H&t Share Discussion Threads

[thorpematt] 07/1/2021 20:54

Interims current assets were £110m

40m SII

=£2.75 / share


ADVFN lists NAV @ £3.07 per share

Stockopedia has Book value or shareholders equity at £127m or £3.175 per share (going by latest interim numbers).

Now, all of which (from my perspective) is very good indeed if you consider it as balance sheet strength when compared to most listed companies at present.

GRG (a quality outfit) being just one example. Most companies are now a little burdened with debt. Not so HAT.

Book values are great if you are looking to liquidate a company or if you are seeking some sort of return on a failed investment or a margin of safety. For me, I am looking for companies to flourish and so I look for profits versue EV.

I believe that HAT will continue to make around or above £10m p.a PBT on an EV of around £110m which is excellent value - backed by a very strong balance sheet.

The fact that we could liquidate the compnay at a profit is of only theoretical concern at this juncture.



P.S those figures are with intangibles stripped OUT.

[riverman77] 07/1/2021 19:47

I don't think those figures are right. This is trading at a 20% discount to book value, or about in line if you strip out goodwill.

[db260] 07/1/2021 19:26

Still too high for me; net asset value of about £1.90 compared to £2.60 current going price

[podgyted] 06/1/2021 19:26

Wish they'd stop manipulating the closing share price with sub-£1k UT's everyday.

[ymaheru] 21/12/2020 11:44

Yeah, the government is dishing out more cash so what’s the need for pawnbrokers (yet)?

[boonkoh] 21/12/2020 11:02

Puzzled by drop today. All stores remain open as classed as essential.The latest covid strain and the fact that no Brexit agreed should be good news for H&T, more strain financially for many people unfortunately.Only thing I can see hurting H&T is extention of furlough by one more month.

[boonkoh] 15/12/2020 13:44

Read the Ramsden update today. Nothing new that was unknown. Nov Lockdown had an impact on revenue, despite stores being open.Pawnbroking loan book continues to decrease, as govt support flushes people's wallets with cash, so less need for pawnbroking.Will be interesting to see if govt keeps extending support after March.

[mighunter] 15/12/2020 10:59

Across the fence, finnCap upgrades Ramsdens RFX from 135p to 185p following results today

[rimau1] 23/11/2020 17:06

Yes boonkoh, payment holidays in pawnbroking, however its all factored into the earnings estimates of a fall in eps to 18p this year but increasing 50% to 27p in 2021. Still compelling value here vs RFX

[ymaheru] 23/11/2020 15:12

Oh, looks like it. Ended Oct 31st tho. That will have impacted profit somewhat.

Stock rising nicely today, tho.

[boonkoh] 23/11/2020 14:45

Isn't there an interest holiday on pawnbroking loans mandated by the government or did I read that wrongly?

[jamessmith23] 23/11/2020 09:29

Still not at tangible asset value though, once you get rid of any goodwill etc you are at 275p and that's ignoring the fact they are still profit making in this environment when the stores were closed for a quarter of the 6 month period we have results for.Upside here should be 340p fairly easily, and if they do well then 400p next year. The fact they are an essential service so don't need to close is also a huge positive. Only potential downside is cases take off massively and government close literally everything, but I think that's very unlikely for both HAT and my own sanity.

[purplepelmets] 23/11/2020 09:05

Nice punchy open here. Almost back to sane levels again

[texaspete2] 20/11/2020 15:53

Always pleasing to see a CFO dip their hands into their pockets, normally the accountants are least likely to part with money in my experience :) Outlook must be good

[sphere25] 20/11/2020 15:33

Interesting move today, arguably the first one since the middle of the year.

Price currently threatening a very significant break of that downtrend.

[rimau1] 20/11/2020 08:06

Nice purchase of 10,000 shares by the CFO yesterday. Net assets of £134m and strong retail sales more than offsetting weak FX, i share his bullish stance.

[lord loads of lolly] 17/11/2020 15:46

jamessmith23 - You might well be right there. I certainly don't see the share price doubling every 5 years, but I do expect it to be closer to £4 than £3 within the next 18 months or so. I can see why they cut the dividend, what with lockdown & the FCA review. But it did untold damage to the share, which I suspect many investors previously viewed as a Steady Eddie type of company with a decent yield. Still, I'm confident it'll bounce back, as - sadly - it's the right business to be in post-Covid.

[jamessmith23] 15/11/2020 00:17

The difference to other companies that with undesirable ESG characteristics is that HAT isn't going anywhere, unlike coal power stations for example that are being replaced by renewable energy.HAT may never be valued at a great multiple but it will still be making money, and it could just end up being a company that pays out a great div yield consistently.

[energeticbacker] 13/11/2020 12:12

As growing amounts of money move into the ESG space, Investor’s Champion’s latest article highlights the difficulty in satisfying all the demands of the ESG acronym, with particular reference to smaller companies on AIM.
#hat #pres #rfx #tsla

[markirv] 10/11/2020 15:40

FCA review announced.Board changesFCA skilled person appointedCEO retires.Auditor resigns.Seems to me the market is pricing in a hefty fine/refundsKey part for me is-H&T is looking at the HCSTC unsecured lending practices over the past 6 years as part of this review........ There were total customer interest payments of £24m over this period'H&T is committed to providing a service that maintains the highest standards of affordability whilst avoiding any customer detriment. H&T is working with the FCA in a collaborative manner to ensure the Group's policies, practices and procedures are reflective of this approach. The review is ongoing and will result in changes to these policies and procedures surrounding H&T's provision of unsecured HCSTC loans.  The Group has ceased all HCSTC unsecured lending, at least temporarily, as it works through this review process with the FCA. In the year to December 2019 H&T expects that the proportion of revenues in the HCSTC unsecured lending segment is less than 4%. H&T will be working with a Skilled Person to review our historical lending, implementation of our revised processes and practices and to determine therefore whether any customer redress is payable. H&T is looking at the HCSTC unsecured lending practices over the past 6 years as part of this review. The average HCSTC unsecured portfolio over the period has been £3m with a peak in December 2016 of £4m and has now reduced to £3m. There were total customer interest payments of £24m over this period. Revenue less impairment over this period totalled £11m.

[contrarian joe] 10/11/2020 10:25

yes 4grankids always healthy to be reminded of potential negatives as well as positives.

[ymaheru] 08/11/2020 14:45

No ban, no.

HAT thought it’d just be accruing further liability and also probably preferred to keep that cash in the bank during Covid.

[jamessmith23] 08/11/2020 14:34

Yes they stopped it while the review is in place, I haven't read anywhere that there has been a regulatory ban on it or similar products indefinitely, have you?

[rimau1] 08/11/2020 12:16

The HCSTL over 6 years generated £24m in interest payments and £11m in net revenue after impairments. Any fine will be proportionate and any redress will be customer specific and probably only to customers who didn’t default so this is a £0-5m issue. Given the amount of free cash flow being generated any fine will be easily self funded without reducing book value of impacting dividend. Given the positive statement last week i was surprised this didn’t re-rate more, any further dip and i will be buying more. 2021 will be a great year for this counter cyclical busines.

[spooky] 08/11/2020 10:35

4grandkids, if you have no idea whether there will be a fine or redress and you have no view on quantum, then it might be worth doing some work to decide whether you can come to an informed conclusion. Without that, its hard to make an investment decision on the shares.