H&T pre-tax profit up 42.6%
Pawnbroker H&T has reported that its full year pre-tax profit has risen by 42.6% to £9.7 million as the group works to develop its products in light of a changing consumer and regulatory environment.
In the year to 31 December 2016, profits from pawnbroking were stable at £28.4 million while H&T's gross pledge book increased to £41.3 million from £39 million in the previous year.
Meanwhile, retail sales grew by 3.4% to £30.5 million with retail gross profits climbing by 8.7% to £11.2 million.
In a statement the company said: “The group acknowledges the pressure on consumer spending post-Brexit and the challenges presented by the expected increase in inflation. We believe that the value presented by our second-hand offering positions us well among other retailers of luxury goods, while shifting behaviours (as customers seek the best deal) could provide opportunities for H&T.”
H&T operates 181 stores comprising of 126 H&T pawnbrokers stores, 24 Est1897 second-hand jewellery retail stores, and 31 of its new H&T Money brand stores. During the year, it closed eight underperforming stores and expects a small number to close in 2017.
John Nichols, chief executive of H&T Group, said: "The group has delivered a strong financial result in 2016 with a solid operational performance assisted by a higher gold price. We are particularly pleased with the growth in our loan books and the increasing significance of FX and Buyback.
"High street pawnbroking remains challenging and only those companies that can adapt to the new consumer and regulatory landscape will succeed. We believe that H&T has a robust business model capable of delivering a range of products to our customers in a responsible way. We have demonstrated our ability to develop new revenue streams and are well placed to succeed as the market continues to evolve."
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