H&T Group PLC AGM Trading Update (8380Y)

TIDMHAT

RNS Number : 8380Y

H&T Group PLC

10 May 2023

10 May 2023

H&T Group plc

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

AGM Trading Update

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 the following trading update for the four months from January to April 2023 in advance of the Annual General Meeting being held at 1.00 pm today.

Following the update provided at the time of the Group's preliminary results on 7 March 2023, trading performance has been strong with continued encouraging demand for both lending and retail sales.

Highlights:

 
      --   Demand for pledge lending has remained strong with January 
            and March 2023 both being record months for lending. This 
            strong performance has continued as the impact of inflation 
            on the consumer increases the need for small sum, short term 
            loans at a time when supply of credit is more constrained 
            than has been the case for many years. 
      --   The pawnbroking pledge book grew by the end of April to c 
            GBP106.5m, up from GBP100.7m at 31 December 2022. Median loan 
            sizes have remained stable at below GBP200. Redemptions have 
            been particularly high in recent weeks, which has had a short-term 
            impact on book growth as customers have chosen to redeem their 
            pledge items, often for reasons linked to family and other 
            celebrations. 
      --   Demand for pre-owned jewellery and watches has continued to 
            be strong. Retail sales to the end of April was up 13% year 
            on year. We delivered a record month of online sales in January 
            2023, with over GBP1m of sales in a single month for the first 
            time. Margins have continued to moderate as expected, primarily 
            because of the mix of new and pre-owned items. We have implemented 
            price rises across our retail jewellery ranges - especially 
            new jewellery, where input costs have risen - and we are taking 
            action to reduce inventory levels of certain higher value 
            watch brands where we have seen recent changes to the sentiment 
            of some customers towards value. Overall demand for high quality 
            watches remains high. 
      --   Foreign currency revenues are up 10% year on year but are 
            yet to benefit from the peak trading period of the summer 
            months. We are now offering additional currencies in store 
            and our online click and collect ordering process, which we 
            believe will be market leading, goes live in mid-May, alongside 
            enhanced marketing support. Money Transfer and cheque cashing 
            services continue to perform in line with expectations. 
      --   Gold purchase volumes have been in line with forecasts. Scrap 
            margins continue to benefit from a strong gold price. 
      --   The Group's store estate stands at 274 locations with 7 new 
            stores added year-to-date, including two stores acquired in 
            West Yorkshire. More store openings are planned for the remainder 
            of the year. In addition, the Group has completed 20 refurbishments 
            in the first four months of this year, in line with our internal 
            plans. 
      --   Simon Walker, who joined the Board as a Non-Executive Director 
            in September 2022, became Chair of the Group on 1st April 
            2023. A recruitment process to further broaden the range of 
            skills and experience of the Board is underway, led by James 
            Thornton, Senior Independent Director. Further updates will 
            be provided in due course. 
      --   The Board confirms that it expects trading and performance 
            to continue in line with market expectations. 
 

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

"I am pleased to be reporting on another period of continued momentum during the first four months of the financial year. Demand for our core pawnbroking loans has remained strong following record months in January and March. Our growing jewellery and watch business continues to perform very well.

"Our focus is on continuing to expand the geographic coverage of our store network and we are investing both in new store openings and in refreshing existing stores."

"The impact of inflationary pressures continues to be felt across the economy, for both businesses and consumers. We remain cognisant of the challenges this presents and are working hard to manage the inflationary impact upon our cost base, as we have been doing for the past 18 months.

"With continued investment in scale and capabilities, along with broadening our business in the context of wider macro-economic factors, we continue to believe that the Group has an opportunity for significant growth in the medium term across all of our product offerings. Our focus is to invest in our team, optimise our estate and build-out our services to ensure that the Group is well positioned to take advantage of these growth opportunities."

Enquiries

 
 H&T Group plc 
  Chris Gillespie, Chief Executive 
  Officer 
  Diane Giddy, Chief Financial 
  Officer                                   [phone] 
 Shore Capital Ltd (Nominated 
  Advisor and Broker 
  Stephane Auton/Iain Sexton (Corporate 
  Advisory) 
  Guy Wiehahn/Isobel Jones (Corporate 
  Broking)                                  [phone] 
 Alma PR (Public Relations)                 [phone] 
  Sam Modlin                                [e-mail] 
  Andy Bryant 
  Pippa Crabtree 
 

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