Theo Fennell halves its losses
Theo Fennell said its losses more than halved in the six months to 30 September as the luxury jeweller restructured its business and made substantial cuts to overheads.
The group, which is in discussions with private equity firm EME Capital over a potential offer for the business, made a first half loss before taxation of £610,083 compared to a loss of £1,390,739 in the same period a year earlier.
Sales dropped 8% to £4.9 million following a reduction in international clients during the summer due to the London 2012 Olympic Games.
The group’s online business saw a 176% increase in sales albeit from a small base. Online sales currently account for 1.4% of the overall business and are regarded as a key growth area for the business.
Never Miss a Retail Update!Having opened a new wholesale concession in Kuwait, Theo Fennell is continuing to explore opportunities in key international markets including the Far East, Middle East and Eastern Europe. The group said it was continuing to do good business in the Ukraine, Russia and Kazakhstan and has recently opened a concession in Baku in Azerbaijan.
Chairman Rupert Hambro said: “These results reflect the substantial cuts to overheads, which together with the restructuring of the business, have significantly reduced our losses for the period.
“The major focus of the business is to increase sales which will return the company to profit. We continue to explore exciting opportunities for Theo Fennell in overseas markets including the Far East, Middle East and Eastern Europe.”
“The outlook for the economy and the retail sector remains uncertain however the work that we have undertaken in the last period ensures we are better positioned for the future.”
Commenting on ongoing talks with private equity firm EME Capital, Theo Fennell added: “As notified in a recent statement, we are in ongoing discussions with EME Capital about a potential takeover of the business and will inform the market when there are further developments to report.”
