RNS Number:1583O
Stanley Gibbons Group Limited
31 July 2003



                       THE STANLEY GIBBONS GROUP LIMITED
                INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2003


The Company today announces its Interim Results for the six months to 30 June
2003. Highlights include:

   *Increased profit of #324,000 (2002: #203,000), up 60%

   *Earnings per share up 16% to 0.95p (2002: 0.82p)

   *Client wants book of over #10 million

   *#1,048,000 cash balances at 30 June 2003 (2002: #255,000)

   *Internet sites generating nearly 8 million hits per month (2002: 4
    million)

   *All major stamp price guides to be produced in full colour


Commenting on current trading, Mike Hall, Chief Executive, said:

 "The Group has made good progress in the first half of 2003 and trading remains
in line with expectations. Despite a challenging trading environment during the
first four months of this year we demonstrated our ability to enhance
profitability through shrewd and sensible management, foregoing unprofitable
revenue in order to focus on growth in the most profitable areas of the
business. Trading was strong in May and June, and with the recent resurgence in
interest that we have experienced in the collectibles market, this looks set to
continue for the remainder of the year.

The Board is committed to realising the potential associated with being the only
recognised brand name in an estimated $10 billion per annum market and to
continued growth in revenues and earnings over the second half of the year and
beyond."


For further information, contact:

The Stanley Gibbons Group Limited
Paul Fraser, Chairman    020 7836 8444
Michael Hall, Chief Executive   01425 472363

Seymour Pierce Limited
Louise Carpenter )    020 7107 8000
Jonathan Wright )


Chairman's Statement

I am pleased to report a net profit before tax of #324,000 (2002: #203,000),
representing an increase of 60% on the same period last year. We are on course
to meet our objectives for 2003 and we are laying the foundations for 2004.

Earnings per Ordinary Share for the six months ended 30 June 2003 were 0.95p
compared to 0.82p for the same period to 30 June 2002. Earnings per Ordinary
Share for the period are adversely affected by the implementation of the new
accounting standard FRS19 "Deferred Tax", which requires us to make full
provision for deferred tax liabilities. Excluding the impact of deferred tax,
Earnings per Ordinary Share for the period would have been 1.19p. Net assets per
share have increased to 27p, compared to 25p per share at 30 June 2002.

At 30 June 2003, our cash position was just over #1 million, which shows clearly
our conversion of profit into real cash. We are currently considering
acquisitions that support our future strategy and reviewing the Group's tax
structure with a view to enabling the payment of dividends to our shareholders
in the future.

We have continued to reduce unprofitable activities and move our long-term
strategy forward. Our main goal is to position ourselves at the centre of the
stamp business and to become the service provider of choice to buyers and
sellers, adding value by providing them with all of the key data, information
and price guides they need.

The business is still labour-intensive but we are continuing to reduce this
dependency with stronger management systems and a switch to more electronic
processes. We now employ 90 full-time and 7 permanent part-time staff (2002:
120, 2001: 140). The reduction in numbers still allows us to be able to fully
implement our strategy and we have also strengthened certain key areas and
brought in new skill sets that were needed.

The stamp market and prices of classic stamps are particularly strong at the
moment and we are leading with more dynamic pricing in our catalogues and the
adoption of an aggressive buying policy to reflect both supply and demand and
our increasing client wants book of over #10 million.

The SG 100 Stamp Index has increased by 8.4% on a cumulative basis during the
first six months of 2003. This is encouraging for collectors and helps to
convince investors that this is potentially a safe haven for some of their
wealth.

On the publishing side, our autumn releases will now all be published in colour
for the first time, at a price that will only be marginally above previous
years' black and white editions, which should drive a considerable increase in
sales.

The Group's Internet sites now receive close to 8 million hits a month (2002: 4
million), which considerably reduces the cost of acquiring new customers and
significantly improves the revenue generating potential from sponsorships,
partnerships and non-philatelic advertising planned for later in the year.

It is appropriate at this time to applaud the efforts of all the staff, who
continue to work together to lift the Company to the improved levels of
profitability targeted in our strategy and budgets.

Our focus remains on fully implementing our objectives within the timetable we
have set and driving the bottom line profit, thus delivering added value for the
benefit of all our stakeholders.

