H & T have announced, subject to shareholder approval, a final dividend of 10.5p (2022: 10.0p) per ordinary share will be paid on 28 June 2024 to those shareholders on the register at close of business on 31 May 2024. This brings the full year dividend to 17.0p (2022: 15.0p), a 13% increase. This reflects the Board's confidence in the future prospects of the business, whilst being mindful of the need to continue to invest in the growth of the pledge book, and capital investment in the store estate. The dividend remains in line with their progressive dividend policy, and maintains a coverage ratio of at least two times that of earnings.
Other financial highlights include:
● Profit before tax of £26.4m (2022: £19.0m), up 39% year on year as the core pawnbroking business continued its sustained growth and contribution to profit. Profit after tax of £21.1m (2022: £14.9m), up 42% year on year.
● Growth in the pledge book of 28%, to end the year at a fair value of £129m (2022: £101m), as demand for pledge lending remains at record levels.
● Net revenue generated by the pledge book, up 36% to £69.5m (2022: £51.0m).
● Foreign currency profits of £6.3m (2022: £5.7m), up 11% year on year, with transaction volumes up 18% year on year.
● Retail jewellery and watch sales of £48.6m (2022: £45.2m), up 8% year on year. Margins were impacted by challenging trading conditions for certain watch brands in H1, and jewellery sales mix in H2, which includes the peak Christmas trading period.
● Diluted earnings per share of 48.5p (2022: 37.2p), up 31% year on year.
● Balance sheet remains strong with net asset value of £177m (2022: £164m), up 8% year on year. Net asset value per share of 403.3p (2022: 374.3p). Growth in pledge lending and capital expenditure has continued to utilise cash resources as expected. The Group ended the year with a net debt position of £32m (2022: £3m).
● Return on average equity of 12.4% (2022: 9.9%), up 25% year on year. The Group remains committed to delivering on its commitment to achieve a target ROE of mid-teens through- the- cycle.
