With the yellow metal up approximately 30% in £Sterling terms in the year to date and now making regular appearances on our TV screens the Group has benefited considerably from higher gold purchasing volumes.
Management commented that H&T identified the opportunity of building a retail network focused on gold purchasing in early 2009 and has opened 56 Retail Mall Units so far. These units are branded as H&T but operate separately from the pawnbroking store network. The Board is conscious that current volumes may not be sustainable and so has avoided locking in to a fixed cost structure for the new Retail Mall Units.
The core pawnbroking and retail business continues to trade in line with Board expectations. However, uncertainty as to the sustainability of either current gold purchasing volumes or related margins leads the management not to change its expectations for the Group for 2010.
12 new stores are expected to be opened in H2 2009, making 122…
Register to continue reading this article.
Already a member? Login
For access to the top news and insights from the investment worldREGISTER FREE TODAY
In the latest in a series of ‘Investment Insights’, fund manager and CFA Charterholder Graham Neary highlights the investment attractions…