H&T Group PLC (AIM:HAT) is poised to deliver record profits this year, following a strong first-half performance.
Its results for the six months ending 30 June 2023 revealed a 31% surge in pre-tax earnings, reaching £8.8 million.
In a clear sign of confidence, the interim dividend will be increased by 30% to 6.5p per share.
H&T's core pawnbroking business continues to be a robust revenue generator, with the pledge book expanding by 14% to £114.6 million.
This growth is underpinned by a sustained demand for pledge lending, which has reached unprecedented levels. Concurrently, gross lending saw a 22% uptick, amounting to £128 million.
Retail sales, boosted by online-originated sales, climbed 11% to £23 million.
Despite a deliberate decision to prioritise stock turnover leading to reduced retail margins, the company managed to offset this with increased scrap profits. H&T said it anticipates a rebound in margins in the latter half of the year.
Chief executive Chris Gillespie told investors: "Following the capital raise in October 2022, we set out our plan for increased investment in the group's operational capabilities and store portfolio to capitalise on the growth opportunity presented to the group in the medium term.
"I am delighted with the progress we have made and the momentum with which we enter the busy second half of the year."
With a series of strategic moves, including the launch of a 'click and collect' service and increased funding facilities (up to £50 million from £35 million), H&T said it is well positioned to capitalise on its growth potential in the coming months.