TIDMSGI
RNS Number : 6128Q
Stanley Gibbons Group PLC
06 August 2010
THE STANLEY GIBBONS GROUP PLC
FOR IMMEDIATE RELEASE 6
August 2010
THE STANLEY GIBBONS GROUP PLC ("the Company" or "the Group")
Interim Results for the six months ended 30 June 2010
The Company today announces its interim results for the six months ended 30 June
2010.
Key Financial Highlights
· Sales up 24% to GBP11.9m (2009: GBP9.6m)
· Profit before tax of GBP1.6m (2009: GBP1.4m), up 10%
· EBITDA of GBP1.7m (2009: GBP1.5m), up 12%
· Earnings per share of 5.58p (2009: 5.09p), up 10%
· Interim dividend declared of 2.25p per share (2009: 2p), representing an
increase of 13%, payable on 27 September 2010 to all holders on the Register at
the close of business on 20 August 2010
· Cash generated from operating activities in period of GBP0.8m (2009:
GBP1.4m) despite an increased investment in quality stockholding of GBP1.3m
Current Trading and Outlook
· Successful completion of refurbishment works on our flagship retail
premises at 399 Strand on the 13th of April
· Strong presentation of brand at 2010 London Stamp Exhibition in May
generating sales of over GBP0.4m and developing important new client
relationships
· Website and database projects progressing in line with plan
· First entry into Chinese stamp market with orders received of over GBP1m
expected to be invoiced in third quarter
· New investment office in Jersey trading ahead of expectations
· Stamp market remains strong with GB30 Rarities index showing growth of 7%
for the year to date backed up by higher levels of trade to collectors through
philatelic dealing and auctions
· Working on a number of potential complementary business acquisitions to
strengthen brand offering
Martin Bralsford, Non-Executive Chairman, commented:
"It is a pleasure to present to our Shareholders another set of positive results
for the Stanley Gibbons Group plc in the six months ended 30 June 2010, showing
continued growth in sales and profitability.
I am satisfied with the progress being made by the management team on the
execution of the core aspects of our strategy, particularly with the investment
we are now making in our important website and database development projects.
Despite associated costs with these developments and management diversion to
ensure the successful delivery of the longer term growth opportunities, we
continue to grow current sales and profits.
Current growth is being assisted by the positive forces now operating within our
market at this time. We continue to see an increasing number of new high net
worth collectors at the same time as an increasing number of investors looking
to place an element of their wealth in a tangible asset with a value embedded in
history.
The market for stamps in China looks like it could be a major opportunity for us
as we gain a better understanding of the characteristics of that market. I
believe the Chinese stamp market will ultimately have a substantial impact on
our future sales and profitability over the longer term.
Based on the above, your Board remains confident on the Company's continued
ability to grow both sales and profits for the full financial year."
For further information, contact:
The Stanley Gibbons Group plc
Michael Hall, Chief Executive +44 (0)
1534 766711
Seymour Pierce Ltd, NOMAD/Broker
Jonathan Wright / John Cowie +44 (0)
20 7107 8000
Chairman's Statement
On behalf of your Board, I am pleased to report another trading period of
sustained growth in sales and profits of the Group. Financial performance for
the first half of this year and progress against the key elements of our
strategy were in line with our expectations.
The increase in profits was achieved despite an increase of GBP0.5 million in
overheads during the period necessary to support the development of the Group's
longer term strategy, particularly the investment in our internet sites and the
database project. A considerable amount of Senior Executive time was devoted to
the management of these projects in the first half, which diverts attention from
current profit generating activities, making the results even more creditable.
Financials
Turnover for the half year to 30 June 2010 increased by 24% to GBP11.9 million
(2009: GBP9.6 million). Profit before tax was GBP1.6 million, up 10%. EBITDA was
GBP1.7 million, up 12%.
Earnings per share were 5.58p (2009: 5.09p), representing an increase of 10%.
Dividend
Your Board is pleased to declare an increase in the interim dividend of 13% to
2.25p (2009: 2p) per Share, payable on 27 September 2010 to holders of Ordinary
Shares on the Register at the close of business on the record date of 20 August
2010. The Board maintains its progressive policy on the dividend which is
covered 2.5 times by earnings for the six months ended 30 June 2010.
The Company paid a final dividend of 3p per Share in respect of the year ended
31 December 2009, on 17 May 2010.
Outlook
The refurbishment of our flagship retail premises at 399 Strand was achieved on
schedule, following completion of the works in mid-April providing the business
with the solid foundation from which to benefit from the continued growth in the
market of collectibles and from the heightened interest in the acquisition of
such alternative investments. We now have suitable premises from which to build
stronger long term relationships with our clients.
