Shares of Middlesbrough-based pawnbroker and foreign currency exchange Ramsdens Holdings plc rose 18% after it said in a trading update it expects its interim and full year profit before tax to be significantly ahead of market expectations.

Ramsdens said its strong foreign exchange results in the early summer months gained additional momentum through the traditional peak period of July and August.

Further, the group said it is benefiting from its jewellery retail initiatives and these, along with the continued strong gold price, has helped the precious metals buying and pawnbroking segments of its business.

“As a result we expect our interim and full year profit before tax to be significantly ahead of market expectations,” said Ramsdens.

Ramsdens CEO Peter Kenyon said: “We are delighted to report a strong trading period across all the company’s core business segments and in particular a strong peak trading period for foreign exchange. 

“We have a trusted and recognised brand, a leading store portfolio, an exceptional team and a diversified offering.

“We look forward to further updating our stakeholders with our Interim Result results in late November.”