H&T Group PLC (AIM:HAT) saw record profits in 2023 as the uncertain economic backdrop drove more customers to its pawnbroking chain.
Revenue, profits and its pledge book all grew over the past twelve months with January this year also a record month for lending.
Chris Gillespie, chief executive, said: “Pawnbroking is our core business and is attracting increasing numbers of new customers.
“Throughout the year, we saw record demand for our pawnbroking service and this has continued into 2024.”
In 2023, profits rose by 39% to £26.4 million while H&T’s pledge book jumped 28% to £129 million.
Net pawnbroking revenue after impairments was up 36% at £69.5 million, while its other retail operations - online, new jewellery sales and foreign exchange - all improved their contribution.
Growth in the pledge book meant net debt rose to £32 million but Gillespie said currently there is £30 million of financial headroom to grow it further.
Some of this will be business owners, it added, as it is seeing an increasing number seeking finance for working capital against pledged personal assets.
This formed part of the rationale for the acquisition of the pledge book of Maxcroft.
Between eight and twelve new stores will be opened in 2024, said the statement.
The dividend for the year rises by 13% to 17p.