StockMarketWire.com - Pawn broker Ramsdens said travel restrictions imposed to limit the spread of the coronavirus had hit its foreign exchange business.

At the same time, it said its pawnbroking and gold buying business could benefit as people encounter cash-flow problems.

The company said it expects its pre-tax profit for the year through March 2019 to be in line with its guidance.

However, it had experienced a significant decline in customer demand for foreign exchange over recent weeks.

'The extent of the future impact from COVID-19 on this income stream is difficult to predict but will result in a material reduction in FX revenues in the near term,' Ramsdens said.

As for its 2021 financial year outlook, the company said it was not possible to to provide meaningful guidance on financial performance.

'The board continues to assess the impact of COVID-19 in particular and the uncertain macro-economic background in general on its business and is planning accordingly,' it added.

'The group benefits from diversified income streams and a strong balance sheet, including approximately £10m of cash and an undrawn £10m revolving credit facility.'

Chief executive Peter Kenyon said that given economic uncertainty, the company anticipated an increasing need for its pawnbroking and gold buying services to support customers through potential short-term cash flow difficulties.

'Our store expansion plans are under review as we continue to assess the government's ongoing response to controlling the virus and efforts to support the economy,' he added.


At 1:55pm: [LON:RFX] Ramsdens Holdings Plc share price was -11p at 80p



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