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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)
Low-risk, non-cyclical growth stock
Interim results were better than expected
Acquired four stores since raising £7m in June
H&T trading at discount 15% to peer
Subprime worries do not worry pawnbrokers
Pawnbrokers likely beneficiaries from interest rate rise
Not reflected in recent share price fall
Placing and Acquisitions
H&T’s share price has risen on the announcement of a placing of 3.6 million shares (11.4% of those currently in issue) to fund the cash element of acquisitions.
First results since IPO show strong progress
- Retail margins better than expected
- H&T Redemption ratio up to 78%
- At under 16x PER 07 cheap vs market and peer group
H&T Group; positive trading statement, consequent ED upgrades
H&T have made a pre-close trading statement to prevent a false market in their shares because operating profits are estimated to be significantly (10%) better than the consensus forecast.
