TIDMSGI
RNS Number : 7218J
Stanley Gibbons Group PLC
10 August 2012
THE STANLEY GIBBONS GROUP PLC
FOR IMMEDIATE RELEASE 10 August 2012
THE STANLEY GIBBONS GROUP PLC ("the Company" or "the Group")
Interim Results for the six months ended 30 June 2012
The Company today announces its interim results for the six
months ended 30 June 2012.
Key Financial Highlights
-- Profit before tax of GBP1.8m (2011: GBP1.7m), up 8%
-- Gross margin percentage of 44.5% (2011: 37.9%)
-- Sales of GBP14.7m (2011: GBP15.0m), down 2%; Online sales up 90%
-- Earnings per share of 6.53p (2011: 5.88p), up 11%
-- Interim dividend declared of 2.75p per share (2011: 2.50p),
up 10%, (payable on 1 October 2012 to all holders on the Register
at the close of business on 24 August 2012)
-- Stock levels at 30 June 2012 stated at historic cost of
GBP24.5m (30 June 2011: GBP15.6m), in readiness for the launch of
rare stamp fund in October
Key Operational Highlights
-- Successful launch of smart phone applications in first half
providing collectors worldwide with easier and greater access to
our key services and inventory
-- Opportunities taken to acquire top quality stamp collections
and key philatelic rarities in the period at substantial discounts
to market value
-- New office in Hong Kong, opened in September last year,
contributed sales of GBP1.3m and profits of GBP0.3m in the first
half
-- Prevailing strong demand for rare stamps from China with
sales double that of the prior period at GBP1.4m
-- Sales of rare coins and military medals doubled in the period
to GBP0.8m, benefiting from our further development of in-house
expertise in these areas
-- The first of a two-part auction sale of the prestigious
"Arnhold Collection" on the 17(th) of May left no item unsold,
achieving a total realisation of GBP0.9m (129% of pre-sale
estimate)
-- Performance in the first half benefited from sales of
commemorative collectibles issued for the Queen's Diamond
Jubilee
Outlook
-- We are actively pursuing opportunities to accelerate returns from our online strategy
-- New international office in Singapore scheduled for opening
later this year and agent appointed in Rio de Janeiro to promote
our services in Brazil
-- Potential business partnerships in the US in respect of our
online and auction developments under review
-- The legal structure of the rare stamp fund is now complete
with the necessary regulatory approval obtained. The investment
roadshow is scheduled to take place in September with an aim to
launch the fund in October
-- Strong demand being experienced for commemorative issues
around the London 2012 Olympics, with substantial interest most
notably coming from China
Martin Bralsford, Chairman, commented:
"I am delighted to report, yet again, profit growth in line with
our expectations. The strength and reputation of the "Stanley
Gibbons" brand, together with the benefits from the sound execution
of strategic initiatives, ensure that the business is not overly
dependent on any one region or product category.
As a result of the success in sourcing of key philatelic
rarities, the Group is in a strong position to deliver growth in
the remainder of the current year, irrespective of economic
conditions, which is expected to include the launch of a rare stamp
fund in October. The Fund will be regulated and open to
sophisticated investors and hold some of the most famous and best
quality philatelic items at attractive values. It will combine
prudence with good expected returns from future capital growth.
The enduring strength of the rare stamp market and lack of
correlation with traditional asset classes is evident yet again
based on the performance of the GB250 Stamp Price Index, as listed
on Bloomberg Professional (R), where a gain of 11% was reported
over the past 12 months.
The executive team is making good progress towards delivering on
key aspects of the strategy driven by the growth of our online
trading model and auction services. As a result, your Board is
confident about the prospects of the Group for the second half of
this year and beyond."
For further information, contact:
The Stanley Gibbons Group plc
Michael Hall, Chief Executive +44 (0) 1534 766711
Donal Duff, Chief Operating Officer and Finance Director
Peel Hunt LLP, NOMAD/Broker
Dan Webster/Matthew Armitt/Richard Brown +44 (0) 20 7418 8900
Chairman's Statement
Introduction
Trading performance for the first half of the year was in line
with the Board's expectations showing solid growth in profits
wholly from better margin capitalising on last year's significant
growth in sales. This positive result was achieved despite key
resources and associated expenditures being directed in the period
primarily towards development of longer term opportunities of the
Group, specifically in our online business and auctions.
