Restructuring by jewellery group Abbeycrest has helped the business narrow its pretax losses by #2.9 million in the first half.
The company, which closed its factory in Birmingham's Jewellery Quarter last year, believes the restructuring will provide a robust platform to build on in future.
Leeds-based Abbeycrest said its interim results for the six months to August 31 were marginally ahead of its internal expectations, representing an "excellent achievement in generally poor market conditions".
The company reported a pretax net loss of #1.4 million from #4.2 million on lower sales of #27.9 million from #28.9 million reported in the year-ago period. Loss per share narrowed to 6.2p from 15.5p reported a year ago.
Abbeycrest said the jewellery market had been depressed with monthly double digit reductions in gold hall-marking in the UK being recorded for the last quarter.
"While this has affected sales levels in the UK market, further opportunities for efficiencies and cost savings have been constantly sought," the company said.
One more positive external factor was the stabilisation of the price of gold. It said the interim numbers provided the first formal indication that re-structuring had enabled the business to come through various challenges in a healthier state.
Looking forward, Abbeycrest said: "While, as ever, second half trading is the key to achieving expectations, the restructuring has given the group a robust platform to build future commercial growth."
The company's Hockley factory was closed last June with the loss of 70 jobs when production was switched to Thailand.
Abbeycrest said its Thai gold factory had "performed well in the first half and efforts now centre on broadening the product base".
The company's gem factory had a difficult first few months of the year with issues centring on replicating required specifications.