H&T Group PLC Trading Update and Notice of Results (9243A)
January 27 2020 - 2:00AM
UK Regulatory
TIDMHAT
RNS Number : 9243A
H&T Group PLC
27 January 2020
27 January 2020
H&T Group plc
("H&T" or "the Group" or "the Company")
TRADING UPDATE AND NOTICE OF RESULTS
H&T Group plc ("H&T" or "the Group") the UK's leading
pawnbroker, today announces a trading update for the financial year
ended 31 December 2019. H&T expects to report its results for
the year ended 31 December 2019 on 10 March 2020. Following strong
second half-year trading and a positive performance of the recently
acquired Money Shop and Speedloan business assets, H&T expects
the full-year profit before tax to be at the top end of current
market expectations.
The key components of the results are:
-- growth in the year-ending pledge book by GBP20m (+39%) on the
prior year, with core stores up GBP13m (+25%)
o the Group's core estate performance was driven by increased
lending to newly-acquired customers and organic growth in
transactions
o solid trading from acquisitions
-- the jewellery retail business delivered +7% sales growth on
prior year, including +5% from core stores
-- strong income growth from foreign exchange, with Group FX
income +45% with core store FX income growth +20%
-- strong returns from precious metal scrappage reflecting the high gold price
-- a continuation of the reduced impairment charges on unsecured lending
As per the announcement of 18 November 2019 the Group is working
closely with the FCA and industry experts to conduct a review of
certain aspects and files of its high-cost short-term-credit
unsecured loans business.
John Nichols, chief executive, said:
"We have made good progress in delivering our strategic goals in
the past year, particularly in consolidating the pawnbroking
industry by acquiring trading sites and pledge book purchases. I am
delighted with progress to date regarding the operational
integration of these trading sites and assets with financial
performance meeting expectations. We continue to develop our
digital strategy complementing our enlarged store estate.
"Further growth in pawnbroking has primarily been driven by
increased customer transactions and the opportunity to serve more
customers following the acquisitions made during the year. The
ongoing refinement and rationalisation of our personal loan product
offering has improved lending return.
"We have improved retail through an expanded range of new
jewellery and the development both of click-and-collect and online
sales. We are pleased with the growth of our foreign exchange
proposition, cheque cashing and newly introduced money-wire
transfer operations.
"The Group's momentum over recent years demonstrates the success
of our strategy to access new customers and markets. Demand for our
products remains strong and we look to the future with
confidence."
- ENDS -
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
Oliver Cox
Haggie Partners (Public Relations)
Tel: 020 7562 4444
Damian Beeley
Caroline Klein
Vivian Lai
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END
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