Watch this space, says Michael Hill

Michael Hill International is staking its future on the development of its diamond ring range and its own brand of watches.

Michael Hill told the company's annual meeting in Auckland yesterday that the shift to brand its own watches was appropriate as he was the sixth-generation watchmaker in his family. Chief executive Mike Parsell said after the meeting that the watch range, and the development of its diamonds in the $2000 to $9000 range, marked the most significant moves ahead. In particular it was looking to develop diamond solitaire and "right-hand rings".

Parsell said fluctuations in gold prices had an impact on the first quarter of this year and would continue.

Costs for expansion of its Canadian operation meant it had spent more on developing infrastructure.John Drinnan