RNS Number:6473U
Abbeycrest PLC
27 January 2004



For Immediate Release                                           27 January, 2004




                                 Abbeycrest Plc
                                        
                                 Trading Update


Abbeycrest Plc, the UK's leading jewellery manufacturing and distribution
business reports that trading over the Christmas period has been in line with
the Directors' expectations. Group sales for the four months ended 31st December
were broadly similar to those for the same period last year though customers
held off ordering until later in the Christmas cycle than has hitherto been the
case. Our much-improved internal procedures have enabled us to satisfy these
late orders from a significantly lower stockholding base, which has been
pleasing.


Accordingly it is anticipated that the Group's results for the year ended 28th
February 2004 will be in line with market expectations.


In the Group's interim results for the six months to 30th August 2003, I made
reference to a fundamental business review, which is taking place at our main UK
distribution business, G&A. The initial stages of the review are complete and,
whilst it was stated that I would be in a position to outline the new shape of G
&A and the directions it will pursue at the time of the full year announcement,
I feel it is appropriate at this juncture to give some broad indications of the
Board's intentions.


With effect from 1st March responsibility for all jewellery manufacturing
remaining under the control of G&A, as well as all current manufacturing
operations in Thailand will pass to a Group manufacturing director who will be
responsible direct to the plc Board of Directors. I believe this will give
manufacturing the focus and attention that it needs to achieve world class
levels of efficiency.


Until now, G&A has sold product into the export market from the UK. From the new
financial year this will change and export sales will be co-ordinated by a sales
organisation, "Abbeycrest International", which will report direct to the plc
Board. The purpose of this arrangement will be to co-ordinate and focus the
third-party sales efforts of all our Far East manufacturers as well as liaising
with our sales agents around the world.


The changes noted above in manufacturing and export will leave G&A totally
focussed on UK and Irish sales and distribution. Sales generation will be
further enhanced in the new financial year by ensuring that each of G&A's
business channels, or routes to market, has its own dedicated team who are
totally committed to developing and selling product into their own market
segment.


In order to improve customer service, product development and working capital
control it is crucial that we improve the way G&A deals with its manufacturing
and supply base. The number of suppliers will be reduced to a core of key
supplier partners. In this way our buying power will be maximised with
beneficial effects on cost, service levels and stockholding.


All management within G&A, including directors, have been comprehensively
assessed by an external consultant. In this way training needs can be identified
to deliver a management team who are capable of delivering and sustaining the
change required to return G&A to an acceptable level of profit.


As stated in my announcement at the half-year, I intend to give more detail on
these changes at the time of the full year announcement.





                                     -ends-


Enquiries:


Michael Lever, Chairman

Phil Walker, Finance Director

Abbeycrest Plc                                                Tel: 0113-284 5702


Paul Vann/Victoria Stephens

Binns & Co PR Limited                                         Tel: 020 7786 9600






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