
Ramsdens Holdings PLC (the "Company") is a public limited company incorporated
and domiciled in England and Wales. The registered office of the Company is 16
Falcon Court, Preston Farm Industrial Estate, Stockton-On-Tees, TS18 3TS. The
registered company number is 08811656. A list of the Company's subsidiaries is
presented in note 13.
The principal activities of the Company and its subsidiaries (the "Group") are
the supply of foreign exchange services, pawnbroking, jewellery sales, and the
sale of precious metals purchased from the general public.
2. Changes in accounting policies and presentation
There are no changes to accounting policies in the current year. There are
no known future changes in accounting standards which are expected to
materially impact the Group's profit, cash flows or position.
3. Significant accounting policies
3.1 Basis of preparation
The consolidated financial statements of the Group have been prepared in
accordance with UK adopted international accounting standards.
The consolidated financial statements have been prepared on a historical cost
basis. The consolidated financial statements are presented in pounds sterling
which is the functional currency of the parent and presentational currency of
the Group. All values are rounded to the nearest thousand (£000), except when
otherwise indicated.
The financial information set out herein does not constitute the Group's
statutory accounts for the year ended 30 September 2025 or the year ended 30
September 2024 within the meaning of sections 434 of the Companies Act 2006,
but is derived from those accounts. The audited accounts for the year ended 30
September 2025 will be posted to all shareholders in due course and will be
available on the Group's website. The auditors have reported on those accounts
and expressed an unmodified audit opinion which did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
The financial information for the year ended 30 September 2024 is derived from
the statutory accounts for that year, which have been delivered to the
Registrar of Companies. The auditors have reported on those accounts and
expressed an unmodified audit opinion which did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
3.2 Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and all of its subsidiary undertakings (as detailed above). The
financial information of all Group companies is adjusted, where necessary, to
ensure the use of consistent accounting policies. In line with IFRS10, an
investor controls an investee when it is exposed, or has rights, to variable
returns from its involvement with the investee and has the ability to affect
those returns through its power over the investee.
3.3 Going concern
The Group has prepared the financial statements on a going concern basis, with
due consideration to the present economic situation.
The Board have conducted an extensive review of forecast earnings and cash for
the period to 31 January 2027 considering various scenarios and sensitivities
given the ongoing uncertainty around the future economic environment.
At 30 September 2025 the Group has significant cash balances of £15.4m,
readily realisable stock of gold jewellery and access to the £6.5m unutilised
element of a £15m revolving credit facility with an expiry date of March
2029. In the year ended 30 September 2025 the Group has traded profitably and
generated cash from operations.
The Board have been able to conclude that they have a reasonable expectation
that the Group has adequate resources to continue in operational existence for
the foreseeable future. Accordingly, the Group continues to adopt the going
concern basis in preparing the financial statements. The going concern
assessment covers the period to 31 January 2027.
3.4 Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The
consideration transferred in the acquisition is measured at fair value, as are
the identifiable assets acquired and liabilities incurred. Acquisition related
costs are expensed as incurred and included in administrative expenses.
Goodwill is initially measured at cost, being the excess of the aggregate of
the consideration transferred over the fair value of the identifiable assets
acquired and liabilities assumed. If the fair value of the net assets acquired
is in excess of the aggregate consideration transferred, the Group re-assesses
whether it has correctly identified all of the assets acquired and all of the
liabilities assumed and reviews the procedures used to measure the amounts to
be recognised at the acquisition date. If the reassessment still results in an
excess of the fair value of net assets acquired over the aggregate
consideration transferred, then the gain is recognised in the Statement of
Comprehensive Income as a gain on bargain purchase.
After initial recognition, goodwill is measured at cost less any accumulated
impairment losses. For the purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date, allocated to each of the
Group's cash generating units (CGU) that are expected to benefit from the
combination, irrespective of whether other assets or liabilities of the
acquiree are assigned to those units.
3.5 Intangible assets
Intangible assets acquired separately are measured on initial recognition at
cost. The cost of intangible assets acquired in a business combination is
their fair value as at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less accumulated amortisation and
accumulated impairment losses, if any. Internally generated intangible assets,
excluding capitalised development costs, are not capitalised and expenditure
is recognised in the Statement of Comprehensive Income when it is incurred.
The useful lives of intangible assets are assessed as either finite or
indefinite and at each date of the Statement of Financial Position only
goodwill assets are accorded an indefinite life.
Intangible assets with finite lives are amortised over their useful economic
lives and assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation period and the amortisation
method for an intangible asset with a finite useful life are reviewed at least
at the end of each reporting period.
Amortisation is calculated over the estimated useful lives of the assets as
follows:
• Customer relationships - 40% reducing balance
• Software - 20% straight line
Changes in the expected useful life or the expected pattern of consumption of
future economic benefits embodied in the asset are accounted for by changing
the amortisation period or method, as appropriate, and are treated as changes
in accounting estimates. The amortisation expense on intangible assets with
finite lives is recognised in the Statement of Comprehensive Income in the
expense category consistent with the function of the intangible assets.
3.6 Property, plant and equipment
Property, plant and equipment are stated at cost, net of accumulated
depreciation and accumulated impairment losses (if any). All other repair
and maintenance costs are recognised in the Statement of Comprehensive Income
as incurred.
Depreciation is calculated over the estimated useful lives of the assets as
follows:
· Freehold property - 2% straight line
· Leasehold improvements - straight line over the lease term
· Fixtures & fittings - 20% and 33% reducing balance
· Computer equipment - 25% and 33% reducing balance
· Motor vehicles - 25% reducing balance
An item of property, plant and equipment is derecognised upon disposal or when
no future economic benefits are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is
included in the Statement of Comprehensive Income when the asset is
derecognised.
The residual values, useful lives and methods of depreciation of property,
plant and equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate.
3.7 Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that
an asset may be impaired. If any indication exists, or when annual impairment
testing for an asset is required, the Group estimates the asset's recoverable
amount. An asset's recoverable amount is the higher of an asset's or CGU's
fair value less costs of disposal and its value in use. It is determined for
an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets. Where the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent market transactions are
taken into account. If no such transactions can be identified, an appropriate
valuation model is used.
The Group bases its impairment calculation on detailed budgets and forecasts
which are prepared separately for each of the Group's CGUs to which the
individual assets are allocated, which is usually taken to be each individual
branch store and the jewellery retail website, based on the independence of
cash inflows. Central costs and assets are allocated to CGUs based on income.
These budgets and forecast calculations are estimated for three years and
extrapolated to cover a total period of ten years.
Impairment losses of continuing operations are recognised in the Statement of
Comprehensive Income in those expense categories consistent with the function
of the impaired asset.
