MARKET REPORT: Boost for pawn broker H&T as consumers falter

More people than ever are deciding to mortgage their assets to raise money as the economy falters.

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

The value of the pawn book, mainly gold against which loans are made, grew more than expected to £127 million on New Year’s Eve, up from £101 million a year earlier.

Gary Greenwood, analyst at Shore Capital, H&T’s broker, said: ‘H&T continues to benefit from the withdrawal of high short-term lending in recent years after regulators put pressure on home lenders.

There has also been a change in consumer confidence since the Budget. People are becoming more careful.’

While a struggling economy could support H&T – up 3.9 percent or 13 cents to 349 cents – it is unlikely to help retailers, homebuilders or banks.

All were sharply lower as concerns mount over Britain’s growth prospects and budget credibility. And the pound hit its lowest level against the dollar in more than a year.

But that pushed the FTSE 100, which makes more than three-quarters of its gains abroad, up 0.8 percent, or 68.66 points, to 8,319.69.

The more domestically focused FTSE 250 rose 0.3 percent, or 52.90 points, to 20,005.14 after a steep sell-off a day earlier.

Trading was moribund as the bond market sell-off continued and U.S. markets were closed for a day of mourning for former President Jimmy Carter.

London was kept afloat by the preponderance of miners, who account for about 8% of the market. Because their income is in US dollars, miners were sought out as protection against the pound.

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

But S4 Capital fell 2.2 percent, or 0.7 cents, to 31.8 cents after Sir Martin Sorrell’s advertising group announced its chief financial officer, Mary Basterfield, would resign.

She was one of four CFOs at British listed companies who announced their departure yesterday, and one of 12 so far this year.

On a tough day for retailers, Boohoo rose a further 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, and urged shareholders to vote against firing the company’s co-founder and vice chairman, Mahmud Kamani.

Cirata, formerly known as WANdisco, rose 5.4 percent, or 1.15 cents, to 22.5 cents after vowing to enter a “growth phase.”

These were shares that changed hands for as much as 1,310p before a £100 million fraud was exposed in 2023.

Mears was 7.1 percent, or 24.5 cents, higher at 372 cents after the home repair and maintenance group said trading remained strong and margins improved.