Financial market turmoil boosts Albermarle & Bond

THE biggest pawnbroker in the UK was upbeat about future prospects yesterday as its loans to hard-pressed customers grew by 22 per cent.

Albemarle & Bond, which bought rival Herbert Brown in July, said the acquisition and growth in pawn loans to £15.8 million left it "in a strong position for the future".

Analysts said the Bristol-based firm, which has a number of branches north of the Border, was set to benefit from a consumer spending squeeze and economic uncertainty as it posted an 8 per cent increase in pre-tax profits to £7.2m for the year to the end of June.

Seymour Pierce analyst Richard Ratner said: "It is a very well-positioned business and should do well in the likely retail downturn, whilst the turmoil in the financial markets is also likely to benefit it."

The firm's overall sales of second-hand jewellery were up 8 per cent, although flat on a like-for-like basis over the year.

Albemarle's strongest performer was the Speedloan business, offering fast loans to customers who repay via direct debit. The division nearly doubled profits after a marketing push from the company, increasing its loans by 46 per cent.

The pawnbroker's pay day advance service - which lends up to £600 in exchange for a post-dated cheque to be cashed by the company on payday - boosted like-for-like income by 4 per cent.