RNS Number:1876A
Stanley Gibbons Group Limited
21 August 2002
THE STANLEY GIBBONS GROUP LIMITED
FOR IMMEDIATE RELEASE
21 August 2002
THE STANLEY GIBBONS GROUP LIMITED
INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2002
The Company today announces its Interim Results for the six months to 30 June
2002. Highlights include:
* increased profit of #203,000 compared to #67,000 in the same period last
year;
* eps of 0.82p compared to 0.25p for the six months to 30 June 2001;
* tangible net asset value at 30 June 2002 of 25p against a closing market
price of 161/2p;
* positive cash position;
* 4,557 new customers producing additional revenue of #511,000;
* Internet sites generating 4 million hits per month; and
* A-Z of Stamps of the World data, images and prices now held
electronically.
For further information, contact:
The Stanley Gibbons Group Limited
Paul Fraser, Chairman and Chief Executive 020 7836 8444
Michael Hall, Finance Director 01425 472363
Seymour Pierce Limited
Louise Carpenter ) 020 7648 8700
Jonathan Wright )
THE STANLEY GIBBONS GROUP LIMITED (formerly Communitie.com Limited)
INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2002
Directors and Advisers
Directors
P I Fraser (Chairman and Chief Executive)
M R M Hall (Finance Director)
T Dunningham (Non-executive)
S Feigen (Non-executive)
Registered Office
Pirouet House
Union Street
St Helier
Jersey JE1 3WF
Company Secretary
R K Purkis
Company Registration
Registered in Jersey Number 13177
Nominated Adviser and Broker
Seymour Pierce Limited
Auditors
Solomon Hare
Solicitors
Nabarro Nathanson
Principal Bankers
Barclays Bank plc
Registrars
Capita IRG plc
Balfour House
390-398 High Road
Ilford
Essex IG1 1NQ
Tel: 0870 1623100
Website
www.stanleygibbons.com
Chairman's Statement
I am pleased to announce a profit of #203,000 for the first half of the year,
three times the profit achieved for the same period last year.
Earnings per Ordinary Share for the six months ended 30 June 2002 were 0.82p
compared to 0.25p for the same period to 30 June 2001 and net assets per share
has increased to 25p per share compared to 23p per share as at 30 June 2001. The
Board does not however propose a dividend at this time as it intends to invest
further in its strategy, as detailed below, which is hoped will continue to
yield further improved results in future.
We continue to review all business processes to achieve maximum operational
efficiencies and better allocation of resources driving our strategy according
to plan. Key indicators have all shown improvement in the period, with reduced
overheads, improved stock management, debt under control and stronger margins.
Our cash position is positive, which has given us greater flexibility in
business negotiations.
Our customer database management continues to improve and we have added 4,557
new customers generating new revenue of #511,000 and 30,949 prospects in the
first six months. We are still awaiting the benefits of sub-letting some of our
empty properties but, once achieved, we will benefit from the resulting
reduction in overheads.
We have successfully purchased and sold a number of major stamp collections in
the last two years which has lifted our standing once again in the market. A
recent sale of a rare Mauritius item for #71,000 has proved our capacity to buy
intelligently and, even after holding in stock for sometime, sell at a very
advantageous profit.
We believe that, in the wake of the stock market's recent poor performance,
together with current low interest rates and inflation, there is a renewed
consideration of stamps as an alternative investment. Their portability and
ability to maintain a fixed price on the international market further
strengthens the proposition.
The growth of the Internet has also supported this renewed interest and
opportunity. We are now receiving over 4 million hits a month to our Internet
sites. We intend to make our basic service on Stamps At Auction free in order to
drive even more traffic to that site and through to the others.
We have also refreshed 'Collector Cafe' and believe that the addition of price
guides and auctions will further enhance the service and response to the ever
increasing number of visitors to the site.
I would like to thank all the staff for supporting and implementing the
Company's strategy and creating the necessary momentum that has turned the
business back around and set it on a positive course for the future.
