H&T Group reports robust fourth-quarter trading

The AIM-traded firm said the capital value of its pawnbroking pledge book increased significantly to £127m at the end of the year, up from £101m in December 2023 and £105m in June.

That growth was driven by strong lending demand in the final 10 weeks of the year, including record levels of new customers.

The pledge book included £6m from the Maxcroft acquisition, which had grown by 9% since its purchase in February.

H&T said it had been cautiously expanding its loan offerings, focusing on larger loans secured on personal assets, often used for business purposes.

Loans over £5,000 now accounted for 18% of the pledge book's value, compared to 13% a year earlier.

Despite that growth, revenue in 2024 saw limited benefit as the expansion occurred late in the year, leaving limited time for the loans to accrue interest.

Looking ahead, H&T said it anticipated lower pledge book growth in the spring due to increased redemptions, with stronger growth expected in the latter half of 2025, mirroring 2024 trends.

Retail sales during the peak trading period meanwhile met expectations, supported by slightly improved product margins.

Customers reportedly favoured lower-priced jewellery items, driving demand for H&T’s range of affordable new jewellery.

The pre-owned watch market also showed signs of stabilisation, contributing to solid sales growth in this category.

H&T’s foreign currency exchange business performed in line with expectations, maintaining positive momentum.

However, increased employer National Insurance rates announced in the October Budget would raise H&T’s employment costs by about £2m annually from April.

The group said it was exploring mitigation options to address the cost pressure.

“The group delivered a robust performance in the seasonally important fourth quarter,” said chief executive officer Chris Gillespie.

“I cannot thank our people enough for their hard work and dedication to customer service in a period of further progress for the group.

“I look forward to updating the market fully when we report our preliminary results.”

H&T Group said it would publish its preliminary results for the financial year ended 31 December on 18 March.

At the close on Thursday, shares in H&T Group were up 3.87% at 349p.

Reporting by Josh White for Sharecast.com.