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7 Jan 2011 07:00
7 January 2011
H&T GROUP PLC
Pre-Close Trading Update
H&T Group plc ("H&T" or "the Group"), is pleased to issue today a trading statement ahead of entering its close period prior to the announcement of its preliminary results for the year ended 31 December 2010. H&T expects to report its preliminary results for the year ended 31 December 2010 on 10 March 2011.
2010 has been another strong year for the Group and the Board expects that full year profit before tax for 2010 (before exceptionals and amortisation) will be above the top end of current market expectations. All business segments are expected to show year-on-year growth in gross profit, driven both by existing store performance and the addition of a further 13 stores across the estate during 2010. As previously reported, the Group has also benefited from the delivery of one-off working capital improvements, contributing an estimated £4.9m to profit before tax in 2010.
The key factors behind the out-performance relative to expectations set at the beginning of the year have been the Group's continued success in the gold purchasing market and significantly increased profit from pawnbroking scrap. Gold purchasing profits have risen materially on 2009 levels, supported by the continued rise in the sterling price of gold.
The Group's pawnbroking business experienced record lending levels during 2010, driven by an increased average loan and new store additions. The Group's gross pledge book at 31 December 2010 was £39.5m, up from £37.3m as at 30 June 2010. The Group has maintained its redemption rate at constant levels, and the Group's disposition activities have performed well. Like-for-like retail sales were flat year on year despite the weather-affected Christmas period.
Mindful of continuing uncertainty of gold purchasing volumes and the sustainability of the margin in this business segment, the Board believes that current consensus forecasts represent a reasonable expectation of financial performance for the year ending 31 December 2011.
At 31 December 2010, the Group had 135 store outlets and 45 Gold Bar retail mall units.
ENDS
For further information, please contact:
H&T Group plc John Nichols, Chief Executive Alex Maby, Finance Director | 0870 902 2600 |
Hawkpoint Partners Limited Lawrence Guthrie / Sunil Duggal |
020 7665 4500
|
Numis Securities Limited Mark Lander |
020 7260 1000 |
Pelham Bell Pottinger Stephanie Sheffrin / Dan de Belder |
020 7861 3932 |
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