REG - H&T Group PLC - AGM Trading Update

H & TAnnouncement

10/05/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230510:nRSJ8380Ya&default-theme=true

RNS Number : 8380Y  H&T Group PLC  10 May 2023

10 May 2023

 

H&T Group plc

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

AGM Trading Update

 

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 provide the
following trading update for the four months from January to April 2023 in
advance of the Annual General Meeting being held at 1.00 pm today.

 

Following the update provided at the time of the Group's preliminary results
on 7 March 2023, trading performance has been strong with continued
encouraging demand for both lending and retail sales.

 

Highlights:

 

 ·         Demand for pledge lending has remained strong with January and March 2023 both
           being record months for lending. This strong performance has continued as the
           impact of inflation on the consumer increases the need for small sum, short
           term loans at a time when supply of credit is more constrained than has been
           the case for many years.
 ·         The pawnbroking pledge book grew by the end of April to c £106.5m, up from
           £100.7m at 31 December 2022. Median loan sizes have remained stable at below
           £200. Redemptions have been particularly high in recent weeks, which has had
           a short-term impact on book growth as customers have chosen to redeem their
           pledge items, often for reasons linked to family and other celebrations.
 ·         Demand for pre-owned jewellery and watches has continued to be strong.
           Retail sales to the end of April was up 13% year on year. We delivered a
           record month of online sales in January 2023, with over £1m of sales in a
           single month for the first time. Margins have continued to moderate as
           expected, primarily because of the mix of new and pre-owned items. We have
           implemented price rises across our retail jewellery ranges - especially new
           jewellery, where input costs have risen - and we are taking action to reduce
           inventory levels of certain higher value watch brands where we have seen
           recent changes to the sentiment of some customers towards value.  Overall
           demand for high quality watches remains high.
 ·         Foreign currency revenues are up 10% year on year but are yet to benefit from
           the peak trading period of the summer months. We are now offering additional
           currencies in store and our online click and collect ordering process, which
           we believe will be market leading, goes live in mid-May, alongside enhanced
           marketing support. Money Transfer and cheque cashing services continue to
           perform in line with expectations.
 ·         Gold purchase volumes have been in line with forecasts. Scrap margins continue
           to benefit from a strong gold price.
 ·         The Group's store estate stands at 274 locations with 7 new stores added
           year-to-date, including two stores acquired in West Yorkshire. More store
           openings are planned for the remainder of the year. In addition, the Group has
           completed 20 refurbishments in the first four months of this year, in line
           with our internal plans.
 ·         Simon Walker, who joined the Board as a Non-Executive Director in September
           2022, became Chair of the Group on 1st April 2023. A recruitment process to
           further broaden the range of skills and experience of the Board is underway,
           led by James Thornton, Senior Independent Director. Further updates will be
           provided in due course.
 ·         The Board confirms that it expects trading and performance to continue in line
           with market expectations.

 

 

Chris Gillespie, Chief Executive of H&T, said:

 

"I am pleased to be reporting on another period of continued momentum during
the first four months of the financial year. Demand for our core pawnbroking
loans has remained strong following record months in January and March. Our
growing jewellery and watch business continues to perform very well.

 

"Our focus is on continuing to expand the geographic coverage of our store
network and we are investing both in new store openings and in refreshing
existing stores."

 

"The impact of inflationary pressures continues to be felt across the economy,
for both businesses and consumers. We remain cognisant of the challenges this
presents and are working hard to manage the inflationary impact upon our cost
base, as we have been doing for the past 18 months.

 

"With continued investment in scale and capabilities, along with broadening
our business in the context of wider macro-economic factors, we continue to
believe that the Group has an opportunity for significant growth in the medium
term across all of our product offerings. Our focus is to invest in our team,
optimise our estate and build-out our services to ensure that the Group is
well positioned to take advantage of these growth opportunities."

 

Enquiries

 H&T Group plc                                                                              +44(0)20 8225 2700

 Chris Gillespie, Chief Executive Officer

 Diane Giddy, Chief Financial Officer

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

 Stephane Auton/Iain Sexton (Corporate Advisory)

 Guy Wiehahn/Isobel Jones (Corporate Broking)

 Alma PR (Public Relations)                                                                 +44(0)20 3405 0205

 Sam Modlin                                                                                 handt@almapr.co.uk

 Andy
 Bryant

 Pippa Crabtree

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGMUKOSROBUVRAR