H&T sees annual profits fall but lending on the rise
Pawnbroking group H&T saw pre-tax profit fall in 2021, but the business – which has shops across the Black Country and in Kidderminster – reported record levels of retail sales.
It also saw strong growth in borrowing demand in the second half of the year.
The profit figure was down from 49.4 per cent from £15.6 million in 2020 to £7.9m.
The pledge book increased 38.5 per cent to £66.9m with demand for pledge lending now fully recovered to pre-pandemic levels.
Retail sales grew 21.5 per cent to £36.2m with positive momentum across both the store estate and online platforms since May.
Chris Gillespie, H&T chief executive, said: "The year began with a period of strict Covid-19 related trading restrictions from January to April, which led to significantly reduced high-street footfall and a consequent impact on revenues and profits.
"The primary strategic aim of the business in 2021 was to rebuild the core pawnbroking pledge book, which had reduced by a third in 2020 as customers chose to repay their loans at a time of reduced need for credit. It is very pleasing to report strong growth in borrowing demand in the second half of 2021 with no detriment to loan-to-value ratios, record levels of lending in December and an increase in the flow of pawnbroking customers who are new to H&T. This momentum has continued into 2022."
Mr Gillespie added that in store demand for high-quality new and pre-owned jewellery and watches had returned strongly and consistently since the relaxation of trading restrictions from late April.
Online sales grew 40.5 per cent year on year.
H&T has opened five stores and relocated two in the past 12 months, with more in the pipeline for 2022. It curently has 257 across the UK.
"I am extremely proud of the H&T team and how they have navigated the challenges brought about by the Covid-19 pandemic. Our employees rose to the challenge with resilience and determination, ensuring our stores remained open and delivering an outstanding level of service to our customers.
"We have a strong retail business, growing demand for pledge lending and with the expected return in foreign currency demand as overseas travel re-opens, the group is well positioned to continue to benefit from the strong trading momentum built up in 2021, and to deliver further progress on our strategic priorities in 2022," added Mr Gillespie.
