TIDMSGI 
 
RNS Number : 3777F 
Stanley Gibbons Group PLC 
12 January 2010 
 

For release at 7am on 12 January 2010 
 
 
The Stanley Gibbons Group plc 
("Stanley Gibbons" or the "Company") 
 
 
Trading Update 
 
 
As it enters its close period, the Board of Stanley Gibbons wishes to provide an 
update to the market on its estimated results for the year ended 31 December 
2009 and trading outlook in the current year. 
 
 
2009 trading results 
 
 
Overall, the results for the year are encouraging and reflect the continuing 
acceptance of the Company's stamp and collectibles-related investment 
products as an alternative investment asset class. 
 
 
Turnover for the year is expected to be approximately 20 per cent. ahead of that 
reported in 2008 and slightly ahead of market expectations. However, although 
profits before tax are also expected to be above those reported in 2008, they 
are likely to be below market expectations, principally as a consequence of 
factors set out below.  Nevertheless, operating cash generation during the year 
was strong with cash at the year end of approximately GBP3 million (December 
2008: GBP0.5 million) after payment of approximately GBP2 million in dividends 
and tax in the year. 
 
 
  *  During 2009, management put into effect a deliberate shift in sales of 
  investment products away from those offering future guarantees to others from 
  which the Company earns a lower initial gross margin but with the long term 
  benefit of not taking on the risk of any associated guarantee. The Directors 
  believe this change in focus is in the best long term interests of the Company's 
  performance. 
 
 
 
  *  Deferred sales from 2008 did not crystallise in 2009 validating that the Board 
  was correct in exercising prudence in not booking those sales last year. 
 
 
 
  *  The Company continued to invest in high quality management to develop the 
  Company's strategy and, in the latter part of the year, substantially 
  restructured the team employed to progress and exploit the Company's internet 
  strategy. 
 
 
 
  *  Increased marketing expenditure resulted in the recruitment of new high net 
  worth clients during the year who are expected to contribute to the Company's 
  performance and profitability in future years. 
 
 
 
  *  The launch of the rare stamp investment fund, originally scheduled for 2009, is 
  progressing well and planned to launch in 2010. A further update will be 
  provided in the Company's final results statement in March. 
 
 
 
 
 
Current trading and outlook 
 
 
Trading in the early days of 2010 remains strong and the Company is optimistic 
that several opportunities to grow the business will come to fruition.The 
Company opened a Jersey office in accordance with planned timescales at the end 
of the year and looks forward to developing the opportunities this new location 
presents in due course. The refurbishment of the Company's flagship premises on 
the Strand in London is expected to provide a timely boost to the Company when 
completed in April ahead of the London International Stamp Exhibition in May 
2010. 
 
 
Consequently, the Board remains confident in the long term prospects for the 
Company's businesses and in the ability for sales and profits to continue to 
grow in 2010 and beyond. 
 
 
 
 
Martin Bralsford, Non-Executive Chairman commented: 
 
 
"I am very pleased with the Company's progress and performance during 2009. Not 
only have we substantially grown revenues and profits in a difficult economic 
climate, but have converted profits into a strong cash flow and a healthy 
financial position at the year end. More importantly, we have achieved this at 
the same time as investing in our longer term strategy and repositioning the 
businesses attitude to risk by moving away from investment products offering 
future guarantees. 
 
 
Overall, the Company is very well placed to deliver continued growth to 
Shareholders in the future." 
 
 
For further information, contact: 
 
 
The Stanley Gibbons Group plc 
Michael Hall, Chief Executive                 +44 (0) 1481 708 273 
www.stanleygibbons.com 
 
 
Seymour Pierce Ltd, NOMAD/Broker 
Jonathan Wright/John Cowie +44 (0) 20 7107 8000 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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