Pawnbrokers stand to gain in downturn
Cash-strapped Britons are increasingly ending up in the arms of the pawnbroker, latest figures reveal.
Beating the crunch: Pawnbrokers H&T Group are set to gain in the financial crisis
H&T Group, which has more than £30m out on loan to people who have pawned jewellery or other valuables, says it expects to increase profits to more than £10m, a rise of about 50% on the previous year.
H&T, formerly Harvey & Thompson, has 105 stores - almost a third of them in London - as it vies with Albemarle & Bond to be Britain's largest pawnbroker.
Chief executive John Nichols said the UK has gone back to the future as the sign of the three golden balls returns to the country's high streets.
He added: 'The main reason for our growth in profits is our greater presence and the fact that people realise that pawnbroking is often an easier alternative for small or short terms loans.'
H&T typically charges a punitive 8% a month on cash advances averaging £120.
Of the jewellery that ends up getting sold, retail sales 'grew significantly' over the past six months, the company said, but had been pegged to 3% growth in December because of difficult high street conditions.
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