Albemarle & Bond has reported soaring demand for its pawnbroking and gold buying business as it attracts new customers looking to free up cash in the economic gloom.
Albemarle, which is Britain’s biggest pawnbroker with 148 stores including the Cheque and Pawn and Herbert Brown brands, said the value of items in its pledge book increased by 32% in the final six months of 2010.
Its gold buying and selling business, which operates an additional 38 small shops, handled double the value of goods compared to a year ago as it benefited from people cashing in their old jewellery to take advantage of soaring prices of the precious metal.
Although revenues increased by 24% to £48.8 million in the half-year, profits were down 1% to £11 million after it paid to open 16 shops and 23 gold buying outlets.
Albemarle, which this month announced it is to sponsor the new world darts champion Adrian “Jackpot” Lewis, is due to exit a gold hedging contract in June that at current prices will boost its profits by £3.4 million a year.
It will also open 25 stores a year as part of its expansion plans.
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