Strapped Brits enrich H&T

There may be green shoots in the economy but struggling Britons are still flocking to make extra cash at the pawnbroker, figures from the industry's biggest player showed today.

H&T, which owns 111 stores, with almost a third in London, posted a 48% rise in pre-tax profit to £7.7 million in the six months to the end of June, boosted by gold purchasing margins and "robust" sales to people who have pawned jewellery or other valuables, or used its branches for a payday advance or unsecured loan.

The pawnbroker typically charges customers 8-10% a month on cash advances, with its pledge book almost entirely devoted to gold and diamond set jewellery, which are then sold on either through its stores or as a commodity.

Announcing its rocketing profit today the chain, which started with a branch in Vauxhall Bridge Road in 1897 under the banner Harvey & Thompson, told shareholders it was ramping up its interim dividend by half a penny to 2.5p.

H&T also announced it has secured an enlarged four-year debt refinancing of £50 million, which chief executive John Nichols said "demonstrates confidence in H&T's abilities to generate returns and secures the necessary funding to continue growing the business."

He added that although the company's board "remains cautious of the economic climate and the sustainability of gold purchasing volumes and margins", it expects full-year result to hit the "top end of market expectations".