Financials
Turnover for the half year to 30 June 2012 was GBP14.7m and
broadly in line with the prior period. Underlying profit before
tax, excluding one-off exceptional charges, was GBP1.9m.
Exceptional charges of GBP0.1m incurred in the period related to
the former Finance Director, Mark Henley under the terms of his
service agreement.
Earnings per share were 6.53p (2011: 5.88p), whilst adjusted
earnings per share, excluding exceptional costs, were 6.85p (2011:
6.18p), both up by 11%.
Dividend
Your Board is pleased to declare an interim dividend of 2.75p
(2011: 2.50p) per share, up 10%, payable on 1 October 2012 to
holders of Ordinary Shares on the Register at the close of business
on the record date of 24 August 2012. The Board maintains its
progressive dividend policy which is covered 2.4 times by earnings
in the first half.
The Company paid a final dividend of 3.50p per share in respect
of the year ended 31 December 2011, on 21 May 2012 with a cash
outflow of GBP0.9m.
Outlook
Online
Smartphone applications available to download on iTunes were
launched in the first half of the year. These enable clients to
view our monthly magazine, auction and product brochures and also
our very popular price catalogues, providing collectors worldwide
with easier and greater access to our key services and inventory.
We have received widespread positive reaction from the collecting
community, which will provide an additional future revenue stream
to the business.
Following the redevelopment of our websites last year, online
revenues were almost double that of the previous period,
highlighting the success in our earlier investment. Online trading
is becoming a more significant element of our business as we
continue to develop further functionality and services. Our aim in
this respect is to gain wider brand recognition and a larger market
share of the global stamp collecting community, which comprises an
estimated 60 million collectors.
We are actively pursuing opportunities to accelerate the
financial return from our online strategy.
Overseas development
Our new office in Hong Kong, which opened at the end of
September last year, contributed sales of GBP1.3m and profits of
GBP0.3m in the first half. This office provides a strong base from
which to conduct the distribution of our products into Greater
China, which generated a further GBP0.4m of sales in the first
half. We have recently recruited personnel locally to develop other
opportunities in this lucrative and growing area of the stamp
market.
We have completed the evaluation of a new office in Singapore
concluding that there is substantial potential demand for our
products and services, and that it would provide a useful adjunct
to our office in Hong Kong in that region. The new office is
scheduled to open, with its experienced local manager, later in the
year. We have also reviewed opportunities in Brazil and, as a
result, have appointed an agent to represent us in Rio de Janeiro.
It is expected that a new office will be opened there in due course
once our agents, supported by us, have fully tested demand in that
region.
These regional representative offices are soon profitable in
their own right and also form part of the global presence that is
fundamental to our strategic online and auction development.
We are currently in discussions with potential business partners
in the US in respect of our online and auction developments.
Chairman's Statement
Auctions
The first of a two-part sale of the prestigious "Arnhold
Collection" took place on 17(th) May and all items sold achieving a
total realisation of GBP0.9m (129% of pre-sale estimate). The
concluding part of the sale takes place on 4(th) and 5(th) October
and, given the strong current demand for British Empire material, a
similar positive result is expected.
Auctions remain a relatively small but developing part of our
overall business at present. Our privilege in handling the "Arnhold
Collection" and the subsequent strong realisation we are delivering
to clients has enabled us to demonstrate the quality and strength
of the service we can provide. Sellers of prestige collections
benefit from using our auction services based on the reputation of
our brand. Our unrivalled internal specialist expertise ensures the
most accurate descriptions and wide international reach in terms of
the number of collectors and investors we can attract to
participate in high profile sales.
Other collectibles
Sales of rare coins and military medals in the period doubled to
GBP0.8m benefiting from our further development of in-house
expertise in rare coins. The investment in the first half of the
year in terms of stock and specialist expertise should enable us to
grow our share of this important area of the collectibles
market.
