Ramsdens continues to benefit from gold boom but currency exchange suffers

Ramsdens has recorded strong profit and revenue growth thanks to the gold boom, but its currency exchange service suffered as more customers move digitally.

The retailer and financial services provider reported a 43% jump in its pre-tax profits, from £11.4 million to £16.2 million for the year to September 30 2025, while revenue increased by 22% to £116.8 million.

Its jewellery retail and pawnbroking arms were key drivers of this growth, where gross profit increased by 18% and 9%, respectively.

This was driven by “continued benefit from (the) sustained high gold price”, the firm said.

However, foreign currency gross profit decreased 3% to £13.8 million, “as more customers migrated to online ordering and currency cards” on its platform.

Peter Kenyon, chief executive of Ramsdens, hailed the company’s “highly relevant customer proposition” and highlighted its intention to “strengthen our online proposition”, as foreign currency takes a hit.

Gold, which is considered a safe haven asset as it carries less risk than other investments, has shot up in price by about 70% over the past year.

On Monday, the metal climbed to a high of 4,600 US dollars (£3,415) per ounce, beating a previous record set in late December.

In June, Ramsdens said the soaring price of gold was prompting more people to “clear out” their jewellery boxes, bolstering its profits.

The Middlesbrough-based chain also provided an update on its first-quarter results on Wednesday, which followed a similar pattern.

Gross profit for the purchase of precious metals specifically increased by more than 50% for the period.

Its currency exchange service saw a sharper drop, however, decreasing by 5% year-on-year.

The company had a particularly strong retail performance in October, as more people bought gold coins.

Gold coins are free from capital gains tax, making them particularly profitable for consumers.

Looking forward to 2026, the firm said it expects a pre-tax profit of around £18 million, but warned rising employment costs may have an impact on its business.

Owing to the company’s strong performance this year, Mr Kenyon said it will be aiming to open eight to 12 new stores in the year ahead.