Pawnbrokers H&T profit rise and store expansion
H&T, the UK’s largest pawnbroker, reported an impressive 31% rise in pre-tax profit to £8.8 million, as it seeks to expand its presence to capitalise on the current economic environment.
The pledge book, which holds short-term loans linked to customers’ belongings, saw a 14% growth, reaching £114.6 million in the six months ending June 30, a substantial increase from the previous year’s £85.1 million. This profitability aligns with the financial struggles faced by Britons amid the cost of living crisis, prompting them to seek quick loans through pawnbroking services.
During the initial half of the year, H&T expanded its operations by adding eight new stores while closing two, boosting its total store count to 273. The company’s retail division also experienced an 11% growth, amounting to £23 million, driven in part by increased online sales.
Mean pledge lending has moderately increased from £405 to £423, and the median pledge lending value rose from £185 to £200. In times of economic downturn, the pawn industry often thrives as people strive to secure extra funds. H&T noted that customers are repaying their loans sooner, with the average repayment period decreasing to 97 days from last year’s 108 days.
Chris Gillespie, the CEO of H&T, expressed satisfaction with the progress made and the company’s momentum as it enters the latter half of the year.
The capital raised in October of the previous year facilitated investments in operational capabilities and store expansion, positioning the company to capitalise on medium-term growth opportunities.
