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Markets are ignoring H&T’s soaring profits

Annual profits forecast to rise 55 per cent and it offers a 5.4 per cent dividend yield
August 8, 2023
  • First half pre-tax profit rises 31 per cent to £8.8mn
  • Gross profit increases 15 per cent to £55mn
  • EPS up 24 per cent to 16.26p
  • Dividend hiked 30 per cent to 6.5p

Diversified financial services group H&T (HAT: 400p) is delivering strong growth in its pawnbroking business, an alternative credit market shunned by mainstream lenders.

In the first half, the pledge book surged 14 per cent to a record £114.6mn and is 35 per cent higher than 12 months ago, reflecting an increasing need of customers to access short-term credit to meet their cash flow requirements. Growth is also being driven by reduced market supply as several firms have exited the unsecured lending market.

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