Make your money go further for just 25p per day

H&T Group (AIM:HAT) - positive update and shares look decent value at current levels

21/06/2012 · H&T Group (HAT) 

The trading update from ‘the other’ quoted UK pawnbroker ahead of the half-year to end June 2012 indicates that it sees full year profits in line with expectations – expectations are pre-tax of £16.5m and eps of 33.05p. A full year commitment before the half year end is about as good as it gets, especially after last week’s profit warning from Albemarle & Bond!

The core pawnbroking operations continue to perform strongly, with the Group due to report double digit year-on-year growth in its pledge book and largest income stream, the Pawn Service Charge.

The Group’s gold purchasing operation has experienced competitive pressure on margins (much like Albemarle), but the underlying volumes have remained constant over the last 12 months.

Year to date retail sales are up 7% reflecting the new store additions and the continued focus on retail as the preferred and most profitable route to disposition. Year to date like-for-like sales are down 11% on prior year, while profit margins have been maintained .
A further 14 stores have been added year to date, including 2 acquisitions and the conversion of 2 GoldBar retail mall units into fully fitted stores. Today, the Group’s estate consists of 174 stores and 55 GoldBar units.

Trading at 8.3x 2012 estimates and yielding just over 4% the shares look decent value at current…

Sign up and read the full article

Register to continue reading this article.

Get FREE access now

Already a member? Login

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world


Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.


More on H&T Group

Foreign exchange: how to invest in the hottest of sectors

22/07/2019 · Investors Clinic

As holidaymakers pack their suitcases, the pitiful value of the UK pound, which has recently fallen…

Currency cards: another tech venture for UK stock markets to shun

11/02/2019 · News & Insights
Revolut, WeSwap and Monzo have all enjoyed huge success on crowdfunding websites, but the public markets…

Why would the Chancellor attack AIM tax reliefs?

13/10/2017 · News & Insights
Investor’s Champion has researched AIM companies for over 12 years and has always highlighted the Inheritance…

A special dividend takes the yield to a whopping 10%!

11/01/2017 · News & Insights
The proven retailer featured in our Premium Company Research article from 12th December 2016 (‘Great…

This cash machine starts to pay out

08/03/2016 · Sponsored Content

In the latest in a series of ‘Investment Insights’, fund manager and CFA Charterholder Graham Neary highlights the investment attractions…

More from the News & Insights

The week at a glance: 16 August – political pressures

Media mergers round two: game on

15/08/2019 · Amazon · Apple · AT&T · CBS · Comcast · Entertainment One · ITV PLC · Netflix · Viacom · Walt Disney

Burford poked the bear – Muddy Waters lashes back

13/08/2019 · Burford Capital Ltd