H&T is thriving in boom for pawn

The high street is bathed in profit warnings as shoppers cut back, but pawn is on the up.

Pawnbroker H&T said today that it has traded so strongly in the past five months that profits will be at the top of City profit forecasts.

That is in spite of the costs of a store expansion programme, which has seen 10 shops opened this year.

Those new stores are doing well as demand for H&T's services grows.

H&T customers are selling more gold on which the company can turn a profit and taking out more loans. The shares gained 14.38p to 351.88p.

Last month H&T's rival Albemarle and Bond also said it was doing well. It believes the pawnbroking market will expand rapidly in the next few years.

There are 1200 pawn stores in the UK. Albemarle estimates there is scope for at least 3000. It expects to open 28 stores this year.

Analysts say the continued rise in the gold price is likely to encourage people short of cash to sell their jewellery.

City analysts expect H&T to make around £16 million for the year.