LONDON (ShareCast) - (Sharecast News) - Ramsdens shares popped on Wednesday after the pawnbroker, jewellery and currency exchange firm revealed record results for its first half on the back of gold prices hitting an all-time high.
The company said that, despite the additional hit from higher labour costs this year - owing to increases in national insurance contributions and the national living wage - full-year profits are now expected to exceed £15m, up from previous guidance of "at least £13m".

Revenues in the six months to 31 March totalled £51.6m, up 18% over the year before.

After Ramsdens buys unwanted jewellery, gold and other precious metals, they are either sold on second-hand - reflected in jewellery retail revenues - or smelted and sold to a bullion dealer, generating precious metals revenues.

With the average price of 9ct gold surging to £26.22 from £19.45 the year before, precious metals revenues were 31% higher at £18.4m, while jewellery retail revenues were up 18% at £20.7m.

Pre-tax profits for the half were up 54% year-on-year at a record £6.1m, leading the board to approve a 25% increase in the interim dividend to 4.5p per share.

"While all of our income streams achieved growth during the first half, our purchase of precious metals segment delivered an outstanding performance, with the well-publicised and sustained exceptionally high gold price encouraging more customers to sell unwanted jewellery," said chief executive Peter Kenyon.

"Looking ahead, the group is well placed with continued opportunities to grow. We have a strong balance sheet and good cash generation which provides options to how we allocate our capital."

Shares were 7.6% higher at 355p by 1102 BST, pushing the year-to-date gain to over 52%.

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