H&T: Pawnbroker to expand high street and online presence as profits soar 31 per cent
H&T, Britain’s largest pawnbroker reported a 31 per cent rise in profit before tax to £8.8m – with the pawnbroker looking to cash in on desperate times by expanding its presence.
Its pledge book, which includes short-term loans linked to customers’ belongings, grew 14 per cent in the six months ending 30 June, reaching £114.6m up from £85.1m compared to last year.
Following the healthy numbers, H&T’s share price edge up 1.31 per cent, with its profits coming as Brits struggle with the cost of living crisis, and seek to get quick loans.
H&T added eight new stores in the first half and two closures, taking the number of stores it operates to 273. The broker also said its retail division grew 11 per cent to £23m, as it was boosted by online-originated sales.
“Further store openings are in course for the remainder of the year and beyond,” it said, while it also committed to expanding its online presence, saying a “major redevelopment of our online offering is planned”.
The cost of loans it is handing out also “modestly” increased, with mean pledge lending rising from £423 compared to £405 and median pledge lending value was £200 up from £185 at the end of last year.
In times of economic turndown the pawn industry is a sector that tends to perform as people grow desperate to get extra cash.
However, H&T said that punters are paying back their loans earlier when they are able to do so, with the average pay back completed in 97 days compared to 108 days last year.
“Following the capital raise in October 2022, we set out our plan for increased investment in the group’s operational capabilities and store portfolio to capitalise on the growth opportunity presented to the group in the medium term,” Chris Gillespie, H&T chief executive, said.
“I am delighted with the progress we have made and the momentum with which we enter the busy second half of the year.”