27th Feb 2014 14:59
LONDON (Alliance News) - H&T Group PLC Thursday said its pretax profit fell significantly in 2013 on reduced volumes of gold in circulation. The pawnbroker lowered its dividend and warned on 2014 results.
H&T said pretax profit fell to GBP6.7 million from GBP17.0 million the previous year, as its revenues fell 23% to GBP99.3 million from GBP129.7 million in 2012.
The company said the pawnbroking industry has experienced a difficult twelve months, blaming its fall in revenues on reduced volumes of gold in circulation, a 29% year on year fall in the sterling gold price, and the heightened competitive environment.
The difficult conditions have seen fellow AIM-listed pawnbroking chain Albemarle & Bond Holdings PLC put itself up for sale and resort to smelting down jewellery to sell as gold bars to raise money.
H&T cut its final dividend to 2.7 pence from 8.05 pence in 2012, bringing its full-year dividend to 4.8 pence compared with 11.85 pence the previous year.
H&T said the reduced dividend reflects lower earnings in the year, and the group's intention to maintain appropriate earnings cover in light of current trading conditions.
The company said that due to the lower gold price and market issues around payday lending, 2014 will be a year of consolidation and rationalisation for the pawnbroking industry.
H&T shares were up 1.7% to 182.00 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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