H&T Group PLC Trading Update & Notice of Results (5435F)
July 11 2023 - 2:00AM
UK Regulatory
TIDMHAT
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 GBP128m (H1 2022:
GBP105m). 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.GBP113m as at 30 June 2023 (June 2022: GBP85.1m, December 2022:
GBP100.7m). 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
Chris Gillespie, Chief Executive
Officer
Diane Giddy, Chief Financial
Officer +44(0)20 8225 2700
Shore Capital Ltd (Nominated
Advisor and Broker
Stephane Auton/Iain Sexton (Corporate
Advisory)
Guy Wiehahn/Isobel Jones (Corporate
Broking) +44(0)20 7408 4090
Alma PR (Public Relations) +44(0)20 3405 0205
Sam Modlin handt@almapr.co.uk
Andy Bryant
Pippa Crabtree
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END
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