H&t Share Discussion Threads

[thorpematt] 10/8/2021 20:10

As we know, breakouts are all very well, but we need to see volume.




........



free stock charts from uk.advfn.com
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Yep, we have some volume :-)

[tole] 09/8/2021 20:34

Strong write up in the IC by Simon Thompson should see some follow through with his followers tomorrow.Nice summary in sharesmag too.https://www.sharesmagazine.co.uk/news/shares/pawnbroker-ht-pleases-with-better-than-expected-first-half-profits-and-dividendTHE SHORE CAPITAL VIEWA Financial Conduct Authority (FCA) review of the credit worthiness, affordability assessments and lending process within H&T's High Cost Short Term loan (HCST) business, ongoing since 2014, is taking longer than expected.While this creates uncertainty, Shore Capital believes that 'any potential redress costs and penalties that may be incurred will be manageable within the context of the group's financial resources and should not materially affect future growth prospects'.The broker believes H&T is 'well positioned to benefit from a post-pandemic pick-up in demand while also noting that quite a lot of capacity has recently exited the non-standard lending industry. Consequently, we are optimistic on the outlook for the remainder of the year and beyond.'Shore Capital stressed H&T's 2021 earnings are 'likely to represent a cyclical low point' and sees 'strong recovery potential from here. Perhaps of greater note, the shares are trading at a slight discount to their tangible net asset value of £114.4 million as reported at 30 June 2021, despite this being backed by conservatively-valued assets, in our view.'

[thorpematt] 09/8/2021 17:56

Yes a dizzying update this. Bargain is a word which springs to mind.

The strategy of moving away from those HCST loans should ensure regulatory concerns are in the past.

It also looks as if the other areas are either showing a return to pre-pandemic levels or strong growth.

looking at a fair valuation a much stronger PER has to be applied IMV.

[cwa1] 09/8/2021 17:35

Tweeted by The IC...


On the bargain hunt
A cash-rich financial services firm is benefiting from strong retail demand and is starting to rebuild its lending book. A cash-adjusted forward price/earnings ratio of six and prospective dividend yield of 4.4 per cent are likely to attract retail buyers, too.
August 9, 2021
By Simon Thompson

[lord loads of lolly] 09/8/2021 10:49

Today's 6 month interim results look pretty good. Though it's harder to compare with 2020 in a way, as both years had different periods affected by lockdown. I'm particularly pleased the dividend has significantly increased (LY: 2.5p TY: 4.0p) and see this as a big vote of confidence from management. On the downside, the outcome of the FCA review sounds as far off as ever: "Further updates will be provided in due course although it is not currently possible to put a timescale on completion of the review by the FCA, nor completion of the subsequent testing work by the skilled person". This - and any wobbles in pledge lending bounceback - will be the main potential headwinds for now.

[cwa1] 09/8/2021 07:22

H&T Group plc today announces its interim results for the six months ended 30 June 2021.

HIGHLIGHTS

-- Profit before tax GBP4.7m (H1 2020: GBP5.0m), a robust performance against a background of Covid-19 related trading restrictions from January to April and reduced high street footfall throughout the period

-- Daily average pledge lending back to c.90% of pre-pandemic levels, recovering strongly with continuing month on month momentum

-- Pledge book up 3.9% to GBP50.2m as at June (Dec 2020: GBP48.3m)
-- Retail sales up 26.5% to GBP12.4m (June 2020: GBP9.8m) at improved margins. Retail gross profit up 139.3% to GBP6.7m (H1 2020 GBP2.8m)

-- Cash balances GBP32.5m (June 2020 GBP12.9m net)
-- Net Assets up GBP9.0m to GBP135.9m (H1 2020: GBP126.9m)
-- Interim dividend increased to 4.0p (H1 2020: 2.5p)
Chris Gillespie, H&T chief executive, said:

"H&T has traded strongly since April's progressive relaxation of the pandemic restrictions. Pledge lending is steadily returning to normal levels and demand for our value for money, high quality jewellery and watches has been particularly strong.

"Right across the business, our colleagues have done an amazing job throughout the pandemic, ensuring we meet customers' needs whether in stores, over the telephone or increasingly, online. Both our websites are now refreshed, and we continue to invest in improving our IT systems to better support colleagues, and in expanding our reach and appeal across all appropriate channels for our customers.

"The positive trading momentum seen in the second quarter has continued in the third quarter with further growth in the pledge book to GBP52.2m as at 31 July 2021. We enter the second half of the financial year with growing confidence."

[lord loads of lolly] 02/8/2021 15:51

Repeat delays in outcome of FCA review are entirely down to FCA. I could be wrong, but very much doubt HAT will comment any further on it until the FCA finally pronounces.

[purplepelmets] 02/8/2021 10:02

Good to see strength building before earnings figures next monday. I am expecting a hefty beat to estimates, and also some good news on the scope and seriousness of the FCA review of High-Cost Short Term Loans. should all be wrapped up by now

[ymaheru] 22/7/2021 04:00

Sorry. Found the note on hl.co.uk now.

[purplepelmets] 22/7/2021 03:51

RNS Number : 8805F H&T Group PLC 21 July 2021

21 July 2021







H&T Group plc



Notice of publication of 2021 Interim Results



The Board of H&T Group Plc announce that it will publish its Interim
Financial Results for the six months ended 30(th) June 2021 on Monday 9(th)
August, along with an update in respect of current trading, which has shown
good momentum since the relaxation of pandemic trading restrictions during
April.



