Pawnbroker boosted as folks flip to fast loans
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eople are more and more turning to pawnbroker H&T to entry money, the enterprise mentioned on Tuesday, as households proceed to be battered by excessive dwelling bills.
The firm mentioned demand for its providers had “gathered momentum” within the first six months of the 12 months, as its revenue jumped by almost a 3rd.
It mentioned debtors had been additionally taking out greater loans – on common round £423 every, in contrast with £405 in December final 12 months.
However, regardless of the pressures individuals are dealing with, round 85% are nonetheless paying off their loans and reclaiming the gadgets they pawned, which is “above historic levels”, H&T mentioned.
Customers are additionally paying off their loans faster – inside 97 days in contrast with the long-term common of 108 days, the enterprise mentioned.
“Demand for pledge lending continued to gather momentum during the first half of 2023, as customers’ increasing need to access small sums of short-term credit comes at a time of reduced market supply following the departure of several firms from the unsecured lending market,” H&T mentioned on Tuesday.
“Demand for lending has been growing consistently through the period, across all customer segments and all geographies.”
Pre-tax revenue rose 31% to £8.8 million, the enterprise mentioned.
Chief govt Chris Gillespie mentioned: “I am delighted with the progress we have made and the momentum with which we enter the busy second half of the year.
“We are mindful of the impact upon our employees, suppliers and stakeholders of persistent inflation and rising interest rates.
“H&T is not immune to these factors, which have resulted in operating costs being higher than previously envisaged.
“However, much of this cost inflation is now factored into the cost run rate.
“We expect a lower level of cost inflation in the second half of the year which, alongside the growing revenue momentum of the business, puts us on track to deliver record profits in 2023.”