- Veteran bands Motorhead, Black Sabbath top Metal Hammer Golden Gods
- Kanye West wins over critics with 'daring' new album 'Yeezus'
- 'Standing man' inspires silent protests in Turkey |
- Golfing in Iceland's midnight sun - lava beds, angry birds, winds
- Brazil protests pose challenge for World Cup organisers
UPDATE 1-Fall in gold prices to dent Albemarle & Bond profit
* Growth in value of gold bought slowed from H1
* Sees FY profit to be below market expectations
* Shares fall 11 pct
June 15 (Reuters) - Pawnbroker Albemarle and Bond warned that profit for the year would come in below market expectations as its gold-buying business slows down, sending its shares down 11 percent.
"The recent marked slowdown in gold-buying activity, combined with a lower prevailing sterling gold price, has had an immediate impact on both volumes and margins," the company said.
Albermarle, which also offers cheque cashing, small installment and payday loans, said the growth rate in the value of gold bought had slowed sharply from over 50 percent in the first half of the year to middle single-digits over the last two months.
"It is too early to tell if this is a reflection of the reduction in footfall from the very wet weather in the period, or a developing trend," the company said.
Albermarle's shares were down 6 percent at 257.37 pence at 0730 GMT on Friday, making the stock the top percentage loser on the London Stock Exchange.
Volumes at the company's gold buying business - which contributed 24 percent to its overall gross profit - rose 83 percent last year as Britons, squeezed by muted wage growth, rising prices and government belt-tightening, opted to trade in gold for short-term cash when the price was high.
Gold has fallen for four consecutive months since February but prices have rebounded and the precious metal was up slightly on Friday, extending its winning streak to a sixth session.
"After strong first three quarters there has been a marked slowdown in volumes in the fourth quarter," Canaccord Genuity analyst Michael O'Brien said in a note.
"These have been exacerbated by falls in the gold price which have had some impact on gross margins," O'Brien said. (Reporting by Abhishek Takle in Bangalore; Editing by Don Sebastian)
- Tweet this
- Share this
- Digg this