The Company of Master Jewellers climbed out of the red during the latest financial year, despite a 42% dip in revenue.
According to accounts filed with Companies House, turnover for the buying group fell from £4.16m to £2.42m during the 12 months ending March 31, 2019.
The sales value of goods purchased by members also decreased by a similar amount.
Company of Master Jewellers chairman, Michael Aldridge, remarks on the drop in sales: “The core business has reduced by 8%. This reflects what is happening on the high street. The balance is due to the change of strategy of Pandora and their buy back of franchised stores.”
Gross profit for the year was down by 31% from £2.24m to £1.54m, however, the Company of Master Jewellers did manage to get itself out of the red as losses of £364,985 in the previous year were replaced with net profits of £258,817.
This move can be attributed to the closure of the Group’s subsidiaries and a reduction in headcount in all departments leading to a staff drop 45 to 18.
Aldridge remains confident in the CMJ and the value it can off the UK jewellery trade.
He affirms: “I would stress again that the CMJ are in a very strong position financially and are now fully focused on supporting our retailers and suppliers as we move forward together through this turbulent retail time on the high street.?
“The future for retail is challenging, regardless of sector. However the CMJ is here to support its members and is best placed to do so, having a strong financial position and the ability to wield influence within the sector. Now more than ever the independent retail jeweller needs the community that is CMJ, where members share experiences, ideas and issues, taking advantage of the network that is available to them.”
Aldridge says the CMJ’s collaboration with other industry bodies is working well and the buying group’s recent trade event saw a record number of suppliers exhibiting in a newly designed show, with good levels of business being written.
He continues: “Our own figures show growth in non-branded jewellery and selected watch brands, interestingly the average transaction spend has increased.
“With this level of positivity being generated, despite the negativity on the high street and footfall being down, the CMJ is well placed to move forward again with real purpose and direction.”