H&T Group PLC (AIM:HAT) has reported 22% growth in pawnbroking loans to £128mln in the first half of the year as well as “growing momentum” into the second half.
The company's pledge book stood at roughly £113mln at the end of June, up 12% since the end of December and ahead over 32% since a year ago.
Jewellery and watch sales rose 10% by value, helped by what it said was “particularly positive progress” in sales that originated online.
Profit margins in jewellery were squeezed during the half year but were said to be substantially offset by strong gold scrapping sales, with gold prices not far off recent record highs.
Jewellery margins are expected to improve in the second half after the promised increase in sale prices, H&T said.
A 19% increase was reported in foreign exchange transaction volumes, hitting record levels, with momentum said to be building thanks in part to the launch of an FX click-and-collect service in June.
In the trading update, H&T chief executive Chris Gillespie said: “I am very pleased with the progress we have made in the first half of 2023 in an environment of rising interest rates and persistent inflation. I am particularly encouraged by the growing momentum with which we enter the busy second half of the year.”
The company said its management remained “vigilant” around cost management, as the business is “not immune to the combined impact of inflationary pressures and rising interest rates”.
Interim results are scheduled for 8 August.