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.

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