In a cryptic trading statement, Leeds-based jewellery manufacturer and distributor Abbeycrest revealed today that sales were 11 per cent ahead for the four months from 31 August, but profits for the full year are expected to be 'in line with that for last year', when the company made £5.21 million on sales of £70 million. James Crux reports.

Abbeycrest achieved sales growth of roughly 11 per cent in the four months from August to December. Within the UK distribution business, like-for-like sales rose 11.2 per cent despite rising costs, largely driven by diamond price increases, which were identified at the time of the interim statement.

However, margins were trimmed and, as a result, profit growth has been curtailed. The board announced that for the year ending 28 February 2001 profit before tax 'will be in line with that for last year', when Abbeycrest achieved a £180,000 pre-tax profits increase to £5.21 million.

The company ventured into the wedding ring market through the December acquisition of manufacturer Brown and Newirth. Unfortunately, the main wedding ring selling season is March to June and so the purchase is not expected to generate any material profits this year though the cost of the acquisition will be reflected in the full year results.

In a sanguine conclusion, the board emphasised that the South East Asian manufacturing operations continue to trade successfully and will generate 'significant future growth'. Meanwhile, the expansion of its creative and selling infrastructure is coming to fruition.

The market took the news badly, sending the shares spiralling down by 12.5 per cent to 87.5p by the close of play. Last year the shares traded between a high of 124.5p and a low of 97.5p.

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