Venerable jeweller Hamilton & Inches has vowed to pursue more sales at the higher end of the market after seeing its profits jump by almost a fifth last year.
The firm, which has a flagship store and silver workshop in Edinburgh and a boutique in London, shrugged off the economic gloom and rising commodity prices and said it would continue to invest in its own designs and exclusive brands to “create clear blue water between the company and its competitors”.
Along with many luxury goods providers, Hamilton & Inches has been buoyed by strong demand from wealthy Asian customers, and earlier this year it installed a new payments system that enables it to accept People’s Bank of China credit cards.
The jeweller, headed by managing director Stephen Paterson, made a pre-tax profit of £472,101 in the year to 31 March, up from £397,147 the previous year, according to accounts filed with Companies House. Turnover rose 6.5 per cent to £7 million.
Writing in the annual report, the directors said the rise in sales and profits was due to an increase in “significant value” sales compared with the previous year, despite the ongoing economic challenges. The improvement in margins was described as “reasonable” given the difficult conditions facing much of the retail sector and soaring commodity and precious stone prices.
The directors added: “The company will be pursuing more of these high value sales by sourcing superb quality stock pieces and further enhancing our luxury customer experience.”
Hamilton & Inches, which holds a royal warrant as silversmith to the Queen, was founded in 1866 and bought by the Asprey luxury goods group in 1992. A management buy-out in 1998 returned it to independent Scottish ownership.
As well as producing items for the Queen, Hamilton & Inches has made a silver candelabra for the prime minister’s residence at 10 Downing Street, a crown for the court of the Lord Lyon and various items for golf’s Open Championship and the Royal & Ancient Golf Club in St Andrews.
The company’s accounts show the highest-paid director received £109,497 during the year, up from £107,350. Despite the increase in profits, the firm did not pay a dividend, having paid out a total of £184,333 in the year to March 2011. It said: “The directors are confident in the potential of the group to grow, particularly as the economic and investment climate improves.”