Pawnbroker reports jump in loans after new year

PAWNBROKER Albemarle & Bond said the value of pawn-based loans jumped in the first six weeks of 2007, as people looked to boost their finances in the challenging January period.

The Bristol-based firm, which has a number of branches north of the Border, including in Edinburgh and Glasgow, said pawn loans rose by £500,000 in the traditionally busy new year period, compared with growth of £1 million in the first half of its financial year.

The news came as the company posted a 16 per cent rise in interim pre-tax profits to £3.88m during the six months to 31 December, ahead of analysts' expectations of £3.75m.

Income from pawnbroking, which makes up 52 per cent of the firm's business, rose by 28 per cent in the period. The company only issues loans against gold security.

During the first half of the year, the group said it had seen growth in all of its money lending divisions, driven by demand for small cash advances.

Income from Albemarle's pay day advance service - which lends up to £600 in exchange for a post-dated cheque to be cashed by the company on pay-day - rose by 11 per cent while earnings from its Speedloan service grew 15 per cent.