Pawnbroker H&T see profits soar to £8.8m as struggling Brits turn to them for cash amid cost of living crisis

THE cost of living crisis is a boon for pawnbroker H&T — as more struggling people are forced to turn to the business for cash.

Demand “gathered momentum” in the last six months, the company said.

It helped profits to jump by almost a third to £8.8million.

Its pledge book — which includes short-term loans linked to customers’ belongings — grew 14 per cent to £114.6million.

Borrowers are taking out bigger loans, of about £423 each, compared with £405 in December.

But about 85 per cent are paying off their debt and reclaiming the items they pawned. And that is “above historic levels”, H&T said.

Borrowers are also paying off their loans more quickly — within 97 days compared with the long-term average of 108 days.

The company said:  “Customers’ growing need to access small sums of short-term credit comes at a time of reduced market supply following the departure of several firms from the unsecured lending market.”

People are turning more to pawnbrokers as an alternative to mainstream banks after payday lenders were hit by a regulatory crackdown, driving many out of business.

H&T boss Chris Gillespie said: “We’re mindful of the impact upon our employees, suppliers and stakeholders of inflation and rising interest rates.”

The firm opened eight new stores in the first half of the year and shut two.

It now has 273 branches and 1,600 staff.

Mr Gillespie said H&T’s “growing revenue momentum” puts it on track to make record profits this year.

The origin of pawnbrokers’ three golden balls symbol is disputed.

It is believed to derive from the crest of the Medici family which lent cash in Florence, Italy, in the Middle Ages.

But some reckon it comes from the tale of St Christopher giving a bag of gold to a poor man so his daughters could marry.

Power of London

THE cost of living crisis hasn’t hit the appetite for holidays — with InterContinental Hotels boasting “healthy” sales.

The Holiday Inn owner saw its revenues climb 23 per cent to £780million in the six months to June, from £658million the previous year.

The group noted a particularly strong rebound in travel in London.

The chain, which includes Crowne Plaza and Regent hotels, also said there had been a turnaround in China, once Covid restrictions had been eased at the start of this year.

Meanwhile, the group’s global revenue per available room increased by 24 per cent over the year to top pre-Covid levels.

Boss Elie Maalouf said: “Travel demand is very healthy”.

Odds lift for bond winnings

PUNTERS will have more chance of winning a Premium Bond prize from next month as the odds of a payout climb to the best level since April 2008.

They will rise from 22,000 to 1 to 21,000 to 1.

By comparison, the odds in May last year were 34,500 to 1.

The prize fund rate will rise to 4.65 per cent in September — the highest since March 1999.

An extra £66million will be added to the prize fund, creating a potential pot of more than £470million from National Savings and Investments.

NS&I chief Dax Harkins said: “We’re supporting savers up and down the country. More will have the chance to win.”

There will still be two £1million jackpots in September but £100,000 prizes will rise from 77 to 90.

And £50,000 prizes will rise from 154 to 181.

Premium Bonds were launched in 1956 to encourage post-war Brits to save.

More than 22million now hold bonds, with £120billion invested.

Investor relief

SHARES in asset manager Abrdn slumped 11 per cent yesterday after it reported that worried investors withdrew £4.4billion from the firm between January and July.

It blamed the outflow of cash from funds on a “challenging macro environment” which hit investor confidence.

Boss Stephen Bird said they are taking action to put “business on a better footing”.

He said: “If 2022 was the hardest investing year, 2023 is shaping up to be equally challenging.”

Beware the loan conmen

THE City Regulator has warned consumers to be wary of fake loan offers.

The Financial Conduct Authority said fraudsters ramp up their activity in the summer.

Loan fee fraud — where someone pays for a loan but doesn’t receive it — increased by 26 per cent last year.

“For fraudsters, the summer months provide the perfect opportunity to take advantage of people considering how to make ends meet,” said Steve Smart of the FCA.

He urged people to be wary of cold calls or emails arriving out of the blue offering loans.

Other warning signs of a loan scam include being put under pressure to pay quickly or by using an unusual method.

Meanwhile, Barclays has urged the Government to clamp down on internet sites — after its data showed almost nine out of ten scams originate on social media, online marketplaces, and dating apps.

PROFITS at Swiss mining firm Glencore plunged 50 per cent in the last six months, after the surge in commodity prices following Russia’s invasion of Ukraine eased.

But it still made £7.4billion in the first half of the year.

Flexible work is working

FLEXIBLE working lifted office space firm IWG to record revenues as businesses embraced staff operating from home for a day or two each week.

The Regus and Signature owner said its revenue climbed 14 per cent to £1.7billion in the last six months as firms turned to flexible workspaces.

Boss Mark Dixon said: “The continuing impact of the pandemic finally led to the lift-off of the hybrid model that some of us have been anticipating.”

He said firms were encouraging workers to work from home while spending time at flexible workspaces — and making occasional visits to offices.

Operating profit at IWG more than doubled to £94million for the six months.

It signed almost as many lease agreements between January and June as in the whole of last year.