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Date: Thursday 06 Jan 2005

LONDON (ShareCast) - Abbeycrest failed to capture the festive cheer over Christmas, the jewellery designer said today, as it warned profits would come in lower than last year.

The company warned in November that some of the major customers at its main UK distribution business G&A were delaying their Christmas orders for as long as possible.

Abbeycrest warned today that the cautious approach continued through its crucial Christmas trading period, impacting heavily on levels of order intake.

As a result of the poor trading the firm now expects normalised pre-tax profit for the year to February is unlikely to exceed that seen the year before.

Chairman Michael Lever said, “Whilst we are clearly disappointed with Christmas trading, we are confident that the business continues to move forward operationally, underpinned by savings from the previously announced restructuring in manufacturing”.

Last year Abbeycrest initiated a review of the G&A operation in order to improve the way it deals with its manufacturing and supply base, leaving the arm focused on UK and Irish sales and distribution.

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