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(Alliance News) - H&T Group PLC on Tuesday reported a steep decline in interim profit due to store closures resulting from the Covid-19 pandemic.
The Surrey-based pawnbroker posted a GP5.0 million pretax profit for the six months ended June 30, down a sharp 27% from GBP6.8 million the year before.
This was mostly the result of weak revenue, which fell 20% to GBP55.8 million from GBP70.0 million as H&T was forced to close stores in March for the UK lockdown.
"Our results reflect the impact of Covid-19 on our business and the closure of our stores from 24 March, all of which have since reopened. While our revenues and profits reduced in this unprecedented environment, our focus on costs and cash generation leaves us presently well positioned as we look to the rest of the year," said Chief Executive John Nichols.
An interim dividend of 2.5 pence per share was approved by the board, a little over half the prior year's 4.7p per share interim dividend.
Nichols said: "Pre-lockdown the group was well on track to deliver revenue growth and increased profitability, underpinned by our diversified income streams, increased footprint and investment in digital initiatives. With lock-down in March we closed all stores in order to protect colleagues and customers, and we have launched our online payment portal. We also froze interest on pawnbroking loans while our stores were closed and have offered payment deferral arrangements to those lending customers impacted by the financial implications of Covid-19.
"Having safely re-opened our stores, the board is confident that H&T is well-positioned to navigate the rest of 2020 and beyond. The group has a strong balance sheet, no debt and a good cash position. This will enable us to build back our pawnbroking book, a resilient secured asset in times of economic uncertainty, and deliver our long-term growth plans which remain intact."
Shares in H&T were up 0.2% at 315.75p in London on Tuesday morning.
By Anna Farley; annafarley@alliancenews.com
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