Jewellery brand reports loss due to investment but sales up 10%.
Theo Fennell has reported higher-than-expected first-half losses in its latest financial results as investment in its Alias silver line hit home, but the group is insistent that the jewellery brand still has a future.
In its first half to September 30 the jeweller reported losses of £1.39 million before tax, up on 2010’s losses of £877,000.
Turnover for the period was £5.36 million and sales were actually up 10%. The brand has attributed the losses in part to the launch of the jewellery brand’s Alias line of silver jewellery, which it hopes will bring new customers to the brand with its more accessible prices.
Alias launched a year ago but it is only now becoming more widely available at jewellery retailers. Early stockists include national chain Fraser Hart, Scottish independent mini chain Rox and Northampton independent retailer Steffans.
Theo Fennell said that it is cautious about the economic environment and said that it will be seeking out opportunities for the brand outside of Europe, with the Far East, the Middle East and the US said to be key targets for the business.
Despite mounting losses the brand said that it is confident in the long-term potential of the company and early next year it will employ a review of its strategic business plan to accelerate the development of the brand.
Analysts including Seymour Pierce and Merchant Securities have given the stock a buy recommendation. Analyst Amisha Chohan at Merchant Securities added that the business could be an acquisition target for a larger player.