New Pawnbrokers on AIM (HAT)

A new listing on AIM in May this year led me to split my Pawnbroker exposure

Having Held shares in Abermarle and bond for a number of years and now been able to take out original investment and have free exposure.
Therefore the orignal investment has gone into H and T leaveing equal holdings in both.

H&T is the UK's leading pawnbroking business by size of Pledge Book. The
business was founded in 1897 and now has 69 outlets across the UK and
approximately 300 employees.

The Company's core business remains pawnbroking although as the business has
grown, it has increased the revenue derived from other financial services
including cheque cashing and unsecured loans. The Company is also a retailer of
jewellery, second-hand items sourced from its pawnbroking operations and a
relatively small number of new products bought in for re-sale.

The Company provides lending solutions designed to meet the financing needs of
private individuals who may not satisfy the lending criteria of high street
banks. The Company targets a customer base of borrowers who are precluded from
accessing more traditional forms of finance, offering such customers a facility
to borrow money in a way which is quick and convenient and which demands neither
a bank account nor arrangement fees.

The Directors believe that the Company has developed strong client relationships
founded on its ability to reach lending decisions quickly and the emphasis on
customer service, evidenced by repeat business where a single item may be pawned
more than once. New customers are typically sourced through passing trade at the
Company's high street and shopping mall locations, introductions from existing
clients and advertising.

The Company deals principally with gold and, occasionally, diamond jewellery.
The Directors believe that these commodities do not suffer significantly from
obsolescence or degradation. While the vast majority of customers do redeem or
renew their pledge, these items are readily marketable, straightforward to value
and realisable in the second hand and scrap markets.

H&T has a strong financial record both in terms of revenue growth and
profitability. Based on audited financial statements, between 2001 and 2005, H&T
achieved successive year-on-year growth in both Net Revenues and operating
profits. During the same period, Net Revenues grew by 14.1 per cent. on a
compound annual basis and EBITDA by 14.9 per cent. on a compound annual basis.

H&T's objective is to capitalise on its position as one of the UK's largest
pawnbrokers. It intends to continue growing the business through expanding its
geographical footprint, establishing recently introduced products, developing
new products and services and rolling-out a new store format.