Pawnbrokers H&T trading well ahead of expectations

Oct 27 2009 by Graeme Brown, Birmingham Post

The recession continues to bolster the balances of pawnbrokers after market leader H&T said it was trading well ahead of market expectations.

The UK’s largest pawnbroker said it had reaped the rewards of considerably higher gold purchasing volumes from its 56 shopping centre-based ‘Gold Bars’.

But the firm, which said its core pawnbroking and retail business was performing in line with expectations, cautioned that the current volume of gold purchasing “may not be sustainable”.

H&T said while it was performing ahead of market expectation for this year, uncertainty over the sustainability of gold purchasing volumes and margins meant that it did not plan to alter its expectations for 2010. The firm recently posted a 52 per cent surge in pre-tax profits before exceptional items to £8.4 million in the six months to June 30 as gold sales exceeded expectations.

Gold prices are currently at record levels as investors hunt for a safe haven for their capital. Many firms have looked to cash in on the rises.

H&T has said that it is not clear whether the recession has further fuelled consumers’ interest, saying people were now more aware that the service existed.

H&T said it expects to open 12 new pawnbroking stores in the second half, taking its total to 122 by the end of the year.