Albemarle & Bond reports strong growth
As a result, it said that trading for the year to 30 June is expected to be at the top end of analyst expecetations.
The group said its core pawnbroking business saw year-on-year pledge book growth (on a like-for-like basis) of 23.9%, representing around 50% of the company's gross profit.
The increase reflected the continuing rise in the price of gold as well as the growth in customer numbers and the company’s ability to increase the average loan size per pledge, the group said.
The total pledge book stood at £37 million at 30 April, up £1 million from the end of 2010.
The pawnbroker said it would be continuing with its new store opening programme and expected 28 stores to open in the current financial year.
Barry Stevenson, chief executive officer said: "We believe margins from gold buying are stable and whilst we do not expect to sustain the recent exceptional 20% plus LFL growth in the pledge book in the medium term, we are targeting a positive market leading expansion rate to help drive overall profitability. Overall, we are delighted with the Group's progress.”
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