'Disciplined' H&T scores growth across the board

Current trading is in line with management expectations after total revenue increased by 19% to £68.5m compared to the same period last year, while pre-tax profit increased to £6.1m after the firm’s pawnbroking business saw its gross pledge book increase by 9% to £47.8m.

Consequently, total pawnbroking revenue, less impairment jumped 12% to £16.2m.

"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.

Revenue from personal loans saw the largest increase as it jumped 72.2% to £3.1m after the increase to the personal lending book, which equates to a 79.1% year-on-year increase.

The AIM traded firm increased its interim dividend by 0.1p to 4.4p.

Net debt increased from £11.5m to £16.8m, which H&T put down to personal loan and other working capital increases.

Aside from pawnbroking, the firm also experienced 7.2% growth in retail sales to £16.4m after making improvements to its www.handt.co.uk and www.est1897.co.uk websites.

"We have further developed our digital platforms by upgrading and revamping our retail site, www.est1897.co.uk and our main H&T site. Our click-to-bricks retail and lending offering has been further expanded by introducing click-and-collect foreign currency. We will continue to invest in digital technology as we refine the pawnbroking model and leverage our store estate," said Nichols.

H&T’s shares were up 2.58% at 318.00p at 0912 BST.