For assets excluding goodwill, an assessment is made at each reporting date as
to whether there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such indication exists,
the Group estimates the recoverable amount of the asset or CGU. A previously
recognised impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset's recoverable amount since the last
impairment loss was recognised.
The reversal is limited so that the carrying amount of the asset does not
exceed its recoverable amount, nor exceed the carrying amount that would have
been determined, net of depreciation or amortisation, had no impairment loss
been recognised for the asset in prior years. Such reversal is recognised in
the Statement of Comprehensive Income unless the asset is carried at a
revalued amount, in which case the reversal is treated as a revaluation
increase.
Goodwill
Goodwill is tested for impairment at the end of each accounting period and
when circumstances indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of
each CGU to which the goodwill relates. Where the recoverable amount of the
cash-generating unit is less than their carrying amount, an impairment loss is
recognised. Impairment losses relating to goodwill cannot be reversed in
future periods. Goodwill is allocated to CGUs based on the price paid of the
relevant acquisition.
3.8 Inventories
Inventories comprise of retail jewellery and precious metals held to be
scrapped and are valued at the lower of cost and net realisable value.
Cost represents the weighted average purchase price plus overheads directly
related to bringing the inventory to its present location and condition.
When the Group takes title to pledged goods on default of pawnbroking loans up
to the value of £75, cost represents the principal amount of the loan plus
term interest.
Net realisable value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated costs to sell.
3.9 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of
one entity and a financial liability or equity instrument of another entity.
Financial assets
Financial assets are all recognised and derecognised on a trade date basis.
All recognised financial assets are measured and subsequently measured at
amortised cost or fair value depending on the classification of the financial
asset.
Classification of financial assets
Financial assets that meet the following criteria are measured at amortised
cost:
· the financial asset is held within the business model whose
objective is to hold financial assets in order to collect contractual cash
flows; and
· the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
In accordance with IFRS 9 Financial Instruments the Group has classified its
financial assets as amortised cost.
The amortised cost of a financial asset is the amount at which the financial
asset is measured at initial recognition less the principal repayments, plus
the cumulative amortisation using the effective interest method of any
difference between that initial amount and the maturity amount, adjusted for
any loss allowance. The gross carrying amount of a financial asset is the
amortised cost of a financial asset before adjusting for any loss allowance.
Cash and cash equivalents
Cash and cash equivalents in the Statement of Financial Position comprise cash
at banks and on hand, foreign currency held for resale and short-term deposits
held with banks with a maturity of three months or less from inception. Debit
/ credit card receipts processed by merchant service providers are recognised
as cash at point of transaction. Foreign currency bank notes are ordered for
next day delivery and are recognised once the control of these has been
transferred, which is usually on receipt.
For the purpose of the Consolidated Statement of Cash Flows, cash and cash
equivalents consist of cash, foreign currency held for resale and short-term
deposits as defined above, net of any outstanding bank overdrafts.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial
assets that are measured at amortised cost. The amount of credit losses is
updated at each reporting date to reflect changes in credit risk since initial
recognition of the respective financial instrument.
The Group recognises lifetime expected credit losses when there has been a
significant increase in credit risk since initial recognition. However, if the
credit risk on the financial instrument has not increased significantly since
initial recognition, the Group recognises the 12 month expected credit losses.
As pawnbroking loans are typically over a six-month term the lifetime credit
losses are usually the same as the 12 month expected credit losses.
In assessing whether the credit risk on a financial instrument has increased
significantly since initial recognition, the Group compares the risk of a
default occurring on the financial instrument at the reporting date with the
risk of a default occurring on the financial instrument at the date of initial
recognition. In making this assessment, the Group considers both quantitative
and qualitative information that is reasonable and supportable including
historical experience.
The measurement of expected credit losses is a function of the probability of
default, and the loss (if any) on default. The assessment of the probability
of default is based on historical data. The loss on default is based on the
assets gross carrying amount less any realisable security held. The expected
credit loss calculation considers both the interest income and the capital
element of the pawnbroking loans. Interest on loans in default is accrued net
of expected credit losses. Details of the key assumptions for pawnbroking
expected credit losses are given in note 4.
Derecognition
The Group derecognises a financial asset only when the contractual rights to
the cash flows from the asset expire, or when it transfers the financial asset
to another entity. On derecognition of a financial asset measured at amortised
cost, the difference between the assets carrying amount and the sum of the
consideration received and receivable is recognised in the Statement of
Comprehensive Income. Pawnbroking loans in the course of realisation
continue to be recognised as loan receivables until the pledged items are
realised.
Financial liabilities
Debt and equity instruments are classified as either financial liabilities or
equity in accordance with the substance of the contractual arrangements and
the definitions of a financial liability and equity instrument.
All financial liabilities are recognised initially at amortised cost or at
fair value through profit and loss (FVTPL).
The Group's financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts, and derivative financial instruments.
After initial recognition, interest bearing loans and borrowings are
subsequently measured at amortised cost using the effective interest rate
method (EIR). Gains and losses are recognised in the Statement of
Comprehensive Income when the liabilities are derecognised as well as through
the (EIR) amortisation process. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance costs in
the Statement of Comprehensive Income.
Given interest bearing loans and borrowings are short-term with a typical
maturity period of three months or less, individual drawdowns and repayments
are presented on a net basis through the Consolidated Statement of Cash Flows.
Only the Group's derivative financial instruments are classified as financial
liabilities at fair value through profit or loss unless an exemption for use
applies.
Financial liabilities at fair value through profit or loss are stated at fair
value, with any resultant gain or loss recognised in the Statement of
Comprehensive Income. The net gain or loss recognised in the Statement of
Comprehensive Income incorporates any interest paid on the financial
liability.
Derecognition
A financial liability is derecognised when the obligation under the liability
is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an
exchange or modification is treated as a derecognition of the original
liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the Statement of Comprehensive
Income.
Offsetting of financial instruments
Financial assets and financial liabilities are offset with the net amount
reported in the Statement of Financial Position only if there is a current
enforceable legal right to offset the recognised amounts and intent to settle
on a net basis, or to realise the assets and settle the liabilities
simultaneously.
3.10 Fair value measurement
The Group measures financial instruments, such as derivatives, at fair value
at the date of each Statement of Financial Position.
Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date.
The fair value of an asset or a liability is measured using the assumptions
that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
The Group uses valuation techniques that are appropriate in the circumstances
and for which sufficient data are available to measure fair value, maximising
the use of relevant observable inputs and minimising the use of unobservable
inputs.
