H&T delivers record full-year profits
By Josh White
Date: Tuesday 18 Mar 2025
(Sharecast News) - Pawnbroker and jewellery retailer H&T delivered record profits in 2024, it announced on Tuesday with profit before tax rising 10% to £29.1m as demand for its core pawnbroking services continued to grow.
The AIM-traded firm said profit after tax increased 5% to £22.2m, adding that it saw a 26% expansion in its pledge book, ending the year with a capital value of £127m, supported by record levels of new customer borrowing, particularly in the fourth quarter.
Net revenue from the pledge book, including pawnbroking scrap, increased 5% to £77.8m, though revenue growth lagged behind the increase in capital value, positioning the company for further gains in 2025.
Retail jewellery and watch sales surged 27% to £61.8m, with gross profit up 34% to £19.3m.
Foreign currency profits rose 11% to £7m, reflecting a 10% increase in transaction volumes.
H&T said it continued its investment in store expansion and refurbishment, ending the year with 285 locations after completing 48 store refreshes.
The company said it remained focused on growing its geographic footprint, both through new openings and acquisitions of independent stores that meet its investment criteria.
It said its balance sheet remained strong, with net assets rising 8% to £192m.
Net debt increased to £54m, primarily due to the growth of the pledge book.
Diluted earnings per share rose 5% to 50.9p, and the board proposed a final dividend of 11p, bringing the full-year payout to 18p, up 6% from 2023.
Looking ahead, H&T said it expected continued strong demand for its short-term lending services amid macroeconomic pressures and limited availability of small-sum credit.
The pledge book had grown slightly since year-end, underpinning further revenue growth.
H&T said it was committed to its target of a mid-teens post-tax return on equity while maintaining a balanced approach to growth and dividends.
"The group has made significant progress in 2024, delivering record profits and strong growth," said chief executive officer Chris Gillespie.
"Demand for our core pawnbroking product continues to grow, with particularly strong lending demand in the final 10 weeks of the year, providing a sound base for future growth.
"Retail sales in the key fourth quarter peak trading period, which included both the Diwali and Christmas festivities, were in line with management expectations with product margins showing an improvement."
Gillespie noted that the company's retail jewellery customers were continuing to favour items at lower price points than had historically been the case, resulting in increased demand for its range of lower priced, new jewellery items.
"With ongoing investment in scale, service quality, and the continuous improvement and efficiency of the customer journey, combined with the broader macroeconomic backdrop, we believe the group is well-positioned for significant growth in the medium term.
"This applies across our product offering, in particular the core pawnbroking product."
Reporting by Josh White for Sharecast.com.
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