HAT H&t Group Plc

9 January 2025

H&T Group plc

("H&T" or "the Group")

Trading Update and Notice of Results

H&T Group plc, the UK's largest pawnbroker and a leading retailer of high-quality new and pre-owned jewellery and watches, is pleased to provide an update on recent trading performance, following completion of the financial year ended 31 December 2024.

Trading was robust in the seasonally important fourth quarter, and was in line with management expectations.

Pawnbroking

Demand for our core pawnbroking product continues to grow, with particularly strong lending demand in the final ten weeks of the year, including record levels of new customers borrowing from us for the first time. The capital value of the pawnbroking pledge book, excluding accrued interest and IFRS 9 provisions, grew ahead of management expectations to £127m as at 31 December 2024 (December 2023: £101m, June 2024: £105m). The capital value includes the Maxcroft pledge book of £6m, up 9% since acquisition in February 2024.

The strong growth in the pledge book achieved since the summer, provides a sound base for future earnings. However, 2024 revenues reflect limited benefit from this growth, as it occurred late in the year and therefore, time on book was not significant.

The Group has been cautiously broadening its appetite for larger size loans, which remain secured on personal assets but are often used for business purposes, following the Maxcroft acquisition. These loans typically have a capital value greater than £5k, and amounted to 18% of the capital value of the Group's pledge book as at 31 December 2024 (December 2023: 13%).

All key pledge book performance metrics remain consistent. The Group's current planning assumption is that there will be lower pledge book growth in the spring, due to increased levels of redemptions, followed by a period of stronger growth in later months. This is consistent with the way the pledge book developed in 2024. As such, we do not anticipate material pledge book growth in the first or second calendar quarters of 2025, with growth expected to return in the third and fourth calendar quarters of the year.

Retail

Retail sales in the key fourth quarter peak trading period met management expectations at slightly improved product margins. It is notable that our retail jewellery customers continue to favour items at lower price points, than has historically been the case. This has resulted in increased demand for our range of lower priced, new jewellery items. Watch sales showed solid growth following the stabilisation of the pre-owned watch market through the year.

Foreign Exchange

Foreign currency net revenues were in line with expectations, reflecting further positive progress.

National Insurance Costs

The increase in employer national insurance rates announced by the UK Government in its Budget on 30 October 2024 will impact our business from April 2025. We estimate the combined impact of lowering the earnings threshold at which employers start paying national insurance contributions, and the increase in the rate of those contributions, will increase our employment costs by c.£2m per annum. We are reviewing options to mitigate the impact where possible.

Notice of Results

The Group expects to publish its preliminary results for the financial year ended 31 December 2024, on 18 March 2025.

Chris Gillespie, H&T Chief Executive said:

"The Group delivered a robust performance in the seasonally important fourth quarter. I cannot thank our people enough for their hard work and dedication to customer service in a period of further progress for the Group. I look forward to updating the market fully when we report our preliminary results."

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About H&T Group plc

H&T is the UK's largest pawnbroker, a leading retailer of high quality new and pre-owned jewellery and pre-owned watches and provides a range of financial products tailored for a customer base which has limited access to or is excluded from the traditional banking sector. These products include Pawnbroking, Retail and Foreign Currency. 

H&T's store estate of over 280 stores across the UK provide customers with small-sum short-term non-recourse pawnbroking loans secured by pledged personal property, which consists primarily of gold, jewellery items and watches. H&T also buys and sells new and pre-owned gold, jewellery items and watches along with providing foreign currency exchange, international money transfer, third-party cheque encashment and watch repair services to its customers.  

H&T is regulated by the Financial Conduct Authority for its pawnbroking activities.

H&T's common stock (ticker symbol "HAT") is traded on AIM, which is the London Stock Exchange's market for small and medium size growth companies. 

For more information regarding H&T and the services the Group offers, please visit H&T's website at http://handt.co.uk.