Albermarle & Bond (LON:ABM) shares edged higher today as it reported some expressions of interest in the business, though these had not amounted to a formal offer.
The beleaguered pawnbroker has formally put itself up for sale, saying this was the best route to get out of a mess that has seen its share price collapse from 213p to 16p this year.
Delayed results for the year to end-June showed profits slumped to £4.9mln from £21.4mln the year before as the company was caught out by a 23% slide in the gold price and increased competition.
Since then, most of the board has resigned and the company has traded at an operating loss in the current year so far. Net debt at 2 December was £50.6mln against banking facilities of £53.5mln.
Greville Nicholls, the company’s chairman, said: “Tough trading conditions have continued to impact our results in the new financial year, but we are managing within our current banking facilities.
A formal sale process for the business was commenced earlier this week, and although we have received expressions of interest there can be no certainty that an offer will be made.”
Reports name 30% shareholder EZCORP, rival UK pawnbroker H&T and assorted venture capital groups as potential bidders. EZCORP, a US pawnbroker, earlier pulled out of underwriting a rescue right issue at 50p per share.