TIDMSGI
RNS Number : 5524V
Stanley Gibbons Group PLC
16 January 2012
The Stanley Gibbons Group plc
("Stanley Gibbons" or the "Group")
Trading Update
Before entering its close period, the Board of Stanley Gibbons
provides an update to the market on its estimated results for the
preceding financial year ended 31 December 2011, and a trading
outlook for the current year.
2011 trading results
The Board expects the Group's financial performance for the year
ended 31 December 2011 to be broadly in line with market
expectations, showing growth in sales, profit and operating cash
generation.
Operating cash generation for the year was particularly strong
and, at the current date, the Group holds net cash balances of over
GBP5 million. Cash balances, combined with the substantial
stockholding of top quality rare collectibles, mean that the Group
has substantial financial resources to fund future growth
opportunities.
Key performance highlights
-- Following the successful launch of our new website,
www.stanleygibbons.com, at the end of May, internet sales for the
second half of the year were up 67% year on year
-- New office opened in Hong Kong at the end of September
already contributing substantial new revenue stream and generated a
profit in its first quarter of trading
-- Move to larger corporate and investment sales office in
Jersey, Channel Islands completed in August with the resultant
increase in sales and client recruitment surpassing management
expectations
-- Successful diversification of our product offering to include
rare coins, commemorative medals and military medals providing
material growth opportunities going forward
-- Continued development of trading relationships in the Far
East providing sales channels into this lucrative market
-- Persistent economic volatility, together with higher response
rates from our promotional activities, have enabled us to continue
to recruit new high net worth clients
-- Strong full year trading performance from the Benham Group
acquisition completed in September 2010
Change of status of director
From 1 February 2012, John Byfield, who has been a non-executive
director of the Group since April 2010, will become an executive
director. His new role, as Corporate Development Director, will be
to assist with the execution of the Group's acquisition strategy,
looking specifically at businesses that add complementary brands or
otherwise enhance the strategic objectives of the Group.
Current trading and outlook
The current order pipeline is materially better than at the same
time last year benefiting from our recent marketing activities
together with the ongoing returns from the successful delivery of
some of our strategic objectives in 2011.
Whilst benefiting from the success delivered by our own business
development initiatives, we are witnessing an increasing
international interest in the ownership of tangible assets, such as
collectibles, as a means of storing and growing wealth.
We also expect to continue to grow revenues derived from our
websites in 2012 through continued developments. We see the
internet and electronic communications to clients as progressively
becoming our primary sales channel over time and believe the
reputation of our brand combined with our offering in this respect
will deliver market dominance in the future.
As a result of the above, the Board is confident of a continued
growth in sales and profits in 2012 and beyond.
Martin Bralsford, Non-Executive Chairman commented:
"The growth in sales for the financial year ended 31 December
2011 was exceptional and profit growth was strong, particularly in
the light of expenditures incurred this year which will create
future benefits.
More important, in the current economic climate, I am delighted
with the strength of our underlying business model demonstrated by
the strong generation of cash in the year. As a result, the Group
enjoys financial security and substantial resources to finance
future growth opportunities.
Management are to be congratulated on their success in
delivering against the Board's strategic objectives and the
progress made in meeting future growth objectives. The Group is in
a strong position for the year ahead."
For further information, contact:
The Stanley Gibbons Group plc
Michael Hall, Chief Executive +44 (0) 1534 766711
Peel Hunt LLP
Dan Webster/Matthew Armitt/Richard Brown +44 (0) 20 7418 8900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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