Pawnbroker in strong position as debt falls & sales meet expectations.
H&T will present a bullish report at its annual general meeting later today, with chairman Peter McNamara claiming that the pawnbroker is in rude health.
McNamara said that underlying trading is in line with the board’s expectations and the group remains pleased with its progression in its core pawnbroking operations and store expansion programme.
H&T is expecting to “exceed current market consensus forecasts” for the year to December 31, 2010 as a reduction in stock levels and the period required to dispose of purchased gold leads to a one-off improvement in scrap profits.
Despite continued store expansion, McNamara said that the pawnbroker’s net debt position is likely to be lower in June than it was in December.
H&T also announced that it acquired the systems and assets of a small online pawnbroker for £80,000 on May 7. McNamara said: “This acquisition provides the platform for the group to expand its pawnbroking service to a wider range of customers.”