BRITISH retail jewellery group Signet, while it has yet to evolve into a corporate swan, is looking less like the ugly duckling which emerged from the ruins of the former Ratners empire. In the six months to the end of August last Signet produced its first trading profit for six years. Operating profits of £10 million sterling represent a substantial improvement on earlier losses of £3 million, but overall the group remains a loss-maker although pre-tax losses have been cut back from £15 million to £6 million.

Despite hesitant recovery signs Signet's wants out of jewellery retailing in Britain, preferring to concentrate its energies on building up business in its US stores. Finding a buyer for the 600 outlets, which includes the H Samuel chain, is proving difficult.

Talks with venture capital firm Apax Partners, collapsed this week following the failure of earlier negotiations with independent jewellery group Goldsmiths. The British business is worth around £280 million. But cash is urgently needed to reduce £300 million in bank debt and meet obligations to preference shareholders owed about £135 million in unpaid dividends. This should clear the way for a much needed share capital reorganisation. The shares, almost worthless towards the end of the Ratner era, are now worth 25p.