Pawnbroker H&T GROUP PLC (LON:HAT) has told investors that the gold price’s rapid rise so far this year, alongside a “strong operational performance”, helped the firm to increase profits and reduce its debts in the first half of 2016.
H&T posted a profit before tax of £3.7mln in the six months to the end of June, a 42% increase compared to the same period last year.
The group – which trades under the H&T Pawnbrokers and est1897 brands – also reduced its net debt by 23% to £6.9mln (30 June 2015: £8.9mln).
“This is a promising start to the year, with a strong operational performance aided by favourable market conditions around the gold price,” said chief executive John Nichols.
“We have reinvigorated and widened our product range to capture the opportunities presented by the ongoing changes in the wider market.”
The company added that it expects to benefit from the price of gold in the second half of the year, should the recent uptrend continue.
An interim dividend of 3.9p was approved by directors earlier this month, which represents a 14% increase on last year’s pay out.
Shares were down 2p, or 0.7%, to 298.4p.