Our brand enjoyed a prominent position during the 2010 London Stamp Exhibition
in May bringing it to the forefront of philately and providing us with the
valuable opportunity to showcase the quality of our stockholding to a wide
audience of international collectors. The centrepiece item on display at the
exhibition - the 6d IR official - received substantial interest from collectors
visiting the Exhibition and was subsequently sold for GBP0.4 million.
Following an extensive tender process which commenced in March of this year, we
have outsourced our web development function and are targeting a complete
re-launch of our websites, both Stanley Gibbons and Frasers, in early December
2010. This will be followed by our new online trading community functionality in
early 2011. The IT project to digitalise our catalogue data in one database is
proceeding to plan. The inaugural publication using this new system is due
later this year.
Our new investment office in Jersey, opened at the end of last year, is trading
ahead of our expectations generating additional sales revenue of GBP0.5 million
in the first half of the year. We aim to continue to build our presence and
reputation as a provider of a quality alternative investment product in Jersey,
where we expect material growth in the long-term.
We have made progress in the first half towards our plans to develop into the
stamp market in China. Our Chief Executive has visited the Far East to gain an
on-the-ground understanding of the characteristics of the market. As a result of
this, we have identified, and are working with, suitable trading partners to
enable us to access this huge and diverse marketplace. We recently secured a top
quality collection of investment grade stamps from China and already have over
GBP1 million of registered orders from investment clients which we hope to
fulfil in the third quarter. Further trips to the Far East are planned for
September and we intend to develop opportunities there on a number of fronts to
exploit the size and strength of this market.
The launch of the rare stamp investment fund is currently on hold whilst we
focus on other projects and opportunities within the business. We formalised the
fund structure in the first half which will include an independent fund manager
and a separate independent valuation expert. Although we have a level of
pre-registered support for the fund, the viability of it will be dependent on
the successful marketing and distribution to reach a critical mass, which can
deliver a return to investors when bearing in mind the associated fees and
administration costs of a fund.
We intend to acquire a number of large stamp collections, and, if successful,
they will provide the scale and quality of stockholding we need to satisfy
current and anticipated levels of demand for the balance of the year. We remain
focussed on securing elusive "once in a generation" opportunities to acquire the
finest and rarest stamps and historical signatures as sought by our key clients.
Board
I am delighted to welcome John Byfield to your Board as a Non-Executive
Director. John joined the Company following our AGM on the 28th April. The
Company is already benefiting from the wealth of expertise he brings to the
Board by virtue of his career successes. John was a founding partner of a
substantial law practice and enjoyed subsequent success in building his own AIM
listed company, "Essentially Group". He replaces John Wright who stepped down
from the Board after completing six years of valuable service for which the
Board is very grateful.
Martin Bralsford
Chairman
5 August 2010
Operating Review
+-------------------+--------+--------+--------+--------+----------+----------+
| | 6 | 6 | 6 | 6 | Year | Year |
| | months | months | months | months | ended | ended |
| | to 30 | to 30 | to 30 | to 30 | 31 | 31 |
| | June | June | June | June | December | December |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
| | Sales | Profit | Sales | Profit | | Profit |
| | | | | | Sales | |
+-------------------+--------+--------+--------+--------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------+--------+--------+--------+--------+----------+----------+
| Philatelic | 9,148 | 1,845 | 7,215 | 1,549 | 17,657 | 4,056 |
| trading and | | | | | | |
| retail | | | | | | |
| operations | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
| Publishing and | 1,380 | 233 | 1,312 | 222 | 3,057 | 742 |
| philatelic | | | | | | |
| accessories | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
| Dealing in | 1,367 | 440 | 1,096 | 424 | 2,610 | 990 |
| autographs, | | | | | | |
| records and | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
| related | | | | | | |
| memorabilia | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
| | 11,895 | 2,518 | 9,623 | 2,195 | 23,324 | 5,788 |
+-------------------+--------+--------+--------+--------+----------+----------+
| Internet | 20 | (29) | 20 | (61) | 41 | (138) |
| development | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
| Corporate | | (937) | | (694) | | (1,521) |
| overheads | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
| Interest and | | 18 | | (15) | | (16) |
| similar | | | | | | |
| income/(expenses) | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
| | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
| Group total | 11,915 | 1,570 | 9,643 | 1,425 | 23,365 | 4,113 |
| sales and | | | | | | |
| profit before | | | | | | |
| tax | | | | | | |
+-------------------+--------+--------+--------+--------+----------+----------+
Overview
Group turnover for the six months ended 30 June 2010 increased by GBP2.3 million
(24%) compared to the same period last year. The profit before tax for the
period of GBP1.6 million represented an increase of 10% on the prior period.
