REG - H&T Group PLC - Trading Update and Notice of Results

H & TAnnouncement

09/01/2025 07:00

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RNS Number : 6519S  H&T Group PLC  09 January 2025

9 January 2025

H&T Group plc

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

Trading Update and Notice of Results

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 an
update on recent trading performance, following completion of the financial
year ended 31 December 2024.

Trading was robust in the seasonally important fourth quarter, and was in line
with management expectations.

Pawnbroking

Demand for our core pawnbroking product continues to grow, with particularly
strong lending demand in the final ten weeks of the year, including record
levels of new customers borrowing from us for the first time. The capital
value of the pawnbroking pledge book, excluding accrued interest and IFRS 9
provisions, grew ahead of management expectations to £127m as at 31 December
2024 (December 2023: £101m, June 2024: £105m). The capital value includes
the Maxcroft pledge book of £6m, up 9% since acquisition in February 2024.

The strong growth in the pledge book achieved since the summer, provides a
sound base for future earnings. However, 2024 revenues reflect limited benefit
from this growth, as it occurred late in the year and therefore, time on book
was not significant.

The Group has been cautiously broadening its appetite for larger size loans,
which remain secured on personal assets but are often used for business
purposes, following the Maxcroft acquisition. These loans typically have a
capital value greater than £5k, and amounted to 18% of the capital value of
the Group's pledge book as at 31 December 2024 (December 2023: 13%).

All key pledge book performance metrics remain consistent. The Group's current
planning assumption is that there will be lower pledge book growth in the
spring, due to increased levels of redemptions, followed by a period of
stronger growth in later months. This is consistent with the way the pledge
book developed in 2024. As such, we do not anticipate material pledge book
growth in the first or second calendar quarters of 2025, with growth expected
to return in the third and fourth calendar quarters of the year.

Retail

Retail sales in the key fourth quarter peak trading period met management
expectations at slightly improved product margins. It is notable that our
retail jewellery customers continue to favour items at lower price points,
than has historically been the case. This has resulted in increased demand for
our range of lower priced, new jewellery items. Watch sales showed solid
growth following the stabilisation of the pre-owned watch market through the
year.

Foreign Exchange

Foreign currency net revenues were in line with expectations, reflecting
further positive progress.

National Insurance Costs

The increase in employer national insurance rates announced by the UK
Government in its Budget on 30 October 2024 will impact our business from
April 2025. We estimate the combined impact of lowering the earnings threshold
at which employers start paying national insurance contributions, and the
increase in the rate of those contributions, will increase our employment
costs by c.£2m per annum. We are reviewing options to mitigate the impact
where possible.

Notice of Results

The Group expects to publish its preliminary results for the financial year
ended 31 December 2024, on 18 March 2025.

Chris Gillespie, H&T Chief Executive said:

"The Group delivered a robust performance in the seasonally important fourth
quarter. I cannot thank our people enough for their hard work and dedication
to customer service in a period of further progress for the Group. I look
forward to updating the market fully when we report our preliminary results."

 

Enquiries:

 

 H&T Group plc                                                               +44(0)20 8225 2700
 Chris Gillespie, Chief Executive Officer
 Diane Giddy, Chief Financial Officer

 Shore Capital Ltd (Nominated Adviser and Joint Broker)                      +44(0)20 7408 4090
 Stephane Auton / Sophie Collins (Corporate Advisory)
 Guy Wiehahn (Corporate Broking)

 Canaccord Genuity Limited (Joint Broker)                                    +44(0)20 7523 8000
 Emma Gabriel / George Grainger

 Alma Strategic Communications (PR)                                          +44(0)20 3405 0205
 Sam Modlin                                                                  handt@almastrategic.com
 Andy Bryant
 Rebecca Sanders-Hewett
 Will Merison

 
 
 

 

About H&T Group plc

H&T is the UK's largest pawnbroker, a leading retailer of high quality new
and pre-owned jewellery and pre-owned watches and provides a range of
financial products tailored for a customer base which has limited access to or
is excluded from the traditional banking sector. These products include
Pawnbroking, Retail and Foreign Currency.

 

H&T's store estate of over 280 stores across the UK provide customers with
small-sum short-term non-recourse pawnbroking loans secured by pledged
personal property, which consists primarily of gold, jewellery items and
watches. H&T also buys and sells new and pre-owned gold, jewellery items
and watches along with providing foreign currency exchange, international
money transfer, third-party cheque encashment and watch repair services to its
customers.

 

H&T is regulated by the Financial Conduct Authority for its pawnbroking
activities.

H&T's common stock (ticker symbol "HAT") is traded on AIM, which is the
London Stock Exchange's market for small and medium size growth companies.

For more information regarding H&T and the services the Group offers,
please visit H&T's website at http://handt.co.uk.

 

 

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