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Stanley Gibbons updates on restructuring, trading

By BFN News | 07:30 AM | Tuesday 09 May, 2017

Stanley Gibbons announces the sale of a major part of its Interiors division, as restructuring far exceeds its original targets and the group increasingly focuses on its core business. It said it had agreed the sale of certain assets and liabilities of Dreweatts and the intellectual property rights and goodwill in respect of the Mallett and Made by Meta brands, all in the group's Interiors division. "The sale assets will be transferred into a newly incorporated company that the Group has agreed to sell to Millicent Holdings Ltd." The sale was for a total consideration of £2.4m. Stanley Gibbons would retain the Mallett inventory, the rental income from the former Mallett New York premises, the Bloomsbury auction and retail business and its interests in Masterpiece London Ltd and other associated companies, which would allow it to derive additional value from the Interiors division in the coming months. "It is intended that the proceeds of the Sale will be used to reduce bank debt, support the ongoing rationalisation exercise and to provide additional working capital for the Group." Following the sale, the core activities of Stanley Gibbons would be conducted via Baldwin's, Stanley Gibbons and Murray Payne, which shared similar characteristics alongside the competitive advantages associated with being market leaders in the numismatic and philatelic markets. COST REDUCTIONS & TRADING The group's focus of the last 12 months was to undertake a dramatic but necessary cost-reduction programme to enable a more stable and focused business to emerge. It said the steps taken to date had ensured that the company had "far exceeded our original cost saving targets, where annualised operating cost reductions, prior to the sale, would have exceeded £10m." "Whilst these exercises are unsettling, the exhaustive efforts of the new management team and our staff has ensured that the group is now in a clearer and stronger position, than for some considerable time and the business is currently broadly cash neutral." It said following the sale and taking into account the cost reduction measures, Stanley Gibbons could finally start to look to the future and focus on its core businesses. "Despite the upheaval of the last 15 months, the resilient and inherent value of our brands has continued to be recognised across the industry and we look forward to ensuring that this is reflected in shareholder value." Story provided by

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