People are increasingly turning to pawnbroker H&T for cash, the company said Tuesday, as households continue to grapple with the high cost of living.
The company said demand for its services “gained momentum” in the first six months of the year as profit rose by nearly a third.
Borrowers would also take out larger loans – averaging about £423 per person, compared with £405 in December last year.
But despite the pressure people are facing, about 85% are still paying off their loans and recovering the items they pawned, which is “above historical levels,” H&T said.
Customers are also repaying their loans faster — within 97 days, compared to the long-term average of 108 days, the company said.
“Demand for mortgage loans continued to grow in the first half of 2023 as customers’ increasing need for short-term, small-amount loans comes at a time of reduced market supply following the exit of several companies from the unsecured lending market. “H&T said on Tuesday.
“Demand for credit increased steadily in all customer segments and all regions during the reporting period.”
Profit before tax rose 31% to £8.8 million, the company said.
CEO Chris Gillespie said, “I’m pleased with the progress we’ve made and the momentum we have as we head into the busy second half of the year.”
“We recognize the impact of continued inflation and rising interest rates on our employees, suppliers and stakeholders.
“H&T is not immune to these factors, which have resulted in operating costs being higher than previously thought.
“However, much of this cost inflation is now factored into the cost run rate.
“We expect lower cost inflation in the second half of the year, which combined with the company’s growing revenue momentum, puts us on track to deliver record earnings in 2023.”
https://www.standard.co.uk/business/business-news/pawnbroker-boosted-as-people-turn-to-quick-loans-b1099254.html Pawnbrokers have seen a rebound as people turn to quick loans