Earnings per share were 5.58p (2009: 5.09p), up 10%.
The key contributors to growth in sales and profits in the period were:
· The benefits from the strength of our buying activity during the period
of unique and exceptional items of philately and historical documents and
signatures
· High level of new client recruitment during the period including new
clients sourced through our investment office in Jersey and a good quality of
responses from our press advertising and insert campaigns
· Increased focus in personal client relationship management enabling us to
understand our key clients' needs better to source items of particular interest
to them
· 34% increase in sales to collectors through our philatelic dealing
departments highlighting the lack of correlation of the rare stamp market with
other turbulent markets
· Continued growth in our auction business with a record auction held in
June realising GBP0.9 million with over 90% of lots offered sold
The gross margin percentage for the six months ended 30 June 2010 was 40.6%
compared to 43.4% in the same period last year. The decline in gross margin
percentage was in line with our expectations and is partly the result of our
strategic decision to take a lower trading spread up-front on sales to
investment clients in place of providing future guarantees. The lower margin
percentage is also an indicator of our move more towards trading in premium high
value collectibles where margins available are inherently lower.
Overheads were GBP0.5 million (20%) higher than the prior period. The overhead
increases included an increase in salary costs of GBP0.2 million and marketing
expenditure of GBP0.2 million. Increased salary costs predominantly relate to
new executive and senior management recruitments necessary to support the
implementation of our strategy. Increased marketing expenditure incorporated the
costs associated with obtaining the maximum exposure during the London 2010
Stamp Exhibition together with our investment in recruiting new high net worth
clients, which supported sales growth achieved in the period.
Philatelic Trading and Retail Operations
Philatelic trading and retail sales were 27% higher than the same period last
year with profit contribution up by 19%. The increase in sales to specialised
collectors and investment clients compensated for the loss of retail sales
during the period of refurbishment works to the 13th of April.
Auction commissions were up 28% and reflect the success of our June Public
Auction where realisations exceeded expectations. Of particular note was the
Chinese stamp section, where realisations achieved were between three and ten
times our upper pre-auction estimates. This highlights the high level of demand
within the Chinese market at this time and illustrates the potential investment
returns available.
Last year, sales to collectors of British stamps were flat, impacted to some
extent by the weakness in the economy during that time. Despite the continued
poor state of the UK's finances, we have witnessed resurgence in demand of
British stamps accompanied by a higher level of new collectors entering the
market. The result was that sales of British stamps to collectors were up by 74%
on the prior period. The GB stamp market has benefited from the London 2010
Stamp Exhibition in May. The resurgence in demand is highlighted by the increase
of 7% reflected in the GB30 Rarities Index for the year to date.
Our core strategy in respect of the sale of rare stamps as an investment has
often been misunderstood. Our focus is primarily on the acquisition and offering
of top quality rare stamps, (i.e. those stamps of the right level of rarity and
scarcity expected to deliver long term growth in value backed up by long term
historic pricing evidence). With this offering, our aim was to educate the
market on two fronts:
1. To ensure that collectors began to appreciate more the importance
of quality and the potential investment returns from exercising extreme
diligence on assessing quality when buying
2. To recruit new clients initially interested in the potential
investment returns available within our market and to educate them on the
pleasure and satisfaction that can be derived from collecting and to encourage
them to focus on areas of personal interest
I believe we have made significant progress towards achieving these objectives
and that the hobby and the stamp trade in general will benefit for many years to
come from the fruits of our labour in this respect.
Publishing and Philatelic Accessories
Publishing and philatelic accessory sales and profit contribution were both 5%
higher than in the same period last year.
Sales benefited primarily from a strong publishing schedule in the first half,
together with increased sales at the London 2010 Stamp Exhibition.
We have recently launched a new electronic product featuring our Gibbons Stamp
Monthly magazine monthly archive from 1890 to 2009. This provides collectors
with over 40,000 pages of philatelic articles and images in a searchable digital
format. The Gibbons Stamp Monthly archive represents the most powerful and
extensive philatelic research tool on the market. The product is currently
available on disc format for the retail price of GBP199.95. This wealth of
philatelic information will feature as one of the core elements of our online
philatelic trading community when launched in 2011.
Our Publishing division is undergoing a period of dramatic change as we progress
the implementation of a new Database Asset Management system. Our biggest
selling title, Stamps of the World, will be the first title produced through the
new system at the end of October.
Autographs, Records and Related Memorabilia
Autographs, records and related memorabilia sales were 25% up on the prior
period with profit contribution up 4%. Sales to collectors and trade were down
by 11% in the period due mainly to the loss of retail business during the
refurbishment of 399 Strand.
