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H&T Group plc (GB:HAT)
LSE:HAT
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H&T Group plc (HAT) AI Stock Analysis

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GB:HAT

H&T Group plc

(LSE:HAT)

Rating:76Outperform
Price Target:
720.00p
▲(11.80%Upside)
H&T Group plc stands out for its solid financial performance and positive corporate events, both of which underscore its strategic position and growth potential. The technical analysis suggests strong momentum, although caution is advised due to overbought signals. The valuation indicates a potentially undervalued stock, offering a compelling investment opportunity.

H&T Group plc (HAT) vs. iShares MSCI United Kingdom ETF (EWC)

H&T Group plc Business Overview & Revenue Model

Company DescriptionH&T Group plc, together with its subsidiaries, primarily provides pawn broking services in the United Kingdom and internationally. The company operates through six segments: Pawnbroking, Gold Purchasing, Retail, Pawnbroking Scrap, Personal Loans, and Other Services. It offers personal loans, as well as gold purchasing, jewelry retail, cheque cashing, unsecured lending, buyback, foreign exchange currency, and money transfer services. The company provides its products and services through online and in-store. As of December 31, 2020, it operated 253 stores. The company was founded in 1897 and is headquartered in Sutton, the United Kingdom.
How the Company Makes MoneyH&T Group plc generates revenue through several key streams. The primary source is its pawnbroking service, where customers receive short-term loans secured against personal valuables such as jewelry and watches. Interest is charged on these loans, contributing significantly to the company's income. Additionally, H&T earns revenue from the sale of pre-owned items retrieved from unredeemed loans, offering these goods through its retail outlets and online platforms. The company also provides personal loans, earning interest on the amounts lent. Furthermore, H&T offers foreign currency exchange services, generating income from competitive exchange rates and transaction fees. Strategic partnerships with financial institutions and a strong retail presence bolster these revenue streams, enhancing the company's earning potential.

H&T Group plc Financial Statement Overview

Summary
H&T Group plc demonstrates solid financial performance with strong revenue growth and profitability margins. The balance sheet is robust with a healthy equity ratio and moderate leverage, supporting long-term financial stability. While cash flow performance has improved, some volatility persists.
Income Statement
85
Very Positive
The company has shown significant revenue growth of 20.2% year-over-year from 2023 to 2024. Gross profit margin is strong at 58.6%, and net profit margin improved slightly to 8.4%. Both EBIT and EBITDA margins are healthy at 13.4% and 17.4%, respectively, indicating effective cost management and operational efficiency.
Balance Sheet
78
Positive
The equity ratio stands at 66.1%, reflecting a strong equity base. The debt-to-equity ratio is 0.46, suggesting moderate leverage. Return on equity (ROE) is stable at 11.6%, indicating effective use of equity to generate profits, although there is room for improvement.
Cash Flow
70
Positive
The operating cash flow turned positive, showing improvement from a negative figure in 2023. Free cash flow growth rate is positive, bouncing back to a positive 4.57 million. The operating cash flow to net income ratio indicates improving cash conversion efficiency. However, cash flow volatility remains a concern.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue265.37M220.78M173.94M122.00M129.12M
Gross Profit155.39M122.15M101.92M76.36M82.80M
EBITDA46.17M40.34M29.86M17.84M25.64M
Net Income22.23M21.08M14.91M6.04M12.56M
Balance Sheet
Total Assets290.66M252.10M211.37M169.96M169.62M
Cash, Cash Equivalents and Short-Term Investments14.65M11.39M12.23M17.64M34.45M
Total Debt88.88M64.97M35.07M18.98M20.64M
Total Liabilities98.53M74.73M47.25M33.34M35.07M
Stockholders Equity192.13M177.37M164.12M136.62M134.55M
Cash Flow
Free Cash Flow4.57M-18.21M-27.31M-12.51M49.18M
Operating Cash Flow11.86M-3.31M-13.25M-3.04M55.35M
Investing Cash Flow-19.69M-18.06M-18.14M-9.46M-6.22M
Financing Cash Flow11.10M20.52M25.98M-4.32M-26.68M

H&T Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price644.00
Price Trends
50DMA
637.38
Positive
100DMA
513.73
Positive
200DMA
430.61
Positive
Market Momentum
MACD
5.49
Positive
RSI
73.63
Negative
STOCH
47.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HAT, the sentiment is Positive. The current price of 644 is above the 20-day moving average (MA) of 639.10, above the 50-day MA of 637.38, and above the 200-day MA of 430.61, indicating a bullish trend. The MACD of 5.49 indicates Positive momentum. The RSI at 73.63 is Negative, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HAT.

H&T Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£201.70M11.267.59%595.24%0.15%-29.58%
76
Outperform
£278.35M12.5112.03%251.62%20.20%6.12%
75
Outperform
£399.92M6.6312.58%461.51%-5.41%27.41%
73
Outperform
£412.76M271.370.13%-0.80%
64
Neutral
€12.89B12.536.83%3.85%13.94%10.68%
61
Neutral
£252.61M-23.29%9.29%1.10%-1831.40%
£127.00M5.8132.74%2.34%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HAT
H&T Group plc
644.00
275.28
74.66%
GB:IPF
International Personal Finance
182.00
55.52
43.90%
GB:VANQ
Vanquis Banking Group
101.40
46.40
84.36%
GB:SUS
S&U plc
1,680.00
-87.62
-4.96%
GB:FCH
Funding Circle Holdings
139.00
28.00
25.23%
GB:ASAI
ASA International Group PLC
127.00
47.49
59.73%

H&T Group plc Corporate Events

M&A TransactionsShareholder Meetings
H&T Group Acquisition by FirstCash Subsidiary Approved
Positive
Jul 2, 2025

H&T Group plc has announced the approval of its acquisition by Chess Bidco Limited, a subsidiary of FirstCash Holdings, Inc., through a Court-sanctioned scheme of arrangement. The acquisition, which passed all necessary resolutions at the Court and General Meetings, is expected to enhance H&T’s market positioning by aligning with FirstCash’s extensive resources and expertise, pending final court approval and regulatory conditions.

