Demand for Pledge Lending Surges for H&T Group

By Joe Hoppe

H&T Group has reported that the first half of the year has seen demand for pledge lending reach record levels and continue to gain momentum.

At the end of June, the pledge book for the U.K. pawnbroker stood at approximately £113 million ($145.3 million), compared to £85.1 million in the same period last year. Gross lending also saw an increase of 22% to £128 million.

The demand for both new and pre-owned jewelry and watches has continued to rise, with sales by value up approximately 10% compared to last year. H&T Group has responded to this growth by recently increasing sale prices across most of its retail stocks, which is expected to result in improved margins during the second half of the year.

In addition, foreign currency exchange transactions have shown a 19% increase compared to last year, with momentum continuing to build in this area.

The company believes that the growth in the pledge book, combined with strong momentum in revenue and ongoing investments in its store estate, provides a solid revenue foundation for the remainder of the year. However, H&T Group remains cautious about cost management, as it recognizes that its business is not immune to the combined effects of inflationary pressures and rising interest rates.

Looking ahead, Chief Executive Chris Gillespie expresses his optimism about the upcoming busy second half of the year and the growing momentum of the company.