An increase in the gold price and investment in its website helped pawnbroker H&T (HAT) to a strong first half.
This is being rewarded by a 7.8% advance to 295p as the pawnbroking group reported a 62% rise in pre-tax profit for the six months to June 30.
The firm says it has made a 'strong start' to its 120th year of trading, with profits of £6m in the first six months.
H&T says a favourable gold price was supportive as well as an 87.3% increase in its personal loans book. The firm, which has 181 stores across UK high streets, says it has set interest rates so they are below the Financial Conduct Authority's cap on high-cost, short-term credit.
NET DEBT TICKS UP
The group says investment in its website and the expansion of its range of high-end watches also boosted performance in the first six months of the year. However, the enhancements have seen net debt at the company rise to £11.5m from £6.9m a year ago. Admin expenses climbed 4.7% to £22.2m.
John Nichols, chief executive at H&T, says changes at the business have 'redefined the pawnbroking model'.
Shareholders are set for an interim dividend of 4.3p a share, up from 3.9p a year ago.
