Plus 500 – H1 Results

Share Price 571p

Mkt Cap £647m

Conflict Disclosure: No Holding

  • Results Revenues down 42% to $148m. EBITDA down 58% to $65.6m. EPS dps 56% to $0.45. Cash up 4% to $327.3m. ARPU down 42% to $1,044 and customer acquisition cost also down 30% to $1,079. Dividend also down 56% to $0.2734/share.  Importantly Q2 is 23% up on Q1 in terms of new customers and 11% up in terms of active customers, while non EEA countries is now 48% of revenue. While trading is reported to be in line with expectation the outlook is optimistic and the company announces a $50m share buy back
  • Estimates No change given trading is reported to be in line. $180m pre tax anticipated for 2019 which is cents 123 EPS. New 60% payout policy may bring dividend expectation down from 80c to 74c.
  • Valuation PER 5.6. Yield 11%
  • Conclusion The shares are likely to move better as the dust settles post the regulatory changes. H1 has also been a time of low liquidity in markets generally so we can anticipate some more upbeat news over the next 6 months.  Probably a good trade from this level.

H&T Group Plc – H1 Results 

Share Price 341p

Mkt Cap £135m

Conflict Disclosure: No Holding

  • Results PBT up 8% to £6.8m but operating profit pre non-recurring costs up 16% to £8.7m. EPS 15p. Net debt £11.6m. DPS up 7% to 4.7p. The 65 Moneyshop stores have all been integrated. Pledge book was up 12.4% while the net revenue yield was up 3.8%. Scrap sales were down due to the delay in some diamond sales. Retail was up 12% while personal loan book was down 5.3%.  Average gold price was 5% higher over the period. Outlook is “excited” and trading is reported to be in line
  • Estimates 9% revenue growth expected for the full year and 18% PBT growth to £15.9m which is 33.5p EPS.
  • Valuation PER 10.2X yield 3.2%  ROE improving to 11.8% while the price/Book is 1.3X
  • Conclusion For the first time for many years the story is all there for this one.  The stores have expanded introducing a little more gearing while the gold price is looking promising as it reaches new highs. It is up 26% since April. The only disappointment is the personal lending isn’t growing.  I keep getting excited but these numbers read underwhelmingly.  I think it could just be the next 6 months that get exciting.  But I have said that before. It does keep moving to the right.

jeremy@charltonillingworth.co.uk