The financials of the stonebridge diamond company, which owns and operates gems, diamonds and precious metals businesses, have been hit by Brexit.
In the latest move, the company has said it will lay off 30 employees in the UK, and expects a further 40 employees to leave by the end of this month.
Its chief executive, Michael Greenstone, said: “We have been very clear from the beginning that we are not the sort of company that needs to be in a position of taking the UK off its financial footing in the short-term.”
But we can’t continue to make a lot of money on a business that is not a very profitable one.
“The company’s financials were released as a result of a Freedom of Information request by CNN.
The data reveals a fall in sales in the first quarter of this year, as demand from overseas had increased and investors had been reluctant to take on more debt to finance the company.
The company has posted a net loss of £1.6 million for the first half of the year, down from £2.4 million a year earlier.
Its sales of diamonds fell to £1 billion, down 18% from a year ago.
Its jewellery sales fell to $8.6 billion, from $9.7 billion a year before.
The loss comes amid a wider downturn in the financials at the company, as a large chunk of its sales have been diverted to pay off debt and repay debt holders.
Its share price has fallen to around 20 cents a share, down about 8% in the past year.
Its revenue fell to about $5 billion in the last quarter, down $5.3 billion from the same period a year prior.”
As a result, Stonebridge will have to layoff or suspend approximately 40 people across its business and assets, including some operations in the US, as part of our restructuring plans.””
We expect to lay off up, not all of our staff, and to begin the process in the coming months.”
As a result, Stonebridge will have to layoff or suspend approximately 40 people across its business and assets, including some operations in the US, as part of our restructuring plans.
“The UK’s Financial Services Authority said that the decision to cut employees would not be made until after the company finishes its planned restructuring.”
It is a decision we will consider closely,” a spokeswoman said.”
However, we believe that the timing of the cut will be consistent with the company’s strategic plan and the need to achieve the right financial results.
“In the US alone, Stonebridges US operations have seen a fall of nearly a third in sales.