- ENDS -

[ymaheru] 22/7/2021 03:37

Hi, does anyone have a link to the announcement today/ yesterday but NOT on HAT's website, please?
I'm in US a few weeks and their website doesn't let me view :(

Thanks

[keyno] 21/7/2021 18:23

Thanks, lord lol - that was my understanding re fines and also my assumption re today's share price rise. Be nice to be back above 300.

[zchaka5] 21/7/2021 17:44

Price has been slowly drifting south for months then a little news and it gets a boost. Unlike a lot of companies H&T often seems to outperform on their numbers ...against the trend the shareprice has been taking. I expect if it's able to perform well in the current climate it'll really benefit from any inflation and recession should either ever come. No debt and generating reasonable cash so plenty of reserves and opportunities for the dividend to further recover.

[lord loads of lolly] 21/7/2021 15:39

They're not a given unless/until they're announced by the FCA. The general consensus seems to be that any fine (if applied) would be manageable. And it would certainly be a one-off, as H&T has since discontinued these high-cost short-term credit loans. I think we can only put today's share price rise down to the latest brief trading update: "current trading ...has shown good momentum since the relaxation of pandemic trading restrictions during April."

[keyno] 21/7/2021 11:22

Are the fines a given?

[eezymunny] 21/7/2021 10:23

HAT-tipped perhaps? Or just the encouraging trading update? Looks cheap here if they get back to pre-pandemic profitability and any fines for loans biz are modest...

[tole] 21/7/2021 07:23

The Board of H&T Group Plc announce that it will publish its Interim Financial Results for the six months ended 30(th) June 2021 on Monday 9(th) August, along with an update in respect of current trading, which has shown good momentum since the relaxation of pandemic trading restrictions during April.

[ymaheru] 16/7/2021 00:11

Credit tightening:

“Experian shares struck a six month high after the consumer credit company raised its annual outlook and said more people were applying for loans and credit cards.”

I’d guess HAT will be doing the same either very soon or shortly after.

I’m still not convinced that dropping the short term loans is going to affect profits, as HAT had so many bad loans.

The above makes me think rosier days lie just round the corner.

[riverman77] 15/7/2021 11:30

Very ill informed - he was never CEO of Provident, he was appointed the MD of the consumer division. Peter Crook was CEO at Provident at the time of the fiasco and the main one responsible for mess there IMV. The big fall in the PFG share price between the dates you show was driven by a large rights issue in 2018 and of course the Covid sell off last year - you can hardly pin the blane on Gillespie for that, and to repeat he was not even running the company!

Also check your figures for the PFG share price between 2007 and 2013 - the share price more than doubled during that period and continued to rise strongly for a couple of years after he left (he had clearly left the business in a good position before things fell apart under someone else's watch) . If you include dividends, the returns over this period were phenomenal.

[mtsblogs] 15/7/2021 10:44

So what *is* he responsible for? - FCO pretty-much bankrupted Amigo and Provident, and as a CEO what did he do? Now he's at H&T and Finance Director resigns (!), Auditor is changed from Deloitte to "PKF Littlejohn" (WTF are they???) and another director quits. Then there's mess with Articles of Association: what was the change, why did they need it and how come it did not go to a vote?

In fact, the new CEO has left each company in a worse state. Here are the facts:

Provident May 2007 - 1,157
Provident Oct 2013 - 1,156

Company grew 35% in 1 year AFTER he left.

Amigo - not PLC at the time, but he helped form the strategy (was a consultant, then CEO for 20 months). Now all but bankrupt.

Provident Aug 2017 - 646
Provident Sep 2020 - 194

Provident lost 70% while he was the CEO, and that was not just due to covid, it was a downward trend from the beginning.

Once he left, Provident GREW 23% to 250.

He is a disaster, old CEO retired and didn't care.

[riverman77] 14/7/2021 22:08

He was briefly at Amigo in 2015 so wouldn't hold him responsible for what happened there (the business model was fundamentally flawed apart from anything else). He was brought back to Provident in 2017 to try to sort out the mess in the home credit division - again I don't think the fiasco there can be blamed on him. From what I gather Provident was very successful when he previously there, which is why he was brought back.

The FCA investigation does seem to be dragging on, although it concerns only a very small part of the business so can't imagine any penalty could be too severe.

My view is this is more than priced in - HAT trading at 6x pre Covid earnings and less than book value. Wouldn't short this but admit it may take a while to recover - with the lending book having shrunk profits are going to take a while to bounce back.

[mtsblogs] 14/7/2021 20:28

Hey guys, what do you think about the new CEO? He was the CEO of Amigo Loans and after FCO investigation they’re all but bankrupt, he was the CEO of Provident Financial and now they’ve issued an ultimatum to FCO to accept £50M or they’ll go into administration, and now he’s the CEO of H&T and CFO has left along with another director. Time to short H&T?

[arthur_lame_stocks] 05/7/2021 15:34

ymaheru

I think you're onto the reason there. The pledge book has fallen a long way and although that means they generated a heck of a lot of cash last time I presume it also means that profits will be depressed in the short term, coupled with the uncertainty caused by the FCA investigation has caused the price to fall to this low level imo.

I think this is a buying opportunity though and have taken some today and will hold until they recover. The balance sheet is rock solid and they are trading at around the level of net current assets so a real bargain at these prices imo.

[lord loads of lolly] 05/7/2021 15:29

Yup, good points. I guess we'll see who's nearer the mark in terms of over all share price impact when the FCA finally announces the outcome of its investigation. Bizarrely, today's uncharacteristically strong share price increase seems to have been triggered by HAT's Director of Human Resources, Frances Marlow. She's just shelled out a grand total of .... drum roll......£4,978.31. Steady now Frances - remember, only invest what you can afford to lose and all that!