All assets and liabilities for which fair value is measured or disclosed in
the financial statements are categorised within the fair value hierarchy. This
is described, as follows, based on the lowest level input that is significant
to the fair value measurement as a whole:
• Level 1 - Quoted (unadjusted) market prices in active markets for
identical assets or liabilities
• Level 2 - Valuation techniques for which the lowest level input that
is significant to the fair value measurement is directly or indirectly
observable
• Level 3 - Valuation techniques for which the lowest level input that
is significant to the fair value measurement is unobservable
3.11 Taxation
Current tax
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the Consolidated Statement of
Comprehensive Income because it excludes items of income or expense that are
taxable or deductible in other years and it further excludes items that are
never taxable or deductible. The Group's liability for current tax is
calculated using tax rates and laws that have been enacted or substantively
enacted by the date of the Statement of Financial Position.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from the initial recognition of goodwill or
from the initial recognition (other than in a business combination) of other
assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the date of each
statement of financial position and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or
part of the asset to be recovered.
Deferred tax is calculated at the tax rates and laws that are expected to
apply in the period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the Consolidated Statement of
Comprehensive Income, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt with in
equity. Deferred tax is recognised on an undiscounted basis.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax
liabilities when they relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax assets and
liabilities on a net basis.
3.12 Leases
At inception of a contract, the Group assesses whether a contract is, or
contains, a lease. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the Group assesses whether:
· The contract involves the use of an identified asset - this may be
specified explicitly or implicitly and should be physically distinct or
represent substantially all of the capacity of a physically distinct asset. If
the supplier has a substantive substitution right, then the asset is not
identified.
· The Group has the right to obtain substantially all of the economic
benefits from use of the asset throughout the period of use; and
· The Group has the right to direct the use of the asset. The Group
has this right when it has the decision-making rights that are most relevant
to changing how and for what purpose the asset is used. In rare cases where
the decision about how and for what purpose the asset is used is
predetermined, the Group has the right to direct the use of the asset if
either:
o The Group has the right to operate the asset; or
o The Group designed the asset in a way that predetermines how and for what
purpose it will be used.
As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located,
less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the earlier of the end of the useful life
of the right-of-use asset or the end of the lease term. The estimated useful
lives of the right-of-use assets are determined on the same basis as those of
property and equipment. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain remeasurements
of the lease liability.
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group's incremental borrowing rate. Generally, the Group uses
its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the
following:
1. Fixed payments, including in-substance fixed payments;
2. Variable lease payments that depend on an index or a rate, initially
measured using the index or rate as at the commencement date;
3. Amounts expected to be payable under a residual value guarantee; and
4. The exercise price under a purchase option that the Group is
reasonably certain to exercise, lease payments in an optional renewal period
if the Group is reasonably certain to exercise an extension option, and
penalties for early termination of a lease unless the Group is reasonably
certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest
method. It is remeasured when there is a change in future lease payments
arising from a change in an index or rate, if there is a change in the Group's
estimate of the amount expected to be payable under a residual value
guarantee, or if the Group changes its assessment of whether it will exercise
a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment
is made to the carrying amount of the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been
reduced to zero.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease
liabilities for short-term leases that have an initial lease term of 12 months
or less and leases of low-value assets, including IT equipment. The Group
recognises the lease payments associated with these leases as an expense on a
straight-line basis over the lease term.
3.13 Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation. Provisions are measured using the directors' best estimate of the
expenditure required to settle the obligation at the date of each statement of
financial position.
If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
The majority of the Group's premises are leased and include an end of lease
rectification clause to return the property to its original state. The Group
provides for rectification costs throughout the life of the lease as required.
The Group maintains stores to a high standard and completes any necessary
repairs and maintenance on a timely basis using the in-house property
department and external contractors. These repair costs are expensed as
incurred.
3.14 Pensions and other post-employment benefits
The Group operates a defined contribution pension scheme. The assets of the
scheme are held and administered separately from those of the Group.
Contributions payable for the year are charged in the Statement of
Comprehensive Income. Total contributions for the year are disclosed in note 9
to the accounts. Differences between contributions payable in the year and
contributions actually paid are shown as either accruals or prepayments in the
Statement of Financial Position.
3.15 Employee share incentive plans
The group grants equity settled share option rights to the parent entity's
equity instruments to certain directors and senior staff members under a LTIP
(Long-term Incentive Plan) and a CSOP (Company Share Option Plan).
The employee share options are measured at fair value at the date of grant by
the use of either the Black-Scholes Model or a Monte Carlo model depending on
the vesting conditions attached to the share option. For market based vesting
conditions the expense recognised over the vesting period reflects the extent
to which the vesting period has expired. For non-market based vesting
conditions the expense recognised over the vesting period reflects the extent
to which the vesting period has expired and the Group's best estimate of the
number of share options that will ultimately vest. The expense is recognised
in the entity in which the beneficiary is remunerated. Further details are
provided in note 26.
3.16 Revenue recognition
The major sources of revenue come from the following:
· Pawnbroking
· Foreign currency exchange
· Purchase of precious metals
· Retail jewellery sales
· Income from other financial services
Pawnbroking revenue is recognised in accordance with IFRS 9, whereas revenue
from other sources is recognised in accordance with IFRS 15.
Pawnbroking revenue
Revenue from pawnbroking loans comprises interest earned over time by
reference to the principal outstanding and the effective rate applicable,
which is the rate that discounts the estimated cash receipts through the
expected life of the financial asset to that asset's net carrying value.
When a customer defaults on a pawnbroking loan, the pledged goods held as
security are sold to repay the customer debt. As a pawnbroking loan has a
single repayment, an increase in credit risk occurs at the point the loan
becomes overdue. Once overdue the loan is classified as in default and
interest income is accrued net of expected credit losses. At the start of
the realisation process the expected credit loss calculation is re-performed
based on the expected cash flows of the retail process, with any increase in
expected credit losses recognised as a cost of sale. Further details of the
expected credit loss calculations are provided in note 4.1 and note 14.
Foreign currency exchange income
Revenue is earned in respect of the provision of Bureau de Change facilities
offered and represents the margin earned which is recognised at the point the
currency is collected by the customer as this represents when the service
provided under IFRS 15 has been delivered.
Sale of precious metals purchased from the general public
Revenue is recognised when control of the goods has transferred, being at the
point the goods are received by the bullion dealer and a sell instruction has
been issued. From time to time the Group enters into a fixed price agreement
with the bullion dealer for an agreed amount of precious metal. Given the
Group enters into these agreements in accordance with the Group's expected
sale requirements, and they are for the purpose of delivery of a non-financial
asset, these agreements are not recognised as financial instruments and the
own use exemption is applied. Therefore, where a price has been agreed in
advance of delivery, revenue is recognised at the point the precious metals
are received by the bullion dealer.
Jewellery retail sales
Revenue is recognised at the point the goods are transferred to the customer.
Customers either pay in full at the time of the transaction and receive the
goods, purchase goods online using a third-party finance provider and receive
the goods by delivery once the finance has been authorised or pay by layby in
instalments and receive the goods once the sale is fully paid. Instalment
payments are recognised as a creditor until the item is fully paid. The Group
has a 7-day refund policy in store, and a 14-day refund policy online
reflecting the distance selling regulations. Premium watches are sold with a
limited 12-month warranty. A provision for warranties is recognised when the
underlying products are sold, based on management's best estimate, and is
included as a cost of sale.
