The precious metals division of the Cookson Group has reported positive sales results as demand for jewellery improved in Europe and the US, prompting the parent company to keep hold of the jewellery-focussed arm.

According to the Birmingham Post, the firm had planned to sell the division based in the area's Jewellery Quarter, but has now dropped plans since it is performing so well.

Newly appointed chief executive Nick Salmon said he thought annual profit was likely to increase since the precious metals sector is usually stronger in the coming period, and cited this success as a motivator behind the decision to retain the precious metals arm.

"It has been concluded that a sale of the division as whole would not, at this time, enhance shareholder value; this is particularly in light of the division's improved trading performance," he commented.

The firm supplies semi-finished gold and platinum rings and settings to jewellery manufacturers.