Gemfields plunges to £50m loss after being only able to hold one precious stones auction between January and June
Gemfields swung to a loss as Covid-19 shut its mines and cancelled crucial gem auctions.
The Faberge owner and precious stones miner, which has counted celebrities such as actor Mila Kunis (pictured) among its celebrity ambassadors, said turnover had tumbled 83 per cent to £16million in the first six months of the year.
And the ruby and emerald specialist racked up a loss of £50.1million, down from a profit of £16million in the same period of last year.
Sales slump: Faberge-owner Gemfields, which has counted celebrities such as actor Mila Kunis (pictured) among its celebrity ambassadors, said turnover had tumbled 83 per cent
Between January and June it only managed to hold one gemstone auction, in Zambia, where it raised £9million selling emeralds.
It is trying to arrange online auctions but is not sure when this will be up and running. And it has scrapped financial guidance as a result of the pandemic’s hit.
The company has been forced to write down the value of its Faberge arm by £9million, after seeing a ‘significant reduction’ in sales as well as a ‘less positive outlook on the global luxury goods and retail sectors’.
The torrid six months included rejoining the London Stock Exchange’s junior market on Valentine’s Day.