6th Apr 2020 09:18
(Alliance News) - Gemfields Group Ltd on Monday said its generated record revenue in 2019 but warned of an "adverse impact" from the Covid-19 outbreak.
Revenue in 2019 was 4.9% higher at USD216.2 million, from USD206.1 million and Gemfields swung to a pretax profit of USD67.4 million from a USD53.9 million loss.
Helping the swing to profit was USD21.6 million in an impairment reversal, compared to charges of USD22.6 million in 2018.
Chief Executive Sean Gilbertson said: "We are pleased to report a strong set of results for the 2019 financial year, with the team delivering record group revenues and a healthy growth in operating profit."
It was a busy year for the company, it returned to London's AIM junior market in February, following a two-and-a-half year absence. It also extended its mining licence at the Kagem emerald project in Zambia by an extra 25 years.
"While 2019 was a particularly good year for Gemfields, the fallout from Covid-19 will have a material adverse impact on our operating and financial performance in 2020," Gilbertson said.
Last Monday, Gemfields warned of a "significant detrimental impact" from the Covid-19 outbreak, with six key gemstone auctions set to be cancelled due travel restrictions.
The auctions, Gemfields said, drove 93% of its revenue in 2019.
Shares in the company were 3.8% higher at 8.30 pence each in London on Monday morning. In Johannesburg, they were untraded, last quoted at ZAR1.65.
By Eric Cunha; [email protected]
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