Paul Fraser

Chairman

31 July 2003

Operating Review

Operating results for the 6 months ended 30 June

                       2003     2003    2002     2002    2001     2001
                      Sales   Profit   Sales   Profit   Sales   Profit
                       #000     #000    #000     #000    #000     #000

Philatelic trading    2,384      534   2,374      366   2,554      300
and retail
operations

Publishing and        1,055      226   1,249      303   1,185      252
philatelic
accessories

Dealing in              380      111     388       95     422      131
autographs, records
and

related memorabilia
                      ------   ------  ------   ------  ------   ------

                      3,819      871   4,011      764   4,161      683



Corporate overheads             (426)            (417)            (462)

New business              6     (128)      4     (143)     21     (143)
development

Interest                           7               (1)             (11)

                      ------   ------  ------   ------  ------   ------

                      3,825      324   4,015      203   4,182       67
                      ------   ------  ------   ------  ------   ------


Sales

Overall group turnover was 4.7% below the same period last year. Macro economic
and global factors resulted in a challenging trading environment for the first
four months of 2003. Group trading was strong in May and June and with the
recent resurgence in interest experienced in the collectibles market, we are in
a strong position to achieve the budgeted growth in the second half of the year.

We continue to recruit new customers to the business at very low cost, primarily
from our websites and visitors to our retail outlet at 399 Strand. We have
acquired almost 4,000 additional spending customers in the first six months of
the year bringing total sales from new customers to approximately #400,000.

Philatelic trading and retail sales included exceptional income in 2002 relating
to the sale of a rare Mauritius item for #71,000. Underlying turnover after
excluding exceptional income in the prior period is up 3.5%. Sales were
particularly strong in philatelic dealing of Great Britain material and in
auction activities during the period, in line with the resurgence in demand
experienced in the UK philatelic market this year. In order to capitalise on the
current market we have scheduled a public auction in November, which will be
held without any increase in current overheads.

Publishing and philatelic accessory sales conducted from our Ringwood premises
are 15.5% down on the same period last year. The primary reason for the reduced
sales in this period is due to the timing of major product releases being
weighted more heavily towards the second half this year. We also experienced
some temporary internal set backs during April and May following the sad and
sudden death of our Sales and Production Manager.

Autographs and memorabilia sales are broadly in line with the same period last
year. Fixed overheads were reduced at the end of last year, with the result that
we have increased contribution from the division by 16.8% on the same level of
trade.

Revenue from new business opportunities included as part of the budget for 2003
had not yet been realised by the end of the half year, although the hard work
required in developing a framework and workable proposition to support such new
revenue streams has been completed. We have recently made two key appointments:
a General Sales Manager in Ringwood to support our publishing and advertising
growth plans and an Independent Financial Adviser to promote and market stamps
as an alternative investment.

Operating Review

Gross Margins

The gross margin on sales for the six months ended 30 June 2003 was 60.1%
compared to 60.6% for the same period last year.

Profitability

The profit before tax for the period of #324,000 compares to a profit for the
same period last year of #203,000. We have continued to enhance profitability on
core business activities at the same time as financing research and development
costs to support new business opportunities. We have made considerable progress
in the past two years in the implementation of our strategy to reduce the fixed
cost base of core business activities which has enabled the internal financing
of new business activity.

Profitability has been increased from lower sales at similar gross margins
compared with the same period last year. Increased profitability has been
achieved through an 11% reduction in overheads compared to the same period last
year. Key overhead reductions were achieved in salary and establishment costs.

Salary overhead reduced by #76,000 (4.2%) compared to the same period last year.
Reduced salary costs are primarily due to a reduction in staff numbers in
administration and support roles.

Establishment costs were #114,000 (35%) lower than the same period last year.
Establishment costs benefit from the rental income now being received from the
sub-letting of the 2nd floor of 399 Strand and the favourable settlement of a
dispute in respect of a previous rental agreement resulted in a credit to the
profit and loss account. Cost savings have been obtained through reduced rates
and utility costs following the move into one operating unit in Ringwood.

New Business Development

Direct sales generated through our web sites represented 6.6% of total sales for
the first six months compared to 5.8% for the same period last year.

Our allworldstamps.com website was re-launched in February this year, providing
new functionality, dynamic links to our trading sites, plus a look and feel that
is closer to the way stamps are listed in our printed catalogues. Following the
re-launch, visitors and hits to the site have doubled.

We are still on course to have all our catalogue data held electronically by the
end of the year and we are now able to produce all our major catalogue titles in
full colour at a similar production cost to the previous year. Research and
development activities have continued this year, primarily in developing and
enhancing the catalogue database management software.

Improvements to gibbonsstampmonthly.com are being implemented through a new
content management system scheduled for re-launch in August. The consequent
expected increase in online subscriptions (particularly to overseas customers
where postage costs are often a deterrent to magazine subscriptions), will
provide greater scope for online advertising sales along with other publishing
opportunities available from the use of electronic content.

