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

Share tips of the week – 30 September
Share tips

Share tips of the week – 30 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Sep 2022
The best British tech stocks from a thriving sector
Share tips

The best British tech stocks from a thriving sector

Move over, Silicon Valley. Over the past two decades the UK has become one of the main global hubs for tech start-ups. Matthew Partridge explains why,…
29 Sep 2022
These 3 top value stocks offer
Share tips

These 3 top value stocks offer

Professional investor Adam Rackley of Cape Wrath Capital highlights three overlooked value stocks to buy.
29 Sep 2022
Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022

Most Popular

Why everyone is over-reacting to the mini-Budget
Budget

Why everyone is over-reacting to the mini-Budget

Most analyses of the chancellor’s mini-Budget speech have failed to grasp its purpose and significance, says Max King
29 Sep 2022
How the end of cheap money could spark a house price crash
House prices

How the end of cheap money could spark a house price crash

Rock bottom interest rates drove property prices to unaffordable levels. But with rates set to climb and cheap money off the table, we could see house…
28 Sep 2022
Why UK firms should start buying French companies
UK stockmarkets

Why UK firms should start buying French companies

The French are on a buying spree, snapping up British companies. We should turn the tables, says Matthew Lynn, and start buying French companies. Here…
28 Sep 2022