ABM.L Regulatory News (ABM)

15 June 2012

Albemarle & Bond Holdings PLC

("Albemarle & Bond" or "the Company")

Trading Update

Following completion of April and May trading and the first half of June, Albemarle & Bond today publishes an update on current trading for the 12 months ended 30 June 2012.

Our Gold Buying business has demonstrated continued growth in the second half of the year, but in the last eight week period, the percentage year on year rate of growth, in value of gold bought, has slowed significantly from over 50% in the first half, to middle single digits. 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. Whilst revenues have still grown in this period, this has been at a level below our expectations particularly given strong trading up to the end of March. As a result, the Board therefore now expects the Company's profitability for the full year to increase, but to be below current market consensus.

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 has consistently taken a flexible, asset light approach to Gold Buying and is monitoring developments closely and taking appropriate mitigating action. Effective management controls have already been implemented to reduce the growth across the Group's cost base.

All other business divisions are trading broadly in line with the trends reported with our H1 results, although we have also seen improvements in Q4 trading from our Retail division and a slower rate of growth from Speedloan, our medium term unsecured lending product.

Chief Executive, Barry Stevenson commented:

"Whilst the very recent trends in Gold Buying are disappointing we are very focussed on driving income growth out of our expanded store base and exercising rigorous cost controls. The group is well positioned to respond to changing market dynamics and satisfy the fundamental demand for short term cash and credit from a potential c.10 million UK consumers. The Company expects to report final results in September and we look forward to providing a further update on strategy at that stage."

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