Abbeycrest reports total turnover loss 15.0% to £70.2m

28 Jun '06

6 min read

It is important to note that these are the fees charged in 2005/06. There are further bank related charges which amount to around £700,000 which will appear in the 2006/07 accounts as exceptional items covering charges levied since 1st March. Also in the 2006/07 accounts will be arrangement fees of around £400,000 relating to the new facilities.

As part of the refinancing the company has completed the disposal of the Group's Leeds headquarters and UK distribution centre for a gross consideration of £3.3m (£3.1m net of bond and costs) payable in cash. The net book value of the property is £2.5m.

2. Gold price
The price of gold has seen an unprecedented rise over the last twelve months. The increase in price of the Group's main raw material by 40 percent since last year has meant that pressure on borrowings has been constant. Excellent stock control has been exercised to counteract this trend.

3. Market conditions
The fine jewellery market in the UK has suffered a major downturn, with the weight of gold product hall-marked in the UK declining by 26 percent in 2005 year-on-year. It is clear the sector has suffered disproportionately in the overall retailing downturn and this has clearly adversely affected the Group's performance.

Restructuring
The restructuring of the Group was accelerated and broadened during the year to take account of the worsening trading environment. Much of this has already been referenced in previous statements but a summary is:-

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