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 reported that its core pawnbroking operation continues to provide the majority of profits for the group, attracting both new and returning clients who have limited access to other sources of small-sum regulated lending.
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.
This increase was attributed to macroeconomic conditions and the lack of regulated firms offering small, short-term loans.
Meanwhile, retail jewellery and watch sales also saw a 27% rise year on year to £29.3m. Margin improved to 30% throughout the period (H1 2023 : 28%, FY 2023 : 30%), and further improved in June and August.
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. We continue to see an increase in new and return customers for our core pawnbroking service, who have limited access to other small sum regulated loan sources.
“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 was supported by a growing demand for foreign currency services and improved margins when purchasing gold over the counter. 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 provide outstanding 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.”