Paul Fraser
Chairman
21 August 2002
Operating Review
Operating results for the 6 months ended 30 June
Proforma Proforma
2002 2002 2001 2001 2000 2000
Sales Profit Sales Profit Sales Profit
#000 #000 #000 #000 #000 #000
Philatelic trading and retail 2,374 366 2,554 300 2,524 122
operations
Publishing and philatelic 1,249 303 1,185 252 1,186 146
accessories
Dealing in autographs, records and 388 95 422 131 367 106
related memorabilia
Exhibitions - - - - (3) (43)
4,011 764 4,161 683 4,074 331
Corporate overheads (417) (462) (434)
New business development 4 (143) 21 (143) 1 (158)
Interest (1) (11) (13)
Before exceptional operating costs 4,015 203 4,182 67 4,075 (274)
Exceptional operating costs - - (79)
4,015 203 4,182 67 4,075 (353)
Sales
Overall group turnover was 4% below the same period last year. Underlying
turnover from continuing activities after adjusting for exceptional income
increased #78,000 (2%) as demonstrated in the table below:
6 months ended 6 months ended
30 June 2002 30 June 2001
#'000 #'000
Group turnover as reported 4,015 4,182
Discontinued activity - Centenary Public Auction (June 2001) - (74)
Exceptional income - Sale of highest value stock items (71) (242)
Underlying turnover 3,944 3,866
We continue to curtail non-profit making activities and achieve improved gross
margins on the continuing core business. The total gross margin on sales for the
first six months of 2002 was 60.6% compared to 55.4% for the same period last
year. The key growth areas, as planned in our business strategy, were in
publishing and related advertising.
Sales in Great Britain philatelic dealing have suffered this year due to the
loss of top spending customers, however we expect to reap the benefits from
improved networking initiatives and strong customer relationship management to
compensate for this by the end of the year.
The shortfall in sales of Great Britain material has been offset by substantial
growth in British Commonwealth philatelic dealing sales which were 43% up on
last year. Commonwealth sales have improved partly due to improved customer
management and better direct mailings but, more importantly, we are benefiting
from the quality of our current stockholding in this area.
Profitability
The profit before tax for the period of #203,000 compares favourably to a profit
for the same period last year of #67,000. We achieved profit in all six trading
months this year which is particularly encouraging in light of the fact that we
were only profitable in three of the trading months for the six month period
last year. Consistent and stable profitability has been achieved through the
benefits of improved control and reporting over operating units, which have
resulted in objective management decisions being made on an accurate and timely
basis.
The key contributors to increased profitability were improved gross margins and
reduced salary overheads. The gross margin percentage continues to improve
partly due to the high margins being attained from the sale of material from the
EHW acquisition in December 2000, and also through improved buying and stock
management.
Salary overheads reduced by #145,000 (12%) compared to the same period last
year. This was facilitated by the lower Directors' salaries, outsourcing of
certain activities and a general reduction in staff numbers. The staff headcount
at 30 June 2002 was 118 compared to 128 at 30 June 2001. We have managed to
reduce staff numbers at the same time as making certain key appointments
necessary to support the business plan including a Web/E-Publishing Director, a
Group Marketing Manager and an Advertising Sales Manager.
New Business Development
Direct sales generated through our web sites represented 5.8% of total sales for
the first six months compared to 3.2% for the same period last year. Such sales
do not include follow up sales made to Internet customers. We now have over
30,000 new philatelic stock items of lower value material on stanleygibbons.com
which has attracted new non specialised overseas collectors to our business.
Our Internet Development Centre operating from Nailsea undertakes our research
and development activities designing and writing software to enable primarily
the development of online catalogues. We are producing our major catalogue title
'Stamps Of The World' electronically this year which will not only provide
savings on printing costs but has created the core electronic data to begin the
building of our integrated stamp community online. We are now in a position to
offer our major catalogue titles in colour at competitive prices for which there
is a proven demand.
We are progressively releasing additional 'one country catalogue' titles this
year in the major British Commonwealth countries which is a unique product
designed to meet the specific requirements of today's more specialised
collector.
Cashflow
The Company held #255,000 cash in the bank at 30 June 2002 compared to an
overdraft of #732,000 at the same time last year. Investment in capital
expenditure has been funded through operating results during the period. Working
capital management continues to be strong with trade debtors representing 63% of
trade creditors at 30 June 2002 compared to 108% at 30 June 2001.