Cashflow

The Company held #1,048,000 cash in the bank at 30 June 2003 (2002: #255,000).
The increase in cash during the period is mainly from the conversion of
operating profits to cash, assisted by strong working capital management. The
cash generated for the period has been achieved despite the cash settlement cost
of #145,000 in respect of the dispute relating to a previous rental agreement.

Consolidated Profit and Loss Account



                               6 months to   6 months to    Year ended
                                   30 June       30 June   31 December
                                      2003          2002          2002
                               (unaudited)   (unaudited)     (audited)
                       Notes         #'000         #'000         #'000
                                  

Turnover                             3,825         4,015         8,121

Cost of sales                       (1,525)       (1,583)       (3,184)
                                  ----------      --------      --------


Gross Profit                         2,300         2,432         4,937


Administration                        (604)         (613)       (1,242)
expenses

Selling and                         (1,379)       (1,615)       (3,153)
distribution                      ----------      --------      --------
expenses


Operating Profit                       317           204           542


Interest receivable                     11             5             5
and similar income

Interest payable and                    (4)           (6)          (10)
similar charges                   ----------      --------      --------


Profit on ordinary                     324           203           537
activities before
taxation


Tax on profit on           1           (93)            -           (53)
ordinary activities               ----------      --------      --------


Profit for the                         231           203           484
financial period                  ----------      --------      --------


Earnings per Ordinary      2          0.95p         0.82p         1.96p
Share

Diluted earnings per       2          0.93p         0.81p         1.95p
Ordinary Share

Continuing operations: all items dealt with in arriving at the operating profit
above relate to continuing operations.


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       5,834           169           25            146   6,174
2003

Profit for the         -             -            -            231     231
financial        --------      --------     --------       --------  ------
period

At 30 June         5,834           169           25            377   6,405
2003             --------      --------     --------       --------  ------



Consolidated Balance Sheet

                                   30 June       30 June   31 December
                                      2003          2002          2002
                               (unaudited)   (unaudited)     (audited)
                       Notes         #'000         #'000         #'000
                                  
Fixed Assets

Tangible assets                      1,360         1,535         1,455

Investments                            223           223           223
                                   ---------      --------      --------


                                     1,583         1,758         1,678

Current Assets

Stocks                               4,484         4,540         4,547

Debtors: amounts                       273           318           296
falling due after more
than one year

Debtors: amounts                       731           690           831
falling due within one
year

Cash at bank and in                  1,048           255           709
hand                               ---------      --------      --------

                                     6,536         5,803         6,383



Creditors: amounts                  (1,272)       (1,227)       (1,486)
falling due within one             ---------      --------      --------
year


Net current assets                   5,264         4,576         4,897
                                   ---------      --------      --------


Total assets less                    6,847         6,334         6,575
current liabilities


Creditors: amounts                    (103)         (118)         (118)
falling due after more
than one year

Provision for                          (95)            -           (39)
liabilities and                    ---------      --------      --------
charges


Net assets                           6,649         6,216         6,418
                                   ---------      --------      --------


Capital and reserves

Called up share                        244           248           244
capital

Share premium                        5,834         5,909         5,834
account

Capital redemption                      25            21            25
reserve

Revaluation reserve                    169           169           169

Profit and loss                        377          (131)          146
account                           ---------      --------      --------


Equity shareholders'                 6,649         6,216         6,418
funds                             ---------      --------      --------


Consolidated Cash Flow Statement

                               6 months to   6 months to    Year ended
                                   30 June       30 June   31 December
                                      2003          2002          2002
                               (unaudited)   (unaudited)     (audited)
                       Notes         #'000         #'000         #'000
                                    


Net cash inflow from       3           402           115           936
operating activities               --------      --------     ---------


Returns on investments
and servicing of
finance

Interest received                       11             5             5

Interest paid                           (4)           (1)           (3)

Finance lease interest                   -            (5)           (7)
paid                               --------      --------     ---------

                                         7            (1)           (5)

Taxation

UK corporation tax                       -             -             -
paid

Jersey tax paid                          -            (1)            -

Group relief                             -             -             -
received                           --------      --------     ---------

                                         -            (1)            -

Capital expenditure
and financial
investments

Payments to acquire                    (55)         (138)         (230)
tangible fixed
assets

Receipts from sales of                   -             3             3
tangible fixed                     --------      --------     ---------
assets
                                       (55)         (135)         (227)

Acquisitions and
disposals

Purchase of business                     -             -          (175)

