TIDMACR
RNS Number : 9165V
Abbeycrest PLC
20 July 2009
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| Press release | 20 July 2009 |
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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 since the
announcement of its Final Results for the year to 28 February 2009 on 26 June
2009.
The Board is pleased to report that in the current financial year, the Group is
performing in line with management expectations under the Group's well advanced
turnaround plan, in terms of both sales and operating profitability.
The Essentials division, Abbeycrest's established business supplying unbranded
jewellery to mainstream global markets, is performing ahead of last year;
delivering much improved operating results on a significantly reduced turnover.
The managed withdrawal from certain, lower margin UK business streams and focus
on fewer product lines, as previously reported, is working to good effect. Order
intake across the breadth of customers and markets is positive and building as
we look forward to the second half of the calendar year, traditionally our
busier season.
The Brands division is making good progress with its new higher margin brands,
Gorgeous Gold , Fluid , and Osare . With Gorgeous Gold now in-store and online
at Ernest Jones, the Group's recently recruited national and regional sales
managers, who bring with them strong brand experience, are also working with a
number of other leading retailers. In this regard, the Board is pleased to
announce that Nordiska, the jewellery wholesaling operation of the Guld Invest
Norden Group, is to distribute Osare and Fluid across Sweden.
As previously reported, following the successful implementation of the first
phase of the Group's restructuring programme, Abbeycrest has substantially
reduced its net debt position compared with the same period last year. The Group
has also successfully re-negotiated new working capital facilities with its
senior lender in the UK, until March 2011 and recently secured additional
working capital facilities in Thailand. There remains a further GBP1.75 million
loan in the UK, with a junior lender, under which GBP0.75 million is required to
be paid before 31 August 2009 in order to avoid penal interest rates, with the
remaining GBP1.0 million due to be paid on 28 February 2010. As previously
indicated, the Group has been exploring a number of funding options and is
currently well advanced with a planned equity fundraising to obtain sufficient
finance to meet these repayments and to support investment in the new brands
business.
The Board is confident about the prospects for Abbeycrest and believes that,
having successfully completed the important first phase of the restructuring
programme, the Group should now seek to strengthen its balance sheet to ensure
that the Group will be well placed to take advantage of its established position
in the UK jewellery market, its increasing presence overseas and the anticipated
growth from its higher margin branded collections.
- Ends -
For further information:
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| Abbeycrest plc | |
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| Simon Ashton, Executive Chairman | Tel: +44 (0)113 245 3804 |
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| | www.abbeycrest.co.uk |
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| Evolution Securities Limited | |
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| Joanne Lake / Peter Steel | Tel: +44 (0)113 243 1619 |
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| joanne.lake@evosecurities.com | www.evosecurities.com |
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Media enquiries:
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| Abchurch Communications | |
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| Sarah Hollins / Mark Dixon | Tel: +44 (0) 20 7398 7729 |
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| mark.dixon@abchurch-group.com | www.abchurch-group.com |
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This information is provided by RNS
The company news service from the London Stock Exchange
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