H&T Group PLC TRADING UPDATE AND NOTICE OF RESULTS (6790M)
January 25 2021 - 2:00AM
UK Regulatory
TIDMHAT
RNS Number : 6790M
H&T Group PLC
25 January 2021
25 January 2021
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 2020. H&T expects to report its final results
for the year on 23 March 2021.
Following stronger than anticipated November and December
trading, despite lockdown measures, H&T expects the full-year
profit before tax to be ahead of market expectations.
Almost all of the 253 stores remain open, albeit with shortened
trading hours. Pawnbroking, foreign exchange, cheque cashing and
money transfer services continue to be available in-store having
been categorised by HM Government as essential services. Customers
continue to be offered retail jewellery through either click and
collect or click and deliver services, and H&T's e--commerce
websites are operating as usual.
In terms of FY20 outturn:
- Retail jewellery sales during H2 were strong, particularly in
December, and for the six months to the year-end were only 6% below
prior year
- Returns from precious metal scrappage were 58% up on prior
year, reflecting the high gold price
- Against the background of travel restrictions foreign currency
income was remarkably robust, achieving 65% of prior full year
levels and Western Union transaction volumes were more than three
times higher than in 2019
- The year-end pledge book was GBP48m, in line with the figure
reported in the 5(th) November update, with a resilient performance
building through Q4
- The personal lending book as at 31 December 2020 was GBP6m,
with reduced impairment charges and with repayments and recoveries
more than offsetting new lending
- Balance sheet cash balance of GBP34m and our GBP35m bank facility is undrawn
The Group continues to work with the appointed Skilled Person
and the FCA in respect of the HCSTC lending review, and H&T
expects an outcome within previous guidance. Given the ongoing
disruption from the pandemic the outcome of this review will now
likely be delayed beyond March.
Chris Gillespie, chief executive, said:
"I have joined H&T in a strong position. We have ended 2020
robustly with an outturn ahead of expectations, showing the
strength of the Company in these challenging conditions.
"Our stores are open for business operating safely and in full
compliance with Government requirements. Our business remains in
good health with returning momentum in the pledge book continuing
into 2021. Our retail operations remain robust, despite the ongoing
restrictions. We have no debt and good cash resources to rebuild
the pledge book as underlying customer demand returns. Meanwhile we
will be taking the opportunity to invest in our store estate, our
technology and in the ongoing training and development of our
colleagues.
"The Group has taken every step during 2020 to protect the
health, safety and wellbeing of our customers, colleagues and
community. We ensured that our customers did not suffer financially
while our stores were closed during the Spring, by suspending
pawnbroking interest during that period. We continue to work with
customers financially impacted by Covid to agree payment deferral
arrangements where it is in their best interests to do so. We serve
the communities where we operate - through our in-store, online and
telephone offerings - and the compliant and high quality of service
provided by our store and support colleagues remains our key
strength. I look forward to the future of H&T with
confidence."
- ENDS -
H&T Group plc
Tel: 020 8225 2797
Chris Gillespie, 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
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