14th Aug 2018 09:55
LONDON (Alliance News) - Pawnbroker and loan provider H&T Group PLC said on Tuesday it saw a rise in profit through growth in revenue, particularly in its Personal Loan book in the first half of 2018.
Pretax profit for the six months to the end of June was GBP6.1 million, up 11% from GBP5.5 million the year before, through a "good operational performance" and an influx of new customers.
Revenue for the six-month period rose to GBP68.5 million from GBP57.7 million, with all segments showing growth on a year-on-year basis.
H&T said the average gold price during the period decreased by 2.6% to GBP956 per troy ounce from GBP984 the prior year, which led to a dip in Pawnbroking Scrap gross profit to GBP1.0 million from GBP1.2 million.
Personal Loans saw the highest rate of growth, with net revenue rising by 72% to GBP3.1 million from GBP1.8 million, and the loan book up 79% at GBP17.8 million from GBP10 million the year before.
H&T declared an interim dividend of 4.4 pence per share, up from 4.3p the prior year.
"Steady pawnbroking growth, driven by increasing numbers of new customers and the continuing growth of the personal loans book, is pleasing. The personal lending book has increased by 19% since December 2017. We have maintained this growth, while ensuring we remain disciplined around our credit-risk management practices," said Chief Executive John Nichols.
"The broadening of our product suite into lower APR categories has proven successful, with 54% of our personal lending now out of the High-Cost Short-Term credit category. This is important as we strive towards our vision of helping our customers to rebuild their credit rating," Nichols added.
Shares in H&T Group were up 4.7% at 324.62 pence on Tuesday.
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