Surging gold price hampers Abbeycrest’s recovery

JEWELLERY group Abbeycrest today said the continuing rise in precious metal prices is forcing it to review its options.

The Leeds-based group agreed revised and extended facilities with its lenders in the UK and Thailand in May.

However, Abbeycrest said despite a “satisfactory” start to its financial year, its recovery has been “further impeded in recent weeks by difficult trading conditions, including continuing rising precious metal prices and retailer action to protect volumes”.

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Gold prices hit a record high this week on fears over US and European sovereign debt defaults.

Abbeycrest said it now needs to extend its facilities further or reduce its peak working capital needs by about £700,000 in October.

“The board is currently reviewing the options available to the group,” it said. It did not elaborate on what these options are.

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