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Stanley Gibbons confident following Noble acquisition

By BFN News | 07:18 AM | Friday 27 June, 2014


Stamps and collectibles dealer The Stanley Gibbons Group reported sales of £51.8m for the fifteen months to end-March. Trading profits for the fifteen month period were £6.9m (year ended 31st December 2012: £6.3m). · Investment in online developments expensed to the statement of comprehensive income in the fifteen months ended 31 March 2014 of £1.8m (year ended 31 December 2012: £0.3m) · Adjusted profit before tax for the fifteen months ended 31 March 2014 of £5.0m (year ended 31 December 2012: £6.0m) · Adjusted earnings per share for the fifteen months ended 31 March 2014 of 13.30p (year ended 31 December 2012: 20.98p) · Total dividend for the fifteen months ended 31 March 2014 of 7.0p per share (year ended 31 December 2012: 6.5p) · Although traditionally the quietest quarter of the year, turnover was £10.2m for the quarter ended 31 March 2014 up 79% on the same period last year as a result of the Noble acquisition · Net assets per share at 31 March 2014 of 180.1p (31 December 2012: 111.5p), representing an increase of 62% · Net cash balances of £9.5m at 31 March 2014 (31 December 2012: £6.8m) · Stock at 31 March 2014 stated at historic cost of £42.1m (31 December 2012: £20.7m) including stock balances on acquisition of Noble Investments (UK) plc (Noble) and Murray Payne Limited of £11.1m Key Operational Highlights Key operational highlights for the interim 12 month period ended 31 December 2013, following the change in the Company's year end from 31 December to 31 March, were provided in our RNS announcement on 29 March 2014. The operational highlights below provide an update for the period since 31 December 2013: · The beta version of the new Stanley Gibbons branded online marketplace is currently undergoing rigorous testing by both our own internal specialists and a taskforce of external users · Two 'seven-figure' exceptional and prestigious stamp collections were secured in the quarter ended 31 March 2014. The quality of the stockholding at this time provides a solid platform to deliver growth in core dealing activities to both specialist collectors and investors. · The integration of Noble is progressing in line with plan and we continue to achieve notable success in cross selling between Stanley Gibbons and Noble · Our auction division secured strong consignments in the quarter ended 31 March 2014, which provides a degree of visibility to future earnings Trading Update and Outlook · The Group starts its new financial year ending 31 March 2015 with a strong balance sheet position, including net cash of £9.5m and an expanded high quality stockholding of rare collectibles stated at a historic cost of £42.1m · The most important milestone for the current financial year is the forthcoming launch of the new Stanley Gibbons branded online marketplace · Further integration benefits following the acquisition of Noble in November 2013 are expected in the current financial year including the proposed sale of the Baldwin's freehold property at Adelphi Terrace, London · It is expected that the cross selling benefits of being able to provide a first class service in a wide range of collectibles to our combined client base will provide further increased sales opportunities in the current year · The quality of the recent collections consigned to our auction division provides an initial indicator that the strength of the enlarged Group's combined expertise is beginning to be recognised by the market and potential vendors of major collections Martin Bralsford, Chairman, commented: "The Board remains committed to delivering on the established Company strategy, with the aim being to transform the Company from a stamp and collectibles trader generating steady growth to a leading online marketplace and global auction house for collectibles with far greater growth potential. The acquisition of Noble Investments in November 2013 has diversified the Company's offering and provided a further platform for growth. Management see the growth prospects from the development of an online marketplace in collectibles to offer even greater potential for growth in the medium to long term. As a result of our healthy balance sheet position, our quality product offering, operating in a strong market non-correlated with other asset classes and our growth strategy showing some early signs of success, your Board looks forward to the long term development of its businesses with confidence." Story provided by StockMarketWire.com

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