H&t Share Discussion Threads

[ymaheru] 03/8/2023 13:40

I didn’t know they were geared at all.

Interest is at 5.25%, so their charges on loans must be far higher than a year ago.

Their (probably outdated) website says:
“ The highest monthly interest rate is 9.99%, which is for loans between £1–£500, while the lowest is 3.5%...”

As rates have risen by 5.15%, I’m averaging out and assuming they’re getting triple the interest of a year ago.

I don’t think H&T have borrowings, so their cash is reaping more rewards now.

What is probably also true is that more people need loans, so volumes and returns should be rising on loans.

I’m not sure about other parts of the business (eg sales of goods might be plummeting).

[jm6783] 03/8/2023 13:10

3x more than a year ago? Please explain.

Anyway, I see this as trading at around end of 2023 book value now for a company that will earn around 15% RoE this year and probably closer to 20% next year and will not be highly geared. Seems pretty strange to me.

[ymaheru] 03/8/2023 12:49

Yes, rimau1, I see higher rates as positive.
HAT loans out its own cash, which will now earn 3x more than a year ago.

[scotches] 03/8/2023 11:50

An ebbing tide lowers all boats.

We'll see if the Aug 8 report confirms the current period as one of the most favourable in the company's history.

[rimau1] 03/8/2023 11:50

I hope not Pugugly! I am adding here because net net HAT should benefit from rising rates. It can choose whether to grow its pledge book using the credit facility and price the book accordingly to always benefit, like a bank. Rising rates should also mean more customers. If someone can demonstrate HAT is a net loser from rising rates i will sell out!

[pugugly] 03/8/2023 11:26

Could it be possibly be worries about possible increase in interest rates on debt?

[jm6783] 03/8/2023 10:47

Anyone know why this has fallen so much today ?

[ntv] 30/7/2023 20:05

Results due 8th August

[lord loads of lolly] 11/7/2023 14:41

Yes, a good update - as expected. Difficult to know exactly how H1 profits will turn out. Retail jewellery profits significantly down. However RNS states that's "substantially" offset by the boost in profits from jewellery disposal. Looking extremely positive for full year. I guess the share price hasn't run away (yet!), as most of this was to be expected, given previous announcements.

[interceptor2] 11/7/2023 08:28

Nice strong update, the way I read the statement is that interims will be inline with expectations due to some margin pressure in Jewellery sector yet higher turnover, but that H2 will be very strong with higher margins and strong pledge book feeding into H2 and resulting in some ahead trading updates before the full year results.

[solarno lopez] 11/7/2023 08:21

Will it reflect on Ramsdens, I think so !

[ntv] 11/7/2023 08:08

Trading update looks pretty good to me

[martindjzz] 28/6/2023 10:37

I'm very upbeat about developments here. Having been in for a year I increased my holding by 50pct today.

[lord loads of lolly] 16/6/2023 09:43

Thanks interceptor2. These look sensible appointments to me that should strengthen financial governance (we don't want another FCA review) & boost retail ops.

[interceptor2] 16/6/2023 08:03

Appointment of 4 new NEDs, with 3 from a finance background, unusual to see 4 appointed at the same time and this follows the Chairman recent maiden share purchase.

[lord loads of lolly] 07/6/2023 10:09

interceptor2 - quite possibly, though HAT dropped a fair bit during May, so was probably due a slight correction anyway. Octopus Investments increased their holding significantly on 10 May (from 11.46% to 12.55%). And the CEO recently increased his holding by £106K, paying 425p a share. That prompted me to add to my own holding last month, sneaking in just before the 10p ex dividend date. I'm pretty confident this will re-visit 500p+ at some stage during the next 12 months. I'd reduce slightly again if we exceeded 550p.

[interceptor2] 07/6/2023 08:24

Reacting to good interim results from RFX?

[shallwe] 18/5/2023 13:58

This is one of my better shares, took some profit today but will be back if the price allows me to. Still got a decent holding though.

[aeonflux] 16/5/2023 19:41

Agree with you and also topped up today :)

[lord loads of lolly] 16/5/2023 17:02

An interesting RNS announced after yesterday's close for H&T's new performance-related share option scheme: The way I read it, qualifying senior management don't have to pay for their options, providing they achieve set targets. If so, that to me is ridiculous. Surely they should STILL have to pay (even if at a lower-than-current-market price)? That said, the targets to qualify look fairly ambitious, with a MINIMUM 106% increase in EPS by 31 December 2025. If they achieve even that, there should be a substantial upward share price re-rate by then. Not to mention a significant boost to dividend payouts. I topped up further, both yesterday & today, on the share price weakness, as I can't see any obvious reason for it. Ex dividend this Thursday, so thought I'd get in beforehand to qualify for June's 10p a share payout. The price could well drift lower still (particularly on 18th when it goes ex-div). But on a 12 month+ view, I'm reasonably confident my latest buys will prove sound.

[lord loads of lolly] 15/5/2023 15:46

Odd weakness in the share price today (15th May), given the lack of any obvious news to drive things. HAT only goes ex-dividend on 18th May, but maybe someone's jumped the gun! Anyhow, I topped up today as a result. The outlook was good enough for HAT's biggest shareholder to add significantly on 10 May (when the price closed at 446p). So it was good enough for me today, at just below 430p. Directors have also added recently, notably Chris Gillespie (CEO), with a further 25,000 shares @ 428p on 28 March. And the CFO bought 7,500 shares @ 431p on 3 April. Neither of them perhaps huge trades in their eyes, but a small vote of confidence nonetheless. Here's hoping there's nothing sinister about today's drop - I somehow think the Directors would have been the first to know if so....

[lord loads of lolly] 10/5/2023 10:42

NTV - yes, no unforeseen nasties & an overall positive outlook. I'd say the slight negatives were 1) Recent higher pledge redemption rates. 2) Moderating jewellery margins. 3) Weakening demand for certain higher value watch brands. 4) Inflationary impact on overhead costs. But it appears these are all being dealt with and were - for the most part - anticipated. Share price is a bit weaker this morning, probably in line with general market trends - & the fact that their update didn't surprise to the upside. But I'm happy with this. Always best to guide accurately in the first place IMHO, rather than keeping investors second-guessing.

[ntv] 10/5/2023 09:16

Trading update looks pretty good. Some parts doing better than others
Overall inline with forecasts so pe ratio falling and dividend yield should climb
Happy to hold and be patient

[saint or sinner?] 11/4/2023 16:19

More likely they have shaken out enough weak holders and traders. Onwards and upwards for the patient investors.

[lord loads of lolly] 11/4/2023 10:50

rimau1 - could be reacting to IMF's prediction that interest rates are likely to fall significantly: That would give a boost to most shares, but particularly higher yielders like HAT & RFX.