Tumbling gold prices have dented profits at Britain’s biggest chain of pawnbrokers, according to figures released today.
H&T Group put faith in its core pawn-broking business to offset the effect of the gold bubble bursting, with double-digit growth in both its pledge book and pawn service charge.
Pre-tax profits fell by 27.2 per cent to £7.5 million in the six months to 30 June following a £2m drop in profits at its gold business.
Gold prices peaked in the same period a year ago, having soared as investors fled to the precious metal amid increased global recession fears.
Prices have since fallen by around 16 per cent, while competition in the market has increased.
H&T, which has 175 stores and 55 “GoldBar” units, said it had been braced for the gold rush to end and was shifting the focus on to its core pawnbroking division.
Gross profits in pawnbroking, which accounts for three quarters of gross profit, rose from £20.1m to £22.8m.
