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Pawnbroker H&T reports soaring first half profits

LAURA MCGUIRE

BRITAIN’s largest pawnbroker H&T yesterday reported soaring profits for the first six months of the year as Brits sought out quick cash amid the cost of living crisis.

The firm reported a 31 per cent rise in profit before tax to £8.8m in its first half results published yesterday. Its pledge book, which includes shortterm loans linked to customers’ belongings, grew 14 per cent in the six months ending 30 June, reaching £114.6m, up from £85.1m compared to last year.

The cost of loans handed out also “modestly” increased, with mean pledge lending rising to £423 compared to £405 and median pledge lending value up at £200, an increase from the £185 at the end of last year.

The strong results came as the pawnbroker expanded its UK presence, with H&T adding eight new stores in the first half, which, taking account for two closures, took the number of stores it operates to 273.

The broker also said its retail division grew 11 per cent to £23m, as it was boosted by online-originated sales.

“Further store openings are in course for the remainder of the year and be- yond,” the firm said, while also committing to a “major redevelopment” of its online offering.

In times of economic turndown the pawn industry is a sector that tends to perform as people grow desperate to get extra cash.

However, H&T said that punters are paying back their loans earlier when they are able to do so, with the average pay back completed in 97 days compared to 108 days last year.

AJ Bell investment director Russ Mould said the company had been doing “incredible well” over the past year and added “if the economy does fall into recession, one might expect H&T to do even better”.

Chris Gillespie, H&T chief executive, said: “Following the capital raise in October 2022, we set out our plan for increased investment in the group’s operational capabilities and store portfolio to capitalise on the growth opportunity presented to the group in the medium term.”

“I am delighted with the progress we have made and the momentum with which we enter the busy second half of the year.” problem, with larger, more diversified rivals able to better protect themselves against macroeconomic volatility.

Shares nudged up marginally yesterday, closing 0.75 per cent in the green.

“Larger diversified food producers are eating Beyond Meat’s lunch, launching their own plant-based products which, thanks to their scale, they can sell at more attractive price points.”

It comes after rival brand Meatless Farm was rescued from collapse by earlier this year, after the firm was plunged into administration due to a lack of demand.

Beyond Meat supplies plant-based patties to McDonald’s and is also sold in supermarkets

Nanoco targets commercial market by 2024

JESS JONES

NANOTECH company Nanoco has said it is closer to commercial production than any other time in its history as it uses the proceeds of a legal battle with Samsung “to generate further value from its IP.”

The Manchester-based firm makes cadmium-free quantum dots, a vital part of a host of anticipated technological development.

In a trading update published yesterday, the 20 year old Londonlisted firm said it has expanded its workforce and made “significant progress” with a European and major Asian supply chain customer as it pursues possible IP infringers.

IT’S A SIGN OF THE TIMES

LIDL AND ALDI: The discount grocers have taken a huge chunk out of the market share of their more expensive competitors over recent years

B&M: Some 30 new stores are on the way for the discount retailers as it looks to catch up with growing, UK-wide demand

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