H&T Group PLC (AIM:HAT), the UK's largest pawnbroker, said trading was robust over Christmas with demand for loans from businesses providing a late boost.
Pawnbroking was especially strong in the final ten weeks of the year, H&T said, including record levels of new customers taking out pledges for the first time.
At December 31, the pawn pledge book, including the acquired Maxcroft business, was ahead of expectations at £127 million, compared with £101 million a year ago and £105 million in June,
As most of the loan growth was late in the year, H&T expects the full benefit to come through in 2025.
The company added that with the addition of Maxcroft, where loans typically are personal loans for business purposes and have a capital value greater than £5,000, this type of lending has risen to 18% of the book.
In 2025, as with the year just ended, H&T expects to see the bulk of any growth in pawnbroking in the third and fourth quarters.
In retail, jewellery saw sales held up with slightly better margins than expected while watch sales showed ‘solid growth’.
Increased employer national insurance rates following the Budget will increase annual employment costs by £2 million, H&T added.
Chris Gillespie, chief executive said: "The group delivered a robust performance in the seasonally important fourth quarter.“