Abbeycrest shares plunge on debt worries

Date: Friday 15 Jul 2011

International jewellery designer and manufacturer, Abbeycrest, today said it would need to renegotiate its debt facilities in the coming months.

The news wiped 57% of the value of its shares in morning trading.

The company said that in May 2011 it had agreed revised and extended facilities with its lenders in the UK and Thailand.

Abbeycrest operates manufacturing plants in the Far East and supplies jewellers in the UK and elsewhere.

"However, the group now needs to extend these existing facilities further or reduce the group's peak working capital funding requirement by approximately £0.7m in October 2011," it said.

The firm put the blame on difficult trading conditions in recent weeks, including continuing rising precious metal prices and retailer action to protect volumes.

Despite this it said it had "made a satisfactory start to the current financial year".

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