H&T Group

Strong interims

Results over £1m ahead of expectations

Continued demonstration of strength of both pawnbroking and their model

Despite strong performance, shares still attractive on only 8.6x FPER

2008 results and review

Excellent figures ahead of expectations

Pawnbroking showing steady growth

Still undervalued versus market and quoted comparable

Double digit growth from non-cyclical business

H&T Group’s 2008 results were again impressive, with profits before exceptional items up by 58%, Headline earnings per share up by 55% and IFRS eps up by 34%. The market has responded with a 9.5p rise in the share price, but that still leaves the group on a significantly lower rating than its principal comparator.

Trading Statement

H&T Group have just produced a pre-close trading statement which informs the market that they expect, yet again, to report better profits than the consensus forecast. There are two main reasons for this outperformance: one is the rise in the sterling gold price (partly through a rise in the $ price, but mostly as a result of the fall in the £:$ exchange rate), providing a smallish windfall by boosting the profit per ounce on sales of scrap gold, and a smaller one from the sale of unredeemed pledges, and the other is better-than-expected autumn trading, both in retail sales and gold purchasing.

Results well ahead of expectations; forecasts upgraded

Better than expected profits

Steady growth in core pawnbroking business

Retail jewellery sales growing strongly

Reliable low risk growth stock