H&T spots golden opportunity to polish up poor set of results
SHOPPERS on the hunt for jewellery and watches are set to be targeted by struggling pawnbroker H&T in a bid to boost its profits.
The company said a plunge in the gold price meant there was a growing opportunity to sell trinkets more cheaply to punters.
It came as the company reported a 61 per cent decline in pre-tax profits for the year ending 2013.
“We will further strengthen our retail of jewellery,” the firm said in a statement. “This move is one of a series of steps we will take to reduce the impact of gold price volatility on our business.”
H&T, led by John Nichols, is struggling with an industry wide slump that has taken the shine off rivals such as Albemarle & Bond. H&T retail sales were one of the bright spots in an otherwise dismal set of results, rising 23.9 per cent over 2013. The pledge book – the book of loans it has made to customers – fell 14.5 per cent over the year to £44.1m.
“Gold price is off its absolute low for the year but we still anticipate a tough year for the group,” Finncap analyst Duncan Hall said.