H&T Pawnbrokers profit before tax jumps to £9.9m

H&T Group, the UK’s largest pawnbroker and a retailer of new and pre-owned jewellery and pre-owned watches, has reported a 12.5% increase in profit before tax to £9.9m in H1 2024.

The group stated that the core pawnbroking business continues to be the foundation of group profits as it is attracting a number of new and returning customers, for whom alternative sources of small sum regulated lending are much constrained.

For the six month period to 30 June 2024, H&T recorded an overall revenue from pawnbroking and personal loans of £120m, up 13% year on year.

However, revenues were still down compared with the record high of £220m during the peak of the cost-of-living crisis in 2022.

Aggregate lending in H1 2024 also increased by 14% to £146m, up from £128m last year, with around 11% of those loans to new borrowers.

The group attributed this increase to broader macro economic conditions and lack of regulated companies offering small, short term loans.

Meanwhile, retail jewellery and watch sales also saw a 27% rise year on year to £29.3m. Margins improved throughout the period to 30% (H1 2023: 28%; FY 2023: 30%), improving further in June and July.

Additionally, H&T also increased its store count from 273 to 281 stores.

Chris Gillespie, H&T chief executive officer, said: “I am pleased to report that we have continued to make positive progress in the first half of 2024. Our core pawnbroking business continues to attract increasing numbers of new and returning customers, for whom alternative sources of small sum regulated lending are much constrained.

“Retail sales have also been encouraging, with margins on all product categories improving in the second quarter and expected to further improve through the remainder of 2024. This performance has been supported by growing demand for our foreign currency service and improved margins on over-the-counter gold purchase. Maxcroft has performed well since the acquisition in February.”

He added: “We have begun to apply our learnings from their foreign currency business to selected H&T stores, and we have seen an increase in footfall and sales as a result. I am extremely proud of the whole H&T team. They deliver outstanding levels of service. They are, and always will be, our greatest asset and I thank them for everything they do for H&T, our customers and stakeholders. We remain focused on growing and broadening our core pawnbroking business and investing in the store estate.”