Investment Column: Goldsmiths extends its chain
Thursday 09 October 1997
It all seems a far cry from last year's rosy sentiment, when Goldsmiths unveiled its first profits since flotation in 1990 and said it wanted to bid for the UK jewellery businesses of Signet, the former Ratners group. But although first-half figures are undeniably grim, the true picture is not all bad.
Following its disappointment with the Signet deal, Mr Piasecki decided that if Goldsmiths couldn't grow by acquisition, it would have to grow organically. In January, he placed 1.1 million shares to raise the necessary cash. Rival Signet currently has a far larger retail network than Goldsmiths, but Mr Piasecki is intending to beat Signet at its own game. Six shops have opened already this year and another nine are due for the second half. Twenty shops are scheduled for 1998 and a further 20 for 1999.
The cost of opening these new shops is one reason why first-half figures look poor. The other is that Rolex, an important source of revenue for Goldsmiths, reduced retail margins. The expansion programme should help to reduce Goldsmiths' historical dependency on Rolex as very few of the new shops are earmarked to carry this luxury line. Goldsmiths' burgeoning insurance business and a new deal with Harrods to run its diamonds department are further reasons to think that the company's prospects look bright.
Forecasts from Charterhouse Tilney put Goldsmiths on a forward price- earnings ratio of about 17, making it look expensive. Luxury watch distributor Time Products, which announced a small increase in profit yesterday, are sitting on a p/e of about 9.
But given prospects at Goldsmiths, it might be worth hanging on to the shares.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...