More people than ever are deciding to pawn their belongings to raise cash as the economy falters.
H&T Group, which has more than 270 pawn shops 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, grew more than expected to £127million by New Year’s Eve, which was up from £101million a year earlier.
Gary Greenwood, an analyst at Shore Capital, H&T’s broker, said: ‘H&T is still benefiting from the withdrawal of short-term high-cost 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 prove supportive for H&T – up 3.9 per cent, or 13p, at 349p – it is unlikely to help retailers, housebuilders or banks.
Desperate times: H&T Group, which has more than 270 pawn shops across England, Scotland and Wales, saw a record number of new customers in the final ten weeks of last year
All were marked sharply lower as worries 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 boosted the FTSE 100, which derives more than three-quarters of its earnings overseas, 0.8 per cent, or 68.66 points, higher to 8319.69.
The more domestically-focused FTSE 250 eked out a 0.3 per cent, or 52.90-point, rise to 20,005.14 after a steep sell-off a day earlier.
Trading was moribund as the sell-off in the bond market continued, with US markets closed for a day of mourning for former President Jimmy Carter.
London was kept afloat by its preponderance of miners, which account for about 8pc of the market. Because their earnings are in US dollars, miners were sought as protection against the pound.
Ferrexpo advanced 2.6 per cent, or 2.4p, to 95.2p after production of iron ore pellets in Ukraine jumped by a quarter in the final three months of last year, its highest level since Russia invaded.
But S4 Capital dipped 2.2 per cent, or 0.7p, to 31.8p after Sir Martin Sorrell’s advertising group said its chief financial officer, Mary Basterfield, was stepping down.
She was one of four CFOs at UK-listed companies to announce their departure yesterday, and one of a dozen so far this year.
On a difficult day for retailers, Boohoo rose a further 1.7 per cent, or 0.54p, to 31.58p after the 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 chairman Mahmud Kamani.
Cirata, formerly known as WANdisco, rallied 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 as much as 1310p before a £100million fraud came to light in 2023.
Mears was 7.1 per cent, or 24.5p, higher at 372p after the housing repairs and maintenance group said trading remained strong and margins improved.
Stock Watch – ImmuPharma
ImmuPharma nearly trebled, rising 191.7 per cent, or 2.3p, to 3.5p, after the specialist in autoimmune disease therapies hailed ‘groundbreaking advancements’ in research.
The latest discoveries by its French R&D team increase its confidence in P140, a treatment for lupus.
Chief executive Tim McCarthy said it paved the way for ‘earlier and more accurate diagnostics’ and makes it easier to spot patients who are likely to respond to the treatment.
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