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Stanley Gibbons Grp (SGI)

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Monday 29 June, 2020

Stanley Gibbons Grp

Trading Update and Reopening of 399 Strand

RNS Number : 2473R
Stanley Gibbons Group PLC
29 June 2020
 

  29 June 2020

THE STANLEY GIBBONS GROUP PLC

(the "Company" or "Group")

Trading Update and Reopening of 399 Strand

The Stanley Gibbons Group provides an update on the impact of the Covid-19 pandemic on the business:

Financial Update

Since our announcement exactly two months ago, we have seen some volatile but defined improvement in trading. In combination with further cost mitigation efforts, this has resulted in an improved financial position compared to our expectations both at the start of lockdown and at the time of our previous announcement.

Year on year sales for the 8 week period between April 29 and June 21 2020 have been down approxim ately 11%. This compares to down approximately 45% for the five week period between the penultimate week of March and April 29 2020.

The nature of our business means that revenue generation is inherently volatile even under normal conditions. As a result we remain extremely cautious about the short term future and the impact the volatility has on our financial position. Nevertheless, from our experience over the last 3 months we expect our current cash balances to give us sufficient liquidity for a further 4-5 months from today with out taking any further mitigating steps or drawing further on our remaining £2m debt facility.

Operational Update

During recent weeks we have made significant efforts to build on and develop our digital offering further. We have implemented several new initiatives and learnt valuable lessons; both of these elements will continue to shape how we do things well into the future.

These initiatives included a successful online only auction and a 'digital exhibit' competition which attracted over 2,000 public votes. We have also started offering video call based valuations and consultations and look forward to offering further new products and services online in the future.

Online sales (excluding the online auction) during the 8 weeks to June 21 2020 are up just over 100% versus the same period last year.

Today we are also reopening our main trading outlet at 399 Strand, London following completion of the redevelopment work which began at the start of the year, a major milestone in our strategy.

The new layout allows visitors to circulate freely through the three different levels of the building and incorporates many displays and exhibits as well as an all new Baldwin's coin room, auction room and several private client viewing and seating areas. 

Graham Shircore, Group Chief Executive said:

"The hard work of all of our colleagues has not only helped to reduce the impact of Covid-19 on the business and given us a stronger framework to develop our digital offering but has also allowed us to deliver a complete transformation of our flagship store under budget.

I am extremely proud of the effort which everybody has made and it is important that we maintain this; the reopening of a truly world class shopping experience at 399 Strand is an important moment in the rebuilding of this great company, but it is only one part of the journey.

Consumer behaviour continues to evolve and although there are some signs that more consistent patterns are emerging it is too early to judge how sustainable these may be. While we continue to build for our long term future, we also remain extremely cautious and alert to what the coming weeks and months may bring."


This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. 

-Ends-

 

For further information, contact:

The Stanley Gibbons Group plc

Harry Wilson

Graham Shircore

Anthony Gee

 

+44 (0)207 836 8444

Liberum Capital Limited (Nomad and Broker)

Andrew Godber

Edward Thomas

 

+44 (0)203 100 2000

 

 

 


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