ACR Abbeycrest

TIDMACR

RNS Number : 4567Z

Abbeycrest PLC

14 January 2011

 
 Press release   14 January 2011 
 

Abbeycrest plc

("Abbeycrest" or "the Group")

Interim Management Statement

Abbeycrest plc (LSE:ACR), a leading international jewellery designer and manufacturer, today provides an update on business performance for the period from 1 September 2010 to 13 January 2011 ("the Period").

The Group's ongoing recovery programme was adversely affected during the Period by increasing precious metal costs and competitive market conditions. These pressures have materially affected the profitability of Brown & Newirth Limited ("B&N"), Abbeycrest's wedding and commitment ring specialist, in the current financial year. This was the major cause of the Group's trading performance being, as previously notified, substantially below the board's previous expectations and its breach of covenants announced on 31 December 2010.

The Group has made significant changes to systems, controls and management at B&N, to address product pricing and margin control as well as future brand development. As part of these improvements, the Brands Division team has been strengthened by the appointment of a new Creative Director, Julie Large, formerly Creative Director of recognised international jewellery brand, Hot Diamonds Group Limited.

Further action has been taken to reduce the Brands Division's cost base, resulting, as previously notified, in significant exceptional costs being incurred. The division's latest monthly key performance indicators however, are now back in line with the board's expectations and, together with the strengthening of B&N's management team and the changes made to the company's systems and controls, the board believes that the division's trading performance is now well placed to return to previous levels.

The Essentials Division continues to adapt to the challenges posed by changing market conditions and precious metal prices. The board has recently established a central management structure with responsibility for all operating segments across the division. This is improving cooperation between the Group's manufacturing and sourcing operations and promoting a more coordinated approach to product design and customer account management.

Burdale Financial Limited ("Burdale") the Group's senior lender, remains supportive. The board is continuing in its discussions with Burdale to re-set the covenants and further updates on the Group's progress will be provided in due course.

- Ends -

For further information:

 
 Abbeycrest plc 
 Simon Ashton                     Tel: +44 (0)113 3970 865 
 Executive Chairman                   www.abbeycrest.co.uk 
 
 Evolution Securities Limited 
 Joanne Lake / Peter Steel        Tel: +44 (0)113 243 1619 
  joanne.lake@evosecurities.com      www.evosecurities.com 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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