H&T Group: As good as gold ... H&T lifts profits guidance

The recovery in the price of gold since the EU referendum result has put some extra juice in the trading performance of H&T GROUP PLC (LON:HAT). The pawnbroker said full year profit before tax for 2016 is expected to be above the top end of current market expectations. The increased gold price benefits the group's Pawnbroking Scrap and Gold Purchasing segments, the company noted. In a brief but pleasing trading update, the group revealed the development of its lending activities continues, and at the end of October the pledge book had increased to £40.mln from £39.0mln at the end of June, while the Personal Loans book had risen to £8.2mln from £6.3mln at the end of June. The pawnbroking's sector's sensitivity to the price of gold is well understood in the market, and shares in H&T have had a good year so far, rising more than 40% prior to this morning's profits guidance upgrade.