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(Sharecast News) - Ramsdens lifted its full-year profit outlook on Thursday as the pawnbroker announced it has agreed to an improved takeover bid from US rival FirstCash.
FirstCash increased its offer from 600p a share to 675p a share in cash, valuing Ramsdens at 232m. This represents a 49% premium to the closing share price on 22 June, before the initial bid was made.
News of the sweetened offer came as Ramsdens upgraded its profit outlook for the year to 30 September 2026.
The company said in June that it was expecting pre-tax profit of around 30m to 33m. However, given continued strong trading and taking into account recent volatility in the gold price, it now expects FY profit of between 32m and 35m.
Ramsdens said that while the gold price has fallen by more than 20% from its peak in January, it remains elevated versus 2025. "The weight of gold being purchased in recent weeks has fallen marginally against 2026 weekly run rate levels however due to the gold already purchased and in the process of being sold to our bullion dealers, the year-end out turn for the purchase of precious metals segment will be higher than previously anticipated," it said.
The company also said that demand for pawnbroking loans has remained robust, with June another record month for new lending. In the last six weeks since reporting the May 2026 loan book figure of 14.5m, the loan book has increased by around 1m to 15.5m.
Ramsdens said the interest derived from this loan book growth will be ahead its previous expectations for this year and will also be positive into FY27.
Chief executive Peter Kenyon said: "The foundations of the group are strong. We are continuing to trade well, maximising the opportunity of trading with a favourably high gold price but knowing that our diversified financial services are all contributing to the group's ongoing success.
"The investment in our new store opening program is going well. Hereford and Skegness have recently opened, Newark and Peterborough are in shop fit and we have completed the lease formalities in Corby and St Helens with shop fitting to start shortly."
At 1250 BST, the shares were 13% higher at 664.88p.
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