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Albemarle & Bond dips on profit warning

Published: 11:16 15 Jun 2012 BST

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Shares in Albemarle & Bond (LON:ABM) dropped in early trade after the pawnbroker said its full year profits will miss expectations as a result of a slowdown in gold buying activity.

The group reported that growth in the value of gold bought has slowed significant over the past eight weeks from the 50 percent year on year growth rate seen in the first half of the year. 

As a result, profits for the year to end June will be ahead of last year, but below expectations.

Albemarle added that it is too early to tell whether this is a result of the wet weather during the period, or a developing trend.

“Whilst the very recent trends in gold buying are disappointing we are very focussed on driving income growth out of our expanded store base and exercising rigorous cost controls,” said chief executive of Albemarle & Bond Barry Stevenson.

“The group is well positioned to respond to changing market dynamics and satisfy the fundamental demand for short term cash and credit from a potential c.10 million UK consumers.”

Meanwhile, the group’s retail division has been trading better than in the first half, while growth rates at the Speedloan business have slowed.

Shares in Albemarle & Bond dropped six percent to 260 pence by 10:40am this morning, valuing the group at £144.4 million.

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