Other
H&T Group PLC Announces Change in Major Shareholder Holdings
Neutral
Jun 19, 2025

H&T Group PLC has announced a change in its major holdings, with Artemis Investment Management LLP reducing its voting rights from 3.012% to 1.997%. This change reflects a disposal of voting rights, impacting the company’s shareholder structure and potentially influencing its decision-making processes.

Business Operations and Strategy
H&T Group plc Shareholder Structure Update: Sand Grove Capital Management Increases Stake
Neutral
Jun 18, 2025

H&T Group plc has announced a significant change in its shareholder structure, with Sand Grove Capital Management LLP increasing its voting rights from 5.07% to 10.65%. This acquisition of voting rights signals a strengthened position for Sand Grove Capital Management within the company, potentially impacting H&T Group’s strategic decisions and market positioning.

Other
H&T Group plc Experiences Change in Major Shareholder Voting Rights
Neutral
Jun 13, 2025

H&T Group plc has announced a significant change in its shareholder structure, with Artemis Investment Management LLP reducing its voting rights from 4.60417% to 3.012%. This adjustment reflects a disposal of voting rights, impacting the company’s governance dynamics and potentially influencing future shareholder decisions.

Business Operations and StrategyRegulatory Filings and Compliance
Artemis Investment Increases Stake in H&T Group
Positive
Jun 12, 2025

Artemis Investment Management LLP has increased its stake in H&T Group PLC, crossing a significant threshold of ownership. This change in holdings, now at 4.60417%, reflects a strategic move by Artemis, potentially impacting the company’s shareholder dynamics and indicating confidence in H&T’s market position.

Business Operations and Strategy
Artemis Adjusts Stake in H&T Group plc
Neutral
May 30, 2025

Artemis Investment Management LLP has adjusted its holdings in H&T Group plc, reducing its stake from 6.003098% to 5.967250% of the company’s outstanding shares. This change in shareholding reflects a minor adjustment in the investment strategy of Artemis, which may influence the perception of H&T Group’s market position among stakeholders.

Business Operations and StrategyRegulatory Filings and Compliance
H&T Group PLC Announces Change in Major Shareholder Holdings
Neutral
May 29, 2025

H&T Group PLC has announced a change in its major holdings, as Octopus Investments Limited has adjusted its voting rights in the company. The notification reveals that Octopus Investments now holds 7.91% of the voting rights, down from a previous position of 8.93%. This shift in holdings may impact the company’s shareholder dynamics and influence its strategic decisions moving forward.

Other
H&T Group Executives Exercise Share Options
Neutral
May 21, 2025

H&T Group plc announced that its CEO, Chris Gillespie, and CFO, Diane Giddy, have exercised options over a total of 64,821 ordinary shares following the vesting of awards under the 2022 Performance Share Plan. This transaction, executed through the Company’s Employees Benefit Trust, does not alter the total number of voting rights in the company, maintaining it at 43,987,934 Ordinary Shares.

Regulatory Filings and Compliance
H&T Group PLC Announces Change in Voting Rights
Neutral
May 16, 2025

H&T Group PLC has announced a change in its voting rights structure following an acquisition or disposal of voting rights by Sand Grove Capital Management LLP. As of May 15, 2025, Sand Grove Capital Management holds 5.07% of the voting rights in H&T Group, amounting to 2,231,734 shares. This change in holdings could impact the company’s governance and decision-making processes, reflecting a significant stake by an investment management firm.

Shareholder MeetingsBusiness Operations and Strategy
H&T Group plc Successfully Passes All AGM Resolutions
Positive
May 15, 2025

H&T Group plc announced that all resolutions proposed at its Annual General Meeting were duly passed, reflecting shareholder support for the company’s current strategies and operations. This outcome may reinforce H&T’s position in the market as it continues to serve a niche customer base with limited access to traditional banking, potentially impacting its operational focus and stakeholder confidence positively.

Executive/Board ChangesBusiness Operations and Strategy
H&T Group Launches 2025 Performance Share Plan for Executives
Positive
Apr 28, 2025

H&T Group plc has announced the adoption of its 2025 Performance Share Plan (PSP), which has been approved by the Remuneration Committee. This plan is designed for senior management and Executive Directors, allowing them to acquire a maximum number of Ordinary Shares at no cost, contingent upon the company meeting specific performance criteria over a 33-month period. The plan aims to align the interests of the management with those of the shareholders by setting performance targets based on total shareholder return and earnings per share growth. The scheme is expected to vest in April 2028, with a total value of shares granted under the plan estimated at £1.7 million. This initiative reflects H&T’s commitment to incentivizing its leadership team while potentially enhancing its market position and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025