H&T on track for full year
Pawnbroker H&T Group has said it expects its full year profits to be in line with current expectations despite the continuing lower price of gold.
In a trading update prior to its interim results announcement for the six months to 30 June, H&T said it believed it had taken the necessary steps over the last two years to help the business succeed until market conditions in the pawnbroking sector improve.
H&T’s pledge book at 30 June 2015 was £37.4 million compared to £38.5 million at the same time in the previous year. H&T said the reduction was due to improved redemption rates which, combined with the increase in interest rates in December 2013, had improved the yield and resulted in a small increase in interest income year-on-year.
The group said its retail business had performed well with sales and gross profits ahead of the prior year. H&T has closed one store this year and had 190 trading units at the end of June. The group expects to close a small number of additional stores during the remainder of the year as it takes advantage of lease breaks.
H&T said the number of stores in the sector continues to reduce as a result of the trading environment and changing regulation, and it expects this trend to continue during the remainder of the year. It added: “The board believes that the group is well positioned to take advantage of this changing marketplace as and when opportunities arise.”
