Theo Fennell halves losses, sales slip

Luxury jeweller Theo Fennell said losses more than halved at the half year stage as it slashed overheads and restructured the business but summer sales suffered as focus turned to the Olympics.

The group, which remains in discussions with EME over a potential offer for the firm, said loss on ordinary activities before taxation reduced to £610,083 for the six months ended September 30th 2012 from a loss of £1,390,739 a year earlier.

Turnover for the period slipped 8% to £4.9m as international demand deteriorated during the Olympics, the group explained.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Chairman Rupert Hambro commented: "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."

Looking ahead Hambro added that while the outlook for the economy and the retail sector remains uncertain, the changes made in the last six months mean it is better positioned for the future.

Commenting on ongoing talks with private equity player 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."

CJ