LONDON (ShareCast) - Pawnbroker H & T Group has seen strong revenue improvement across the business, with the retail business seeing strong like-for-like sales growth despite a difficult trading environment.

Pre-tax profit in the first half of 2008 rose to £4.6m, after an exceptional debit of £0.94m, from £3.3m in the corresponding period of 2007.

Revenue improved to £24.1m from £17.3m, with the retail business showing a 14.2% increase in like-for-like sales.

Four new stores were opened in the first half of the year, of which two were acquisitions of established businesses.

“The board remains of the view that the general economic climate is not necessarily a driver for H&T's business as the pawnbroking industry is not cyclical,” said John Nichols, chief executive officer.

The company has decided to take advantage of the current high price of gold and enter into a gold forward selling contract for a proportion of its 2009 and 2010 scrap business.

“Although the business has shown strong retail growth in the first half of the year, the board remains cautious about the current and future high street trading conditions,” Nicholls said, adding that any slackening in retail activity would be somewhat offset by the capacity of the group to scrap any retail stock at a profit.

The interim dividend has been increased to 2p from 1.6p.

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