Consolidated Profit and Loss Account
6 months to 6 months to Year ended
30 June 30 June 31 December
2002 2001 2001
(unaudited) (unaudited) (audited)
Notes #'000 #'000 #'000
Turnover 4,015 4,182 8,079
Cost of sales (1,583) (1,867) (3,539)
Gross Profit 2,432 2,315 4,540
Administration expenses (613) (633) (1,224)
Selling and distribution expenses (1,615) (1,604) (3,312)
Exceptional operating costs - - (35)
Operating Profit/(loss) 204 78 (31)
Profit on sale of property - - 388
Interest receivable and similar income 5 7 8
Interest payable and similar charges (6) (18) (51)
Profit on ordinary activities before taxation 203 67 314
Tax on profit on ordinary activities - - (23)
Profit for the financial period 203 67 291
Earnings per Ordinary Share 1 0.82p 0.25p 1.13p
Exceptional operating costs - - 0.14p
Adjusted earnings per Ordinary Share 0.82p 0.25p 1.27p
Diluted earnings per Ordinary Share 1 0.81p 0.25p 1.13p
Share premium and reserves
Share Capital
Premium Revaluation Redemption Profit and
Account Reserve Reserve Loss Account Total
#'000 #'000 #'000 #'000 #'000
At 1 January 2002 5,909 169 21 (334) 5,765
Profit for the financial period - - - 203 203
At 30 June 2002 5,909 169 21 (131) 5,968
Consolidated Balance Sheet
30 June 30 June 31 December
2002 2001 2001
(unaudited) (unaudited) (audited)
Notes #'000 #'000 #'000
Fixed Assets
Tangible assets 1,535 1,781 1,553
Investments 223 223 223
1,758 2,004 1,776
Current Assets
Stocks 4,540 4,621 4,633
Debtors: amounts falling due after more than one 318 298 330
year
Debtors: amounts falling due within one year 690 1,398 908
Cash at bank and in hand 255 152 331
5,803 6,469 6,202
Creditors: amounts falling due within one year (1,227) (2,532) (1,831)
Net current assets 4,576 3,937 4,371
Total assets less current liabilities 6,334 5,941 6,147
Creditors: amounts falling due after more than (118) (321) (134)
one year
Net assets 6,216 5,620 6,013
Capital and reserves
Called up share capital 248 248 248
Share premium account 5,909 5,909 5,909
Capital redemption reserve 21 21 21
Revaluation reserve 169 - 169
Profit and loss account (131) (558) (334)
Equity shareholders' funds 6,216 5,620 6,013
Consolidated Cash Flow Statement
6 months to 6 months to Year ended
30 June 30 June 31 December
2002 2001 2001
(unaudited) (unaudited) (audited)
Notes #'000 #'000 #'000
Net cash inflow from operating activities 2 115 138 737
Returns on investments and servicing of
finance
Interest received 5 7 8
Interest paid (1) (12) (40)
Finance lease interest paid (5) (6) (11)
(1) (11) (43)
Taxation
UK corporation tax paid - (19) (19)
Jersey tax paid (1) - -
Group relief received - - 145
(1) (19) 126
Capital expenditure and financial investments
Payments to acquire tangible fixed assets (138) (351) (614)
Receipts from sales of tangible fixed assets 3 - 900
(135) (351) 286
Acquisitions and disposals
Purchase of business - - (175)
Payment of demerger costs - (15) (81)
- (15) (256)
Net cash (outflow)/inflow before financing (22) (258) 850
Financing
Purchase of own ordinary shares - (404) (404)
Capital element of finance leases (38) (46) (91)
Loan note repayments (16) (15) (15)
Net cash outflow from financing (54) (465) (510)
(Decrease)/increase in cash (76) (723) 340
Analysis of changes in cash during the period
6 months to 6 months to Year ended
30 June 30 June 31 December
2002 2001 2001
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Net cash at the beginning of the period 331 (9) (9)
Net cash (outflow)/inflow (76) (723) 340
Net cash at the end of the period 255 (732) 331
Notes to the unaudited interim report
1. Earnings per ordinary share
The calculation of basic earnings per ordinary share is based on the
weighted average number of shares in issue during the period.
For diluted earnings per share, the weighted average number of ordinary
shares in issue is adjusted to assume conversion of all dilutive potential
ordinary shares. The Group has only one category of dilutive ordinary
shares: those share options granted to employees where the exercise price is
less than the average market price of the Company's ordinary shares during
the period.
6 months to 6 months to Year ended
30 June 2002 30 June 2001 31 December 2001
(unaudited) (unaudited) (audited)
Weighted average number of ordinary shares in issue 24,826,736 26,713,885 25,762,555
(No)
Dilutive potential ordinary shares: Employee share 120,323 - -
options
Profit after tax (#) 203,000 67,000 291,000
Basic earnings per share - pence per share (p) 0.82p 0.25p 1.13p
Diluted earnings per share - pence per share (p) 0.81p 0.25p 1.13p
2. Reconciliation of operating profit/(loss) to net cash inflow from operating
activities
6 months to 6 months to Year ended
30 June 2002 30 June 2001 31 December 2001
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Operating profit/(loss) 204 78 (31)
Depreciation 156 146 294
Gain on sale of tangible fixed assets (3) - -
Decrease in stocks 93 362 350
Decrease in debtors 230 45 335
Decrease in creditors (565) (493) (211)
Net cash inflow from operating activities 115 138 737
3. Financial information
The financial information in this report does not comprise full financial
statements. Full financial statements for the year ended 31 December 2001,
on which the auditors gave an unqualified report, have been delivered to the
Jersey Registrar of Companies.
4. Further copies of this statement
Copies of this statement are being sent to shareholders. Further copies are
available on request from: The Company Secretary, The Stanley Gibbons Group
Limited, 399 Strand, London, WC2R 0LX.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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