H&T Group PLC (AIM:HAT) said demand for pawnbroking loans remained strong in the first four months of 2023, though some high-end watch brands have seen prices dip.
Since the start of 2023, H&T said its pawnbroking pledge book has risen by 6% to £106.5mln though redemptions have been especially high recently, it noted, which has affected growth.
Watch and second-hand jewellery sales were up by 13%, with January seeing a record month online as sales were above £1mln for the first time, though margins have been affected by inflation.
New jewellery costs have risen and H&T said it is putting up prices and cutting stock of some watch brands that are now less in favour.
Gold scrapping did well with stocks helped by the record metal price recently.
Chris Gillespie, chief executive, commented that overall both the pawnbroking and watch and jewellery arms were performing "very well".
“Our focus is on continuing to expand the geographic coverage of our store network and we are investing both in new store openings and in refreshing existing stores."
H&T's estate now numbers 274 outlets with seven added year-to-date and more planned over the remainder of the year.
Trading and performance should continue in line with market expectations, said the statement.