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Stanley Gibbons grows sales and profits in 2013

By BFN News | 07:09 AM | Friday 28 March, 2014


Stamps and collectibles specialist Stanley Gibbons said sales were up 16% for the six months to end-December to £24.3m (2012: £20.9m) and up 16% for the full-year 2013 to £41.6m (2012: £35.6m). Total revenues generated online for the six months to 31 December 2013 were £2.3m, representing 9% of total revenue and for the twelve months to 31 December 2013 were £3.5m, representing 8% of total revenue. Trading profits for the six months to 31 December 2013 were up 9% to £4.6m (2012: £4.2m) and for the twelve months to 31 December 2013 up 9% to £6.9m (2012: £6.3m). Adjusted profit before tax for the six months to 31 December 2013 was £3.8m (2012: £4.1m) and for the twelve months to 31 December 2013 was £5.6m (2012: £6.0m). Adjusted earnings per share for the six months to 31 December 2013 were 11.19p (2012: 14.21p) and for the twelve months to 31 December 2013 were 16.77p (2012: 21.44p). Second interim dividend declared of 4.00p per share (2012: 3.75p), up 6%. Net cash position increased by £9.5m in the six months to 31 December 2013 to £17.3m. Stock at 31 December 2013 stated at historic cost of £30.6m (31 December 2012: £20.7m) providing a strong asset base to deliver future growth in trading profits. Key Operational Highlights · The work to create a global online collectibles trading platform is progressing well and the Group is targeting the launch of the Stanley Gibbons branded online marketplace in the second half of 2014 - testing on core functionality to begin in April 2014 · Completion of acquisition of Noble Investments (UK) in November 2013 for a total consideration of £45m. The cash element of the consideration was funded by the proceeds of new shares with new and existing institutional shareholders, raising £40m · Continued building of brand presence internationally with new office opened in Singapore in April 2013 to complement our Hong Kong office and to broaden our base in the lucrative collectibles market in the Far East · Auction services substantially strengthened with the acquisitions of Noble and Murray Payne enabling the enlarged Group to apply its combined expertise, systems and client reach to deliver a superior auctions service to both buyers and sellers · Growth in sales of other collectibles for the twelve months to 31 December 2013 benefited from the acquisition of Noble with cross selling between Stanley Gibbons and Baldwin's high net worth clients in respect of rare coins · The stable returns being generated from the collectibles market at the same time as the falling price of gold during 2013 has resulted in some investors turning to collectibles as an alternative means of investing in a tangible asset as part of a well diversified investment strategy Outlook · The primary focus remains on launching the Stanley Gibbons branded online marketplace in the second half of this year with the expected future growth in online commission revenues earned in an agency capacity representing the key growth opportunity for the Group · It is expected that a wider range of cross selling opportunities between Stanley Gibbons and Noble will further increase sales in the current year · Integration cost savings across the enlarged Group and the implementation of improved efficiencies are expected to deliver benefits later in 2014 · We intend to continue to deliver a first class service to those individuals looking to invest in the collectibles market supported by the prevailing health of the collectibles market, which is driven by a global base of passionate collectors · We remain committed, as an integral element of our overall strategy, to building our brand presence internationally. We are currently actively investigating potential opportunities in Geneva (Switzerland), New York (US) and Sydney (Australia). Martin Bralsford, Chairman, commented: "The performance of the Group in the six months and twelve months to 31 December 2013 was in line with market expectations with turnover up 16% and trading profits up 9%. This result was achieved despite significant management focus being directed towards the successful completion of the strategically important acquisition of the Noble group and ensuring that online technical projects remained on track. The Group's strong balance sheet position including net cash of £17.3m and a high quality stockholding of rare stamps and collectibles stated at a historic cost of £30.6m provides a substantial capital base from which to invest in further growth opportunities identified by the Board. Despite substantial opportunities to reinvest profits in future growth, the Board has increased the total dividend for the twelve months to 31 December by 8% on last year. The most exciting event of the current year is in the impending launch of our online collectibles marketplace where the Board believes there are opportunities, further enhanced by the acquisition of Noble, to deliver substantial online revenues from the global collectibles market." Story provided by StockMarketWire.com

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