The H & T Board has approved an increased interim dividend of 6.5p per share (2022 interim dividend: 5.0p per share), reflecting growing confidence in the future prospects of the Group whilst adhering to the stated progressive dividend policy and maintenance of at least two times cover. The dividend will be paid on 6 October 2023 to shareholders on the share register at the close of business on 8 September 2023.
Other financial highlights include:
Profit before tax increased by 31% to £8.8m (H1'2022: £6.7m), as continued momentum in our core pawnbroking business provides a robust revenue and profit foundation for the remainder of the financial year.
The pledge book grew 14% to £114.6m (December 2022: £100.7m; June 2022: £85.1m) with demand for pledge lending remaining at record levels. Gross lending grew 22% to £128m (H1'2022: £105m).
Retail sales increased 11% to £23.0m (H1'2022: £20.8m) with online originated sales at record levels and representing 23% (H1'2022: 14%) of total sales value. Retail margins reduced as expected to 28% (H2'2022: 37%; H1'2022: 42%) as the Group chose to prioritise stock turnover, particularly of some high value watch brands. Margin compression was substantially offset by increased scrap profits. Price increases have been implemented and margins are expected to rise in the second half.
Foreign currency transaction volumes increased 19%, with net income up 12% to £2.9m (H1'2022: £2.6m). Momentum is building into the peak summer months, supported by the launch of our 'Click and Collect' service in June.
Net Asset Value of £166.8m (December 2022: £164.1m), backed by assets of high intrinsic value.
Net Debt of £17.1m (December 2022: £2.8m). Funding facilities and the recent equity raise have been deployed primarily to fund the growing pledge book, increased inventory and investment in the store portfolio.
Post period, funding facilities increased to £50m in July (previously £35m) on attractive terms and with no change to existing covenants.
