Abbeycrest returns to profit

YORKSHIRE jewellery group Abbeycrest announced that it has returned to profit as it continues its turnaround strategy.

The Leeds-based group reported revenues, after strategic withdrawal from lower margin activities, of £39.7m from £53.1m in 2009.

Abbeycrest’s operating profit, including an exceptional gain of £1.5m, stood at £2.4m compared to a loss of £7.1m in 2009.

Pre-tax profit, before exceptionals, was £55,000, and £1.6m after exceptionals.

Basic profit per share was 3.2p compared to a 36.6p loss per share in 2009.

Fundraising in September 2009, primarily to reduce debt, raised £1.85m, the group said.

Abbeycrest’s year-end net debt was reduced by 30% to £5.6m from £8m last year.

Executive chairman Simon Ashton said: “Market conditions remain challenging and whilst we are pleased with the progress of the turnaround, there is still a great deal to do within the business.

“Our ‘Essentials’ and ‘Brands’ divisions are at very different stages of development but our main focus now with both is to generate top-line growth. Managing our exposure to any further increases in the gold price, given the clear impact of this variable on working capital funding, also remains key.“

He added: “As we approach the key Christmas trading period, we maintain our belief that the group is now much better positioned to capitalise on the opportunities in the global jewellery market.”