Last checked at 27 Jan 2020 07:00
27 January 2020
H&T Group plc
("H&T" or "the Group" or "the Company")
TRADING UPDATE AND NOTICE OF RESULTS
H&T Group plc ("H&T" or "the Group") the UK's leading pawnbroker, today announces a trading update for the financial year ended 31 December 2019. H&T expects to report its results for the year ended 31 December 2019 on 10 March 2020. Following strong second half-year trading and a positive performance of the recently acquired Money Shop and Speedloan business assets, H&T expects the full-year profit before tax to be at the top end of current market expectations.
The key components of the results are:
·; growth in the year-ending pledge book by £20m (+39%) on the prior year, with core stores up £13m (+25%)
o the Group's core estate performance was driven by increased lending to newly-acquired customers and organic growth in transactions
o solid trading from acquisitions
·; the jewellery retail business delivered +7% sales growth on prior year, including +5% from core stores
·; strong income growth from foreign exchange, with Group FX income +45% with core store FX income growth +20%
·; strong returns from precious metal scrappage reflecting the high gold price
·; a continuation of the reduced impairment charges on unsecured lending
As per the announcement of 18 November 2019 the Group is working closely with the FCA and industry experts to conduct a review of certain aspects and files of its high-cost short-term-credit unsecured loans business.
John Nichols, chief executive, said:
"We have made good progress in delivering our strategic goals in the past year, particularly in consolidating the pawnbroking industry by acquiring trading sites and pledge book purchases. I am delighted with progress to date regarding the operational integration of these trading sites and assets with financial performance meeting expectations. We continue to develop our digital strategy complementing our enlarged store estate.
"Further growth in pawnbroking has primarily been driven by increased customer transactions and the opportunity to serve more customers following the acquisitions made during the year. The ongoing refinement and rationalisation of our personal loan product offering has improved lending return.
"We have improved retail through an expanded range of new jewellery and the development both of click-and-collect and online sales. We are pleased with the growth of our foreign exchange proposition, cheque cashing and newly introduced money-wire transfer operations.
"The Group's momentum over recent years demonstrates the success of our strategy to access new customers and markets. Demand for our products remains strong and we look to the future with confidence."
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H&T Group plc
Tel: 020 8225 2797John Nichols, Chief ExecutiveRichard Withers, Chief Financial Officer
Numis Securities (Broker and Nominated Adviser) Tel: 020 7260 1000Luke Bordewich - Nominated AdviserOliver Cox
Haggie Partners (Public Relations) Tel: 020 7562 4444Damian BeeleyCaroline KleinVivian Lai