H&T: Pawnbroker boosted by gold price and demand for quick cash

H&T has reported a double-digit rise in profit driven by demand for its core pawnbroker service as Brits continue to look for quick cash amid a high cost of living.

The business told markets this morning that profit before tax reached £29.1m in the year ended December 31, 2024, up 10 per cent year on year from £26.4m.

The value of the company’s pledge book i.e. record of pawned items, rose 26 per cent year on year as a record level of new customers borrowed with the firm for the first time.

H&T said unemployment among its customer base and a high real cost of living will continue to support trading in the near term.

The international as well as the domestic economic environment has been positive for H&T, too, with the price of gold continuing to climb.

The price of gold, which has risen due to its status as a “safe haven” investment in a turbulent macro environment, gave a similar boost to fellow pawnbroker Ramsdens.

Pawnbrokers benefit from higher margins and higher demand for gold when the price rises.

Retail jewellery and watch sales were £61.8m at H&T, up 27 per cent year on year from £48.6m in 2023.

Chris Gillespie, H&T chief executive, said: “Demand for our core pawnbroking product continues to grow, with particularly strong lending demand in the final ten weeks of the year, providing a sound base for future growth.

“Retail sales in the key fourth quarter peak trading period, which included both the Diwali and Christmas festivities, were in line with management expectations with product margins showing an improvement.

“It is notable that our retail jewellery customers continue to favour items at lower price points than has historically been the case. This has resulted in increased demand for our range of lower priced, new jewellery items.

“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. This applies across our product offering, in particular the core pawnbroking product”

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