H&T Pawnbrokers has seen its revenue rise in the first six months of 2015, with profits up 30% before tax and retail sales up 1.5%.
Profits before tax are up 30% to £2.6 million, while net debt has fallen by 34% to £8.9m. However, the Group’s pledge book decreased by 2.9% to £37.4m in the first six months – shining a light on H&T’s retail focus.
Retail improvement is deemed a direct result of H&T’s Est1897 Discount Secondhand stores across the country, which saw sales increase by 1.5% to £13.4m in the first six months of 2015.
John Nichols, chief executive of H&T Group comments: “We are pleased with the improved performance and ongoing development of the Group in the first half of the year. The trading environment remains challenging although the competitive landscape is now easing with the continued closure of competitors’ stores.
“The 30% increase in profit before tax in the first half is encouraging, driven by the stabilisation of pawnbroking income and growth in retail, personal loans and other services. This growth was achieved through continued investment in our people to support the development of new initiatives and systems.
“Fluctuations in the gold price inevitably impact the Group’s financial performance. Our evolving business model, with a strong focus on the development of our retail offering as well as the broadening of our other product offerings and services, is helping us to mitigate the impact of gold price volatility. Allowing for the recent reduction in gold price, we currently expect the full year results to be broadly in line with current market expectations.”
As of June 30 2015, H&T has 190 trading units across the UK.