                                   --------      --------     ---------
Net cash inflow/                       354           (22)          529
(outflow) before                   --------      --------     ---------
financing

Financing

Purchase of own                          -             -           (79)
ordinary shares

Capital element of                       -           (38)          (56)
finance leases

Loan note repayments                   (15)          (16)          (16)

                                    --------      --------     ---------

Net cash outflow from                  (15)          (54)         (151)
financing                           --------      --------     ---------

                                    --------      --------     ---------

Increase/(decrease) in                 339           (76)          378
cash                                --------      --------     ---------



Analysis of changes in cash during the period

                               6 months to   6 months to    Year ended
                                   30 June       30 June   31 December
                                      2003          2002          2002
                               (unaudited)   (unaudited)     (audited)
                                     #'000         #'000         #'000

Net cash at the beginning of           709           331           331
the period

Net cash inflow/(outflow)              339           (76)          378
                                    --------      --------     ---------

Net cash at the end of the           1,048           255           709
period                              --------      --------     ---------



Notes to the unaudited interim report

 1. Taxation

    The tax charge is based on the expected full year tax rate together with the
    movement in the provision for deferred taxation.
 2. 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 2003   30 June 2002    31 December 2002
                               (unaudited)    (unaudited)    (audited)

    Weighted average number     24,376,736     24,826,736   24,672,626
    of ordinary shares in
    issue (No)

    Dilutive potential             559,132        120,323      138,620
    ordinary shares: Employee
    share options

    Profit after tax (#)           231,000        203,000      484,000

    Basic earnings per share          0.95p          0.82p        1.96p
    - pence per share (p)

    Diluted earnings per              0.93p          0.81p        1.95p
    share - pence per share        ---------      ---------   ----------
    (p)
    
 3. Reconciliation of operating profit to net cash inflow from operating
    activities

                               6 months to    6 months to   Year ended
                              30 June 2003   30 June 2002    31 December 2002
                               (unaudited)    (unaudited)    (audited)

                                     #'000          #'000        #'000

    Operating profit                   317            204          542

    Depreciation                       150            156          327

    Gain on sale of tangible             -             (3)          (2)
    fixed assets

    Decrease in stocks                  63             93           86

    Decrease in debtors                134            230           97

    Decrease in creditors             (262)          (565)        (114)
                                   ---------      ---------   ----------

    Net cash inflow from               402            115          936
    operating activities           ---------      ---------   ----------
    
 4. Financial information

    The financial information in this report does not comprise full financial
    statements. Full financial statements for the year ended 31 December 2002,
    on which the auditors gave an unqualified report, have been delivered to the
    Jersey Registrar of Companies.

 5. 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.

Trading Divisions, Summary of Activities and Contact Details

399 Strand, London WC2R 0LX
Tel: 020 7836 8444
Fax: 020 7836 7342
Email: stampsales@stanleygibbons.co.uk

   *Retail - over 4 million stamps plus catalogues, albums, books and
    accessories
   *Specialist Great Britain and Commonwealth material for the discerning
    collector
   *Rare stamp investment portfolio advice and management
   *Mail Order non-specialist All World material
   *Valuations and Buying
   *Online, public and postal auctions
   *Fraser's Autographs - over 60,000 items in stock plus online auctions

7 Parkside, Christchurch Road, Ringwood, Hampshire BH24 3SH
Tel: 01425 472363
Fax: 01425 470247
Email: info@stanleygibbons.co.uk

   *Catalogues - the full range of award winning catalogues
   *Gibbons Stamp Monthly - The UK's leading philatelic magazine
   *Publications, albums and accessories by mail order and online
   *Advertising sales for Stanley Gibbons' publications and websites

1 & 2 Crown Glass Place, Nailsea, N Somerset BS48 1RD
Tel: 01275 859999
Fax: 01275 859715
Email: info@stampcafe.com

   *Internet and E-publishing development
   *www.stanleygibbons.com
   *www.allworldstamps.com
   *www.stampsatauction.com
   *www.gibbonsstampmonthly.com
   *www.stampcafe.com
   *www.frasersautographs.com
   *www.collectorcafe.com

Directors and Advisers

Directors

P I Fraser (Chairman)
M R M Hall (Chief Executive and Finance Director)
R K Purkis (Operations 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 LLP

Solicitors

Nabarro Nathanson

Principal Bankers

Natwest Bank PLC

Registrars

Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU

Tel: 0870 1623100

Website

Further financial, corporate and shareholder information is available on the
Investor Relations section of the Group's website: www.stanleygibbons.com.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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