Make your money go further for just 25p per day

H&T GROUP – another positive trading update but how long will the good times continue?

07/01/2011 · H&T Group (HAT) 

The UK pawnbroker with 135 store outlets and 45 Gold Bar retail mall units issued a pleasing trading statement covering the year ending 31st December 2010 announcing that it expects that full year profit before tax for 2010 (but before exceptionals and amortisation) will be above the top end of current market expectations – can’t quite understand that last one as market expectations surely also generally take into account amortisation!

All business segments are expected to show year-on-year growth in gross profit, driven both by existing store performance and the addition of a further 13 stores across the estate during 2010. They also benefited from the delivery of one-off working capital improvements, contributing an estimated £4.9m to profit before tax in 2010.

The key factors behind the out-performance have been their continued success in the gold purchasing market and significantly increased profit from pawnbroking scrap.

Their pawnbroking business experienced record lending levels during 2010, driven by an increased average loan and new store additions. The Group’s gross pledge book at 31 December 2010 was £39.5m, up from £37.3m as at 30 June 2010.

Management also confirmed that current consensus forecasts (Pre-tax £14.38m and eps of 28.6p?) represent a reasonable expectation of financial performance for the year ending 31 December 2011.

The shares look good value if one looks at current year earning’s forecasts (Eps 46.4p for 2010) and…

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