Managing director Daniel Bracken said the trading in the second half of the year “proved to be much harder, with economic headwinds impacting consumer confidence”.

“Considering the pressures we have experienced on input costs across both diamond and gold pricing, our gross margins held up well,” he said.

A final dividend of 3.5 cents a share was declared.

For the first seven weeks of the financial year, group sales were up 1.2 per cent while for the core Michael Hill brand, sales were down.

“There is no doubt that retail conditions have continued to be very challenging in all markets with sales growth moderating as the group cycles record first quarter sales in the prior year,” Bracken said.

“While inflation and rising interest rates have impacted consumer spending I am confident that the group strategy has us well-placed to continue to take market share.”