H&t Share Discussion Threads

[ymaheru] 05/7/2021 14:32

I think HAT is being held back by Covid.

Mainly, government payouts have reduced the people needing lending. Consumer credit borrowing dropped 7.5% last year. That could hit HAT quite hard as pawn is often lender of last choice, so lending could be down even further than that.

Secondly, lockdowns are reducing the footfall near shops. Again, bad for HAT.

The gold price doesn’t help, of course.
And the FCA decision must have some small effect.

[lord loads of lolly] 05/7/2021 11:27

Repeated delay in FCA outcome is main reason for drift IMHO. But I'm not expecting any nasty surprises, as a potential fine is already largely priced in & they've moved out of the sector in question. Once this uncertainty is out the way, I think we could see a small re-rate. I still anticipate share price being closer to £4 than £3 within next 12 months, though this is only my best estimate.

[outsizeclothes.com] 05/7/2021 10:32

The share price's continuous drift down is disappointing.
Yes, the FCA decision is an overhang, and yes, gold is off a bit, but prospects going forward for making loans/pawning should be as good as, and better than, they have been for several years.

[zchaka5] 26/5/2021 11:58

My scan of what was proposed makes me think it might have been linked to the directors being able to pay themselves fairly arbitrarily, maybe the bigger shareholders wanted to see clearer evidence of controls on that. Just me speculating though, investor relations might be able to provide further insight though.

[lord loads of lolly] 25/5/2021 09:45

No, but if you've time you could always wade through the summary here and tell us what you think caused it: [...]

[zchaka5] 24/5/2021 11:33

Does anyone know what the issue with the proposed Articles Of Association changes were that caused their withdrawal at the AGM? - "Resolution 10, to approve the adoption of new Articles of Association for the Company, was withdrawn in the light of feedback from shareholders on the Articles. The Board will consult with shareholders and a proposal for the adoption of new Articles will be put to shareholders in due course."

[lord loads of lolly] 22/5/2021 15:15

zchaka5 - end Q2 means by 30 June, so plenty of time left.

[outsizeclothes.com] 21/5/2021 16:18

IMHO a negative FCA ruling has been all but factored in to the current shareprice.
I can't see anything more than a 15p drop at very worst, with a 40p+ potential to the upside

[zchaka5] 19/5/2021 11:35

Fair but we're now getting very near to the end of Q2 if we're talking calendar rather than financial quarters.

[lord loads of lolly] 18/5/2021 10:07

The FCA ruling has certainly been a long time coming, with the pandemic undoubtedly delaying things. H&T's 23/03/21 RNS clearly advised likely outcome timing (Q2 2021). Not sure what more they could add, particularly as it's outside their control: "The Group continues to work with the appointed Skilled Person and the FCA in respect of the review into its creditworthiness assessments and lending processes for its unsecured High-Cost Short Term Loans (HCSTC). Given the ongoing disruption from the pandemic, the outcome of this review will now likely be delayed into the second quarter of 2021."

[zchaka5] 18/5/2021 09:27

That ruling has taken a ridiculous amount of time to deliver with a long list of excuses given. They need to communicate better about it to remove the doubt.

[4grandkids] 18/5/2021 07:47

Pending FCA ruling and maybe fine could be your answer ?

[ymaheru] 17/5/2021 15:05

I was gonna ask the same thing. No idea. Maybe people unhappy with Covid affecting full reopening, so anticipating lower footfall and so worse trading for HAT.

[brwo349] 17/5/2021 13:25

Why the drop today?
285p to buy now.

[thorpematt] 09/5/2021 22:55

I think 3 things may drive this in the next few weeks / months: -

1. Footfall in the stores now we are re-opening should increase
2. FX earnings should start to pick up with a travel re-starting
3. Gold appears to be reversing the recent weakness and looks to be back to its long term trend.

[s34icknote] 16/4/2021 17:47

Added here Safe and with a div

[outsizeclothes.com] 06/4/2021 22:32

Having first bought in Aug. 2013 @ £1.30, I'm one of those now holding for a 10p(+?) annual divvy going forward.
This has been a much more reliable "financial institution divvy payer" than any of the Banks turned out to be, and there will be a very solid core of income seekers holding here.

[lord loads of lolly] 03/4/2021 00:01

I’d add to your list FCA review outcome. Also how the Board manages future dividend payments, as many hold this share for income.

[boonkoh] 31/3/2021 08:42

You forgot to add that the Questor recommendation is Hold.Basically the three variables for this year are: can pledge book grow back up and how quick. Direction of gold price. Intl travel opening up for forex business.

[philanderer] 31/3/2021 00:21

Questor: H&T’s Covid recovery may not be quick but it has net cash and a decent yield

Questor share tip: the pawnbroker’s profits could fall in the short term but lowly valuation offers plenty of scope for share price gains

[energeticbacker] 24/3/2021 10:52

Investor's Champion comments:

HAT remains in a very robust financial position, even too robust as it would like to redeploy its cash into suitable lending opportunities.

The reduction in lending resulted in a £29.6m increase in operating cash flow to £55.4m with net cash at the period end of £34.5m and its £35.0m revolving credit facility undrawn.

It remains to be seen how the pawnbroking sector will evolve post pandemic but it has withstood several pandemics over the last 900 odd years so the signs are good.

[boonkoh] 23/3/2021 10:48

Cash is required to rebuild pledge book. To get back to pre covid levels will need to suck in £25m cash.Lower starting pledgebook will restrict the revenues from pawnbroking over the HY2021.Gold prices also struggling and a bit weaker than the average last year.

[s34icknote] 23/3/2021 10:25

Disappointing but good trading results .And no debt throwing off cash

[mrbeaky] 23/3/2021 09:01

Started off brightly but now being sold off