Pawnbrokers expand business as recession deepens

Footfalls leading up to the pawnbroker's door have obviously increased in numbers if profits being unveiled by UK pawnbrokers are any indication. UK's biggest pawnbroker, Albemarle & Bond, said profits had soared by 19 per cent in the six months to December as ''inflexible'' lending practices by banks had forced people to seek alternative sources of credit.

Britain's biggest pawnbroker said yesterday pre-tax profits were up at £6.2 million, compared with £5.2 million a year earlier. It added that higher gold prices also helped boost profits.

Gold climbed above $1,000 (£689) an ounce on Friday – it's highest in 11 months. Albemarle & Bond only deals in jewellery.

Revenues at Albemarle in the six months to 31 December rose to £26.5 million, from £24.9 million.

Charles Nicholson, chairman, said: "We expect pawnbroking, which represents 76% of group revenues, to continue to benefit from the reduction in mainstream lending. Since the half-year end, trading has been positive and the board is confident of delivering a strong performance for the full year."

A&B's pawn book, which shows its lending, had increased 18 per cent, to £27 million, by the end of last year.

The group, which has 114 shops, said it was poised to step up expansion plans as a deepening recession took its toll on other sectors.