Latest news with #pawnbroking
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.
The Independent
14-05-2025
- Business
- The Independent
Pawnbroker H&T snapped up by US firm in another loss for London Stock Exchange
British pawnbroking chain H&T is to be bought by a US firm, in a deal which takes yet another company off the London Stock Exchange. H&T said on Wednesday that it had accepted an offer from Texas-based FirstCash to buy the company for £297 million. Founded in 1897, the UK's largest pawnbroker has more than 270 shops across England, Scotland and Wales, and has already received several offers from FirstCash. The most recent represents 661p for each H&T share, representing a 44% premium to the group's closing share price on Tuesday. H&T chief executive Chris Gillespie said the deal has a 'compelling strategic rationale, bringing together two businesses with complementary offerings'. 'It's clear to us that FirstCash has full appreciation of our capabilities, the dedication of our employees, commitment to the customer and with their backing and support, I am confident H&T will have an extremely bright future.' FirstCash chief executive Rick Wessel said the deal 'provides an entry into a significant new market, which we believe will unlock additional growth opportunities'. Pawnbrokers are frequently seen as a proxy for how much financial strain households are under. And H&T has enjoyed a booming trade of late, welcoming record new customer numbers in the final months of last year. The cost of living crisis, sparked by rampant inflation through 2022 and 2023, has put pressure on consumers, pushing more people to turn to pawnbrokers. FirstCash has more than 3,000 retail locations, mainly across the US and Latin America, and employs about 18,000 people. Its acquisition of H&T marks yet another instance of a major UK-listed company leaving the London Stock Exchange, following the likes of tech firm Darktrace and Paddy Power-owner Flutter. H&T chairman Simon Walker said: 'Following careful consideration, the H&T Directors have unanimously concluded that they intend to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders.'
Yahoo
12-05-2025
- Business
- Yahoo
Banca Sistema SpA (FRA:B2S) Q1 2025 Earnings Call Highlights: Robust Revenue Growth Amid Rising ...
Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Banca Sistema SpA (FRA:B2S) reported a 60% year-on-year revenue growth, with adjusted interest income more than doubling. Pre-tax profit almost tripled year-on-year, with net income reaching EUR 11.6 million, achieving 45% of the previous year's total profits in just one quarter. The factoring division saw a 64% increase in net profit, and the pawnbroking division experienced a 250% increase. The cost of funding decreased from 3.62% to 3.1%, positively impacting profitability. Capital ratios were slightly better than forecasted, with CET1 ratio at 12.4% and total capital ratio at 14.9%. Costs increased by 9% year-on-year due to higher employee numbers and administrative expenses. The cost of risk rose to 57 basis points from 17 basis points a year ago. Total assets decreased by 4% quarter-on-quarter due to lower financial portfolio and customer loans. The CQ division continued to operate at a loss, although the loss was reduced from EUR 4.2 million to EUR 2.8 million year-on-year. Gross past due loans increased significantly from EUR 101 million to EUR 333 million due to new classification rules. Warning! GuruFocus has detected 2 Warning Signs with FRA:B2S. Q: Could you provide an outlook for the adjusted income margin evolution this year and your expectations on the factoring turnover? A: (Unidentified_6) We expect the adjusted income margin to grow robustly up to year-end. Although the Q1 margin was positively impacted by LPI accruals related to European Court of Human Rights rulings, this effect is not expected to repeat in the same magnitude. However, the margin should remain robust and stable. (Unidentified_5) For factoring, we expect the outstanding to remain flat over the year, with more exposure towards central governments and less towards the NHS system. Q: Why is gold not considered a valuable asset for covering risk in pawnbroking? Also, can you comment on the cost of funding and common equity? A: (Unidentified_5) Gold is not considered eligible collateral under CRR3, which applies a 75% risk weight. We have started issuing CLNs to reduce capital consumption. (Unidentified_6) The cost of funding improved from 3.6% last year to 3.2% in Q1 2025, and we target an average of 3% for the year. The improvement in funding costs will benefit the consolidated P&L, but the CQ division is still expected to report a net loss for 2025. (Unidentified_5) Common equity is expected to improve over time, but any decision by the regulator to remove restrictions is uncertain. Q: Can you provide more details on LPI contributions and cost of credit expectations for the year? A: (Unidentified_5) We are negotiating significant positions that could lead to LPI accruals, especially with municipalities exiting conservatorship. More decisions from the Strasbourg court could also impact LPI. (Unidentified_6) The cost of credit provisions this quarter are part of normal credit assessment and are likely higher than the quarterly average we expect for the year. We do not anticipate any releases like those in Q4 last year. Q: What is driving the increase in personnel costs, and will this trend continue? A: (Unidentified_5) The increase in personnel costs is due to new colleagues from Portugal and an increase in the national labor contract for bankers. We expect these costs to remain stable now, but they are higher compared to the same quarter last year. (Unidentified_6) The Q1 cost is not a spike, and you can expect it to remain stable up to year-end. Q: Is the rise in the cost of credit a conservative measure, or is there another reason? A: (Unidentified_5) The movement in the cost of credit is part of the normal process and not due to any specific situation. (Unidentified_6) It varies from quarter to quarter but does not indicate any particular concern. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
