Aurum Holdings up for sale

Aurum Holdings, the group which owns jewellers, Mappin and Webb, Watches of Switzerland and Goldsmiths has been put up for sale. After a year of record trading – reaching sales of £326m up to January 2011 and a like for like rise of 16.6%

- the sale will be handled by Cavendish Corporate Finance. The Aurum purchase will come with a £200million price tag.

The decision comes as the groups owner, the failed Icelandic bank, Landsbanki,has now concluded they should cash in on the success of the business. Don McCarthy, Chairman of the Aurum, commented: ‘Aurum has been one of the few success stories on the British high street over recent years. Since 2009, the business has delivered well beyond our expectations in terms of both revenue and profit growth.’

He continues, ‘Justin Stead and his team have significantly outperformed the first two years of our investment plan and we have therefore decided to look for a new investor that is able to assist this team in capitalising on the very significant and credible opportunities that are now presenting themselves.’

The results are indeed applaud worthy when rival firm, Signet, which owns H Samuel and Ernest Jones posted a sharp decline in UK sales last year.

Online sales were also flourishing – with a 49% rise compared to last year as well as like for like growth.

Justin Stead, CEO of Aurum, said: ‘It is very pleasing to see that our well documented strategy is starting to deliver significant returns. Our vision for the future suggests that we are at the very beginning of an exciting period in the Group’s history.’ He continues, ‘We have enjoyed great support from our existing shareholders, but recognise that their investment horizon was always going to be limited.’

Landsbanki was taken control of by the Financial Supervisory Authority of Iceland, in 2008, following the country’s financial crisis. Aurum claims to be the largest prestige and luxury jewellers in the UK and the biggest distributor in the world of luxury brands such as Omega, Tag Heuer and Gucci.