John Greed Jewellery has reported a reduction in turnover and profits as a result of market pressures and the termination of its agreement to stock Pandora online.
The namesake owner of the Lincoln-based jeweller says this was expected and he has been consolidating activities and downsizing the business after deciding to part ways with the jewellery giant to focus on more profitable areas of the company.
According the accounts filed with Companies House, during the year ending June 2019 turnover for the independent jeweller dipped by 42% to £7.1m from 12.1m in the year prior.
Gross profit return on sales increased by 2.05%, although gross profit decreased by 39%.
Operating profit for the business fell into the red at £-317,237 compared to £235,888. While the business ended the year previous in profit, the last 12 months have seen the business make a £272,383 loss.
John Greed says in the report: “Subsequent to the year-end negotiations with Pandora have culminated in the termination of the Pandora agreement for online and as a consequence this has had an effect on levels of turnover and profitability and will continue to do so.
“The director have already assessed the impact that this will have on the online business and consider the plans that they have in place will ensure that the company will continue to trade profitability, albeit on a reduced basis.”
The business has been focusing its attention on its other brands, alongside its own in-house creations, which has been proving a successful strategy.
Talking exclusively to Professional Jeweller, Greed reveals: “We had some amazing years with Pandora but with falling margins and rising operating costs the figures just didn’t stack up, in the end we were making a loss, so regrettably we had to cut ties and not accept their offer for another year of selling Pandora online.”