H&T Group plc (LON:HAT), the UK’s largest pawnbroker and a leading retailer of high-quality new and pre-owned jewellery and watches, has released a trading update for the four-month period from 1 January 2024 to 30 April 2024. This update precedes the Group’s Annual General Meeting, scheduled for 13:00 today, which will be accessible via a webinar. Shareholders can register for live viewing of the meeting at https://handt.co.uk/pages/investor-relations.
Trading Performance
The Group’s trading performance has aligned with expectations over the reported period. There has been robust demand for pledge loans, with April 2024 marking a record month for lending. In line with previous years, March and April saw higher-than-average redemptions, as customers retrieved items for use during religious and family celebrations. This trend is expected to reverse in the upcoming months.
Key metrics of the pledge book have remained stable and met expectations. The Maxcroft pledge book, in particular, has shown strong performance since its acquisition. The capital value of the Group’s pledge book (excluding accrued interest and provisions) stands at £105 million, up from £101 million at the end of December 2023 and £91 million in April 2023.
Retail sales and foreign currency revenues have met forecasts, with retail margins improving as projected. Additionally, revenues from gold purchases and scrap have benefitted from a robust gold price.
The Group has expanded its store estate by adding three stores, including Maxcroft, while closing one location, bringing the total number of stores to 280.
Chief Executive’s Statement
Chris Gillespie, Chief Executive of H&T Group, commented, “It is pleasing to be able to report a solid start to the year, with robust demand across the Group’s product offering. I look forward to updating the market further as the year unfolds, and as always, I would like to pass on my grateful thanks to our amazing colleagues for their hard work, dedication, and unwavering commitment to customer service.”
New Appointment
The company also announced the appointment of Canaccord Genuity Limited as Joint Broker, to work alongside Shore Capital, the Company’s Nominated Adviser and Joint Broker, effective immediately.
H&T Group is the UK’s largest pawnbroker, offering a range of financial services to meet customer needs. The company is the sixth-largest retailer of high-quality pre-owned and new jewellery and watches. Amid a growing demand for small-sum, short-term loans in a constrained credit market, H&T’s retail products are recognised for their value, store of value, and strong sustainability credentials.
