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Monks, who knows about the auditor - why not be transparent if that's the case? The market probably wouldn't believe them anyway, but can't hurt to try.
As for wanting to stay open, definitely not. This lockdown is going to hurt HAT some. Check out the use of quotation marks when he says "essential". You get the same vibe off RFX's RNS.
I feel it deserves a bit more than being lost in a Humm thread...
As promised a November trading update.. Not sure why they released it at 11.00 though?
Since the end of June, they have accumulated 30M in cash, with a overall increase in net assets of 7M to 134M; on the downside the pledge book has reduced by 8M. Watch and jewellery sales have been strong.
They are keeping the shops open through lockdown this time. Instore viewing of watches/jewellery has stopped but they have extended the returns period for online. I can see sales in these areas being strong over Christmas so lets hope the lockdown does end in England on the 2nd. Note, they have a lot of shops in Scotland which will not be restricted in what they sell.
Their online portal for pawnbroking and loans is working now, so they are in a much better position than the first lockdown.
They have appointed someone to deal with the HTSTC loans issue. Given that revenue less impairment for these totalled £11m it should not be a major issue for them. I have been monitoring DebtCamel which is the ‘ go to’ place for complaints and advice about this (and other) debt issues, in over a year, I have only seen HAT mentioned once so it does seem to have the same issues as some of the other lenders.
Going forward, have now got 30M they can loan without going into debt (65M with their RCF).
Hopefully the update will bring a few more buyers in, increase the liquidity and lift the share price up (although it has been a good opportunity to pick some up at bargain prices)
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.
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?
this is looking v undervalued and due a re-rate
only bought back in on Tuesday, nice timing !
To clarify my post, net profit for this FY year is 8m
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
Great update company is in very good health and ahead of expectations!
Remaining open during lockdown and benefitting in gold sales!
GL.
If I had any cash I would be topping up and averaging down on that news. MCAP is way less than Net Current Assets
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...
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.
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.
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?
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.
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.
Well this has certainly dropped off a cliff. Very strange trading.
Surely it is more to do with lockdown 2 than auditors?
I bought some at sub 200 today, I may not time the bottom on this but i am confident they are not about to go bust and will be a good mid/long term holding. The Mcap is now 81M , with no debt and net assets of over 126M(at the intrims).
They are classed as an essential service and have said they will not be closing this time. There may be some impact on Jewellery/watch sales but they have online and can use click and collect to keep these sales going.
has not gone down well.
Sub 200p on the cards now? It's a spectacular fall from 315p not long ago
Once this settles, I might finally buy in
Clearly a well-planned transfer to a new CEO. Lets hope the new CEO is as good as JN..
The timing is interesting, being before the January trading update. I do not see them leaving the new CEO to deliver bad news on his first update, nor do I think that JN will want to go without a final positive presentation. So, I think that we will see a November update and that it will show things are picking up nicely.
The impact of this year has been quite binary, with reduced discretionary spending on holidays and going out, some have accumulated wealth, whilst for others it as meant a reduction or loss of income.
Both of these play into HAT, strong sales of jewellery and watches has been flagged by rfx and wosg; loans are now being issued again and the reduction in the pledge book should now be reversing. Gold prices are still high and they have recently had a drive to get more traded in. Their online portal has been honed over the past few months which should help this revenue stream.
They clearly will not be able to make up what they lost earlier in the year but I think that they may have bounced back more strongly than the current share price suggests.
Hit the year low in trading today, very interesting...especially given the bounce after the last drop
you can look at it thru rose tinted specs
£2 before £3 imv
I was not going to buy anymore but could not resist todays fall. At this rate you may get your 200 yet Jolly...
what a cheery pair you are :0)
They put out a trading in November in 2017 when they had strong trading; they are considering one this year, I take this as a positive.
perhaps test £2 before £3?