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We launched EQUITY DEVELOPMENT in 1997 becoming the first ever regulated provider of Sponsored Equity Research in the UK.
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H&T Group
H&T (HAT) Group’s operating subsidiary, Harvey & Thompson is the largest British pawnbroker, by size of pledge book, with 93 shops and a pledge book of more than £27m ( Q1, 2008)
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
Pawnbroking; untouched by financial sector woes
Pawnbroking has proved to be virtually non-cyclical and has seen good growth
‘Credit crunch’ will increase need for small short term loans. Turnover and profit growth set to continue steadily
PFER below 10x is anomalous versus comparator and market. Fair value in short term seen at 240p / share, 30% above current prices
Excellent results
Capital reorganisation pays off
12 new stores opened
Lower rating than obvious comparator, yet growing faster
Long term target 300p vs current share price 191p
Positive trading update
H&T Group has done “slightly better” than analysts had forecast. After Signet’s mildly disappointing reports on the retail jewellery market, we had expected a similar downturn in H&T’s pre-Christmas jewellery sales, offsetting the benefits to pawnbroking from cutbacks in credit card lending. In the event, H&T saw a modest 3.6% increase in like-for-like retail jewellery sales in December in contrast to Signet’s 3.1% fall in UK jewellery sales: trading down (in terms of price, not quality) from Signet to H&T outbalanced the effect of a shrinking market.
Swings and Roundabouts
Pawnbroking not subject to broad retail sector woes
Reduction in unsecured lending to sub prime segment
Rise in gold price
