Latest news with #FirstCash
Telegraph
20-05-2025
- Business
- Telegraph
Takeover deals confirm our instincts were right on these three stocks
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. It has taken a long time but our patience looks to finally get its reward with pawnbroker and jewellery seller H&T, which is on the receiving end of a bid from America's FirstCash. After fending off three prior proposals from FirstCash, H&T's board is recommending this one, which comprises 650p a share in cash and the final 11p-per-share dividend for a total of 661p. That will take our total return on the stock, including dividends, to over 120pc. We first took an interest in H&T five years ago during the pandemic and resulting lockdowns as we sought out business models suited to weathering an extremely difficult economic environment. We also eyed shares that came on lowly valuations, to provide an additional layer of downside protection. The Aim-quoted company fitted the bill admirably, not least as the shares traded on barely seven times earnings, offered a forward dividend yield of more than 5pc and came on barely one times net asset value (Nav) at the time. The subsequent returns therefore help to justify this column's value-driven methodology, helped by the 44pc premium to the undisturbed share price implied by FirstCash's offer – a figure which compares to the average 35pc premium across nearly 30 ongoing or closed takeover situations involving UK-listed companies in the year to date. Even the 661p offer price values H&T on just 11.7 times forecast earnings for 2025 and implies a forward dividend yield of 2.8pc. Based on those numbers it is easy to see why FirstCash should swoop on H&T's strong competitive position and robust financials. H&T was trading at a tiny premium to its book value per share of 442p before the bid, even though it was generating a post-tax return on tangible equity of 15pc. Questor says: Hold – we shall tip our hat to H&T when the deal closes and move on Ticker: HAT:AIM Share price: 644p Update: Care Reit H&T is not the only portfolio pick to have received a bid this year. Assura is one and Care Reit is another. In the latter case, the New-York listed CareTrust Reit brought a cash bid of 108p per share on March 11 – and the deal became effective on May 9. The shares ceased to trade last Monday, May 12, and investors should receive their cash by May 23 at the latest. The bid vindicates our faith in Care Reit's business model but we ended up with a small capital loss, for which 16.99p per share in dividends just compensated – as we paid one times book value upon entry back when the company was known as Impact Healthcare Reit. The combination of a surge in interest rates and that fairly full price tag is the reason we ultimately made only a modest total return on investment. As ever, the lesson is to be more careful when it comes to the valuation paid to access a share of a company's cashflows and assets. Questor says: It could have been better, but the fault was ours. Neither buy, hold nor sell as the shares are delisted. Update: Fresnillo Hopes for an easing in trade tensions and a clearer economic outlook are leading to some profit taking in gold and silver but we remain content to stick with shares in Fresnillo, the world's largest silver miner, for two reasons. First, the US government bond, or Treasury, market continues to see an increase in yields. This smacks of bond vigilantes worrying about the inflationary implications of president Trump's planned tax legislation. The so-called 'Big Beautiful Bill' looks set to substantially increase the American federal deficit thanks to new tax cuts and the extension of existing tax breaks. Silver, as a real, physical asset could offer some protection against inflation and any eventual money printing or monetary system reset designed to help the US make its borrowing more manageable. Second, to continue the M&A theme, Pan American Silver has recently launched a $2.1bn (£1.5bn) cash-and-stock bid for MAG Silver. The target's main asset, alongside two exploration projects, is a 44pc stake in the Juanicipio silver mine in Mexico, where the owner of the other 56pc is none other than Fresnillo, which also operates the site. The price tag values MAG at 3.5 times historic net asset, or book, value, while Fresnillo trades on just 2.3 times. Fresnillo has seven other producing sites, so it is now a pure play on Juanicipio, but that mine generates just under a fifth of Fresnillo's output and revenues – and the offer price for MAG Silver does suggest that the FTSE 100 index member is cheap by comparison. Ticker: FRES Share price: £10.26
Daily Mail
18-05-2025
- Business
- Daily Mail
These four British stocks are glaringly undervalued - investors should act now to reap the benefits: MIDAS SHARE TIPS
Just four weeks ago Midas recommended pawnbroker H&T. At £3.82, the shares seemed too cheap, given recent trading, future prospects and market conditions. Midas was not alone in spotting H&T's potential. Last Wednesday, Texas-based pawn giant FirstCash unveiled a £297 million bid for the company, valuing each share at £6.50. Recommended by H&T's board, the move means investors will have made a 70 per cent return in less than a month.
