THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
H&T profits to be in line with expectations as pawnbroking sector improves

Pawnbroker H&T Group has said it is on track to deliver full year pre-tax profits in line with current market expectations as trading conditions in the pawnbroking industry improve.

GENERAL MERCHANDISE

H&T profits to be in line with expectations as pawnbroking sector improves

Pawnbroker H&T Group has said it is on track to deliver full year pre-tax profits in line with current market expectations as trading conditions in the pawnbroking industry improve.

The company has continued the strategy set out last year to reduce debt, control costs and drive revenues. In a statement, H&T said its plan to reduce borrowings had gone well with net debt at 30 June 2014 standing at £13.5 million compared to £28.5 million at the same time last year. Operating costs also reduced year-on-year.

H&T said the strong retail performance seen in the second half of 2013 had continued into the first half of 2014 with retail sales rising by 49% on the same period last year.

The company said it also made good progress with the development of the Discount Secondhand Jewellery format with the conversion of 36 H&T Pawnbrokers stores to the new brand. The new format will continue to offer pawn broking loans while the increased focus on retail is expected to deliver a higher level of retail sales.

The pledge book at 30 June 2014 was £38.4 million compared to £48.6 million at the same time last year. The reduction, which was in line with management expectations, was mainly driven by the impact of competition, maintaining the loan to value ratio, and a reduction in aged pledge.

H&T said trading conditions in the pawnbroking sector are improving. The company added: “The factors that impacted pawnbroking in the last year are abating and notes that recent lending has stabilised and there are early indications of a reduction in competition. Accordingly, the board would expect only a small reduction in the pledge book in the coming half. The group has a number of initiatives underway to improve performance of this key area of the business going forward.”

H&T has closed four stores so far this year and opened one to give it a total of 191 trading units at 30 June 2014. The company is planning to close a small number of additional stores during the remainder of the year as it takes advantage of lease breaks.

H&T said: “The board continues to believe that the current number of stores in the sector is unsustainable and we expect to see further consolidation and rationalisation during 2014. The board believes that the group is well positioned to take advantage of this changing marketplace as and when opportunities arise.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues