H&T profits impacted by volatile gold prices
Pawnbroking group H&T has warned that volatile gold prices will impact its pre-tax profits.
The group estimates that a 10% movement in the price of gold will reduce its pre-tax profit by around £2 million in the six months to end June.
In a statement, H&T said: “Overall results are inevitably impacted by the highly volatile gold price, and market consensus has not yet reflected price movements since the group last reported on 7 March 2013 when the gold price was £1,054.”
However, the group said it was pleased with its overall performance as recent new store openings had helped to build the pledge book in line with expectations. In addition, older stores have benefited from the recent interest rate stratification despite an increasingly competitive environment.
Never Miss a Retail Update!H&T’s pawn service charge for the 2013 financial year has also remained in line with expectations.
The group expects to report its interim results for the six months to 30 June 2013 on 20 August 2013.