Sales to investors and high net worth clients of historical documents and
signatures were however up by 46%. Improvements to our stock acquisition
strategy to focus on the procurement of fascinating items of historical
importance, has delivered the expected returns with most items being acquired
placed with clients within a week of purchase. Buying the most exciting items is
the key element to building strong long term client relationships and represents
our core strength.
Our e marketing continues to provide the most effective means of communicating
the fascinating and compelling history behind the items we offer for sale.
E-mail is the most efficient and cost effective way to communicate to the
highest number of clients simultaneously and the copy we write serves to educate
prospective clients to assist them in arriving at an informed decision.
Internet Development
Sales reported within this department relate to online subscription revenue
only. Online sales represented 7% of revenue in both periods. The website
generated investment sales totalling GBP0.6 million in the period illustrating
the importance of our website strategy to provide a seamless information tool
enabling investors to conduct full online research of our services.
Corporate Overheads
Corporate overheads were GBP0.2 million (35%) higher than the same period last
year representing the planned increased investment in Senior Executive resource
for the six months under review. A large proportion of senior executive time
during the period was required to manage the projects regarding our website
development and implementation of a Database Asset Management system, from which
benefits will not accrue until future accounting periods.
Corporate overheads include an IFRS2 actuarial accounting charge for share
options of GBP54,000 (2009: GBP24,000).
Cashflow
Cash generated from operating activities of GBP0.8 million (2009: GBP1.4
million) is net of our increased investment in our stockholding of GBP1.3
million. Investment was mainly in higher value rarities where our average stock
turnover times are no more than 3 months.
The reduction in cash during the period of GBP1.3 million reflects dividends
paid of GBP0.8 million, tax paid of GBP0.3 million and capital expenditure of
GBP1 million. Capital expenditure investment includes GBP0.7 million in respect
of the refurbishment of 399 Strand and GBP0.3 million in the development of our
Database Asset Management system necessary to support the core development of
our internet strategy and proposed online trading community. Both of these
investments increase the long term value of the business and are expected to
generate substantial cashflows in future accounting periods.
Strategic Focus and Opportunities
The successful re-opening of 399 Strand in April and the subsequent prominent
presentation of our brand at the 2010 London Stamp Exhibition saw our key
strategic objectives of the first half being achieved. These achievements
provide longer term benefits through presenting a more professional image of our
brand at the Strand together with the strong client relationships formed during
the London Stamp Exhibition.
Our strategic focus in the second half of the year in order of priority is as
follows:
1. Implementation of developments to website and Database Asset
Management system
2. Increased focus in our buying efforts to acquire unique pieces
and items of the highest level of rarity and hence providing the best long term
investment potential
3. Further development of identified business opportunities in China
4. Completion of strategic acquisitions currently in progress
5. Continued promotion and relationship building to develop sales to
new investment clients from our Jersey office
6. Distribution of rare stamp investment fund
The business remains in a strong position financially by virtue of our cash
balances and the strength of our stockholding which is reported in the Balance
Sheet at historic cost, not market value. We enter the second half of the year
with a strong order book giving confidence in the potential to continue to grow
sales and profitability in the short term. Progress against our longer term
strategy has accelerated in the first half of the year and our focus in the
second half remains on achieving the key milestones towards delivery of a
broader based internet strategy.
Michael Hall
Chief Executive
5 August 2010
Condensed statement of comprehensive income
+---------------------+-------+-------------+-------------+-----------+
| | | 6 | 6 | Year |
| | | months | months | ended |
| | | to | to | |
+---------------------+-------+-------------+-------------+-----------+
| | | 30 | 30 | 31 |
| | | June | June | December |
+---------------------+-------+-------------+-------------+-----------+
| | | 2010 | 2009 | 2009 |
+---------------------+-------+-------------+-------------+-----------+
| | | (unaudited) | (unaudited) | (audited) |
+---------------------+-------+-------------+-------------+-----------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Revenue | 3 | 11,915 | 9,643 | 23,365 |
+---------------------+-------+-------------+-------------+-----------+
| Cost of sales | | (7,079) | (5,459) | (13,345) |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Gross Profit | | 4,836 | 4,184 | 10,020 |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Administrative | | (1,082) | (843) | (1,817) |
| expenses | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Selling and | | (2,202) | (1,901) | (4,074) |
| distribution | | | | |
| expenses | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Operating Profit | | 1,552 | 1,440 | 4,129 |
+---------------------+-------+-------------+-------------+-----------+
| Finance income | | 18 | 1 | 2 |
+---------------------+-------+-------------+-------------+-----------+
| Finance costs | | - | (16) | (18) |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Profit before tax | | 1,570 | 1,425 | 4,113 |
+---------------------+-------+-------------+-------------+-----------+
| Taxation | 4 | (166) | (143) | (413) |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Profit for the | | 1,404 | 1,282 | 3,700 |
| period | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Other comprehensive | | | | |
| income: | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Actuarial losses | | - | - | (352) |
| recognised in the | | | | |
| pension scheme | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Tax on actuarial | | - | - | 80 |
| losses recognised | | | | |
| in the pension | | | | |
| scheme | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Other comprehensive | | - | - | (272) |
| income for the | | | | |
| period, net of tax | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Total comprehensive | | 1,404 | 1,282 | 3,428 |
| income for the | | | | |
| period | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Basic earnings per | 5 | 5.58p | 5.09p | 14.70p |
| Ordinary Share | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Diluted earnings | 5 | 5.57p | 5.09p | 14.69p |
| per Ordinary Share | | | | |
+---------------------+-------+-------------+-------------+-----------+
All profit and total comprehensive income is attributable to the owners of the
parent; there are no non-controlling interests.
