Albemarle & Bond Holdings Plc has announced its final results for the twelve month period ended 30 June 2012.
Robust performance in a year of investment and changing market dynamics
Barry Stevenson, Chief Executive, commented:
I am pleased to report the Company has delivered an increase in revenues and profits for the year. Over the last three years our business has doubled in size. We have invested strong gold buying cashflows in this expansion and in so doing we have laid the foundations for the Company‟s long term profitability.
Over a third of the full line store portfolio is under 3 years old ensuring, based on the maturity cycle of pawnbroking stores, that there is significant embedded growth potential in our business.
Gold buying remains a substantial part of the on-going business and the 2012 result demonstrates how well we have executed on this market opportunity. However the expected downturn in the gold buying market happened very quickly and has set a new level to which we have quickly adapted. 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.
Reflecting this reduction in the cash generative gold buying business we have reduced and refocused the store opening programme on acquiring 5 established stores in FY 2013. The Group will focus on meeting the undoubted demand for short term flexible loans, optimising the value from the 69 most recent openings, trialling and introducing new products and increasing consumer access through the addition of new channels.
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