De Beers Jewellers’ financial statement for the UK portion of its business shows a difficult year in 2020.
The company unsurprisingly blames the pandemic for an annual revenue loss of nearly £8 miilion and an overall loss of over £28 million.
Revenue dipped from £18.6 million in the full-year 2019 to just under £11 million in 2020.
In 2019 De Beers Jewellers saw marginal losses of £58,726. The full calendar year of 2020 to 31 December, however, saw annual losses of £28,228,129.
£23 million of this loss can be accounted for by impairment of right-of-use assets according to the report.
The company seems confident that sales have returned to a promising level when brick-and-mortar retail has been permitted in the UK.
A statement from the directors in the report reads: “Positioning itself as ‘The home of diamonds since 1888′, the brand continues to communicate its diamond expertise, spanning from solitaires to design, in both jewellery and high jewellery.
“The company made significant progress on increasing brand awareness and improving consumer engagement, through the launch of a new customer-centric website, new product collections and marketing campaigns. As a result of making available a much wider product range through the website, and an accelerated consumer trend toward online spending due to Covid-19, the company saw a 181% increase in e-commerce sales to customers during the year.
“The company’s priority remains to maximise returns from existing stores and to closely manage inventories, costs and working capital levels.
“The company continues to pursue opportunities to grow revenues through its retail outlets, and through online channels, and the directors have prepared an updated strategic plan for the next five years which sets out the path to improve both store sales’ productivity and average margin on products sold.”
The report also goes on to describe De Beers Jewellers’ ‘Diamond policy’. It reads: “The company is aware of the challenges that conflict diamonds introduce and has taken measures to guarantee that no conflict diamonds enter its supply chain or its jewellery.”
It cites the Kimberley Process Certification Scheme and System of Warranties, as well as membership to the Responsible Jewellery Council (RJC) as two of these measures.