Gems show their intrinsic value in Signet's profits

Diamonds proved to be jeweller Signet's best friend as the retailer posted a rise in UK profits thanks to an increase in sales of the gems.

Signet's first quarter results showed a group profit of£24.1 million before tax - up 11.6 per cent from£23.9 million last time.

Operating profit in the UK improved by£600,000 to£2.4 million on total sales up by 5.8 per cent to£92.6 million.

Total UK like-for-like sales climbed by 5.4 per cent, with H Samuel up by 4.5 per cent and Ernest Jones by 6.6 per cent.

Signet claimed diamond sales increased as a result of improvements in merchandise, in-store presentation and marketing.