Other financial income
Other financial income comprises of agency commissions which are recognised in
the Statement of Comprehensive Income in the period they are earned.
3.17 Administrative expenses
Administrative expenses include branch staff and establishment costs.
4. Key sources of estimation uncertainty and significant accounting judgements
The preparation of the Group's consolidated financial statements requires
management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result in outcomes
that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
4.1 Key sources of estimation uncertainty
Revenue recognition - pawnbroking loans interest and impairment
The Group recognises interest on pawnbroking loans as disclosed in note 3.16.
For active pawnbroking loans (loans not in the course of realisation) the
Group estimates the expected credit losses. An assessment is made on a
pledge by pledge basis of the carrying value represented by original capital
loaned plus accrued interest to date and its corresponding realisation value
on sale of unredeemed pledges to identify any credit losses. The key estimates
within the expected credit loss calculation are:
· Non-redemption rate - This is based upon current and historical
data held.
· Realisation value - This is based upon either;
o The estimated proceeds from the sale of the metal content via disposal
through a bullion dealer.
o The expected resale value of the pledged goods that can be retailed.
For pawnbroking loans in the course of realisation the Group estimates the
expected credit losses based on the expected outcome from selling the pledged
goods. The key estimates within the expected credit loss calculation are:
· Proceeds of sale - This is based upon the retail price the goods
are offered for sale at.
· Time to sell - This is based upon current and historical data in
respect of the average time to sell and is assumed to be 12 months.
See note 14 for further details on pawnbroking credit risk and provision
values, including sensitivity.
Impairment of property, plant and equipment, right-of-use assets and
intangible assets estimate
Where indicators of impairment exist the management estimates the value in use
of the CGU to which any property, plant and equipment, right-of-use assets and
intangible assets have been allocated. The value in use calculation requires
the Group to estimate the future cash flows expected to arise from the CGU and
select a suitable discount rate in order to calculate present value. The
review is conducted annually, in the final quarter of the year. The impairment
review is conducted at the level of each CGU, which is usually taken to be
each individual branch store and the retail jewellery website.
Management have determined that the key sources of estimation uncertainty, to
which the impairment analysis of property plant and equipment, right-of-use
assets and intangible assets is most sensitive, relate to the following
assumptions:
1. The Group prepares pre-tax cash flow forecasts for each branch. Cash
flows represent management's estimate of the revenue of the relevant CGU,
based upon the specific characteristics of the branch and its stage of
development.
2. The Group has discounted the forecast cash flows at a pre-tax, risk
adjusted rate of 16%.
Whilst the impairment review has been conducted based on the best available
estimates at the impairment review date, the Group notes that actual events
may vary from management expectation. If outcomes within the next financial
year are different from the assumptions made in relation to future cash flows,
this could lead to a material adjustment to the carrying amount of the assets
affected. The carrying amounts for tangible assets, right-of-use assets and
intangible assets are disclosed in notes 11 and 12.
Where the recoverable amount of the CGU was estimated to be less than its
carrying amount, the carrying amount of the CGU was reduced to the estimated
recoverable amount.
Reinstatement provision
The Group recognises a provision for reinstatement of leasehold property as
disclosed in note 21. This provision reflects management's best estimate of
the costs required to restore leased properties to their original condition at
the end of expected occupation, as required by the lease agreements,
discounted to the present value.
The reinstatement provision is calculated using the following key estimates:
1. Scope and cost of reinstatement work required.
2. The expected occupation and therefore time until the reinstatement
works are required.
3. The time value of money used to discount the future expected cost
of reinstatement work.
4.2 Significant accounting judgements
In the process of applying the Group's accounting policies, management has
made the following judgements, which have the most significant effect on the
amounts recognised in the consolidated financial statements:
Lease terms
For leases which contain a break clause an assessment is made on entering a
lease on the likelihood that the lease break would be exercised. If the lease
break is not expected to be exercised the break clause is ignored in
establishing the lease term.
5. Segmental analysis
The Group's revenue from external customers is shown by geographical location
below:
2025 2024
Revenue £'000 £'000
United Kingdom 116,804 95,394
Other - 214
116,804 95,608
The Group's assets are located entirely in the United Kingdom therefore; no
further geographical segments analysis is presented. The Group is organised
into operating segments, identified based on key revenue streams, as detailed
in the CEO's review.
The Group's revenue is analysed below between revenue from contracts with
customers and other sources which comprises interest income earned on
pawnbroking loans.
2025 2024
Revenue £'000 £'000
Contracts with customers 102,734 82,200
Pawnbroking interest income 14,070 13,408
116,804 95,608
Pawnbroking interest income is recognised over time as each loan progresses
whereas all other revenue is recognised at a point in time.
2025 2024
Revenue £'000 £'000
Pawnbroking 14,070 13,408
Purchases of precious metals 44,995 31,151
Retail jewellery sales 42,564 35,607
Foreign currency 14,671 14,879
Income from other financial services 504 563
Total revenue 116,804 95,608
Cost of sales 2025 2024
£'000 £'000
Pawnbroking (1,364) (1,751)
Purchases of precious metals (27,078) (19,329)
Retail jewellery sales (26,826) (22,314)
Foreign currency (824) (681)
Income from other financial services - -
Total cost of sales (56,092) (44,075)
Gross profit
2025 2024
£'000 £'000
12,706 11,657
Pawnbroking
Purchases of precious metals 17,917 11,822
Retail jewellery sales 15,738 13,293
Foreign currency 13,847 14,198
Income from other financial services 504 563
Total gross profit 60,712 51,533
Administrative expenses (*) (43,621) (39,068)
Finance costs (*) (882) (1,103)
Profit before tax 16,209 11,362
Revenue relating to the purchases of precious metals is currently from sales
to one bullion dealer. There is no reliance on key customers in other revenue
streams. Income from other financial services comprises of agency commissions.
(*) The Group is unable to meaningfully allocate administrative expenses, or
financing costs or income between the segments due to the fact all segments
operate from the same stores. Accordingly, the Group is unable to meaningfully
disclose an allocation of items included in the Consolidated Statement of
Comprehensive Income below gross profit, which represents the reported
segmental results.
In addition to the segmental reporting on products and services the Group also
manages each branch as a separate CGU and makes local decisions on that basis.
