Abbeycrest successfully raises £2m through share placing

ABBEYCREST, the Yorkshire-based jewellery designer and manufacturer, confirmed today that it has successfully raised £2m in a share placing.

The Leeds-based firm will use the funds to reduce the group’s borrowings, invest in the marketing and merchandising of new products and in new higher-margin branded jewellery collections.

Abbeycrest, which was advised by law firm Pinsent Masons, will seek shareholder approval for the placing at its annual general meeting on September 23.

Simon Ashton, executive chairman of Abbeycrest, said that the group was now well placed to enhance returns from its traditional mainstream business as well as exploit the market for higer value fashion-driven pieces of jewellery.

“The group’s dedicated team of designers combined with our world class in-house manufacturing capabilities enable us to quickly identify and respond to the latest market trends and opportunities,” he said.

“It already has a global footprint with design, manufacture and established distribution capabilities across all of the major jewellery markets and I am confident that the funds raised will help us to reach the next stage in our evolution.”

Last month, Abbeycrest reported that it was performing in line with management expectations under its “well advanced turnaround plan”.

In an update on performance since its final results were published on June 26, Abbeycrest said its Essentials division – its established business supplying unbranded jewellery to mainstream global markets – was performing ahead of last year, delivering “much improved operating results on a significantly reduced turnover”.

Abbeycrest said its Brands division, consisting of a number of new higher margin brands, was “making good progress”.

Its Gorgeous Gold range is in-store and online at Ernest Jones, and Abbeycrest said its recently recruited sales managers were also working with a number of other leading retailers.

It added that Nordiska, the jewellery wholesaling operation of the Guld Invest Norden Group, is to distribute its Osare and Fluid ranges across Sweden.

The group has re-negotiated new working capital facilities with its senior lender in the UK until March 2011 and recently secured additional working capital facilities in Thailand.

There remains a further £1.75m loan in the UK.

The Pinsent Masons team advising on the placing was led by corporate partners Andrew Black and Martin Shaw supported by Michael Walby, Adrienne Davie and Jodie Dennis.

John Cleland and Matthew Clayton-Stead advised on negotiations with Abbeycrest’s lenders.

Martin Shaw, Pinsent Masons’ head of corporate, Europe, based in the firm’s Leeds office, said: “We are very pleased to have advised our long-standing client Abbeycrest on this important fundraising, which reinforces its ability to continue to trade and to develop its business during the current difficult economic conditions.”

Abbeycrest’s auditors, BDO, acted as reporting accountants to Abbeycrest in connection with the fundraising.

Walker Morris acted for Evolution Securities.