H&T Group PLC COVID-19 update (2831R)
June 29 2020 - 2:00AM
UK Regulatory
TIDMHAT
RNS Number : 2831R
H&T Group PLC
29 June 2020
29 June 2020
H&T Group plc
COVID-19 Update
Further to the announcement made on 6 April 2020 in relation to
the Covid-19 situation H&T Group plc ("H&T" or the
"Group"), the UK's leading pawnbroker, provides an update on
operational and financial matters.
Operational update:
All of our stores are now reopen following the temporary closure
of the entire estate on 24 March, in the light of HM Government's
introduction of nationwide social restrictions and instructions
regarding retail operations.
Our priority is the health, safety and wellbeing of our
colleagues and customers and we have taken the time to implement
health and safety measures within our stores. We commenced a phased
reopening of our store estate from 12 May and by 31 May all stores
except two were open, servicing essential financial services with
the exclusion of personal unsecured lending.
HM Government's guidance in May widened the services we could
offer so allowing us to open with a full financial service offering
and from 15 June, we recommenced offering retail jewellery through
our stores. At the same time, we have finalised and implemented our
online pawnbroking payment portal, allowing customers to settle
loans remotely. To date 12,000 customers have used this service,
making payments of GBP3m.
Throughout the period we have continued to sell jewellery online
and have maintained our gold processing operation, smelted gold and
so benefited from the relatively high gold price.
While our stores were closed, our store colleagues were
furloughed under the government's Job Retention Scheme. Most
colleagues have now returned to employment as we have reopened for
business. During the last three months, our colleagues across the
UK have offered support in their local communities and the Group
has provided a charitable fund to support local, small charities
who are connected to our customers and employees.
Customer interaction:
Treating our customers fairly is at the heart of the way that
H&T does business and through this period we have implemented
initiatives to help them through this extraordinary period,
including:
i) an interest holiday on all outstanding secured loans while our stores were closed;
ii) providing pawnbroking customers with the opportunity to
defer payment, by extending their loan period for up to
3-months;
iii) allowing personal loan customers the opportunity to take up
to 3-month payment deferral; and
iv) launching our new and fully functional online pawnbroking payment portal.
We have supported and stayed in touch with our customers by
offering a dedicated call centre operation and online chat
facility, regularly updating our website providing information and
guidance, and issuing additional sms text and postal communications
direct to customers.
Financial update:
The Group has mitigated its costs and cash outflows and has been
able to reduce its drawn credit facility with Lloyds and reduced
overall net debt. We now have the full revolving credit facility to
draw on as the pledge book grows in coming months.
Revenues were materially impacted during the period of closure
and the phased reopening. We have mitigated this through prompt
actions on costs and stronger performance in gold processing. As a
result we have seen cash inflow and a reduction in overall net debt
at the period end. We will continue to focus on operating expenses
while we build revenues back to pre Covid-19 levels. While it is
too early to determine the trading impact of Covid-19 on our
performance for the year as a whole we are reassured by the volume
of customers being serviced since we have safely re-opened our
stores, and the early recovery in new customer lending.
FCA Review:
On 18 November the Group announced that it was working with the
FCA to review its creditworthiness assessments and lending
processes for its unsecured HCSTC loans. Since then the Group has
been developing its methodology for conducting a past-book review.
In collaboration with the FCA progress towards appointment of a
skilled person was postponed until Covid-19 restrictions eased and
we expect their appointment later in the next calendar quarter.
Comment from John Nichols, Chief Executive Officer:
"We remain focused on doing the right thing for our colleagues,
customers and the communities where we operate. We have supported
our customers through this extraordinary period, put in place the
right procedures and protocols to ensure the wellbeing of our staff
and safely re-opened all of our stores.
I am immensely grateful for the dedication and commitment of our
colleagues and supplier partners who have demonstrated great
agility and determination in a dynamic and unprecedented situation.
Whilst not immune to the effects of the pandemic, H&T has come
through this phase of this global crisis in good order and in a
robust financial position. We therefore look forward to both
serving our customers and acting upon the other opportunities that
we see ahead."
- 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
Caroline Klein
Vivian Lai
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