Manufacturer will now focus on “foundations for future growth”.
Leeds-based jewellery manufacturer Abbeycrest has announced half year pre-tax losses of £1.3m after a tumultuous year in which it has extended its banking covenants and closed its retail store in Birmingham.
The losses, for the sixth months to August 31, were an increase on the loss of £500,000 that the company experience in the same period in 2010. Presently, Abbecrest Thailand and Brown & Newirth (B&N) are its two main subsidiaries. Its Global Edge portfolio was closed earlier this year and was consolidated into the main company.
Simon Ashton, executive chairman of Abbeycrest, said: “Our objective this year is to lay the foundations for growth and to provide sufficient time for both Abbeycrest Thailand and B&N to benefit from the sales and marketing initiatives we now have underway.
“Whilst we are moving forward, difficult trading conditions, coupled with the usual lag between investment and return, mean that it is unlikely that we will see any significant return from these initiatives until the next financial year. We look forward to being able to update shareholders on further progress in due course.”
The half-year update shows a drop in Abbeycrest’s revenue figures from £18.8 million to £12.6 million. The business has, however, cut its new debt by 13% to £16 million.
In July Ashton denied suggestion that Brown & Newirth may be up for sale after difficult trading in Q2 and Q3 this year.
At the time, Ashton told Professional Jeweller: “This [talk of Abbeycrest being sold] is total speculation and a conclusion that only someone who doesn’t know the business could draw. While it is a theoretical possibility and while we are looking at a number of options, selling the business is not one of them.”