Pawnbroking giant H&T says veteran CEO John Nichols to retire just as recession sets industry up for boomtimes
Britain's biggest pawnbroker, H&T, today announced its longstanding chief executive John Nichols was retiring just as the Covid-19 recession is likely to mean boom times for the business.
Nichols led the company through a management buyout in 2004 and subsequently floated it on the junior AIM stock market, taking it from 69 branches on the float to 252 today.
He will be replaced by new board member Chris Gillespie, who joined from doorstep lender Provident Financial in July.
Pawnbrokers traditionally thrive in times of economic hardship as people made redundant or having their pay cut resort to their services.
However, H&T has had a tougher time during this crisis and has seen its shares hit hard by store closures during the lockdown.
It froze interest payments on pawnbroking loans while its stores were closed and says it offered payment deferrals to people whose income is affected by the pandemic.
Peter McNamara, H&T chairman, said: "Much of what the business has achieved has been as a result of John's close understanding of the business, his belief in the longevity and resilience of our core business activity as well as his working relationships with the branch colleagues.
"Together their contribution has been key to the success of H&T where others in the sector have often not prospered."
H&T resumed paying its dividend in August after suspending it during the early stages of the pandemic.
While half of its revenues come from its pawnbroking business, the other half is from its retail operations, including sales of second hand jewellery, personal loans and cheque cashing. The jewellery business could suffer in the downturn.
Gillespie will have to wrestle with that issue while also liasing with financial regulators over a probe into unsecured loans launched last November.
The 57-year-old formerly ran Provident's consumer credit arm and previously was at the now-troubled Amigo Loans group and Albemarle & Bond, which collapsed into administration in 2014. A&B was bought out of administration then ceased trading again last year.