Condensed statement of financial position
+----------------------+----+-------------+-------------+-----------+
| | | 30 | 30 | 31 |
| | | June | June | December |
+----------------------+----+-------------+-------------+-----------+
| | | 2010 | 2009 | 2009 |
+----------------------+----+-------------+-------------+-----------+
| | | (unaudited) | (unaudited) | (audited) |
+----------------------+----+-------------+-------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------+----+-------------+-------------+-----------+
| Non-current assets | | | | |
+----------------------+----+-------------+-------------+-----------+
| Intangible assets | | 461 | 134 | 186 |
+----------------------+----+-------------+-------------+-----------+
| Property, plant and | | 1,784 | 957 | 1,103 |
| equipment | | | | |
+----------------------+----+-------------+-------------+-----------+
| Deferred tax asset | | 124 | 23 | 124 |
+----------------------+----+-------------+-------------+-----------+
| Trade and other | | - | 1,855 | 118 |
| receivables | | | | |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| | | 2,369 | 2,969 | 1,531 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| Current assets | | | | |
+----------------------+----+-------------+-------------+-----------+
| Inventories | | 10,574 | 11,356 | 9,289 |
+----------------------+----+-------------+-------------+-----------+
| Trade and other | | 9,663 | 4,980 | 9,848 |
| receivables | | | | |
+----------------------+----+-------------+-------------+-----------+
| Cash and cash | | 1,776 | 394 | 3,062 |
| equivalents | | | | |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| | | 22,013 | 16,730 | 22,199 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| Total assets | | 24,382 | 19,699 | 23,730 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| Current liabilities | | | | |
+----------------------+----+-------------+-------------+-----------+
| Trade and other | | 3,898 | 2,156 | 4,014 |
| payables | | | | |
+----------------------+----+-------------+-------------+-----------+
| Current tax payable | | 176 | 163 | 296 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| | | 4,074 | 2,319 | 4,310 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| Non-current | | | | |
| liabilities | | | | |
+----------------------+----+-------------+-------------+-----------+
| Retirement benefit | | 442 | 86 | 442 |
| obligations | | | | |
+----------------------+----+-------------+-------------+-----------+
| Deferred tax | | 172 | 150 | 161 |
| liabilities | | | | |
+----------------------+----+-------------+-------------+-----------+
| Provisions | | 834 | 695 | 660 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| | | 1,448 | 931 | 1,263 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| Total liabilities | | 5,522 | 3,250 | 5,573 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| Net assets | | 18,860 | 16,449 | 18,157 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| Equity | | | | |
+----------------------+----+-------------+-------------+-----------+
| Called up share | | 252 | 252 | 252 |
| capital | | | | |
+----------------------+----+-------------+-------------+-----------+
| Share premium | | 5,195 | 5,195 | 5,195 |
| account | | | | |
+----------------------+----+-------------+-------------+-----------+
| Share compensation | | 217 | 116 | 163 |
| reserve | | | | |
+----------------------+----+-------------+-------------+-----------+
| Capital redemption | | 38 | 38 | 38 |
| reserve | | | | |
+----------------------+----+-------------+-------------+-----------+
| Revaluation reserve | | 201 | 182 | 201 |
+----------------------+----+-------------+-------------+-----------+
| Retained earnings | | 12,957 | 10,666 | 12,308 |
+----------------------+----+-------------+-------------+-----------+
| | | | | |
+----------------------+----+-------------+-------------+-----------+
| Equity shareholders' | | 18,860 | 16,449 | 18,157 |
| funds | | | | |
+----------------------+----+-------------+-------------+-----------+
Condensed statement of changes in equity
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| | Called | | Share | | | | |
| | up | | compensation | | Capital | | |
| | share | Share | reserve | Revaluation | redemption | Retained | |
| | capital | premium | | reserve | reserve | earnings | Total |
| | | account | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| | | | | | | | GBP'000 |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| At 1 January | 252 | 5,195 | 163 | 201 | 38 | 12,308 | 18,157 |
| 2010 | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Total | - | - | - | - | - | 1,404 | 1,404 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| period | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Dividends | - | - | - | - | - | (755) | (755) |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Cost of share | - | - | 54 | - | - | - | 54 |
| options | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| At 30 June 2010 | 252 | 5,195 | 217 | 201 | 38 | 12,957 | 18,860 |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| At 1 January | 252 | 5,195 | 92 | 182 | 38 | 10,076 | 15,835 |
