Sales up but profits take a hit as new store costs bite.
Laing the Jeweller, which runs shops in Edinburgh, Cardiff and Southampton, has reported a rise in turnover in its latest financial results while profits have been hit by investment in the business.
Turnover at the business in the year to February rose to £10.37m from £9.9m the year before. Meanwhile pre-tax profits tumbled 5% to £575,900 according to figures from Companies House.
The decrease in profits was attributed to recent investment in the business. In 2009 the company relocated its Cardiff store, which trades as Parkhouse the Jeweller, to a shopping centre location, opened a boutique store in Edinburgh trading as Laing the Jeweller, which included a new watch gallery.
The 2009 investments led to a turnover increase at the time of 16% to £9.9m and an increase in operating profits of 60% to £708,902.
Despite the drop in profits in the year to February 2011, Laing the Jeweller director Michael Laing said: “The company’s retail outlets continue to thrive, however the relocation of the Cardfiff store to a more prime location and the opening of the boutique have resulted in additional costs in the short term.”
Laing added that the main focus of the jeweller over the year had been the sale of fine jewellery, diamonds and Swiss watches. The retailer has continued to push into the ethical market and now claims that all of its diamonds are conflict free and certified by the Kimberly Process.