Pawnbroking group sees loans demand remaining strong

H&T Group, which has shops across the Black Country, had record months for lending in both January and March.

This strong performance has continued as the impact of inflation on the consumer increases the need for small sum, short term loans at a time when supply of credit is more constrained than has been the case for many years.

The pawnbroking pledge book grew by the end of April to around £106.5million –up from £100.7m at the end of 2022. Median loan sizes have remained stable at below £200.

Redemptions have been particularly high in recent weeks, which has had a short-term impact on book growth as customers have chosen to redeem their pledge items, often for reasons linked to family and other celebrations.

H&T is also a leading retailer of high quality new and pre-owned jewellery and watches and demand for pre-owned jewellery and watches has continued to be strong. Retail sales to the end of April were up 13 per cent year on year.

There was a record month of online sales in January, with over £1m of sales in a single month for the first time.

Foreign currency revenues are up 10 per cent year on year but are yet to benefit from the peak trading period of the summer months.

The group's store estate stands at 274 with seven new stores added this year.

More store openings are planned for the remainder of the year. In addition, the group has completed 20 refurbishments in the first four months of this year.

Chris Gillespie, chief executive of H&T, said: "I am pleased to be reporting on another period of continued momentum during the first four months of the financial year. Demand for our core pawnbroking loans has remained strong following record months in January and March. Our growing jewellery and watch business continues to perform very well.

"Our focus is on continuing to expand the geographic coverage of our store network and we are investing both in new store openings and in refreshing existing stores.

"The impact of inflationary pressures continues to be felt across the economy, for both businesses and consumers. We remain cognisant of the challenges this presents and are working hard to manage the inflationary impact upon our cost base, as we have been doing for the past 18 months.

"With continued investment in scale and capabilities, along with broadening our business in the context of wider macro-economic factors, we continue to believe that the Group has an opportunity for significant growth in the medium term across all of our product offerings. Our focus is to invest in our team, optimise our estate and build-out our services to ensure that the Group is well positioned to take advantage of these growth opportunities."