| 2009 | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Total | - | - | - | - | - | 1,282 | 1,282 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| period | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Dividends | - | - | - | - | - | (692) | (692) |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Cost of share | - | - | 24 | - | - | - | 24 |
| options | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| At 30 June 2009 | 252 | 5,195 | 116 | 182 | 38 | 10,666 | 16,449 |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| At 1 January | 252 | 5,195 | 92 | 182 | 38 | 10,076 | 15,835 |
| 2009 | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Total | - | - | - | - | - | 3,428 | 3,428 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| year | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Dividends | - | - | - | - | - | (1,196) | (1,196) |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Cost of share | - | - | 71 | - | - | - | 71 |
| options | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| Revaluation of | - | - | - | 19 | - | - | 19 |
| reference | | | | | | | |
| collection (net | | | | | | | |
| of deferred | | | | | | | |
| tax) | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
| At 31 December | 252 | 5,195 | 163 | 201 | 38 | 12,308 | 18,157 |
| 2009 | | | | | | | |
+-----------------+---------+---------+--------------+-------------+------------+----------+---------+
Condensed statement of cash flows
+---------------------+-------+-------------+-------------+-----------+
| | | 6 | | Year |
| | | months | 6 | ended |
| | | to | months | |
| | | | to | |
+---------------------+-------+-------------+-------------+-----------+
| | | 30 | 30 | 31 |
| | | June | June | December |
+---------------------+-------+-------------+-------------+-----------+
| | | 2010 | 2009 | 2009 |
+---------------------+-------+-------------+-------------+-----------+
| | | (unaudited) | (unaudited) | (audited) |
+---------------------+-------+-------------+-------------+-----------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Cash generated from | 6 | 779 | 1,353 | 4,897 |
| operations | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Interest paid | | - | (3) | (4) |
+---------------------+-------+-------------+-------------+-----------+
| Taxes paid | | (275) | (638) | (783) |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Net cash generated | | 504 | 712 | 4,110 |
| from operating | | | | |
| activities | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Investing | | | | |
| activities | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Purchase of | | (747) | (110) | (275) |
| property, plant and | | | | |
| equipment | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Purchase of | | (288) | (52) | (114) |
| intangible assets | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Interest received | | - | 1 | 2 |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Net cash used in | | (1,035) | (161) | (387) |
| investing | | | | |
| activities | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Financing | | | | |
| activities | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Dividends paid to | 7 | (755) | (692) | (1,196) |
| company | | | | |
| shareholders | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Net cash used in | | (755) | (692) | (1,196) |
| financing | | | | |
| activities | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Net | | (1,286) | (141) | 2,527 |
| (decrease)/increase | | | | |
| in cash and cash | | | | |
| equivalents | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Cash and cash | | 3,062 | 535 | 535 |
| equivalents at | | | | |
| start of period | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
| Cash and cash | | 1,776 | 394 | 3,062 |
| equivalents at end | | | | |
| of period | | | | |
+---------------------+-------+-------------+-------------+-----------+
| | | | | |
+---------------------+-------+-------------+-------------+-----------+
Notes to the condensed financial statements
1 Basis of preparation
These condensed financial statements have been prepared using accounting
policies consistent with International Financial Reporting Standards (IFRS) and
in accordance with International Accounting Standard (IAS) 34 Interim Financial
Reporting (as amended).
2 Significant accounting policies
The accounting policies followed in the preparation of this condensed interim
report have been applied consistently to all periods in these financial
statements and are the same as those applied by the Group in the preparation of
its Annual Report for the year ended 31 December 2009. No actuarial valuation
of the pension scheme had been undertaken at 30 June 2010 or at 30 June 2009.
3 Segmental analysis
As outlined in the Operating Review the company has four main business segments,
operations being split between Philatelic trading, Publishing and philatelic
accessories, Autographs, records and memorabilia and Internet development. This
is based upon the Group's internal organisation and management structure and is
the primary way in which the board of directors is provided with financial
information.
