H & T announce a proposed full year dividend of 15.0p (2021: 12.0p), representing a payout ratio of 40%, in line with their stated progressive dividend policy, subject to maintaining cover of at least two times.
Other financial highlights include:
Profit before tax of £19.0m (2021: £10.0m excluding non-recurring expense of £2.1m) as the core pawnbroking business continued its sustained growth and contribution to profit, supported by strong performances across all business segments.
Growth in the Pledge Book of over 50%, to finish the year at £100.7m (2021: £66.9m), as demand for pledge lending continued to rise.
Demand for retail jewellery and watches continued to grow, with sales of £45.2m
(2021: £36.2m) and margins moderating as expected, to 39.3% (2021: 45.9%). This reflects the evolving product mix and the proportion of new versus pre-owned items.
Foreign currency net income grew significantly to £5.7m (2021: £3.0m), exceeding pre-Covid levels, as international travel demand continued to build momentum.
Balance sheet remains robust with net asset value of £164.1m (2021: £136.6m), augmented by the recent capital raise which amounted to £16.1m net. Net asset value per share of 374.3p (2021: 342.7p). Growth in pledge lending and capital expenditure has utilised cash resources as expected, with the Group ending the year with a net debt position of £2.8m (2021 cash balance: £17.6m).
Basic earnings per share of 37.2p (2021: 15.4p).
