Ramsdens has seen its gross profit jump by 20% year-on-year as a result of demand for pawnbroking loans and the increase in the price of gold.

In the financial services provider’s full year results to 30 September 2023, the group said that higher living costs have resulted in more customers looking for short term credit.

Revenue jumped by 27% from £66.1m in 2022 to £83.8m in 2023, with profit before tax also increasing by 22% to £10.1m in the same period.

The number of new customers increased by 11% year-on-year, with the firm now operating 165 stores within the UK, including franchised stores.

Ramsdens revealed that the average loan size at the end of September was £325, up from £303 at the same period on 2022.

Furthermore, jewellery sales increased by almost a quarter year-on-year as there was more consumer demand for new and second hand items.

Chief executive at Ramsdens, Peter Kenyon, said: "Ramsdens has had a great year, delivering a milestone profit in excess of £10m.

"I am hugely grateful for the Ramsdens team's dedication and commitment and wish to publicly thank them for their efforts and success. We also recognise their efforts with company-wide bonus schemes and by paying the real living wage (RLW) as our entry level pay which will continue in FY24.

"While we are very conscious of the tough economic conditions and the cost pressures of energy pricing, increased interest rates, and paying the RLW, we have confidence that our long-term strategy, which remains unchanged, will deliver long-term benefits for all stakeholders."

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