H&t Share Discussion Threads

[scotches] 02/3/2022 16:28

It wasn't that amusing at the time but the irony of Albemarle's demise was it had expanded far too quickly and could not then service its debts. Prior to their fall the smart talk was that high steet pawnbrokers were finished and about to be replaced by online lending such as Wonga.

In contrast HAT is a net cash operation even after reduced covid profits. As a result of various circumstances they have now entered a period ideal for the services offered by the business at a time when many competitors have already folded. It is hardly expensive given historic hi/lo figures.

[wad collector] 02/3/2022 14:37

Provident Financial had multiple income parts in different countries , a long and profitable history , high yield, a strong NAV but then made a bad decision and just about went bust . Yes it is perhaps not the best comparison but I think there is still risk here.

[ymaheru] 02/3/2022 10:04

Yes, totally different:
1- has multiple income streams
2- has assets worth about its market cap
3- has long and profitable history
4- still making money

I’m not sure how much lower it’ll go.
It’s benefitting from more high street footfall, higher gold prices and increased foreign travel.

[lord loads of lolly] 02/3/2022 09:40

I'd say it's COMPLETELY different from any of the "failed low-end lending companies". Take at look at the last 5 years' financials and you'll see what I mean:

[wad collector] 02/3/2022 08:36

I agree, been holding off adding , I don't think it has dipped enough, considering the wider market falls, to be attractive yet. The longevity of the company is reassuring, but it is not so different from some of the failed low-end lending companies.

[lord loads of lolly] 24/2/2022 11:00

Just now, almost all shares are being hammered. Uncertainty abounds at times of war and investors don't always think rationally. So whilst I agree with your logic, unfortunately short term I don't think it'll necessarily shield HAT from the wider market downturn. Nor make it more of a takeover target, as such activity is likely to dry up until the general economic outlook is clearer. The overhanging FCA investigation isn't helping HAT sentiment either. But I have placed a limit buy order on HAT, should the price fall back below 250p. In which case, I'd be happy to trade the dividends for continued volatility whilst the FCA's investigation & the Russia/Ukraine conflict are ongoing.

[spob] 24/2/2022 10:33

inflation up
gold up
silver up
war in europe

all good for pawnbrokers

the share price will wake up here

or someone will steal this on the cheap

[km18] 18/2/2022 17:29

...from last year...

Company overview:
H&T Group is the leading pawnbroker in the UK, with two awards for Best Pawnbroker (2018 and 2019). HAT operates through more than 250 stores and 2 websites. The company relies on four experts for the Valuations, all with more then 7 years in their specific sector. The sharp drop in stock price in 2019 was caused by a FCA Review initiated on the high-cost short term credit unsecured loans the company was providing. As a result, the management decided to suspend the service as the review is ongoing. HAT is currently working with a skilled person and further updates will be provided.
On a fundamental basis the firm is very stable. Revenue growth has been 7.64% CAGR, which is transformed in 18.5% on Net income level. They have proven their ability to continuously retire debt and generate strong CFO. Strategy wise, HAT made several acquisitions over the past 10 years, majority of which are below £1m, generating goodwill of 11% of total assets at £19.7m. The sharp rise in redemptions during 2020 increased significantly net cash which now accounts for a quarter of HAT’s NAV. The £35m credit facility available to the firm provides security and ability to fund acquisitions and organic growth opportunities.
Latest update shows trading is strong, with £4.7m of PBT, which is below the H1 2020, but shows resilience with prolonged lockdown periods. The daily average pledge lending is back to roughly 90% of pre-Covid levels with continuous momentum. Pledge book itself was 3.9% up at £50.2m, compared to £48.3m in December. In addition, gross margin is improved, driven by retail sales growth across all operations. The strong trading and good operating efficiency created the opportunity for increased dividend at 4.0 pence, compared to H1 2020’s 2.5. Management is confident in second half as pledge book has risen to £52.2 in the third quarter supported by good trading momentum. Provisions are for profit before tax for year end to reach the £10m mark and see a healthy increase of 50% in FY2022....

...from WealthOracleAM

[value hound] 10/2/2022 18:49

CWA1

Tavistock Investments TAVI
Vector Capital VCAP
H&T HAT
Tekcapital
Billington BILN
Conygar CIC
Henry Boot BOOT
Sylvania Platinum SLP

[cwa1] 10/2/2022 18:41

If not TOO rude, who else made the list please?

[arthur_lame_stocks] 10/2/2022 18:30

I wondered why the price was up today.

[value hound] 10/2/2022 18:01

Included in Simon Thompson's Bargain Shares for 2022 who concludes with "A premium to book value is a far more appropriate valuation for the group and a target around 400p a share seems reasonable. That price equates to 10 times 2023 projected earnings and is underpinned by a forecast 16.5p-a-share payout. Buy."

Specifically re the FCA stuff, he says: "Admittedly, H&T’s £2.6mn personal loan book continues to reduce as repayments, recoveries and lower impairment charges more than offset new lending. This is in line with the group’s strategy after it stopped lending high-cost short-term credit (HCSTC) unsecured loans after the Financial Conduct Authority (FCA) launched a regulatory review of certain aspects of this business in the autumn of 2019.

