H&T Group PLC Business update (3986E)
November 05 2020 - 6:00AM
UK Regulatory
TIDMHAT
RNS Number : 3986E
H&T Group PLC
05 November 2020
5 November 2020
H&T Group plc
Business Update
Further to the announcement on 11 August 2020 of its interim
results for the six months ended 30 June 2020 H&T Group plc
("H&T" or "the Group"), the UK's leading pawnbroker, provides a
trading update for the second half of the financial year. All of
the Group's operations remain fully open for business supporting
the diverse needs of its customer base in these challenging
conditions. The Group continues to work closely with the FCA in
respect of their HCSTC lending review, and we have now appointed a
Skilled Person in this regard.
All 253 stores are currently open, operating safely and
providing a full range of 'essential' financial services. The store
estate will remain open for customers during the November lockdown
period. The Group has continued to invest in digital capability
allowing customers to access products both remotely and through its
store estate. Last month the Group opened a new site in
Edinburgh.
Pawnbroking customers continue to repay their loans (either by
attending the store or via the payment portal) and at normal pledge
redemption rates. At the end of October the pledge book stood at
GBP48m. The reduction since June reflects both reduced customer
demand and a prudent approach to new lending. The quality of the
pledge book remains solid and cash generation remains robust.
Retail sales have been strong, capitalising on increased
consumer demand for competitively priced, high-quality jewellery
and watches. The high gold price has also driven increased gross
profits from both pawnbroking and gold purchasing activities. These
strong performances have more than offset weakness in the Group's
foreign currency business as a result of reduced international
leisure travel.
The Group's balance sheet and liquidity remains strong with net
cash of approximately GBP30m, no debt, an undrawn revolving credit
facility of GBP35m and net assets of GBP134m.
John Nichols, Chief Executive, said:
"H&T is in very good health during this unprecedented time,
with a strong performance in our retail operations and a prudent
approach to lending. In addition to our websites, our stores remain
open for business, in line with Government requirements, with over
GBP30m in cash to support our customers. Whilst the rebuilding of
the pledge book is dependent upon a number of factors, including
underlying customer demand, overall we are performing in line with
plans and currently ahead of market expectations for the year.
"While uncertainties lie ahead from the impacts of current and
any future lockdowns, we have a strong business and we remain
focused on providing an exceptional customer experience across a
diverse range of products. We remain on track to deliver on our
long-term plans as the UK's leading pawnbroker."
- ENDS -
For further information, please contact:
H&T Group plc
Tel: 020 8225 2797
John Nichols, Chief Executive
Richard Withers, Chief Financial Officer
Numis Securities (Broker and Nominated Adviser)
Tel: 020 7260 1000
Luke Bordewich - Nominated Adviser
Henry Slater
Haggie Partners (Public Relations)
Tel: 020 7562 4444
Damian Beeley
Vivian Lai
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDUPGCAGUPUGUA
(END) Dow Jones Newswires
November 05, 2020 06:00 ET (11:00 GMT)
H & T (AQSE:HAT.GB)
Historical Stock Chart
From Jul 2024 to Aug 2024
H & T (AQSE:HAT.GB)
Historical Stock Chart
From Aug 2023 to Aug 2024