REG - H&T Group PLC - TRADING UPDATE AND NOTICE OF RESULTS

H & TAnnouncement

25/01/2021 07:00

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RNS Number : 6790M  H&T Group PLC  25 January 2021

25 January 2021

 

 

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
2020. H&T expects to report its final results for the year on 23 March
2021.

 

Following stronger than anticipated November and December trading, despite
lockdown measures, H&T expects the full-year profit before tax to be ahead
of market expectations.

 

Almost all of the 253 stores remain open, albeit with shortened trading hours.
Pawnbroking, foreign exchange, cheque cashing and money transfer services
continue to be available in-store having been categorised by HM Government as
essential services. Customers continue to be offered retail jewellery through
either click and collect or click and deliver services, and H&T's
e‐commerce websites are operating as usual.

In terms of FY20 outturn:

 

-      Retail jewellery sales during H2 were strong, particularly in
December, and for the six months to the year-end were only 6% below prior year

-      Returns from precious metal scrappage were 58% up on prior year,
reflecting the high gold price

-      Against the background of travel restrictions foreign currency
income was remarkably robust, achieving 65% of prior full year levels and
Western Union transaction volumes were more than three times higher than in
2019

-      The year-end pledge book was £48m, in line with the figure
reported in the 5(th) November update, with a resilient performance building
through Q4

-      The personal lending book as at 31 December 2020 was £6m, with
reduced impairment charges and with repayments and recoveries more than
offsetting new lending

-      Balance sheet cash balance of £34m and our £35m bank facility is
undrawn

 

The Group continues to work with the appointed Skilled Person and the FCA in
respect of the HCSTC lending review, and H&T expects an outcome within
previous guidance. Given the ongoing disruption from the pandemic the outcome
of this review will now likely be delayed beyond March.

 

Chris Gillespie, chief executive, said:

 

"I have joined H&T in a strong position. We have ended 2020 robustly with
an outturn ahead of expectations, showing the strength of the Company in these
challenging conditions.

"Our stores are open for business operating safely and in full compliance with
Government requirements. Our business remains in good health with returning
momentum in the pledge book continuing into 2021. Our retail operations remain
robust, despite the ongoing restrictions.  We have no debt and good cash
resources to rebuild the pledge book as underlying customer demand returns.
Meanwhile we will be taking the opportunity to invest in our store estate, our
technology and in the ongoing training and development of our colleagues.

"The Group has taken every step during 2020 to protect the health, safety and
wellbeing of our customers, colleagues and community.  We ensured that our
customers did not suffer financially while our stores were closed during the
Spring, by suspending pawnbroking interest during that period. We continue to
work with customers financially impacted by Covid to agree payment deferral
arrangements where it is in their best interests to do so.  We serve the
communities where we operate - through our in-store, online and telephone
offerings - and the compliant and high quality of service provided by our
store and support colleagues remains our key strength. I look forward to the
future of H&T with confidence."

 

 

- ENDS -

 

H&T Group
plc

Tel: 020 8225 2797

Chris Gillespie, Chief Executive
Richard Withers, Chief Financial Officer

Numis Securities (Broker and Nominated Adviser)
Tel: 020 7260 1000
Luke Bordewich - Nominated Adviser

Henry Slater

Haggie Partners (Public
Relations)

Tel: 020 7562 4444
Damian Beeley
Vivian Lai

 

 

 

 

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