2025 2024
Other information £'000 £'000
Tangible & intangible capital additions (*) 923 2,967
Depreciation and amortisation (*) 4,165 4,055
Assets
Pawnbroking 16,087 15,220
Purchases of precious metals 8,694 5,708
Retail jewellery sales 32,480 24,296
Foreign currency 9,273 8,262
Income from other financial services 34 40
Unallocated (*) 24,526 28,159
91,094 81,685
Liabilities
Pawnbroking 575 494
Purchases of precious metals 652 2
Retail jewellery sales 2,647 1,771
Foreign currency 642 729
Income from other financial services 266 369
Unallocated (*) 23,416 24,714
28,198 28,079
(*) The Group cannot meaningfully allocate this information by segment due to
the fact that all segments operate from the same stores and the assets in use
are common to all segments.
Fixed assets and sterling cash and cash equivalents are therefore included in
the unallocated assets balance.
6. Finance costs
2025 2024
£'000 £'000
Interest on debts and borrowings 363 566
Lease charges (note 20) 519 537
882 1,103
7. Profit before taxation has been arrived at after charging/(crediting)
2025 2024
£'000 £'000
Items reported within cost of sales -
Cost of inventories recognised as an expense 53,904 41,643
Pawnbroking expected credit losses 1,364 1,751
Items reported within administrative expenses -
Depreciation of property, plant and equipment (note 11) 1,900 1,644
Depreciation of right-of-use assets (note 11) 2,135 2,270
Profit on disposal of right-of-use assets (note 11) (5) (48)
Amortisation of intangible assets (note 12) 130 141
Loss on disposal of property, plant and equipment (note 11) 54 49
Staff costs (note 9) 26,457 22,739
Foreign currency exchange losses 300 201
Auditor's remuneration - audit fees 211 195
Auditor's remuneration - non-audit fees 7 7
Short term lease payments 630 546
Share based payments (note 26) 513 504
8. Earnings per share
2025 2024
£'000 £'000
Profit for the year (£'000) 11,894 8,297
Weighted average number of shares in issue 32,132,695 31,805,807
Basic earnings per share (pence) 37.0 26.1
Weighted average number of dilutive shares 940,964 509,450
Effect of dilutive shares on earnings per share (pence)* (1.0) (0.4)
Fully diluted earnings per share (pence) 36.0 25.7
*All dilution relates to share options
9. Information regarding directors and employees
Directors' remuneration (£'000)
2025 2024
Emoluments Pension LTIP* Total Emoluments Pension LTIP* Total
Executive
Peter Kenyon 649 10 428 1,087 472 10 - 482
Martin Clyburn 499 10 349 858 352 10 - 362
Non-Executive
Andrew Meehan 40 - - 40 75 - - 75
Simon Herrick 73 - - 73 55 - - 55
Karen Ingham 52 - - 52 44 - - 44
Christopher Muir 1 44 - 45 - - - -
Total 1,314 64 777 2,155 998 20 - 1,018
*represents gains made by Directors on the exercise of share options
2025 2024
£'000 £'000
Included in administrative expenses:
Wages and salaries 22,545 20,034
Social security costs 2,806 1,710
Share option scheme 513 504
Pension costs 593 491
Total employee benefits expense 26,457 22,739
The average number of staff employed by the Group during the financial period
amounted to:
2025 2024
No. No.
Head office and management 143 148
Branch counter staff 693 679
836 827
10. Income tax
The major components of income tax expense are:
Consolidated Statement of Comprehensive Income
2025 2024
£'000 £'000
Current income tax:
Current income tax charge 4,239 3,100
Adjustments in respect of current income tax of previous year (85) (31)
4,154 3,069
Deferred tax:
Relating to origination and reversal of temporary differences 161 (4)
Income tax expense in the Statement of Comprehensive Income 4,315 3,065
A reconciliation between tax expense and the product of accounting profit
multiplied by the UK domestic tax rate is as follows:
2025 2024
£'000 £'000
Profit before income tax 16,209 11,362
UK corporation tax rate at 25% (2024: 25%) 4,052 2,841
Expenses not deductible for tax purposes 348 255
Prior period adjustment (85) (31)
Income tax reported in the Statement of Comprehensive Income 4,315 3,065
Deferred tax
Deferred tax relates to the following:
2025 2024
£'000 £'000
Deferred tax (assets) / liabilities
Accelerated depreciation for tax purposes 599 432
Other short-term differences (742) (274)
Deferred tax (assets) / liabilities (143) 158
Reconciliation of deferred tax (asset) / liabilities net
2025 2024
£'000 £'000
Opening balance as at 1 October 158 96
Deferred tax recognised in the Statement of Comprehensive Income 161 (4)
Other deferred tax (462) 66
Closing balance as at 30 September (143) 158
Factors affecting tax charge
The standard rate of UK corporation tax for the year was 25% (2024: 25%).
11. Property, plant and equipment
Freehold property Leasehold improvements Fixtures & Fittings Computer equipment Motor vehicles Total
£'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 October 2023 695 8,111 4,838 609 73 14,326
Additions - 1,633 767 148 28 2,576
Acquisition - - 20 - - 20
Disposals - (135) (369) (209) - (713)
At 1 October 2024 695 9,609 5,256 548 101 16,209
Additions - 480 367 76 - 923
Disposals - (133) (273) (135) (27) (568)
At 30 September 2025 695 9,956 5,350 489 74 16,564
Depreciation
At 1 October 2023 25 3,809 2,306 219 18 6,377
Depreciation charge for the year 14 895 605 116 14 1,644
Disposals - (135) (342) (188) - (665)
At 1 October 2024 39 4,569 2,569 147 32 7,356
Depreciation charge for the year 14 1,144 612 113 17 1,900
Disposals - (131) (243) (112) (19) (505)
At 30 September 2025 53 5,582 2,938 148 30 8,751
Net book value
At 30 September 2025 642 4,374 2,412 341 44 7,813
At 30 September 2024 656 5,040 2,687 401 69 8,853
Right-of-use assets
Cost Leasehold property
At 1 October 2023 14,772
Additions 3,039
Disposals (2,031)
At 1 October 2024 15,780
Additions 1,119
Disposals (888)
At 30 September 2025 16,011
Depreciation
At 1 October 2023 5,157
Depreciation charge for the year 2,270
Disposals (1,713)
At 1 October 2024 5,714
Depreciation charge for the year 2,135
Disposals (769)
At 30 September 2025 7,080
Net book value
At 30 September 2025 8,931
At 30 September 2024 10,066
12. Intangible assets
Customer relationships Website Goodwill Total
£'000 £'000 £'000 £'000
Cost
At 1 October 2023 2,438 105 526 3,069
Acquisition 177 - 194 371
At 1 October 2024 2,615 105 720 3,440
Acquisition - - - -
At 30 September 2025 2,615 105 720 3,440
Amortisation
At 1 October 2023 2,228 95 73 2,396
Amortisation charge for the year 136 5 - 141
At 1 October 2024 2,364 100 73 2,537
Amortisation charge for the year 125 5 - 130
At 30 September 2025 2,489 105 73 2,667
Net book value
At 30 September 2025 126 - 647 773
At 30 September 2024 251 5 647 903
13. Investments
The Group has a minor holding in Big Screen Productions 5 LLP.
