Jewellery firm Theo Fennell (LON:TFL) said that “extreme snow” during the Christmas trading period was responsible for flat sales in its financial year to 31 March 2011.
Although the company had a strong first half last year, with sales up 12.5 percent, it only achieved total sales for the year of £12.5 million (broadly in line with the previous year’s sales of £12.6 million). Meanwhile, its loss before tax increased to £547,379 (2010: £349,765)
After the poor result for last year, Theo Fennell said it had had a strong start to its current financial year with like-for-like retail sales 15 percent ahead during the first 12 weeks compared with the same period last year.
The firm said it had continued to develop new collections, as well as one-off pieces. Its Alias line of silver diffusion jewellery, for example, was launched in November and Theo Fennell said that it had been “very encouraged” by initial sales and the response from existing and potential wholesale partners.
Internationally, Theo Fennell opened with new partners in the Ukraine, South of France and Australia, while also opening a wholesale concession in Heathrow Terminal Three in the first month of the current year. It is now focusing its expansion on “important and high growth” markets that include the US, China and other areas in the Far East.
"We have made significant progress over the year having raised new finance [£1.5 million in April 2010], opened with new international partners, launched a new website, and expanded our product range,” said Rupert Hambro, Theo Fennell’s chairman. “Whilst this year's sales were impacted by the adverse weather in the lead up to Christmas, current trading has been encouraging.
House broker Seymour Pierce said it expected the firm’s strategy of growing its international footprint would deliver “attractive long-term growth” and it maintains its ‘buy’ recommendation.
At 10:36am today, Theo Fennell’s share price was up 10.2 percent at 21.9 pence.