Gold price fall drags on UK's biggest pawnbroker H&T

London (Aug 19)   Thge UK's biggest pawnbroker is aiming to restore the shine to profits tarnished after the plunge in gold prices by beefing up sales of discount pre-owned jewellery and watches.

H&T has decided to extend a trial of its 'Discount Secondhand Jewellery' H&T has decided to extend a trial of its 'Discount Secondhand Jewellery'[GETTY]

H&T has extended a trial of its "Discount Secondhand Jewellery" to 36 of its 191 stores which will shortly be supported by the launch of a transactional website.

Despite the intense competition and fall in the gold price, we have delivered a robust performance and we believe the full-year results will be in line with market expectations

Its move into lending against items such as iPads, laptops and games consoles has also been stepped up, with the value of purchases increasing to £1.2million in the first half of 2014 compared with £200,000 over the same period last year.

H&T will also launch personal loans online as it reshapes the business to combat the falling gold price and closure of its GoldBar gold-buying outlets which contributed to a 56.5 per cent drop in half-year pre-tax profit to £2million.

H&T's pledge book reduced by £10.1million to £38.5million amid tough competition but retail sales increased by 49.3 per cent.

Chief executive John Nichols said: "Despite the intense competition and fall in the gold price, we have delivered a robust performance and we believe the full-year results will be in line with market expectations."

Source: ExpressUK