Pawnshops spreading rapidly
Pawnbrokers could spread across UK high streets at a similar rate to coffee chains, the head of the UK's largest pawnbroker has said.
John Nichols, chief executive of H&T Group, said the industry was expanding rapidly as its image became more mainstream.
He said H&T, which currently has 106 stores in England and Scotland, plans to more than double its outlets in the next four to five years.
His comments came as the group posted a 36.5% rise in pre-tax profits, helped by its expansion programme, new customers and the rising price of gold.
Mr Nichols said H&T had "very strong" opportunities over the next four to five years and aimed to grow to around 250 stores in that period.
He said that, while the potential size of the market was not known, there were parallels with the growth of the coffee industry, which saw many different firms open stores on the same high street.
"At the moment you are seeing one or two pawnbroker shops on your high street, you may see three or four in the next four years," he said.
"We have a much bigger footprint now. It is much more visible now people understand it - it's not that service that is hidden around the back of a jeweller's shop."
Mr Nichols said the growth in profit for H&T was consistent with previous years and dismissed suggestions that the economic downturn had boosted business.
The firm - which made a pre-tax profit of £10.1 million in the year to December 31 - saw its pawn pledge book increase to £32 million, from £27.8 million in 2007.
