H&T Group trading as expected in year-to-date

16th May 2024 15:15

(Sharecast News) - Pawnbroker and jewellery retailer H&T Group said in an update on Thursday that its trading performance since the start of the year had been in line with expectations, marked by strong demand for pledge loans.

The AIM-traded firm said April set a record for lending.

It observed higher-than-average redemptions in March and April, as customers collected items for religious and family celebrations - a trend anticipated to reverse in the coming months.

Key pledge book metrics remained robust, with the Maxcroft pledge book performing well since its acquisition.

The capital value of the group's pledge book, excluding accrued interest and provisions, increased to £105m, up from £101m at the end of December and £91m in April last year.

Retail sales and foreign currency revenues met forecasts, with retail margins improving as projected.

Additionally, revenues from gold purchases and scrap benefitted from a strong gold price.

H&T expanded its store estate by adding three new stores, including one from the Maxcroft acquisition, while closing one location.

The current total store count stood at 280.

"It is pleasing to be able to report a solid start to the year, with robust demand across the group's product offering," said chief executive officer Chris Gillespie.

"I look forward to updating the market further as the year unfolds, and as always, I would like to pass on my grateful thanks to our amazing colleagues for their hard work, dedication, and unwavering commitment to customer service."

At the close on Thursday, shares in H&T Group were up 1.19% at 425p.

Reporting by Josh White for Sharecast.com.