Ramsdens (AIM:RFX) is now on track to post record annual earnings in the 12 months to September 2026 after a strong first half and a fourth profit-forecast upgrade in five months, something thats cheered by brokers.
Russ Mould, investment director at AJ Bell, in a note, said a soaring gold price as a major contributor but says the upside also rests on operational momentum, with first‑half pre‑tax of £16.7m topping the £16.2m achieved in the year to September 2025 and management raising guidance to £30m–£33m while jewellery sales are up by more than a quarter and pawnbroking profits and the pledge book continue to grow even as foreign‑exchange volumes soften.
Mould highlights balance‑sheet resilience, net debt of £6.1m, cash of £12.8m matched by the in‑date portion of the pledge book, and flags a special dividend and a higher interim payment as signs of board confidence, noting a measured plan to add eight to twelve stores and contrasting that with the overreach that sank Albemarle & Bond; he also points out Ramsdens trades on barely seven times implied earnings versus the c.12x implied by FirstCash’s 661p takeover of H&T in 2025, suggesting valuation upside if momentum holds.
"That lowly rating suggests there could be further upside in Ramsdens' shares even from here," says Russ Mould, AJ Bell, and he says the view will be tested by whether the gold price regains upward momentum and management can sustain low‑risk growth in lending through the rest of the year to September.
