This statement was last updated on 10th April 2025
Our key drivers of success enable us to enhance the value we deliver to our stakeholders, while fulfilling our vision and mission.
In accordance with the Companies Act 2006 (as amended by the Companies (Miscellaneous Reporting) Regulations 2018) the Directors set out how they have considered the requirements of section 172 (1) of the regulations. A director of a company must act in the way they considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (among other matters) to:
(a) The likely consequences of any decision in the long term;
(b) The interests of the company’s employees;
(c) The need to foster the company’s business relationships with suppliers, customers and others;
(d) The impact of the company’s operations on the community and the environment;
(e) The desirability of the company maintaining a reputation for high standards of business conduct; and
(f) The need to act fairly as between members of the company.
Shareholders
Throughout the year, we have actively engaged with our major shareholders to ensure that our long-term strategy aligns with their interests and expectations. We have communicated our approach to achieving sustainable growth and maximising returns for our shareholders. Our goal is to create value by delivering sustainable growth and profitable returns that exceed H&T’s cost of capital, while also maintaining a progressive dividend policy aimed at providing at least two times dividend cover over the business cycle.
We strive to keep our shareholders informed through regular updates and place great importance on personal connections and individual conversations. Significant time is dedicated to shareholder meetings by the Executive team, and additionally, during the course of November and December, 2024, by the Chair and Senior Independent Director. These meetings are frequently conducted alongside our Nominated Adviser and Broker, Shore Capital, and/or with Canaccord our second broker as well as with our financial PR Consultants, Alma PR.
Colleagues
We believe that our employees are our greatest asset, and we understand that the success of our business hinges on ensuring fair market compensation for our colleagues. We prioritise their development through effective onboarding and ongoing support, fostering motivation and commitment to deliver the high level of service our customers expect. We frequently engage with our teams through employee forums and CEO Q&A sessions to gather their feedback and keep them informed about our business. Our focus remains on completing our proprietary training programme, Aspire, which recognises our colleagues for their continued education on the array of services we provide.
Suppliers
We consistently adhere to best industry practises in managing our third-party suppliers. By implementing thorough vendor due diligence, we effectively mitigate vendor risks, while securing high-quality and cost-effective partnerships. We demand compliance with the highest standards set by trade organisations and ensure that safety standards are upheld throughout the entire supply chain.
Our rigorous pre-contractual checks ensure that we can be confident that our suppliers comply with legal standards including those set out in the Modern Slavery Act 2015. Our team monitors both service provision and pricing to ensure best value to the Business.
We also monitor this by employing third party Intertek Group PLC to provide us with additional assurance.
Customers
We are committed to meeting the needs of our customers. We regularly review our range of product offerings, and survey our customers on a regular basis, so that we remain abreast of their needs and perceptions of their H&T experience. With our range of accessible services, both in- store and online, which include retailing high-quality new and pre-owned jewellery and pre-owned watches, purchasing of pre-owned jewellery and watches, cheque cashing, foreign exchange services, money transfers, watch repairs, and our core product offering of pledge lending, we provide simple, transparent and safe options for our customers to raise small-sum short-term funds when needed.
Our regular product reviews also ensure we remain competitive and provide good value for our customers.
We are aware of our essential role within local communities, and value and nurture this relationship, investing in the provision of our face‑to-face service by providing continuous training to our people, enabling a tailored service on a store-by-store basis.
The FCA’s Consumer Duty rules, allow for a higher and more consistent standard of consumer protection for users of financial services and enable greater support for our more vulnerable customers – we are confident this helps to prevent harm before it happens. We actively monitor the effectiveness of our consumer duty policies and procedures.
Government, Regulatory Bodies and Industry Bodies
The Company is regulated by HMRC, the FCA, and the LSE, and we take our compliance obligations under each framework very seriously. We emphasise continuous monitoring, training, procedural updates, and an increasing focus on corporate governance.
As members of the National Pawnbrokers Association and the Consumer Credit Trade Association, we are positioned to actively influence within our sector.
To illustrate our decision making process and how the Directors have considered the matters outlined in section 172(1) of the Act, the following table provides examples of decisions made over the past year, the stakeholders affected, the factors taken into account, and the outcomes of those decisions.
| BOARD ACTION | STAKEHOLDERS | CONSIDERATIONS | OUTCOME |
|---|---|---|---|
| Retirement of SID and appointment of replacement | Shareholders, Customers, Colleagues, Suppliers | The Board considered the suitability of the candidate for the role of SID. | In May 2024, James Thornton retired as a Director and Toni Wood was appointed as SID. |
| Appointed new Chair of the Remuneration Committee | Shareholders, Customers, Colleagues, Suppliers | The Board considered its aim to evolve its governance structures and further considered the suitability of the candidates for the role as Chairs of the Remuneration Committees. | Lawrence Guthrie replaced Toni Wood as Chair of the Remuneration Committee in June 2024. |
| Ensured sufficient finance to support continuing business activities | Shareholders, Customers, Colleagues, Suppliers | Short-term funding capacity availability that is flexible and cost effective to support the immediate and foreseeable business requirements. Lending covenants, security arrangements, fees and margin should be appropriate. New lending, diversification of funding arrangements. | Financing facility from Lloyds Bank comprising revolving credit facility of £45m and an overdraft facility of £5m – extension of facility maturity by one year to December 2027. Extension of maturity of £10m loan from Allica Bank, to December 2027. No change to the existing covenants. Private note placement and guarantee with Pricoa Private Capital (part of PGIM Inc) for £25m loan. |