MARKET REPORT: Boost for H&T Pawn Shop as Consumers Falter

More people than ever are deciding to pawn their belongings for cash as the economy falters.

H&T Group, which has more than 270 pawnshops across England, Scotland and Wales, saw a record number of new customers in the final ten weeks of last year.

The value of the pledge book, predominantly gold against which loans are made, rose more than expected to £127m on New Year’s Eve, up from £101m a year earlier.

Gary Greenwood, analyst at H&T broker Shore Capital, said: ‘H&T is still benefiting from the withdrawal of high-cost short-term credit in recent years after regulators clamped down on doorstep lenders.

There has also been a change in consumer sentiment since the budget. “People are feeling more cautious.”

While a struggling economy may be favorable for H&T (up 3.9 per cent, or 13p, to 349p), it is unlikely to help retailers, housebuilders or banks.

All were sharply lower as concerns about the UK’s growth prospects and fiscal credibility deepen. And the pound hit its lowest level against the dollar in more than a year.

But that lifted the FTSE 100, which makes more than three-quarters of its profits overseas, up 0.8 per cent, or 68.66 points, to 8,319.69.

The more domestically focused FTSE 250 managed a rise of 0.3 per cent, or 52.90 points, to 20,005.14 after a sharp sell-off the previous day.

Trading was moribund as sell-offs continued in the bond market, with US markets closed for a day of mourning for former President Jimmy Carter.

London was kept afloat by its preponderance of miners, who make up about 8 percent of the market. Because their profits are in US dollars, miners were sought as a hedge against the pound.

Ferrexpo rose 2.6 percent, or 2.4 pence, to 95.2 pence after iron ore pellet production in Ukraine rose by a quarter in the final three months of last year, its highest level. since the Russian invasion.

But S4 Capital fell 2.2 per cent, or 0.7p, to 31.8p after Sir Martin Sorrell’s advertising group said its finance director, Mary Basterfield, was to resign.

She was one of four chief financial officers of UK-listed companies to announce their departure yesterday, and one of a dozen so far this year.

On a tough day for retailers, Boohoo rose another 1.7 per cent, or 0.54p, to 31.58p after proxy voting adviser Institutional Shareholder Services backed the online fashion retailer in its battle with Mike Ashley and Frasers Group, urging shareholders to vote against. firing the company’s co-founder and vice president, Mahmud Kamani.

Cirata, formerly known as WANdisco, rose 5.4 per cent, or 1.15p, to 22.5p after promising to move into a “growth phase”.

These were shares that changed hands for up to 1,310p before a £100m fraud came to light in 2023.

Mears rose 7.1 per cent, or 24.5p, to 372p, after the home maintenance and repair group said trading remained strong and margins improved.