Pawnbroker's profits are as good as gold

PAWNBROKER Albemarle & Bond posted a 75 per cent leap in profits yesterday as sky-high gold prices continued to lure customers through its doors.

The group said pre-tax profits had risen to 10.8 million in the six months to 31 December, driven by its core pawnbroking division and income from its recently introduced gold-buying arm.

Albemarle said gold – which has topped $1,100 an ounce and boosted scrap prices – had helped increase pawnbroking income as well as raise profits in the precious metal division. Pawnbroking income grew by 14 per cent to 13.2m, while the division's loan book rose 7 per cent to 27.5m, excluding old gold loans in its Herbert Brown branches, which are no longer offered.

Unredeemed pawn pledges fell in the period, as people who previously wanted to sell but had taken a loan instead were now able to use the gold buying service.