MONTH IN REVIEW
www.jewelleryfocus.co.uk
HATTON GARDEN
Holts Gems
reveals joint
venture with
Hearts of London
Group
Holts Gems, one of the oldest jewellers
in Hatton Garden, is launching a joint
venture with diamond specialists
Hearts of London Group, focusing
on the growing demand for coloured
gemstones in personal and bespoke
fine jewellery.
The new retail business will
launch in the first quarter of 2019
under the Holts & Co brand, with a
contemporary store refurbishment
designed to “break down the
boundaries of conventional retail”.
The new store and workshop will
create a collaborative workspace
between the designer, client and
craftsman, which the Holt Gems
said will allow bespoke jewellery
commissions to be taken from concept
to realisation all under one roof.
The jeweller said its “long history
as a gem wholesaler to some of
the world’s most established and
recognised fine jewellery houses” will
be maintained, and will be opening
a separate sales office in Hatton
Garden in January 2019. Additionally,
the group’s workshops will continue
to supply wholesale gems and
provide manufacturing services to the
jewellery trade.
Jason Holt of Holts Gems said:
“I’m thrilled to be working alongside
jewellery entrepreneur Brett Afshar to
create this new chapter in Holts’ 70
year history. Holts has always been
a pioneer. Starting with my father’s
buying trips to China shortly after the
Cultural Revolution and establishing
the UK’s first Lapidary workshop.
“More recently launching Holts
Academy of Jewellery - the only
Further Education College for the
sector. Now Holts & Co will be a
hub of cutting edge innovation,
meticulous craftsmanship, the finest
gems and diamonds.”
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JEWELLERY FOCUS
FINANCIAL RESULTS
Pandora
reduces FY
expectations amid
‘unsatisfactory Q3’
Pandora has reduced its full-year
expectations after experiencing an
“unsatisfactory” third quarter in 2018.
In Q3 group revenue decreased
3% in local currency due to “timing
of shipments, change of inventory
levels in the wholesale channel and
negative total like-for-like”. Revenue
from its estore increased 52% in local
currency, up from 5% in Q3 2017, and
revenue from wholesale decreased
27% in local currency.
EBITDA was reported as DKK 1,445
million (£169.3m) in Q3 2018 compared
with DKK 1,965 million (£230m) in Q3
2017. EBITDA margin was 29.% (37.8%
in Q3 2017) driven by several “one-off
factors”, including timing of shipments
and change of inventory levels in the
wholesale channel.
Due to the performance a “lower
than expected tailwind” from forward
integration, as well as a “weak start”
to the fourth quarter, mean full year
revenue growth is now expected to be
2-4% in local currency, compared with
the 4-7% previously. Although, Pandora
said EBITDA margin guidance remains
unchanged at around 32%.
Following a health check of the
business, the company has launched
‘Programme Now’. As a first step in the
programme, acquisitions of franchisees
will be significantly reduced, and the
retailer will also open fewer stores
focusing on selected key markets with
white space areas.
The programme will focus on
pursuing cost opportunities, reducing
working capital, reigniting sustainable
like-for-like driven revenue growth
and “lifting Pandora to the next level
of maturity”.
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CRIME
Birmingham gold
bangle scam trio
jailed
Three jewellers who falsely claimed that
sets of gold bangles they manufactured
and sold were made from higher
quality gold have been jailed for a total
of 14 years.
Ibrar Hussain, 38, and Sabhia
Shaheen, 40, of Shiza Jewellers, based
at 681 Stratford Road, together with
47-year-old Mohammed Afsar, known
as Malik, of Zaiver Jewellers, at 787
Stratford Road, manufactured and
passed off low quality gold bangles as
22 carat by infilling them with silver
copper and other alloys and applying a
heavy gold plate to finish.
Birmingham Trading Standards
officers carried out test purchases of
gold bangle sets described as 22 carat
at both jewellers – but when tested
by the Birmingham Assay Office, the
bangles were found to be of low quality
gold and in some cases could only be
hallmarked at no more than 14 carats.
As a consequence, raids were carried
out by Birmingham Trading Standards
at both jewellers, where workshops
manufacturing the bangles were found.
The scam had been in operation for
more than five years and it is thought
that all three profited by as much as £1
million over that period.
All three were found guilty of
conspiracy to commit fraud by false
representation following a trial at
Birmingham Crown Court, which heard
that Hussain, identified as the ringleader,
would travel across the country selling
the fake bangles to other unsuspecting
jewellers, as well as via eBay.
I’m thrilled to be
working alongside
jewellery entrepreneur
Brett Afshar to create
this new chapter in
Holts’ 70 year history
Jason Holt, Holts Gems
December 2018 | jewelleryfocus.co.uk