H&T Group's profits hit by volatile gold prices

H&T Group's shares fell Friday after the financial services and pawnbroker company said it expects volatile gold prices will impact pre-tax profits.

H&T Group's shares fell Friday after the financial services and pawnbroker company said it expects volatile gold prices will impact pre-tax profits.

The firm, which offers pawnbroker services to sell new, old, broken or unwanted gold, estimates that a 10% movement in the price of the metal will shave off £2.0m of pre-tax profits in the six months to June 30th.

Nevertheless, the group said it has been pleased with the overall performance.

New store openings have helped to build the company's pledge book in line with expectations, while existing stores have benefit from the recent interest rate stratification despite a competitive market.

H&T's pawn service charge for fiscal-year 2013 has also met forecasts.

"Overall results however are inevitably impacted by the highly volatile gold price, and market consensus has not yet reflected price movements since the group last reported on March 7th when the gold price was £1,054," the company said.

Shares declined 10.40% to 226.25p at 08:34.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021