Abbeycrest posts loss as basics division suffers

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Company focuses on trend-led jewels as branded division shows growth.

Jewellery manufacturer Abbeycrest is wishing for a merry Christmas as it posts a first-half pre-tax loss of nearly £500,000.

The results are a disappointing dip for the company that previously posted profits of £1.25 million.

Revenues at the jewellery company rose 5 percent to £18.8 million in the six months to August, predominantly due to rising gold prices, while net debt dropped 14 percent to £7 million.

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Abbeycrest reported that sales in its branded jewellery division had showed a marginal improvement in profitability but operating profits from its Essentials division fell by £300,000. The company said that the mass-market Essentials division had been hit by poor consumer confidence and rising commodity prices.

Abbeycrest executive chairman Simon Ashton said: "The outcome for this financial year is, as usual, dependent upon the key Christmas trading period and underlying retail conditions in our existing markets.

"Notwithstanding this, the board believes that the group’s performance has now stabilised sufficiently to ensure that it will benefit incrementally as the effects of the recent restructuring are felt and the strategic shift to design-led product gains traction."

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