H&T Group Plc (LON:HAT) has said trading in November and December was better than expected and profits for 2020 will be ahead of forecasts as a result.
Retail jewellery sales were good throughout the half-year but especially strong in December, said the AIM-listed pawnbroker, while the high gold price boosted scrappage returns.
It noted that foreign currency business dropped to 65% of the level seen twelve months earlier, though Western Union transaction volumes were more than three times higher.
The group's year-end pledge book was £48mln with personal lending at £6mln, though H&T said lower impairments and recoveries and repayments had offset reduced lending.
H&T added that it expects an outcome within previous guidance from the FCA review into high-cost short term credit (HCSTC) but the outcome will now likely be delayed beyond March due to coronavirus disruption.
In a statement, Chris Gillespie, H&T's new chief executive, said: "I have joined H&T in a strong position. We have ended 2020 robustly with an outturn ahead of expectations.
"Our business remains in good health with returning momentum in the pledge book continuing into 2021. Our retail operations remain robust, despite the ongoing restrictions. We have no debt and good cash resources to rebuild the pledge book as underlying customer demand returns.”