H&T's profits helped by rising gold prices

Pawnbroker H&T said that it predicts full-year results to beat current estimates after a strong first half which was driven by a soaring gold price."The outlook remains positive and on the basis of the current gold price we are pleased to announce our expectation for full year results to be above the top end of current market forecasts," said chief executive John Nichols.Pre-tax profit rose to £10.3m, from £9.6m in the first half of 2010 (after excluding £4.9m of working capital gains). Basic earnings per share increased to 21.21p, from 19.52p previously (excluding working capital gains).The pledge book climbed by 10.5% from £37.3m to £41.2m, due to "continued strong demand for our services and an increased average loan, supported by the current gold price", the firm said.Meanwhile, the pawn service charge - what the company calls a key component - grew by 14% from £11.5m to £13.2m.However, revenues fell from £71.0m to £55.6m, as the increase in the pawn service charge was offset by a fall in pawnbroking scrap and gold purchasing.The interim dividend per share was raised to 3.75p, from 2.50p the year before.Despite surging to 415p in early trading, the share price stood at 380p at 11.17 on Tuesday, still 3.26% higher compared with the previous close.BC