H&T profits higher as pawnbroking demand grows

H&T Group has revealed higher profits for the past 12 months as pressure on consumer finances helped drive higher demand for pawnbroking.

The UK’s largest pawnbroker said “the need for small sum, short-term lending continues to grow given macroeconomic conditions” and a “continued lack of supply of small-sum credit”.

The company said it also benefited from strong retail sales of jewellery and watches at its high street stores.

It reported that pre-tax profits grew by 10% to £29.1 million for the year to December 2024.

H&T, which has 285 UK stores, said it has seen strong demand due to the “limited alternatives” for individuals needing to borrow small sums of money for the short-term.

It added that it saw more business owners using its service over the past year, reflected in an increase in the number of larger loans it has granted.

The firm’s pledge book grew by 26% for the year, with a capital value of £127 million at the end of 2024. It highlighted particular growth over the final quarter of the year.

The group said net revenue from its pledge book, inclusive of pawnbroking scrap revenue, was 5% higher for the year, with growth expected to rise further next year.

Meanwhile, retail sales revenues increased by 27% to £61.8 million for the year.

Chris Gillespie, H&T chief executive, said: “The group has made significant progress in 2024, delivering record profits and strong growth.

“Demand for our core pawnbroking product continues to grow, with particularly strong lending demand in the final 10 weeks of the year, providing a sound base for future growth.

“With ongoing investment in scale, service quality, and the continuous improvement and efficiency of the customer journey, combined with the broader macroeconomic backdrop, we believe the group is well-positioned for significant growth in the medium-term.”