UK pawnbroker H&T Group PLC (AIM:HAT) has bought Omega watch repair provider Swiss Time Services for £4.3mln to enhance its offering to customers of prestige watches.
The acquisition of the Essex-based watch mender, which employs more than 30 people and specialises in Omega watches, includes a net cash balance of £500,000.
H&T chief executive Chris Gillespie said the deal “enables us to bring watch expertise in-house and consequently, improve margins and broaden the range of services we can offer to our customers”.
The pawnbroker issued a trading update today in advance of its interim results, stating that demand for pledge lending “continued to gather momentum in the first half of the year”.
Amid high levels of inflation, pledge lending is making a resurgence, and is now 40% above pre-pandemic levels, according to H&T. Its pledge book was £84.2mln, as of 30 June, up from £48.3mln a year earlier, following growth in all geographies.
The company has used Swiss Time repairs and services for many years and is seeking to bring these capabilities in-house amid a boost in watch sales. It expects to commission 4,000 watch repairs or services this year alone for products it resells.
Following the deal, the pawnbroker said it plans to roll out a new 'repair and care' service for customers of its watches.
Swiss Time’s founding managing director Tony Coe will stay on as a consultant for 18 months following the deal.