Daily Mail
16-05-2025
- Business
- Daily Mail
SMALL CAP MOVERS: H&T becomes latest bargain basement takeover victim
H&T Group is calling time on its 19-year tenure as a fixture on London's AIM market after agreeing a £297million takeover by United States-listed FirstCash. The deal marks the latest in a growing list of UK small and mid-cap companies being acquired at bargain-basement valuations. Shares in the UK's largest pawnbroking chain rose 42 per cent over the week after the 661p-per-share offer was announced on Wednesday. The proposal includes a 650p cash payment and a final dividend of 11p due in June. The price represents a 44 per cent premium to H&T's close before the deal. The move underscores a broader trend of overseas buyers targeting undervalued UK assets, particularly outside the FTSE 100, where valuations remain well below historical averages. Founded in 1897, H&T has become a familiar name on British high streets, offering short-term loans secured against jewellery and watches. The board said it had received several proposals since December before entering formal talks. While it expressed confidence in the company's standalone prospects, it cited uncertain gold prices, rising costs and subdued consumer sentiment as ongoing headwinds. Turning to the wider market, the AIM All-Share added 1.5 per cent this week to reach 733.18, taking it back to levels last seen in December 2024. It kept pace with the FTSE 100, which also clawed back ground lost in the aftermath of US President Trump's tariff assault on the rest of the world. Keeping with the positives, Metals One continued its rise after confirming the acquisition of the Swales gold project in Nevada. There is a term in junior mining called 'nearology', the idea that proximity to a producing mine equates to success. It does not always hold, but Metals One investors will hope favourable geology extends to the Swales property. Just 13 miles up the road lies the Carlin Complex, a joint venture between Barrick Gold and Newmont and the world's largest gold-producing site. Investors appeared excited by the prospect, with shares rising 69 per cent. If you had bought a month ago, you would have more than doubled your money. Belluscura, the portable oxygen tank maker, enjoyed a stellar week with no discernible trigger. It was even forced to issue a statement saying it had no explanation for the sharp rise in the share price. While it reported record April sales, it also launched a strategic review, which is rarely interpreted as a buy signal by investors. The review will consider options including strategic investment, partnerships and alternative funding structures. Belluscura said it was not putting up a for sale sign, but the market seems to have reached a different conclusion. The shares ended the week 52 per cent higher. Polarean Imaging rose 35 per cent after putting the spotlight on its collaboration with Philips. The Dutch group is to broaden use of Polarean's Xenon lung MRI technology to include younger children with chronic obstructive lung disease, subject to regulatory clearance. Its technology was also showcased in more than 30 clinical studies at the American Thoracic Society's annual meeting in San Francisco this month. There are three words no more loathed by oil and gas investors than plugged and abandoned, often shorthand for failure. Empyrean Energy fell 75 per cent after calling time on the Wilson River-1 well in Queensland. The reaction tends to be knee-jerk, so expect sentiment to moderate in the coming days. The news was good for Mirriad Advertising, though the share price, down 35 per cent, told a different story. The group, which places adverts in films and TV shows, raised £1.6million, resolving its immediate funding needs. The decline was a consequence of raising the money by issuing 16 billion new shares at a discount, heavily diluting existing shareholders. Finally, Solvonis Therapeutics raised £2million in rapid-fire funding as part of the quiet but effective transformation under Anthony Tennyson. Formerly an ailing polymers specialist, the group, following its £5million acquisition of Awkn Life Sciences, will become a clinical-stage drug developer focused on post-traumatic stress disorder and alcohol abuse. Its chief scientific officer is Professor David Nutt, the former government drugs adviser, who now heads the Centre for Psychedelic Research in the Division of Brain Sciences at Imperial College London.
Yahoo
14-05-2025
- Business
- Yahoo
FirstCash Enters UK Market With $394 Million Acquisition Of H&T Group
FirstCash Holdings, Inc. (NASDAQ:FCFS) is expanding into the U.K. with the acquisition of H&T Group plc, the country's largest pawnbroker chain. The Texas-based pawnshop operator announced on Wednesday it will purchase all outstanding H&T shares through its U.K. subsidiary, Chess Bidco Limited, in an all-cash deal valued at approximately $394 million. The agreement includes a payment of 650 pence per share and a final dividend of 11 pence per share, payable in late June. The acquisition strengthens FirstCash's global footprint, adding 285 U.K. stores to its existing network and positioning the company as the largest publicly traded pawn operator across the U.S., Latin America, and the CEO and Vice-Chairman Rick Wessel said the acquisition aligns with the company's long-term strategy and praised H&T's strong brand and experienced leadership. H&T CEO Chris Gillespie called the deal a testament to the company's success and a new chapter for growth under FirstCash's ownership. Beyond geographic expansion, FirstCash expects to benefit from operational efficiencies and scale. The company anticipates the acquisition will boost earnings per share and EBITDA, supporting its broader international strategy. Upon completion, the combined business will operate more than 3,000 pawn locations worldwide, with the potential for further expansion into additional European markets. FirstCash held cash and cash equivalents of $175.095 million as of December 31, 2024. Price Action: FCFS stock is down 2.14% to $129.91 premarket at last check on Wednesday. Image by – Yuri A via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? FIRSTCASH HLDGS (FCFS): Free Stock Analysis Report This article FirstCash Enters UK Market With $394 Million Acquisition Of H&T Group originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Times
14-05-2025
- Business
- Times
Pawnbroker H&T snapped up by US rival in £300m deal
The directors of Britain's biggest pawnbroker chain have recommended a £297 million offer by an American rival in another blow to the London stock market. H&T and Texas-based FirstCash, which has been stalking the company since December with three previous proposals, have agreed terms on a final all-cash offer of 661p a share. The offer represents a 44 per cent premium to the stock's closing price of 458p on Tuesday. The bid works out as 650p in cash for each H&T share and a final dividend of 11p, which is to be paid on June 27. H&T's shares jumped 183½p, or 40.1 per cent, to a record high of 641¾p in morning trading. Rich L Wessel, chief executive of FirstCash, which operates more than 3,000
