Final Results

RNS Number:6793A
Cabouchon Collection PLC (The)
03 September 2002

for immediate release

                          The Cabouchon Collection plc

             Preliminary Results for the period ended 31 March 2002

Chairman's Statement

The loss and cash balances during the period under review were largely in line
with budget.  It will not, however, be possible to draw any conclusions as to
the company's future trading potential until meaningful sales figures are
achieved.  That said, the period since Cabouchon was admitted to the AIM last
December has been one of intense activity for its management. This has covered
four main areas: the design and sourcing of an extensive range of jewellery, the
production of a new catalogue, the installation of an entirely new computerised
marketing and stock control system and most important of all, laying the
foundation of a network of consultants to kick start sales.

Julie Wing, our managing director, has continued to develop the range and
quality of the group's jewellery products, without compromising the company's
policy of offering quality costume jewellery at attractive, affordable prices.
The 2002 collection was launched at the Dorchester Hotel on 13 April and was
accompanied by an exciting catalogue, which had been redesigned with the help of
Jake Hughes, our non-executive director, whose own business Hunter Design has
assisted a number of blue-chip companies with their own identities, literature
and catalogues. The range, quality and price of the jewellery on display at the
launch were well received by the existing and potential sales consultants who
attended and subsequently at a press launch on 30 May.

Many of our new pieces have been created exclusively for Cabouchon by our own
designer. A great amount of effort is also put into sourcing the range. Pearls,
which are some of our best sellers, come from a Spanish manufacturer and most of
the other jewellery is from the Far East. All stones are set by hand and our
plating is either gold or rhodium, to create a silver colour.

Sales generated by multi-level marketing take time to gather momentum and the
Board over-estimated the reliance it could place on a  number of previously
successful consultants in accelerating the initial stages of the process. This
problem is now being addressed. The appointment of Jacqui Goodwyn Self as
director of training is already showing results with 32 new consultants having
been appointed since May.

After a thorough investigation of the company's overall software needs and an
extensive tendering process, a contract was signed with Infotrax, a leading
provider of software and Internet solutions to the direct sales industry. The
new system provides full financial and management information on the group's
network of consultants, together with the processing of orders, commissions and
stock control. This system will also soon be integrated so as to provide two-way
web-based access to consultants' accounts. We are very conscious of the fact
that our merchandise has to reflect the fast-moving world of fashion. Our new
software is providing day-to-day feedback of what our customers want and this
will be vital in the decision-making process for our future ranges of jewellery.

Many people who hear about Cabouchon would like to buy our jewellery on a
regular basis but are not interested in becoming consultants themselves.  We
have therefore formed the Cabouchon Select Club and members, who will receive
new catalogues as they are published, will be able to buy Cabouchon jewellery at
a 20% discount.  Members will receive an ID number so that they can make orders
through the call centre at any time and membership of the Cabouchon Select Club,
which normally costs #15, is free to all shareholders and their families.  An
application form is enclosed.

I imagine the reason only one shareholder has contacted the company about its
falling share price is because of general market conditions, particularly in the
small company sector. I felt that shareholders would wish to know that less than
200,000 shares changed hands for a total of #16,152 between 22 May and 26 June,
during which period the share price fell from 25p to 7p, reducing our market
capitalisation from #5.4 million to #1.5 million.  On 26 July 2002 the share
price fell another 25% when no dealings took place at all!  This unfortunately
also took place at a time when the directors were unable to acquire shares,
being less than two months prior to the publication of these results.


Finally, I am pleased to say that the group has received confirmation from the
Inland Revenue that the shares issued on the admission to AIM will qualify for
relief under the Enterprise Investment Scheme. Further details on the action
that qualifying shareholders should take are given in the letter from the
Finance Director, which accompanies these accounts.

The work so far has built a solid platform for the further development of
Cabouchon and the Board anticipates that the next year will see progress in our
sales, reputation and results.




David B. Pearl
Chairman.



Consolidated Profit & Loss Account for the period ended 31 March 2002



                                                                                 2002          2002
                                                                                 #             #
Turnover
   Acquisitions                                                                                60,411

Cost of sales                                                                                  (25,333)

Gross profit                                                                                   35,078

Administrative expenses

Other operating charges                                                                        (248,301)

Operating loss
Continuing operations                                                            (81,289)
   Acquisitions                                                                  (131,934)
                                                                                               (213,223)

Other interest receivable and similar income                                                   2,120

Loss on ordinary activities before taxation                                                    (211,103)

Tax on loss on ordinary activities                                                             -

Loss for the financial period transferred from reserves                                        (211,103)

Basic loss per share                                                                           (1) pence


There were no recognised gains or losses other than the loss for the period.


Consolidated Balance Sheet as at 31 March 2002

                                                                                 2002          2002
                                                                                 #             #
Fixed assets
Intangible assets
   Goodwill                                                                                    942,131
Tangible assets                                                                                32,925
                                                                                               975,056
Current assets
Stock                                                                            79,478
Debtors                                                                          5,028
Cash at bank and in hand                                                         236,391
                                                                                 320,897

Creditors: amounts falling due within one year                                   (89,249)

Net current assets                                                                             231,648

Total assets less current liabilities                                                          1,206,704

Creditors: amounts falling due after more than one year                                        (4,500)

                                                                                               1,202,204

Capital and reserves
Called up share capital                                                                        1,080,000
Share premium account                                                                          333,307
Profit and loss account                                                                        (211,103)

Shareholders' funds                                                                            1,202,204



The financial statements were approved by the Board of Directors on 28 August 2002.


                         D B Pearl
                         Chairman


Consolidated Cash Flow Statement for the period ended 31 March 2002


                                                                                           2002
                                                                                              #

Net cash inflow from operating activities                                               (256,853)



Returns on investments and servicing of finance
Interest received                                                                          2,120
Net cash inflow from returns on investments and                                            2,120
servicing of finance



Capital expenditure and financial investment
Purchase of tangible fixed assets                                                          (32,590)
Net cash outflow from capital expenditure and financial                                    (32,590)
investment



Acquisitions and disposals
Net cash acquired with subsidiary                                                          50,407

Net cash inflow from acquisitions and disposals                                            50,407



Financing
Proceeds from issue of shares                                                              700,000
Acquisition expenses                                                                       226,693
Net cash inflow from financing                                                             473,307



Increase in cash                                                                           236,391




--------------------------

The accompanying accounting policies and notes form an integral part of these
financial statements.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

FR LJMBTMMTMBJT