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Well this has certainly dropped off a cliff. Very strange trading.
Sold - that's lost me a bit of money unfortunately, nothing major but enough to sting.
CEO leaves and then, in short succession, there is achange of auditor. Just need the CFO is leave to complete the set...When question marks like that come up, I'm gone. Could all be co-incidental, but who needs that kind of risk. Tough decision, as it's clearly oversold at these levels and there appears to be a great deal of value here.
CEO - retires- he will be 70 next year! He is staying as a consultant for six months. Hardly a red flag.
It has been planned for a while, hence the recruitment of Chris Gillespie in the summer.
The auditor was out to tender and the outgoing Deloitte's say 'there are no circumstances in connection with its resignation which it considers need to be brought to the attention of the Company's members or creditors'.
Also the CFO (along with the new CEO) purchased shares at 267 in September, so I am not expecting him to be leaving anytime soon.
Re the CEO - ok that's fine and I didn't flinch when it was announced.
It was the 1, 2 combo that scared me. As for the auditors saying that, it's well known that they always say that unless something absolutely dire has turned up that there's no way they can hide...
The CFO recently buying £25k shares and the new CEO buying £150k shares certainly should calm the nerves, agreed.
How long has the CFO been there for do you know?
Ah, he's only been the CFO since the 14th of Jan 2020. Hmm, that's an Amber flag. Although, he was promoted from the ranks, hence the Amber, rather than Red.
I'll sit this one out now. Shame, and it's hurt my wallet some too.
the new cfo only took over the role after the death of the previous cfo
and did previously hold that position in the money shop prior to joining h&t.
so i would not class that as a warning flag at all.
also retirement of ceo was long planned after all we all retire at some stage and he was 70yrs old.
alas i do agree that the change of auditor in a year like this is very bad timing and should have been delayed if at all possible.
mr market is in a state of nervousness at the moment . jmho dyor.
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 £30m 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."
Currently AHEAD of expectations...
If I had any cash I would be topping up and averaging down on that news. MCAP is way less than Net Current Assets
Great update company is in very good health and ahead of expectations!
Remaining open during lockdown and benefitting in gold sales!
GL.
Always nice to see the words Ahead of Expectations! Current expectations are 8m, so mkt cap of £88m and net assets of 134m is a pretty good reason to invest and in my case average down which I hate doing, but this is bargain territory. GLA
To clarify my post, net profit for this FY year is 8m
only bought back in on Tuesday, nice timing !
They are having a laugh right? Release the change of auditor RNS which was always going to make investors nervous, and then wait 3 days before releasing a trade update? Me thinks I was sc rood.
I note that both RFX and HAT are bitter about being classed as essential services and therefore not being entitled to have their staff paid by the gov...
Pledge book coming down fast, the heart of the company, but you have to think that with so much cash on the balance sheet, that this is going to survive.
I'd like to know why they changed auditors? Did Deloitte not fancy their business anymore?
Re -auditors , my partner used to work for one of the big four, it is not that uncommon for companies to switch, it is a bit like not switching your insurer , if you don't the price increases faster than perhaps it should..
It could just be that where things were tight in the first lockdown they looked at how they could save money and so put the audit out to tender.
I do not get the impression that they are bitter about being open, rather the converse., they flag it as a positive.
Quoted Companies are obliged to change their auditors every 5 years. It should have been better presented by their PR department, as obviously was taken badly by investors / the market, but really it was not news.