Why Ramsdens is well-placed to keep growing when the pandemic ends

Ramsdens has announced its unaudited preliminary results for the 18-month period to 30 September 2020, following the previously announced change of the group's accounting reference date from the end of March.

The company said it delivered strong growth in the 12 months to March 2020 and a profitable performance over the final six-months, despite the impact of Covid-19.

Ramsdens recorded revenue of £76.9m for the period; which included revenue growth of 27% for the comparable 12 months to the end of March 2020.

Profit before tax of £9.2m was recorded for the 18-month reporting period. The profit before tax growth was 30% for the year to the end of March.

Ramsdens said it was continuing to make progress in jewellery retail with £1.9m of e-commerce sales in the period, representing 9% of all jewellery items sold.

The company said that 40% of online jewellery sales were now made to customers living outside the natural catchment area of the store network.

Before the impact of COVID-19, during the year to March 2020, a record of number of around 784,000 customers used the group's foreign currency service.

Peter Kenyon, the chief executive, commented: "The 18-month period covered by this statement can be broken down into two distinct sections.

"Firstly, Ramsdens delivered its strongest ever 12-month performance prior to the impact of COVID-19 when the business achieved further growth and made strategic progress across each of its income streams.

"The subsequent impact of COVID-19 and the enforced closures of stores and restrictions on international travel demonstrated the resilience of our diversified business model. Despite the significant headwinds experienced since March as a result of the pandemic, we have continued to trade profitably and maintain a strong cash position.

"The credit for the group's performance and continued progress despite these truly unprecedented conditions must go to our committed team and loyal customers. I would like to thank everyone in the Ramsdens community for their fantastic support during this period.

"As we move into 2021, a lot of uncertainties remain. However, there are promising signs in the form of a vaccine and - whatever the outcome is - we will have greater clarity regarding what Brexit means for consumers and businesses.

"Whilst the pandemic has had an unimaginable impact on communities and companies across the UK, we remain very confident that underpinned by our great value customer proposition, strong balance sheet and diversified model, we remain well positioned to continue our growth trajectory as normality resumes."

Headquartered in Middlesbrough, the group operates from 157 stores within the UK and has a growing online presence. Ramsdens employs 85 staff in 26 stores in Yorkshire.

Mr Kenyon said the company's shops Barnsley and Rotherham are set to be relocated in early 2021, and there has been positive trading in York, Leeds, Keighley and Bradford.

He said there are no plans to open new stores in Yorkshire, although the firm will revisit its growth plans "when we have a sense of normality".

Speaking to The Yorkshire Post in August, Mr Kenyon said; “When I started in the pawnbroking sector it had a slightly Dickensian image. The blinds were closed in the stores. One of the first things I did was open the blinds and make the shops bright and airy. They are now in the centre of the high street and not in the back street.”

He added: “Two per cent of the population use pawnbrokers. If you use a pawnbroker you don’t need to be worried about debt and it doesn’t affect your credit rating.

“It is a very simple, transparent face to face service,. Most people pay their loans back. We can help while people are facing gaps in employment or short term problems with cash flow.

“We help to put food on the table. It gets customers through to pay day.”