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| | Philatelic | Publishing | Autographs, | Internet | Unallocated | Group |
| | trading | and | records and | development | | |
| | | philatelic | memorabilia | | | |
| | | accessories | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Segmental | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| income | | | | | | |
| statement | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| 6 months to | | | | | | |
| 30 June | | | | | | |
| 2010 | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Revenue | 9,148 | 1,380 | 1,367 | 20 | - | 11,915 |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Operating | (7,303) | (1,147) | (927) | (49) | (937) | (10,363) |
| costs | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Net finance | - | - | - | - | 18 | 18 |
| income | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Profit | 1,845 | 233 | 440 | (29) | (919) | 1,570 |
| before tax | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Tax | - | - | - | - | (166) | (166) |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Profit for | 1,845 | 233 | 440 | (29) | (1,085) | 1,404 |
| the period | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| 6 months to | | | | | | |
| 30 June | | | | | | |
| 2009 | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Revenue | 7,215 | 1,312 | 1,096 | 20 | - | 9,643 |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Operating | (5,666) | (1,090) | (672) | (81) | (694) | (8,203) |
| costs | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Net finance | - | - | - | - | (15) | (15) |
| costs | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Profit | 1,549 | 222 | 424 | (61) | (709) | 1,425 |
| before tax | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Tax | - | - | - | - | (143) | (143) |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Profit for | 1,549 | 222 | 424 | (61) | (852) | 1,282 |
| the period | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Year ended | | | | | | |
| 31 December | | | | | | |
| 2009 | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Revenue | 17,657 | 3,057 | 2,610 | 41 | - | 23,365 |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Operating | (13,601) | (2,315) | (1,620) | (179) | (1,521) | (19,236) |
| costs | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Net finance | - | - | - | - | (16) | (16) |
| costs | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Profit | 4,056 | 742 | 990 | (138) | (1,537) | 4,113 |
| before tax | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Tax | - | - | - | - | (413) | (413) |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
| Profit for | 4,056 | 742 | 990 | (138) | (1,950) | 3,700 |
| the year | | | | | | |
+-------------+------------+-------------+-------------+-------------+-------------+----------+
Geographical information
Analysis of revenue by origin and destination
+---------+-------------+---------+-------------+---------+-------------+----------+
| | Period | Period | Period | Period | Year | Year |
| | ended | ended | ended | ended | ended | ended |
| | 30 | 30 | 30 | 30 | 31 | 31 |
| | June | June | June | June | December | December |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| | Sales | Sales | Sales | Sales | Sales by | Sales |
| | by | by | by | b | | by |
| | destination | origin | destination | origin | destination | origin |
+---------+-------------+---------+-------------+---------+-------------+----------+
| | | | | | | |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------+-------------+---------+-------------+---------+-------------+----------+
| | | | | | | |
+---------+-------------+---------+-------------+---------+-------------+----------+
| Channel | 656 | 6,528 | 286 | 4,645 | 1,162 | 12,689 |
| Islands | | | | | | |
+---------+-------------+---------+-------------+---------+-------------+----------+
| United | 7,682 | 5,387 | 6,939 | 4,998 | 16,813 | 10,676 |
| Kingdom | | | | | | |
+---------+-------------+---------+-------------+---------+-------------+----------+
| Europe | 482 | - | 368 | - | 1,253 | - |
+---------+-------------+---------+-------------+---------+-------------+----------+
| North | 501 | - | 512 | - | 1,352 | - |
| America | | | | | | |
+---------+-------------+---------+-------------+---------+-------------+----------+
| Rest | 2,594 | - | 1,538 | - | 2,785 | - |
| of | | | | | | |
| the | | | | | | |
| World | | | | | | |
+---------+-------------+---------+-------------+---------+-------------+----------+
| | | | | | | |
+---------+-------------+---------+-------------+---------+-------------+----------+
| | 11,915 | 11,915 | 9,643 | 9,643 | 23,365 | 23,365 |
+---------+-------------+---------+-------------+---------+-------------+----------+
4 Taxation
The charge for taxation is based on the results for the period and takes into
account taxation deferred because of timing differences between the treatment of
certain items for taxation and accounting purposes. Deferred tax is recognised
on a full provision basis in respect of all temporary differences which have
originated, but not reversed at the balance sheet date. The provision is not
discounted.
5 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. Also in existence were 228,803
options issued under the Company's 2007 Long-Term Incentive Plan (LTIP). These
options were not dilutive at 30 June 2010.
