- The average value of collateral loans taken out is £4,063, H&T said.
Pawnbroker and used jewelery retailer H&T Group has acquired a selection of the Essex-based company’s assets. Maxcroft Securities for £11.3m in cash.
H&T Stock rose 2.7 per cent or 10.00 pence to 380.00 pence on Wednesday, after falling more than 14 per cent in the last year.
Aim-listed H&T said the main asset acquired from Maxcroft was its pawnshop collateral book, which amounts to around £6.1m.
Deal: Pawnbroker and used jewelery retailer H&T Group has acquired a selection of assets from Essex-based Maxcroft
H&T said the nature of the collateral items in the acquired pledge book was aligned with that of H&T’s existing pawnshop business and “consists primarily of gold, jewelry and watches, with a similar asset mix.”
The average value of pledged loans acquired is £4,063, which is much higher than the average value of H&T’s pledged loans of £423.
On Wednesday, H&T also announced £25 million of additional funding to support the future growth of the business, from Pricoa Private Capital, the private equity arm of PGIM.
H&T said the additional cash injection would enable future growth of its promise portfolio as well as investment in its store portfolio.
H&T chief executive Chris Gillespie said: “We are very pleased to be able to announce these two transactions, which underline the group’s focus on growing and expanding its core pawnshop business and investing in the stores”.
‘We are also delighted to have further diversified and enhanced the group’s financing arrangements through the relationship with Pricoa.
“We look forward to further updating the market on March 12, when we announce our results for the year ended December 31, 2023.”
Maxcroft has been operating from a store in Ilford, Essex for over 40 years. H&T will enter into a lease agreement in respect of the store. Five employees will join H&T.