Soaring price of gold helps Albemarle & Bond's profits

Pawnbroker Albemarle & Bond cheered investors yesterday with news that its gold-buying service contributed nearly a fifth of total profits in its first full year of operation.

The company said an "explosion" of advertising in the sector raised customer awareness of the higher price in gold, leading to an increase in overall profits for the 19th year in a row. Shares closed up nearly 6 per cent at 283p.

Albemarle has offered gold-buying services alongside its core pawnbroking business in its main stores since 2009. In the last financial year it has also trialled temporary "pop-up shops" in shopping centres, which exclusively buy the precious metal.

Gold prices have hit a record high of $1,300 an ounce in recent days as investors seek shelter from economic uncertainty.

Albemarle posted a 26 per cent rise in gross profits to 53.6 million, of which gold-buying contributed 11.5m. Pre-tax profits lifted 37 per cent to 20m.

Chief executive Barry Stevenson said: "We have seen a substantial increase in the number of transactions through our stores and pop-up shops as customers recognise that they will receive an honest valuation by a jewellery expert and be offered a fair and competitive price."