Big Screen Productions 5 LLP, whilst still trading, has wound down its
operations and made a capital distribution equivalent to the value of the
carrying value of the investment in 2015. The investment now has a £nil
carrying value.
Group Investments
Details of the investments in which the group and company holds 20% or more of
the nominal value of any class of share capital are as follows:
Name of company Holding Proportion of voting rights and shares held Activity
Subsidiary undertaking
Ramsdens Financial Limited Ordinary Shares 100% Supply of foreign exchange services, pawnbroking, purchase of precious metals,
jewellery retail and other financial services.
(Registered office: 16 Falcon Court, Preston Farm Industrial Estate,
Stockton-on-Tees, TS18 3TS)
14. Financial assets and financial liabilities
At 30 September 2025 Financial assets at amortised cost Financial liabilities at amortised cost Book value Fair value
£'000 £'000 £'000 £'000
Financial assets
Trade and other receivables 17,567 - 17,567 17,567
Cash and cash equivalents 15,361 - 15,361 15,361
Financial liabilities
Trade and other payables - (10,119) (10,119) (10,119)
Interest bearing loans and borrowings - (8,413) (8,413) (8,413)
Lease liabilities - (8,635) (8,635) (8,635)
Net financial assets/(liabilities) 32,928 (27,167) 5,761 5,761
At 30 September 2024 Financial assets at amortised cost Financial liabilities at amortised cost Book value Fair value
£'000 £'000 £'000 £'000
Financial assets
Trade and other receivables 15,708 - 15,708 15,708
Cash and cash equivalents 15,782 - 15,782 15,782
Financial liabilities
Trade and other payables - (7,508) (7,508) (7,508)
Interest bearing loans and borrowings - (8,387) (8,387) (8,387)
Lease liabilities - (9,678) (9,678) (9,678)
Net financial assets/(liabilities) 31,490 (25,573) 5,917 5,917
Financial assets at amortised cost shown above comprises trade receivables,
other receivables and pledge accrued income as disclosed in note 16.
Trade and other payables comprise of trade payables, other payables as
disclosed in notes 18 and 19.
Loans and receivables are non-derivatives financial assets carried at
amortised cost which generate a fixed or variable interest income for the
Group. The carrying value may be affected by changes in the credit risk of the
counterparties.
Management have assessed that for cash and cash equivalents, trade
receivables, trade payables, bank overdrafts and other current liabilities
their fair values approximate to their carrying amounts largely due to the
short-term maturities of these instruments. Book values are deemed to be a
reasonable approximation of fair values.
Financial risks
The Group monitors and manages the financial risks relating to the financial
instruments held. The principal risks include credit risk on financial assets,
and liquidity and interest rate risk on financial liability borrowings. The
key risks are analysed below.
Credit risk
Pawnbroking loans
Pawnbroking loans are not credit impaired at origination as customers are
expected to repay the capital plus interest due at the contractual term. As a
pawnbroking loan has a single repayment, an increase in credit risk occurs at
the point the loan becomes overdue. Once overdue the loan is classified as in
default and interest income is accrued net of expected credit losses. The
Group is exposed to credit risk through customers defaulting on their loans.
The key mitigating factor to this risk is the requirement for the borrower to
provide security (the pledge) in entering a pawnbroking contract. The security
acts to minimise credit risk as the pledged item can be disposed of to realise
the loan value on default.
The Group estimates that the current fair value of the security is equal to
the current book value of pawnbroking receivables.
In addition to holding security, the Group further mitigates credit risk by:
1) Applying strict lending criteria to all pawnbroking loans. Pledges are
rigorously tested and appropriately valued. In all cases where the Group
lending policy is applied, the value of the pledged items is in excess of the
pawn loan.
2) Seeking to improve redemption ratios. For existing customers, loan history
and repayment profiles are factored into the loan making decision. The Group
has a high customer retention ratio and all customers are offered high
customer service levels.
3) The carrying value of every pledge comprising the pawnbroking loans is
reviewed against its expected realisation proceeds should it not be redeemed
and expected credit losses are provided for based on current and historical
non redemption rates.
The Group continually monitors, at both store and at Board level, its internal
controls to ensure the adequacy of the pledged items. The key aspects of this
are:
- Appropriate details are kept on all customers the Group transacts with;
- All pawnbroking contracts comply with the Consumer Credit Act 2006;
- Appropriate physical security measures are in place to protect pledged
items; and
- An internal audit department monitors compliance with policies at the
Group's stores.
Expected credit losses
The Group measures loss allowances for pawnbroking loans using IFRS 9 expected
credit losses model. The Group's policy is to begin the disposal process one
month after the loan expiry date unless circumstances exist indicating the
loan may not be credit impaired.
2025
2024
Category Gross amount Loss allowance Net carrying amount Gross amount Loss allowance Net carrying amount
£'000 £'000 £'000 £'000 £'000 £'000
Performing 12,757 (254) 12,503 11,822 (202) 11,620
Default 4,474 (890) 3,584 4,626 (1,026) 3,600
Total 17,231 (1,144) 16,087 16,448 (1,228) 15,220
The pawnbroking expected credit losses which have been provided on the period
end pawnbroking assets are:
Pawnbroking loans
£'000
At 1 October 2023 1,264
Statement of Comprehensive Income charge 1,751
Utilised in the period (1,787)
At 30 September 2024 1,228
Statement of Comprehensive Income charge 1,364
Utilised in period (1,448)
At 30 September 2025 1,144
A 1% increase/(decrease) in the Group's redemption ratio is a reasonably
possible variance based on historical trends and would result in an impact on
Group pre-tax profit of £9k/(£9k). A one month increase/(decrease) in the
Group's time to sell assumption is a reasonably possible variance based on
historical trends and would result in an impact on Group pre-tax profit of
(£135k)/£135k.
Cash and cash equivalents
The cash and cash equivalents balance comprise cash at banks and on hand,
foreign currency held for resale and short-term deposits held with banks with
a maturity of three months or less from inception. The bank balances are
subject to very limited credit risk as they are held with banking institutions
with high credit ratings assigned by international credit rating agencies. The
cash floats are subject to risks similar to any retailer, namely theft or loss
by employees or third parties. These risks are mitigated by the security
systems, policies and procedures that the Group operates at each store, the
Group recruitment and training policies and the internal audit function.
Market risk
Pawnbroking trade receivables
The collateral which protects the Group from credit risk on non-redemption of
pawnbroking loans is principally comprised of gold, jewellery items and
watches. The value of gold items held as security is directly linked to the
price of gold. The Group is therefore exposed to adverse movements in the
price of gold on the value of the security that would be attributable for sale
in the event of default by the borrower.
