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H&T upgrades profit expectations

The pawnbroker has benefited from the rising gold price that followed last year's political shocks
January 10, 2017

Shares in H&T (HAT) rose by as much as 6 per cent after management announced pre-tax profit for 2016 is likely to be marginally ahead of market expectations. The pawnbroker has profited from a surge in the gold price since the EU referendum, benefiting from the time lag between taking gold over the counter and selling it.

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The pledge book increased by 6 per cent during 2016 to £41m, which management said was driven by its new focus on higher-value loans at lower interest rates. The recently launched personal loans business more than doubled its loan book to £9m. The group closed eight underperforming stores during the year and now operates from 181 sites.