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

H & TAnnouncement

11/07/2023 07:00

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RNS Number : 5435F  H&T Group PLC  11 July 2023

11(th) July 2023

H&T Group plc

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

Trading Update & Notice of Results

H&T Group Plc ("H&T" or "The Group"), the UK's largest pawnbroker and
a leading retailer of new and pre-owned jewellery and watches, today issues a
trading update prior to the announcement of its interim results for the six
months period ended 30(th) June 2023, which are expected to be published on
8(th) August 2023.

Demand for pledge lending remains at record levels and continues to gather
momentum. Gross lending grew 22% to £128m (H1 2022: £105m). As expected, the
exceptional level of redemptions experienced in late April and early May did
not continue. Following strong growth, particularly in May and June, the
pledge book was c.£113m as at 30 June 2023 (June 2022: £85.1m, December
2022: £100.7m). Growth was achieved across the customer spectrum and in all
geographies, with key pledge book metrics remaining consistent.

Demand for our high quality new and pre-owned jewellery and watches continues
to rise, with sales by value up c.10% year on year, including particularly
positive progress in online originated sales. During the second quarter, and
in response to changing market dynamics, the Group chose to prioritise stock
turnover ahead of margin, particularly in the case of some higher value watch
brands.  We have recently increased sale prices across the majority of our
retail stocks and margins are expected to improve in the second half of the
year. Scrap volumes were particularly strong, with profits ahead of
expectations and substantially offsetting margin compression in retail sales.

Foreign exchange transaction volumes were up 19% year on year and are at
record levels, with momentum building. Our FX click and collect service was
introduced in June and we are encouraged by early results.

The benefit from the growth in the pledge book, along with strong momentum in
revenues and continued investment in the store estate provides a robust
revenue foundation for the remainder of the financial year. We remain vigilant
around cost management, as our business is not immune to the combined impact
of inflationary pressures and rising interest rates.

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

"I am very pleased with the progress we have made in the first half of 2023 in
an environment of rising interest rates and persistent inflation. I am
particularly encouraged by the growing momentum with which we enter the busy
second half of the year. I am looking forward to updating the market  when we
report on 8(th) August."

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

 

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