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Abbeycrest profits slip despite sales rise

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    By By Scott Corben

    Date: Thursday 17 May 2001

    LONDON (ShareCast) - Jewellery distributor Abbeycrest has confirmed that profits fell in the year to the end of February 2001 despite rising sales. It said trading started strongly this year and is currently ahead of last year.

    Pre-tax profits dipped 13.6% to £4.5m, in line with its trading statement of May 3. However, the same period saw turnover rise 12.4% to £78.8m

    Abbeycrest chairman Michael Lever said all businesses have started the new financial year strongly with order levels in first eight weeks ahead of the same period last year. He predicted “a more cash-generative period” this year with strong performance expected in the Far East.

    Europe's largest designer, manufacturer and distributor of gold and silver jewellery also posted earnings per share of 12p, slightly higher than the expected 11.3p. It increased the final dividend to 6p from 5.5p in the previous year.

    Abbeycrest, hit by the strength of the dollar and a rise in the price of diamonds, is upbeat about the future. Regarding prospects, chairman Michael Lever said: “The management team is now directing significant efforts towards regaining the lost operating margin and delivering greatly improved financial performance.”

    UK operations are in Leeds, Birmingham, Teeside and Hatfield. Overseas

    operations are in Thailand (after an acquisition in mid-1999) and Hong Kong (a start-up in mid-1999).

    Abbeycrest sells through catalogue and home shopping outlets and prices products well in advance of supply. Fixed-price supply contracts have lost their shine due to recent fluctuations in the dollar and the price of diamonds.

    Shares jumped 5% in morning trade on the positive outlook, pricing the stock at 92.5p and valuing Abbeycrest at £22.94m.

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