H&T Group PLC on Tuesday said demand for its new and pre-owned jewellery and watches and pledge lending were strong in the first half of the year, with the positive momentum set to continue into the second half.
H&T is a Surrey, England-based pawnbroker and retailer of new and pre-owned jewellery and watches. Shares in the firm were up 2.4% at 431.97 pence on Tuesday morning in London.
The company said demand for pledge lending remains at ‘record levels’ and is continuing to gain momentum. It noted that gross lending grew 22% to £128 million in the six months ended June 30 from £105 million the year prior.
H&T’s pledge book stood at £113 million at June 30, up from £85.1 million at the same time a year prior and from £100.7 million at the end of 2022.
However, it said that the ‘exceptional’ levels of redemptions seen in late April and early May did not continue.
Meanwhile, demand for H&T’s new and pre-owned jewellery and watches continued to rise during the half, with sales by value up 10% year-on-year.
The company said that during the second quarter, in response to changing market dynamics, it chose to prioritise stock turnover ahead of margin, particularly in the case of some higher value watch brands.
‘We have recently increased sale prices across the majority of our retail stocks and margins are expected to improve in the second half of the year. Scrap volumes were particularly strong, with profits ahead of expectations and substantially offsetting margin compression in retail sales,’ it said.
Foreign exchange transaction volumes were up 19% year-on-year and are at record levels, H&T said, with momentum still building.
Chief Executive Chris Gillespie said: ‘I am very pleased with the progress we have made in the first half of 2023 in an environment of rising interest rates and persistent inflation. I am particularly encouraged by the growing momentum with which we enter the busy second half of the year.’
H&T expects to publish its half-year results on August 8.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
