H&T Group PLC (AIM:HAT) (AIM:HAT), the pawnbroking business, said daily pledge levels are back to roughly 90% of pre-pandemic levels and continue to rise.
The group has traded well since the lockdown restrictions started to be lifted in the UK in April, the company said in its results statement covering the first half of 2021.
H&T believes it is “very much on track” to rebuild pledge lending to pre-pandemic levels while continuing to invest in its online and store-based retail offering.
Underlying earnings (EBITDA) were steady at £9.6mln compared to the same period of last year, while profit before tax eased 6% to £4.7mln from £5.0mln.
Revenue declined to £51.93mln from £55.83mln the year before. Pawnbroking revenue, adjusted for bad loans, rose 10.1% to £18.5mln from £16.9mln the year before, while retail sales jumped 26.5% to £12.4mln from £9.8mln, despite the group being unable to provide its retail sales offering through stores during the lockdown; jewellery and watch sales were offered via online channels, supported by a click and collect option from stores.
The personal loan book was down by two-thirds at £3.4mln from £10.0mln in the first half of 2020.
The pledge book, at £50.2mln, was 3.2% higher than the end of 2020 figure. The growth in the pledge book has continued in the third quarter of the year and stood at £52.2mln at the end of July.
Cash balances at the end of June stood at £32.5mln, up from £12.9mln (net) a year earlier, while net assets rose £9mln to £135.9mln.
The board has recommended an interim dividend of 4p, up from 2.5p the year before. The 60% hike in the dividend reflects the positive trading momentum of the business and the board’s ambition to return dividend distributions to historic levels as soon as trading returns to pre-pandemic levels.
“H&T has traded strongly since April's progressive relaxation of the pandemic restrictions. Pledge lending is steadily returning to normal levels and demand for our value for money, high-quality jewellery and watches has been particularly strong,” said Chris Gillespie, the chief executive of H&T.
In a separate statement, the group announced the appointment of Diane Giddy as chief financial officer.
Giddy will join H&T from FirstRand Ltd on 1 November.
“Her broad banking and financial experience will add considerable value to the group,” said Peter McNamara, the group’s chairman.