H&T Pawnbrokers has reported a 30% increase in pre-tax profit in its financial update for the first half of 2015.
In the six months from January to the end of June 2015, profit before tax increased by 30% to £2.6m, up from the £2m reported for the same period last year. Net debt was down 34% to £8.9m, from £13.5m on June 30.
John Nichols, chief executive of the group, said: “We are pleased with the improved performance and ongoing development of the group in the first half of the year. The trading environment remains challenging although the competitive landscape is now easing with the continued closure of competitors’ stores.
“The 30% increase in profit before tax in the first half is encouraging, driven by the stabilisation of pawnbroking income and growth in retail, personal loans and other services. This growth was achieved through continued investment in our people to support the development of new initiatives and systems.”
Nichols added fluctuations in the price of gold inevitably affected the group’s financial performance, but its evolving model, with a strong focus on the development of its retail offering and the broadening of product and service offering helped to mitigate the impact.
Allowing for the recent reduction in gold price, the group currently expects the full year results to be broadly in line with current market expectations.