|  Updated: 

H&T shares up: Pawnbroker lending rockets as cash-strapped Brits sell valuables

By:

Add as a preferred source on Google
H&T had bumper profits as Brits turned in their valuables for quick cash
H&T had bumper profits as Brits turned in their valuables for quick cash.

Britain’s biggest pawnbroker H&T saw its share price soar this morning, following news that lending grew 22 per cent as punters have been forced to flog off goods to secure extra funds during the cost of living crisis. 

Ahead of its interim results, which are due to be published in early August, H&T said that demand for high quality new and pre-owned jewellery and watches continued to rise, with sales by value up c.10 per cent year on year. 

As customers looked to sell off their possessions to shore up extra cash, gross lending reached £128m during the period, up from £105m compared to the same period last year. 

Its pledge book, which includes short-term loans linked to customers’ belongings, was also up to £130m in June, compared to £85.1m the prior year and £100.7m last December. 

“I am very pleased with the progress we have made in the first half of 2023 in an environment of rising interest rates and persistent inflation,” Chris Gillespie, head of H&T,said. 

I am particularly encouraged by the growing momentum with which we enter the busy second half of the year. I am looking forward to updating the market  when we report on  8th August.”

The pawn industry is a sector that tends to perform well in times of economic downturn as people grow desperate to get extra cash. 

H&T also saw a boom in business during the 2008 financial crisis, with the company opening 16 new stores during the year, as reported by the Guardian in 2009. 

H&T currently has over 270 sites across the UK. 

“Pawnbroker H&T has been doing incredibly well over the past year or so as more people pledge assets as collateral for loans,” Russ Mould, investment director at AJ Bell said, 

“Individuals who turn to pawnbrokers typically cannot get credit from banks and so they must seek alternative ways to borrow money if times are hard. H&T says demand for pledge lending is at record levels and continues to gather momentum. If the economy does fall into recession, one might expect H&T to do even better.”