H&T Group Plc (LON:HAT) said it delivered a strong financial performance in 2020 despite the impact of the Coronavirus (COVID-19) pandemic.
Before the first UK lockdown (a year ago today), the pawnbroker’s performance was running ahead of management’s expectations but obviously, the COVID-19 epidemic in the UK changed the retail landscape for the rest of the year.
H&T supported its pawnbroking customers by freezing interest while stores were closed and by making payment deferral arrangements with those financially affected by COVID-19 where it was in their best interests to do so.
The group also responded to lockdowns by accelerating the digitalisation of its business.
The year saw revenue slide to £129.1mln from £160.2mln in 2019, with pawnbroking net revenue 12.3% lower at £39.0mln compared to £34.2mln in 2019, reflecting the freezing of customer interest on outstanding loans and the reduction in the pledge book.
The group’s pledge book was down by about a third to £48.3mln from £72.2mln a year earlier while the personal loan book was down by almost two-thirds at £5.9mln from £16.6mln.
Profit before tax fell to £15.6mln from £20.1mln the year before while underlying earnings (EBITDA) declined 12.7% to £26.2mln from the previous year’s £30.0mln.
“We are well placed to reinforce our position as the UK's largest pawnbroker and grow our lines of business once COVID-19 restrictions are lifted and consumer demand for short term borrowing returns. We have no debt and significant cash resources to rebuild the pledge book when underlying customer demand increases,” said Chris Gillespie, the chief executive of H&T Group.
“Market conditions remain challenging, but we are confident that our long-term goals and strategy will deliver growth and value for all our stakeholders,” he added.