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| Pawnbroker Albemarle & Bond resorts to melting own gold | Pawnbroker Albemarle & Bond resorts to melting own gold |
| (about 1 hour later) | |
| Albemarle & Bond, the UK's biggest pawnbrokers has issued a strong profits warning as tough conditions leave it melting down its own gold stocks. | Albemarle & Bond, the UK's biggest pawnbrokers has issued a strong profits warning as tough conditions leave it melting down its own gold stocks. |
| The company said competition had led to a 12% fall in pledges - or pawned - items it received over the year. | |
| The price of gold, which is 27% down on March, had also hurt business. | The price of gold, which is 27% down on March, had also hurt business. |
| It has taken a number of steps to stem losses, curbing unsecured lending, stopping online lending and undertaken "exceptional" smelting of gold stocks. | It has taken a number of steps to stem losses, curbing unsecured lending, stopping online lending and undertaken "exceptional" smelting of gold stocks. |
| Despite this, it says it is struggling to keep within its banking facility of £53.5m, with current debts of £50.1m. | Despite this, it says it is struggling to keep within its banking facility of £53.5m, with current debts of £50.1m. |
| The announcement caused another steep fall in the company's shares, which closed down 38% at 25p. | The announcement caused another steep fall in the company's shares, which closed down 38% at 25p. |
| The move comes after a heavy fall last month, caused when it said it had failed to get support for plans to raise £35m. | The move comes after a heavy fall last month, caused when it said it had failed to get support for plans to raise £35m. |
| Those failed plans left the company with administration costs which still have to be paid, further adding to its burden. | Those failed plans left the company with administration costs which still have to be paid, further adding to its burden. |
| Chris Gillespie, chief executive of Albemarle & Bond said there was reason to hope for better news: "Tough trading conditions have continued to impact our results, but we are making progress controlling costs and managing within our constrained banking facilities. | Chris Gillespie, chief executive of Albemarle & Bond said there was reason to hope for better news: "Tough trading conditions have continued to impact our results, but we are making progress controlling costs and managing within our constrained banking facilities. |