H&T Group PLC on Tuesday touted a ‘robust’ performance in the fourth quarter of 2023, albeit noting that the pre-Christmas retail trading period was challenging.
H&T shares fell 13% to 347.85 pence each on Tuesday afternoon in London.
The Surrey-based pawnbroker and retailer of new and pre-owned jewellery said it expects profit to be up 40% year-on-year in 2023.
However, it anticipates pretax profit to be about 10% below current market forecasts, citing a challenging pre-Christmas retail trading period, highlighting that retail trading was particularly challenging in December.
For 2022, it had reported pretax profit of £19.0 million, which had surged from £7.9 million in 2021.
Regarding its pawnbroking business, H&T said it ‘has implemented changes to its pricing structure for pledge lending, in order to improve yield and generate incremental revenue. Loan demand to date in January has been particularly strong.’
In retail, sales by volume of items fell 3% year-on-year in the fourth quarter of 2023.
On a positive note, gold purchase by value grew 18% in the full year 2023.
Looking ahead, H&T said it remained subject to cost inflation, including a forthcoming 10% rise in minimum wage from April. ‘Action will continue to be taken to control costs and deliver ongoing cost efficiencies,’ it said.
Chief Executive Officer Chris Gillespie said: ‘We believe, despite this challenging backdrop, that we have the right product offering and have continued to invest in our store estate and our technology platforms.’
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