REG - H&T Group PLC - Acquisition of Swiss Time Services Limited

H & TAnnouncement

04/07/2022 07:16

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RNS Number : 1181R  H&T Group PLC  04 July 2022

H&T Group plc

("H&T" or "the Group" "the Company")

Acquisition of Swiss Time Services Limited

H&T Group plc, the UK's largest pawnbroker and a leading retailer of high
quality new and pre-owned jewellery and watches, is pleased to announce the
acquisition (the "Acquisition") of Swiss Time Services Limited ("Swiss Time
Services"), a leading independent watch servicing and repair centre.

H&T is paying a total consideration of £4.3 million for Swiss Time
Services, inclusive of a net cash balance of £0.5m which is subject to an
adjustment mechanism. The Acquisition will be funded from the Group's existing
funding facilities, which amount to £35m.

Information on Swiss Time Services

Swiss Time Services is based in Essex and employs over 30 people. It serves a
loyal, valued, nationwide customer base. It is an officially accredited
service centre for a comprehensive range of prestige watch brands.

H&T has a long-standing trading relationship with Swiss Time Services over
many years. A large proportion of watches sold by H&T undergo servicing
and/or repair before being offered for sale, and Swiss Time Services has been
one of a number of specialists which H&T has worked with in this regard.
In 2022, the Group expects to send up to 4,000 watches for service or repair.

Tony Coe, the founder and Managing Director of Swiss Time Services, will
remain within the business in a consultancy capacity for a period of 18
months. His presence will ensure continuity of leadership, whilst providing
reassurance to both employees and customers of Swiss Time Services, who we
wish to continue to serve in the future.

Rationale for the Acquisition

The Acquisition is expected to be immediately earnings enhancing. Watches
represent a growing part of the H&T business and a further growth
opportunity in respect of both our retailing and pawnbroking activities, where
we have seen increasing watch related transaction volumes.

Furthermore, the Acquisition will bring watch repair and servicing expertise
in-house, enabling H&T to enhance its service offering to customers whilst
improving margins. Following the integration of Swiss Time Services and a
planned future roll out of a watch "care and repair" service to customers,
both revenue and sales margins are expected to increase.

Chris Gillespie, CEO of H&T, said:

"I am very excited about the opportunities created by this acquisition as it
represents an important strategic step for H&T. It enables us to bring
watch expertise in-house and consequently, improve margins and broaden the
range of services we can offer to our customers. I look forward to working
with Tony Coe and the outstanding team at Swiss Time Services. We intend to
continue the excellent and highly respected service provided to the large
number of existing clients of the business whilst increasing the volume of
work currently placed with Swiss Time Services by H&T."

 

For further information, please contact:

 H&T Group PLC                              Via Alma PR

 Chris Gillespie, Chief Executive Officer
 Diane Giddy, Chief Financial Officer

 Shore Capital (Nominated Adviser and Broker)                             +44 (0)20 7408 4090

 Stephane Auton / Ian Sexton (Corporate Advisory)

 Guy Wiehahn / Chloë Booker-Triolo (Corporate Broking)

 Alma PR (Financial PR)                                                   handt@almapr.co.uk

 Sam Modlin                                                               +44 (0)20 3405 0205

 Andy Bryant

 Lily Soares-Smith

 

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