The Directors have pleasure in submitting to shareholders the 21st Annual Report and audited accounts of the Company for the year ended 30 June 2008.

BUSINESS ACTIVITIES
The group's sole business activities during the 2007/08 financial year continued to be jewellery retailing and manufacturing.

CONSOLIDATED FINANCIAL RESULTS
The Group has recorded a tax paid surplus of $25.232m for the year ended 30 June 2008 (2007 - $21.017m). This surplus was achieved on total operating revenue of $377.554m (2007 - $350.184m). The Group adopted New Zealand International Financial Reporting Standards (NZ IFRS) from 1 July 2005.

The accounts for the year ended 30 June 2008 have been presented in accordance with the accounting principles and policies detailed on pages 33 to 39 of this report.

SHAREHOLDERS' FUNDS/RESERVES
Total Shareholders' Funds of the Group now stand at $91.001m. Contributed equity decreased to $3.850m following a transfer of option reserve to contributed equity on exercise of options of $42,000, an issue of share capital on exercise of options of $1.230m an issue of share capital of $186,000 under the employee share scheme and a reduction of share capital through a share buyback of $2.360m. The Group's reserves at 30 June 2008 totaled $87.151m.

ACCOUNTING POLICIES
There have been no changes in accounting policies during the year.

DIVIDENDS
Your Directors paid an interim dividend of 1.2 cents per share, with full imputation credits and franking credits attached on the 1st April 2008. Overseas shareholders were also paid a supplementary dividend. On the 14th August 2008, your Directors declared a final dividend of 2.0 cents per share payable on the 13th October 2008. The share register will close at 5:00pm on the 3rd October 2008 for the purpose of determining entitlement to the final dividend. Overseas shareholders will also be entitled to a supplementary payment on the final dividend.

The total ordinary dividend for the year was 3.2 cents (fully imputed), (2007 - 2.6 cents). The payout represents 48.4% (2007 - 47.8%) of the tax paid profit of the group.

DIRECTORS
Leslie Wayne Peters and Christine Ann Hill retire by rotation and being eligible to offer themselves for re-election.

DIRECTOR'S REMUNERATION
Director's remuneration and all other benefits received, or due and receivable during the year was as follows:

REMUNERATION OF EMPLOYEES
The number of employees (not including Directors) whose remuneration exceeded $100,000 is as follows:

Australian remuneration has been converted into New Zealand dollars at the
exchange rate used for translating the Australian results into New Zealand dollars,
0.85 (2007 - 0.87). Canadian remuneration on the same basis at 0.77 (2007 - 0.78).

INFORMATION ON DIRECTORS
The qualifications and experience of the Directors are shown on page 23. The Directors are responsible for the preparation of the financial statements and other information included in this Annual Report. The financial statements have been prepared in conformity with generally accepted accounting principles to give a true and fair view of the financial position of the Company and Group and the results of their operations and cash flows.

The Company appoints independent chartered accountants to audit the Financial Statements prepared by the Directors and to express an opinion on these Financial Statements. The independent auditor's report, which sets out their opinion and the basis of that opinion is set out on page 26 of this report.

DONATIONS
The total of donations made during the year amounted to $77,252.

INTERESTS REGISTER
There were no new entries made in the Interests Register during the year.

On behalf of the Directors,