Albemarle & Bond, the leading UK pawnbroking business, held its AGM this week and reported that business is trading in line with management expectations (A&B's broker is currently forecasting 26.3p EPS on an EBITDA of £22.6 million). The company reported that it is on track for opening 25 new stores in the current financial year to 30 June 2011 – 7 have already been opened, with a further 9 set to open before the end of 2010.

The core pawnbroking business continues to perform well, and is achieving double digit like for like growth in the pledge book - driven principally by increasing average loan sizes.

The impact of structural changes to the "pay day advance" unsecured lending market, such as the phasing out of chequebooks, has been offset by a good performance from the Speedloan product, (quick £300-£1000 cash loans) achieved by tightening lending criteria.

The company also announced that the gold buying business continues to show strong year on year growth despite an increasingly competitive marketplace (and presumably tightening margins). 8 gold buying pop-up shops have been opened in this FY, bringing the total to 27. Gold jewellery retail market remains challenging going into the important Christmas shopping period.

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