The Group considers this risk to be limited for a number of reasons. First of
all, the Group applies conservative lending policies in pawnbroking pledges
reflected in the margin made on retail sales and scrap gold when contracts are
forfeited. The Group is also protected due to the short-term value of the
pawnbroking contract. In the event of a significant drop in the price of gold,
the Group could mitigate this risk by reducing its lending policy on
pawnbroking pledges, by increasing the proportion of gold sold through retail
sales or by entering gold hedging instruments. Management monitors the gold
price on a constant basis.
Considering areas outside of those financial assets defined under IFRS 9, the
Group is subject to higher degrees of pricing risk. The price of gold will
affect the future profitability of the Group in three key ways:
i) A lower gold price will adversely affect the scrap
disposition margins on existing inventory, whether generated by pledge book
forfeits or direct purchasing. While scrap profits will be impacted
immediately, retail margins may be less impacted in the short term.
ii) While the Group's lending rates do not track gold price
movements in the short term, any sustained fall in the price of gold is likely
to cause lending rates to fall in the longer term thus potentially reducing
future profitability.
iii) A lower gold price may reduce the attractiveness of the
Group's gold purchasing operations.
Conversely, a lower gold price may dampen competition as lower returns are
available and hence this may assist in sustaining margins and volumes.
Financial assets
The Group is not exposed to significant interest rate risk on the financial
assets, other than cash and cash equivalents, as these are lent at fixed
rates, which reflect current market rates for similar types of secured or
unsecured lending, and are held at amortised cost.
Cash and cash equivalents are exposed to interest rate risk as they are held
at floating rates, although the risk is not significant as the interest
receivable is not significant.
The foreign exchange cash held in store is exposed to the risks of currency
fluctuations. The value exposed is mainly in Euro and US dollars. There is
the daily risk of buying today, receiving the currency the next day, and
subsequently selling it and being susceptible to movements in the exchange
rate. The Group uses monthly forward contracts to hedge against adverse
exchange rate movements in its two key currencies, Euros and US dollars. There
are no contracts in place at the year-end (2024: none). A 1% adverse movement
in exchange rates would result in a reduction to cash and cash equivalents of
£93,000.
Liquidity risk
Cash and cash equivalents
Bank balances are held on short term / no notice terms to minimise liquidity
risk.
Trade and other payables
Trade and other payables are non-interest bearing and are normally settled on
up to 60-day terms, see note 18.
Borrowings
The maturity analysis of the undiscounted cash flows from the Group's
borrowing arrangements that expose the Group to liquidity risk are as follows:
As at 30 September 2025 <3 months £'000 3-12 months £'000 1-5 years £'000 >5 years £'000 Total
£'000
Lease liabilities 663 1,877 6,251 1,173 9,964
Trade payables 3,814 - - - 3,814
Interest bearing loans and borrowings 8,500 - - - 8,500
Total 12,977 1,877 6,251 1,173 22,278
As at 30 September 2024 <3 months £'000 3-12 months £'000 1-5 years £'000 >5 years £'000 Total
£'000
Lease liabilities 638 1,857 7,016 1,745 11,256
Trade payables 3,257 - - - 3,257
Interest bearing loans and borrowings 8,500 - - - 8,500
Total 12,395 1,857 7,016 1,745 23,013
Interest bearing loans and borrowings relate to the Group's revolving credit
facility with Bank of Scotland PLC. Each individual drawdown constitutes a
short-term borrowing with typically a maturity period of one month from the
date of issue. The interest charged on bank borrowings is based on a fixed
percentage above Bank of England base rate. There is therefore a cash flow
risk should there be any upward movement in base rates. Assuming the
£15million revolving credit facility was fully utilised then a 1% increase in
the base rate would increase finance costs by £150,000 pre-tax and reduce
post-tax profits by £112,500.
15. Inventories
2025 2024
£'000 £'000
New and second-hand inventory for resale (at lower of cost or net realisable 39,749 29,649
value)
16. Trade and other receivables
2025 2024
£'000 £'000
Trade receivables - pawnbroking 16,087 15,220
Trade receivables - other 1,471 484
Other receivables 9 4
Prepayments 657 724
18,224 16,432
Trade receivables - pawnbroking is disclosed net of expected credit losses,
details of which are shown in note 14.
17. Cash and cash equivalents
2025 2024
£'000 £'000
Sterling cash and cash equivalents 6,099 7,602
Other currency cash and cash equivalents 9,262 8,180
15,361 15,782
Cash and cash equivalents comprise cash held by the Group and short-term bank
deposits.
Further details on financial instruments, including the associated risks to
the Group and allowances for expected credit losses is provided in note 14.
18. Trade and other payables (current)
2025 2024
£'000 £'000
Trade payables 3,814 3,257
Other payables 910 805
Other taxes and social security 1,031 617
Accruals 3,634 2,513
Contract liabilities 646 33
Subtotal 10,035 7,225
Lease liabilities (note 20) 2,443 2,350
Interest bearing loans and borrowings 8,413 8,387
Income tax liabilities - 1,731
20,891 19,693
Terms and conditions of the above financial liabilities:
· Trade and other payables are non-interest bearing and are normally
settled on up to 60-day terms
· Trade and other payables include amounts received from customers in
relation to layby jewellery purchases of £1,673,000 (2024: £1,174,000).
Materially all of the prior year balance was released to revenue in the
current year.
For explanations on the Group's liquidity risk management processes, refer to
note 14.
Bank borrowings
Details of the Group's revolving credit facility are as follows:
Key Term Description
Facility Revolving Credit Facility with Bank of Scotland PLC
Total facility size £15m
Termination date March 2029
Utilisation The £15m facility is available subject to financial covenants covering:
- the ratio of total debt to EBITDA
- the ratio of cash at bank/in hand (inclusive of currency balances)
to total debt
- the ratio of the sum of cash at bank/in hand (inclusive of currency
balances) and jewellery/precious metals value to total debt
Interest Interest is charged on the amount drawn down at 2.15% above base rate when the
initial drawdown is made. For unutilised funds interest is charged at 0.7525%
from the date when the facility was made available
Interest Payable Interest is payable at the end of a drawdown period which is typically between
one and three months
Repayments The facility can be repaid at any point during its term and re-borrowed
Security The facility is secured by a debenture over all the assets of Ramsdens
Financial Limited and cross guarantees and debentures have been given by
Ramsdens Holdings PLC
Undrawn facilities At 30 September 2025 the Group had available £6.5m of undrawn committed
facilities
19. Non-current liabilities
2025 2024
£'000 £'000
Lease liabilities (note 20) 6,192 7,328
Deferred tax (note 10) - 158
Provisions (note 21) 1,115 900
7,307 8,386
20. Changes in liabilities arising from financing activities
Lease liabilities Bank borrowings
£'000 £'000
As at 1 October 2023 10,123 7,983
Cash flows
Financing cash flows (3,117) 500
Interest paid (537) (662)
Non-cash flows
New leases 3,039 -
Disposed leases (367) -
Interest expense 537 566
As at 1 October 2024 9,678 8,387
Cash flows
Financing cash flows (2,038) -
Interest paid (519) (337)
Non-cash flows
New leases 1,119 -
Disposed leases (124) -
Interest expense 519 363
As at 30 September 2025 8,635 8,413
Short term lease payments recognised in administrative expenses in the year
total £630,000 (2024: £546,000). The maturity analysis of lease liabilities
is disclosed in note 14, the finance cost associated with lease liabilities is
disclosed in note 6, and the depreciation and impairment of right-of-use
assets associated with lease liabilities are disclosed in note 11.
