H&t Group Plc Regulatory News (HAT)

8 May 2006 07:02

H&T Group PLC08 May 2006 8 May 2006 H&T Group plc ("H&T" or the "Company") Admission to AIM - First Day of Dealings The Placing: • H&T, the UK's leading pawnbroking business by size of pledge book,announces completion of its admission to AIM and that trading in its ordinaryshares commenced at 8.00am today. • Numis Securities, the Company's broker, has placed 10,573,469 newordinary shares on behalf of the Company raising approximately £18.2 millionbefore expenses, and also placed 17,836,980 existing ordinary shares forapproximately £30.7 million on behalf of selling shareholders. • The proceeds of the issue of new ordinary shares will be used in therefinancing of H&T and the repayment of certain loan notes. H&T will have anEPIC code of HAT.L. • Hawkpoint is the nominated adviser and financial adviser to H&T andNumis Securities is broker. • Rutland backed the buyout of H&T in September 2004 and has supportedthe Company through to a successful flotation. Placing statistics: Placing Price 172p Number of New Shares 10,573,469 Number of Placing Shares 28,410,449 Number of Ordinary Shares in issue immediately following Admission 31,485,706 Market capitalisation at the Placing Price (approximate) £54 million Percentage of issued share capital immediately following Admission subject to the 90%Placing Estimated net proceeds of the Placing receivable by the Selling Shareholders £28.6 million Estimated net proceeds of the Placing receivable by the Company £14.8 million Peter Middleton, Chairman, said: "Under the stewardship of John and his team, H&T has performed strongly, growingthe number of shops and introducing new products. The success of the businessis testimony to the hard work of all of the staff in the company." John Nichols, Chief Executive, said: "H&T is the leading business in the fragmented UK pawnbroking market with apledge book of almost £25 million at the end of 2005. We feel we can take thebusiness much further in adding to our network in under-served regions andcapitalising on the start made in launching new products, such as loans andpre-paid debit cards, which are ancillary to pawnbroking. Flotation is animportant milestone in the evolution of our group." For further information please contact: H&T Group plc 0870 9022 600 John Nichols, Chief Executive Hawkpoint Partners Limited 020 7665 4500 Lawrence Guthrie / Sunil Duggal Numis Securities Limited 020 7776 1500 Oliver Hemsley / Charles Farquhar College Hill Associates 020 7457 2020 Gareth David / Paddy Blewer Information on H&T H&T is the UK's leading pawnbroking business by size of Pledge Book. Thebusiness was founded in 1897 and now has 69 outlets across the UK andapproximately 300 employees. The Company's core business remains pawnbroking although as the business hasgrown, it has increased the revenue derived from other financial servicesincluding cheque cashing and unsecured loans. The Company is also a retailer ofjewellery, second-hand items sourced from its pawnbroking operations and arelatively small number of new products bought in for re-sale. The Company provides lending solutions designed to meet the financing needs ofprivate individuals who may not satisfy the lending criteria of high streetbanks. The Company targets a customer base of borrowers who are precluded fromaccessing more traditional forms of finance, offering such customers a facilityto borrow money in a way which is quick and convenient and which demands neithera bank account nor arrangement fees. The Directors believe that the Company has developed strong client relationshipsfounded on its ability to reach lending decisions quickly and the emphasis oncustomer service, evidenced by repeat business where a single item may be pawnedmore than once. New customers are typically sourced through passing trade at theCompany's high street and shopping mall locations, introductions from existingclients and advertising. The Company deals principally with gold and, occasionally, diamond jewellery.The Directors believe that these commodities do not suffer significantly fromobsolescence or degradation. While the vast majority of customers do redeem orrenew their pledge, these items are readily marketable, straightforward to valueand realisable in the second hand and scrap markets. H&T has a strong financial record both in terms of revenue growth andprofitability. Based on audited financial statements, between 2001 and 2005, H&Tachieved successive year-on-year growth in both Net Revenues and operatingprofits. During the same period, Net Revenues grew by 14.1 per cent. on acompound annual basis and EBITDA by 14.9 per cent. on a compound annual basis. H&T's objective is to capitalise on its position as one of the UK's largestpawnbrokers. It intends to continue growing the business through expanding itsgeographical footprint, establishing recently introduced products, developingnew products and services and rolling-out a new store format. - ends - Hawkpoint Partners Limited ("Hawkpoint") and Numis Securities Limited ("Numis"),which are authorised and regulated in the United Kingdom by the FinancialServices Authority, are acting exclusively for H&T as its nominated adviser andbroker respectively, and for no one else in relation to the placing. Hawkpointand Numis will not regard any other person (whether or not a recipient of thisannouncement) as their client in relation to the placing and will not beresponsible to anyone other than H&T for providing the protections afforded toclients of Hawkpoint and Numis or for providing any advice in relation to theplacing, the contents of this announcement or any transaction or arrangementreferred to herein. The responsibility of Hawkpoint as nominated adviser isowed solely to the London Stock Exchange and not to Numis or its directors orany other person in respect of his decision to acquire shares in H&T in relianceon any part of this announcement. Neither Hawkpoint nor Numis have authorisedthe contents of this announcement or accepts liability for the accuracy of anyinformation or opinions contained therein, or for the omission of anyinformation from this announcement, for which H&T and its directors are solelyresponsible. No representation or warranty, express or implied, is made or given by or onbehalf of H&T, Hawkpoint or Numis or any of their respective directors,partners, officers, employees, agents or advisers or any other person (whetheror not referred to in this announcement) as to the accuracy, completeness orfairness of the information or opinions contained herein and no responsibilityor liability is accepted by any of them for any such information or opinions. The Company has issued an Admission Document in connection with the admission ofits ordinary shares to trading on AIM. Copies of the Admission Document areavailable free of charge from the offices of Eversheds LLP, 85 Queen VictoriaStreet, London EC4V 4JL for a period of at least one month from the date of thisannouncement. This announcement does not constitute, or form part of, the placing or any offeror invitation to sell or issue, or any solicitation of any offer to subscribefor any ordinary shares in any jurisdiction, nor shall this announcement or anypart of it, or the fact of its distribution, form the basis of, or be reliedupon in connection with, or act as an inducement to enter into, any contract orcommitment whatsoever with respect to the placing or otherwise. No reliance maybe placed for any purpose whatsoever on the information contained in thisannouncement or on its completeness. This information is provided by RNS The company news service from the London Stock Exchange