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UK Pawnbroker Sees Profits Affected by Pullback in Gold Prices

By   /   September 27, 2012  /   No Comments

UK pawnbroker Albermarle & Bond is facing its first drop in annual profits in twenty years.  The company has 184 stores and 50 gold buying shops.  In the second half of the year Albermarle’s income from gold buying grew 18% as opposed to an 88% growth in the first half of the year.  The company expects gold buying levels to continue to fall back and affect profits.  Gold prices have pulled back after three years of 20% compound growth a year.  The cost of gold ended the year stable; however, the gold rush is at an end.  Profits still rose this year, but shares fell 10%.  Chief executive Barry Stevenson said, “The expected downturn in the gold buying market happened very quickly and has set a new level to which we have adapted quickly.  We expect gold buying to continue to be a significant profit contributor to the group, albeit at much reduced levels to that achieved at the peak.”

 

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