+------------------------+-------------+-------------+------------+
| | 6 | 6 | Year |
| | months | months | ended |
| | to | to | |
+------------------------+-------------+-------------+------------+
| | 30 | 30 | 31 |
| | June | June | December |
| | 2010 | 2009 | 2009 |
+------------------------+-------------+-------------+------------+
| | (unaudited) | (unaudited) | (audited) |
+------------------------+-------------+-------------+------------+
| Weighted average | 25,177,443 | 25,177,443 | 25,177,443 |
| number of ordinary | | | |
| shares in issue | | | |
+------------------------+-------------+-------------+------------+
| Dilutive potential | 42,534 | 2,143 | 5,842 |
| ordinary shares: | | | |
| Employee share options | | | |
+------------------------+-------------+-------------+------------+
| Profit after tax (GBP) | 1,404,000 | 1,282,000 | 3,700,000 |
+------------------------+-------------+-------------+------------+
| | | | |
+------------------------+-------------+-------------+------------+
| Basic earnings per | 5.58p | 5.09p | 14.70p |
| share - pence per | | | |
| share (p) | | | |
+------------------------+-------------+-------------+------------+
| | | | |
+------------------------+-------------+-------------+------------+
| Diluted earnings per | 5.57p | 5.09p | 14.69p |
| share - pence per | | | |
| share (p) | | | |
+------------------------+-------------+-------------+------------+
6 Cash generated from operations
+------------------------+-------------+-------------+-----------+
| | 6 | 6 | Year |
| | months | months | ended |
| | to | to | |
+------------------------+-------------+-------------+-----------+
| | 30 | 30 | 31 |
| | June | June | December |
| | 2010 | 2009 | 2009 |
+------------------------+-------------+-------------+-----------+
| | (unaudited) | (unaudited) | (audited) |
+------------------------+-------------+-------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------+-------------+-------------+-----------+
| Operating profit | 1,552 | 1,440 | 4,129 |
+------------------------+-------------+-------------+-----------+
| Depreciation | 66 | 55 | 99 |
+------------------------+-------------+-------------+-----------+
| Amortisation | 13 | 12 | 23 |
+------------------------+-------------+-------------+-----------+
| Increase in provisions | 192 | 181 | 140 |
+------------------------+-------------+-------------+-----------+
| Cost of share options | 54 | 24 | 71 |
+------------------------+-------------+-------------+-----------+
| (Increase) / decrease | (1,285) | 389 | 2,456 |
| in inventories | | | |
+------------------------+-------------+-------------+-----------+
| Decrease / (increase) | 303 | (37) | (3,168) |
| in trade and other | | | |
| receivables | | | |
+------------------------+-------------+-------------+-----------+
| (Decrease) / increase | (116) | (711) | 1,147 |
| in trade and other | | | |
| payables | | | |
+------------------------+-------------+-------------+-----------+
| | | | |
+------------------------+-------------+-------------+-----------+
| Cash generated from | 779 | 1,353 | 4,897 |
| operations | | | |
+------------------------+-------------+-------------+-----------+
7 Dividends
+----------------------+----------+-------------+-------------+-----------+
| | | 6 months | 6 | Year |
| | | to | months | ended |
| | | 30 June | to | 31 |
| | | 2010 | 30 | December |
| | | | June | 2009 |
| | | | 2009 | |
+----------------------+----------+-------------+-------------+-----------+
| | | (unaudited) | (unaudited) | (audited) |
+----------------------+----------+-------------+-------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------+----------+-------------+-------------+-----------+
| | | | | |
+----------------------+----------+-------------+-------------+-----------+
| Amounts recognised | | | | |
| as distribution to | | | | |
| equity holders in | | | | |
| period: | | | | |
+----------------------+----------+-------------+-------------+-----------+
| Dividend paid | | 755 | 692 | 1,196 |
+----------------------+----------+-------------+-------------+-----------+
| | | | | |
+----------------------+----------+-------------+-------------+-----------+
| Dividend paid per | | 3.0p | 2.75p | 4.75p |
| share | | | | |
+----------------------+----------+-------------+-------------+-----------+
| | | | | |
+----------------------+----------+-------------+-------------+-----------+
| | | | | |
+----------------------+----------+-------------+-------------+-----------+
| Dividend proposed | | 566 | 504 | 755 |
| but not paid | | | | |
+----------------------+----------+-------------+-------------+-----------+
| | | | | |
+----------------------+----------+-------------+-------------+-----------+
| Dividend proposed | | 2.25p | 2.0p | 3.0p |
| per share | | | | |
+----------------------+----------+-------------+-------------+-----------+
8 Further copies of this statement
Copies of this statement are being sent to shareholders and can be viewed on the
Company's website at www.stanleygibbons.com. Further copies are available on
request from: The Company Secretary, The Stanley Gibbons Group plc, 6 Vine
Street, St Helier, Jersey, JE2 4WB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GMGGRZKKGGZM
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