LONDON (ShareCast) - (ShareCast News) - Pawnbroker H&T Group reported an increase in interim pre-tax profit and dividend despite a fall in revenues.
In a statement released on Tuesday, the group, which operates the H&T Pawnbrokers and est1897 brands, said its pre-tax profit in the six months to 30 June rose 30% year-on-year to £2.6m, while debt fell 34% to £8.9m.

Revenue fell 6.8% to £40.8m but the decline was offset by a strong improvement in gross margins, as cost of sales declined 18.6% year-on-year to £17.9m.

H&T said the surge in profit was driven by a steady growth in its retail, personal loans and other services, on the back of a number of investments the group completed in the period.

The London-listed company reported a 2.9% decline in its pledge book to £37.4m, although that was offset by its improved pricing and discounting strategy, which ensured retail profit grew in the period.

Group chief executive John Nichols said that while the first half performance was positive, the trading conditions remained challenging, even though competition was on the vane, due to the number of competitors' stores closing.

"Fluctuations in the gold price inevitably impact the group's financial performance," he said.

"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."

Nichols added the group, which hiked its interim dividend by 67% to 3.5p per share, expected its full year results to be in line with market expectations.

H&T shares were down 0.56% to 194.90p at 1027 BST on Tuesday.

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