The uncertainty over any financial redress on the group’s previous HCSTC lending activities is one reason why H&T’s shares are trading 17 per cent below book value of 341p a share, but with conclusion of the FCA review imminent, a line is set to be drawn under the matter."

[outsizeclothes.com] 07/2/2022 22:28

With all the "extortionate rate payday lenders" now out of the way, HAT's market is huge, and likely to grow as interest rates go up further.
The FCA is likely working with HAT to try to make a legitimate alternative to Loan Sharks, but trying to allow for the default potential, and that's what's taking the time.
In such a case, I can see the FCA handing HAT a nominal fine, knowing that if the take HAT completely out of that market, they open the door for organised crime to step in.
They'll also issue a strong "don't do it again, as we're watching, and will have to be seen to be watching going forward"

[zchaka5] 17/1/2022 09:08

Indeed, I'm struggling to imagine what this appointed skilled person and the FCA are doing week in week out. It's taken them several years to complete an exercise that should have taken months at most.... and it's still not complete.

[tiswas] 17/1/2022 08:44

Steady as she goes but presumably held back by the FSA investigation in to the HCST loans business.

[ymaheru] 04/1/2022 15:31

Looks like higher use of credit, so better business environment for HAT:

Consumer borrowing on credit cards jumped to its highest level in more than a year in November, much higher than expected.

Inflation, energy costs, higher interest rates, less lockdown all blamed.
Money put into savings accounts plummeted 60% from 12 month average.

Savings still seem high, though. Looks like environment improving for pawn, but only so much.

[scotches] 19/11/2021 12:56

The FT list of major holdings has Close with 9.2% in Feb. Don't know why today's update doesn't mention.



Institutional shareholdersTop holders
60.08%

Per cent of shares held by top holders

Artemis Investment Management LLP
AS OF 04 FEB 2021
5.08m 12.74%

FIL Investment Advisors (UK) Ltd.
AS OF 26 FEB 2020
3.97m 9.96%

Close Asset Management Ltd.
AS OF 04 FEB 2021
3.67m 9.20%

Camelot Capital Partners LLC
AS OF 04 FEB 2021
2.66m 6.68%

Octopus Investments Ltd.
AS OF 04 OCT 2021
2.58m 6.47%

Fidelity Management & Research Co. LLC
AS OF 29 OCT 2021
2.22m 5.57%

Hargreaves Lansdown Stockbrokers Ltd.
AS OF 04 FEB 2021
1.14m 2.87%

Sanford DeLand Asset Management Ltd.
AS OF 01 SEP 2021
985.00k 2.47%

Henderson Global Investors Ltd.
AS OF 01 SEP 2021
978.00k 2.45%

Hof Hoorneman Bankiers NV
AS OF 01 SEP 2021
665.00k 1.67%

[tole] 19/11/2021 12:34

Close Asset Management Limited have announced they've taken a new 10% holding. Wonder where those shares came from?

[lord loads of lolly] 21/10/2021 11:27

Yes, unfortunate. But I guess any business has to deal with the unexpected from time to time. The government will clearly resist a further lockdown if it possibly can. Though why it doesn't make mask wearing compulsory again indoors is quite beyond me. Almost like some ridiculous machismo stance, trying to prove England is stronger than the other UK nations. Sure to backfire as soon as they u-turn on it, which - I believe - is inevitable. And imminent.

[scotches] 21/10/2021 08:49

The FCA are themselves to be investigated over possible faulty advice.

The FCA delay and possible re-instatement of covid restrictions are depressing the share price here on what would otherwise be favourable background conditions.

[scotches] 20/10/2021 13:36

Unless the company has been engaged in an industrial scale of faking reviews it has a particularly high trustpilot score from satisfied customers. uk.trustpilot.com/review/handt.co.uk

[lord loads of lolly] 19/10/2021 16:19

Once the investigation's complete, I'm guessing they'd be legally bound to update the market immediately. It's market-sensitive info after all. So the fact we're still waiting suggests the investigation's ongoing. Perhaps they've run out of shovels! I'm not unduly concerned though, as I suspect anything but a real left-field conclusion is already priced in. But I agree it would be nice to move on - & hopefully enjoy a post-FCA bounce.

[outsizeclothes.com] 19/10/2021 11:39

I do wish this investigation was out of the way, be done with it, and let the shareprice move on.
Unless they're digging up the floorboards, they're bound to have finished months ago, Covid or not !

[thorpematt] 10/8/2021 20:19

I have posted the 21 day MA here too(we're a little bit above that I'd say).

The 21day MA is quite important since it shows a keen correlation with HATs price action.

Also (in case you didn't already know) there are on average 21 trading days in each calendar month (which makes it quite popular with traders)

Looking at resistance levels, there are a few targets on the way back up (to where this should be).


free stock charts from uk.advfn.com
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