UPDATE 2-Pawnbroker H&T boosts financing as profits rise

* Says secured four-year debt facility of 50 million pounds

* Increase in planned new store openings

* Interim dividend rises to 2.5 pence

* Shares rise as brokers positive (Adds details, CEO and analyst comments)

By Cecilia Valente

LONDON, Aug 26 (Reuters) - UK pawnbroker H&T Group (HTGR.L) said on Wednesday it secured an enlarged four-year debt facility as it posted a 30 percent rise in half-year profits, driven by gold purchasing margins and "robust" retail sales.

The company said the increased funding will allow it to pursue an expanded programme of store openings this year.

Gross profits stood at 22.1 million pounds ($36.21 million) in the six months to end-June, up from 17 million last year.

It said it has refinanced existing debt facilities ahead of time, securing "an enlarged, four year, non-amortising facility of 50 million pounds."

"Given the current credit environment, this demonstrates confidence in H&T's abilities to generate returns and secures the necessary funding to continue growing the business," said CEO John Nichols.

Nichols told Reuters the original 35 million pound debt facility should have been renegotiated in 2011. The group's creditor is Barclays (BARC.L).

"It was a pleasant surprise. It really provides the company with the ability to grow going forward, which is very positive," said Daniel Stewart analyst Tom Mills. Numis rates it a 'buy' and called the firm a "fundamental growth story".

H&T shares were up 7.88 percent at 254.25 pence by 1023GMT.

EXPANSION PLANS

Nichols said the cash will be used to meet the company's increased expansion plans, which originally involved opening 12 new shops. The CEO said that number could now reach between 15 and 17 with stores targeted in areas where the group is not yet present, such as the North East, the Midlands and areas around London.

Asked whether the extra money would be used to fund takeover plans, Nichols said: "It is always in our mind, but actually we have upped the pace of our expansion programme. It will be mainly greenfield openings."

H&T reiterated that the full-year result would be likely to be at the top end of market expectations.

Pawnbrokers tend to prosper in recessions as consumers are more likely to exchange valuables for cash, but Nichols said the specific nature of the credit crisis had not materially benefitted the company because its traditional client base did not have access to mainstream credit in the first place.

The group, however, is looking to enhance its client base by increasing the number of H&T Gold Bar shops, where people can sell unwanted jewellery or exchange it for new, to 50 by the end of the month from the current 46.

"We should be represented in most shopping malls by the end of the year," he said.

Profits before tax and exceptional items and fair value hedge accounting grew 48 percent to 7.7 million pounds in the first six months, while the interim dividend rose to 2.5 pence from 2 pence paid in the first six months of last year. ($1=.6103 Pound) (Reporting by Cecilia Valente, Editing by Rupert Winchester)