21. Provisions
Reinstatement provision
£'000
At 1 October 2024 900
Statement of Comprehensive Income charge 246
Utilised in the period (31)
At 30 September 2025 1,115
The Group provides for the reinstatement cost of returning leased properties
to their original state. Further details are included in note 4.1.
22. Issued capital and reserves
Ordinary shares issued and fully paid No. £'000
At 30 September 2024 31,896,632 319
Issued during the year 459,150 5
At 30 September 2025 32,355,782 324
Capital risk management
The Group manages its capital to ensure that entities in the Group will be
able to continue as going concerns while maximising the return to stakeholders
through the optimisation of the debt and equity balance. The capital structure
of the Group consists of cash and cash equivalents and equity attributable to
the equity holders of the parent, comprising issued capital, reserves and
retained earnings. The Group has a debt facility as disclosed in note 18.
23. Dividends
Amounts recognised as distributions to equity holders in the year:
2025 2024
£'000 £'000
Final dividend for the year ended 30 September 2024 of 7.6p per share 2,436 2,252
(year ended 30 September 2023 of 7.1p per share)
Interim dividend for the year ended 30 September 2024 of 3.6p per share 1,148 1,046
(year ended 30 September 2023 of 3.3p per share)
3,584 3,298
Amounts paid and not recognised:
Interim dividend for the year ended 30 September 2025 of 5.0p per share 1,618 1,148
(comprising 4.5p ordinary dividend and 0.5p special dividend paid in October
2025)
(year ended 30 September 2024 of 3.6p per share paid in October 2024)
Amounts proposed and not recognised:
Final dividend for the year ended 30 September 2025 of 11.0p per share 3,559 2,424
(comprising 9.0p ordinary dividend and 2.0p special dividend)
(year ended 30 September 2024 of 7.6p per share)
The proposed final dividend is subject to approval at the Annual General
Meeting and accordingly has not been included as a liability in these
financial statements.
24. Pensions
The Group operates a defined contribution scheme for its directors and
employees. The assets of the scheme are held separately from those of the
Group in an independently administered fund.
The outstanding pension contributions at 30 September 2025 are £101,000
(2024: £93,000)
25. Related party disclosures
Ultimate controlling party
The Company has no controlling party.
Transactions with related parties
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
Transactions with key management personnel
The remuneration of the directors of the Company, who are the key management
personnel of the Group, is set out below in aggregate:
2025 2024
£'000 £'000
Emoluments 1,314 998
Post employment benefits 64 20
Share based payments 241 224
1,619 1,242
26. Share based payments
The Group operates a Long-term Incentive Plan (LTIP) and Company Share Option
Plan (CSOP). The charge for the year in respect of the schemes was:
2025 2024
£'000 £'000
LTIP 470 446
CSOP 43 58
513 504
The LTIP is a discretionary share incentive scheme under which the
Remuneration Committee of Ramsdens Holdings PLC can grant options to purchase
ordinary shares at nominal 1p per share cost to Executive Directors and other
senior management. A reconciliation of LTIP options is set out below:
Number of conditional Shares Weighted average exercise price in pence
Outstanding at the beginning of the year 1,186,250
Granted during the year 290,000
Lapsed/Forfeited during the year (33,100)
Exercised during the year (459,150) 1
Outstanding at the end of the year 984,000
The options vest according to the achievement against two criteria:
Total Shareholder Return - TSR - 50% of options awarded
Earnings per Share - EPS - 50% of options awarded
The fair value of services received in return for share options granted is
based on the fair value of share options granted and are measured using the
Monte Carlo method for TSR performance condition as this is classified as a
market condition under IFRS2 and using the Black Scholes method for the EPS
performance condition which is classified as a non- market condition under
IFRS2. Volatility has been calculated based on the historical volatility of
the Group's shares over a 2.5 year period. The fair values have been computed
by an external specialist and the key inputs to the valuation model were:
TSR condition EPS condition TSR condition EPS condition TSR condition EPS condition
Model Monte Carlo Black Scholes Monte Carlo Black Scholes Monte Carlo Black Scholes
Grant date 24/04/25 24/04/25 18/04/24 18/04/24 05/04/23 05/04/23
Share price £2.49 £2.49 £2.00 £2.00 £2.30 £2.30
Exercise price £0.01 £0.01 £0.01 £0.01 £0.01 £0.01
Vesting period 2.5 years 2.5 years 2.5 years 2.5 years 2.5 years 2.5 years
Risk free return 3.68% 3.68% 4.4% 4.4% 3.5% 3.5%
Volatility 29.5% 29.5% 31.9% 31.9% 33.6% 33.6%
Dividend yield 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Fair value of option (£) 0.94 2.20 0.73 1.76 0.98 2.02
Early exercise of the options is permitted if a share award holder ceases to
be employed by reason of death, injury, disability, or sale of the Group. The
maximum term of the share options is 10 years.
The CSOP is a discretionary share incentive scheme under which the
Remuneration Committee of Ramsdens Holdings PLC can grant options to purchase
ordinary shares at an agreed exercise price subject to certain conditions.
The CSOP schemes in place at 30 September 2025 were as follows:
Grant date Exercise price (pence) Number of share options (after forfeits) Earliest date of exercise Expiry date
CSOP 2023 05/04/2023 230.00 142,500 05/04/2026 05/04/2033
CSOP 2024 18/04/2024 205.00 142,500 18/04/2027 18/04/2034
27. Off Balance Sheet commitments
Prior to the financial year end the Group entered into an agreement with its
bullion dealer in the ordinary course of business to deliver 35kg of precious
metals at an agreed price. At the financial year end 23kg of precious metals
were outstanding and remained subject to the agreed price. Following delivery
of the precious metals after the year-end cash flows of approximately £1.9m
were generated.
28. Post Balance Sheet Events
There were no post balance sheets events that require further disclosure in
the financial statements.
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. END FR AKNBDCBKDPDD
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