H&T GROUP PLC

Earnings Release • Jan 9, 2015

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RNS Number : 7149B

H&T Group PLC

09 January 2015

9 JANUARY 2015

H&T GROUP PLC

TRADING UPDATE

H&T Group plc ("H&T" or "the Group"), which trades under the H&T Pawnbrokers and est1897 brands, today issues a trading update prior to the announcement of its preliminary results for the year ended 31 December 2014. H&T expects to report its preliminary results for the year ended 31 December 2014 on 5 March 2015.

The Board expects full year profit before tax to be in line with current market consensus expectations.

The impact of low gold prices, competition and regulatory change have combined to place the business under significant pressure in 2014.  Despite this backdrop, the business has generated strong cash flows and has continued to implement a range of strategies and measures to improve performance going forward.

The pledge book reduced by 12.7% to £38.5m as at 31 December 2014 (2013: £44.1m) principally as a result of the competitive environment and reduced lending rates.  The pledge book has stabilised over the last six months and on a like-for-like basis the pledge book reduced by just £0.3m from 30 June 2014.

The Group's focus on retail sales as a more effective means of disposition has continued to deliver growth.  Q4 2014 like-for-like retail sales increased 10.5% against Q4 2013 with gross profits increasing by 7.4% period on period.

The Board expects that the current challenging market will accelerate the industry consolidation and rationalisation that we believe is necessary in the short term.  During the year the Group closed eight underperforming stores, opened one new H&T Pawnbrokers, acquired one established pawnbroking store and opened three stand-alone est1897 retail outlets.  At 31 December 2014 the Group operated from 191 stores, comprising 152 H&T Pawnbrokers stores and 39 est1897 retail stores.

The Group continued to de-risk its balance sheet in 2014 by reducing borrowings, with net debt at year end of £9.7m (2013: £20.8m).

For further information, please contact: 

H&T Group plc	Tel: 0870 9022 600
John Nichols, Chief Executive
Steve Fenerty, Finance Director
Numis Securities	Tel: 020 7260 1000
Etienne Bottari / Freddie Barnfield - Nominated Advisor
Mark Lander - Corporate Broking

This information is provided by RNS

The company news service from the London Stock Exchange

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