(Alliance News) - H&T Group PLC on Wednesday said it had deepened its dominance of the UK pawnbroking market with a new acquisition, as the company also announced a further financing arrangement for GBP25 million.
H&T, the UK's largest pawnbroker, said that it had acquired certain assets of Maxcroft Securities Ltd, an Essex-based pawnbroking business, for GBP11.3 million.
The main asset being acquired from Maxcroft is its pawnbroking pledge book, worth around GBP6.1 million at the time of the acquisition. H&T said that the Maxcroft's pledge book aligns with its existing pawnbroking business, consisting primarily of gold, jewellery and watches.
H&T also announced an additional financing arrangement of GBP25 million with Pricoa Private Capital, the asset management arm of Prudential Financial Inc. The financing comprises a note purchase and guarantee arrangement of GBP10 million worth of secured notes, and GBP15 million in secured notes.
H&T said that Pricoa's financing brings its total funding facilities to GBP85 million.
As at December 31, H&T had GBP31.6 million in net debt, with cash on hand of GBP12.6 million.
H&T is due to publish its results for the year ended December 31 on March 12.
Chief Executive Officer Chris Gillespie said: "We are very pleased to be able to announce these two transactions, both of which underline the group's focus on growing and broadening its core pawnbroking business and investment in the store estate. We are also delighted to have further diversified and enhanced the group's funding arrangements through the relationship with Pricoa."
Shares in the company were up 0.5% at 372.00 pence each in London on Wednesday afternoon.
By Hugh Cameron, Alliance News reporter
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H&t Group Plc (HAT)