H&T Group PLC (AIM:HAT) interim results showed continued strong demand for pawnbroking services, excellent growth in retail sales, market share gains in FX and an improved margin in pawnbroking scrap and gold purchasing, says house broker Shore Capital.
While higher-than-anticipated redemptions in Spring have now normalised, these dragged on pledge book growth and revenue generation in the first half.
Due to this increased seasonality, Shore Cap has reduced its adjusted earnings per share estimates for this year and the next two by 11%, 13% and 12% respectively with a revised fair value of 500p (20% upside).
Shares dropped by 5% to 396p.