The Benham Group acquisition continues to deliver a strong
return on investment since acquisition in September 2010.
Performance in the first half benefited from sales of commemorative
collectibles issued in respect of the Queen's Diamond Jubilee.
Similar benefits are being realised in the second half from
commemorative issues around the London 2012 Olympics, with
substantial interest most notably being from China.
Investment services
The strong client relations we have built over the past few
years with a number of high net worth individuals represents a more
significant element of our investment business, thus reducing our
dependence on recruiting new clients to maintain sales levels.
We experienced a substantial drop in conversion rates in the
period from our marketing activities due to heightened investor
anxiety over making any investment decisions in the current
volatile economic climate. Nevertheless, our existing clients
continued to enjoy strong returns in the first half of this year as
the rare stamp and coin markets showed continued strength and
resilience. To illustrate this point, the GB250 Stamp Price Index,
as reported on Bloomberg Professional (R), recorded a gain of 11%
over the past 12 months.
We have mitigated against the decline in conversion rates
through developing our investment services outside of those markets
where investor sentiment is overly cautious. Consequently, we
continue to have substantial opportunities in the second half to
grow investment sales through our new international investment
offices and agents.
The formalities of the rare stamp fund are now complete with the
necessary regulatory approval obtained. The Fund roadshow will take
place in September with an aim to launch the fund in October this
year.
Board
Bob Henkhuzens retired from his position as Non-Executive
Director and Chairman of the Audit Committee at the close of our
AGM in May. I am delighted to welcome Martin Magee to the Board in
Bob's place following an extensive search. Martin brings a wealth
of commercial and public company financial experience to the Board,
ensuring that we will continue to maintain the levels of good
governance obtained in recent years.
Martin Bralsford
Chairman
10 August 2012
Operating Review
6 months 6 months 6 months 6 months Year ended Year ended
to 30 June to 30 June to to 31 December 31 December
2012 2012 30 June 30 June 2011 2011
2011 2011
Sales Profit Sales Profit Sales Profit
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Philatelic trading and
retail operations 10,302 2,552 11,193 2,130 27,727 5,943
Publishing and philatelic
accessories 1,416 305 1,265 202 2,980 677
Dealing in other collectibles 2,967 464 2,472 476 4,955 835
14,685 3,321 14,930 2,808 35,662 7,455
Internet development 27 (134) 21 (40) 42 (127)
Corporate overheads - (1,297) - (1,019) - (2,108)
Interest and similar
income (net) - 7 - 6 - (3)
------------------------------ ----------- ----------- -------- -------- ------------ ------------
Before exceptional items 14,712 1,897 14,951 1,755 35,704 5,217
------------------------------ ----------- ----------- -------- -------- ------------ ------------
Exceptional operating
costs - (110) - (105) - (112)
------------------------------ ----------- ----------- -------- -------- ------------ ------------
Group total sales and
profit before tax 14,712 1,787 14,951 1,650 35,704 5,105
------------------------------ ----------- ----------- -------- -------- ------------ ------------
Overview
Group turnover for the six months ended 30 June 2012 was GBP0.2m
(2%) lower compared to the same period last year. Profit before tax
for the period of GBP1.8m represented an increase of 8%. Earnings
per share were 6.53p (2011: 5.88p), up 11%. Despite increased
operating costs incurred in the period, primarily to invest in
developing future revenue streams, improved gross margins generated
profit growth from a similar level of sales to the prior
period.
The gross margin percentage for the six months ended 30 June
2012 was 44.5% compared to 37.9% in the same period last year.
Gross margins benefited from a change in sales mix in the period.
This included a 17% reduction in sales made of our investment
products in collectibles, which attract lower margins, compensated
by increased sales to high net worth collectors and generally in
most other areas of the business. Furthermore, we took advantage of
certain exceptional opportunities, which arose in the period, to
acquire top quality stamp collections and key philatelic rarities.
The subsequent sales made to date from those acquisitions attracted
higher margins.
Overheads were GBP0.7m (19%) higher than the prior period. The
most significant increases in overheads included:
-- Increased staff costs, software and support costs in
development of online opportunities (GBP0.2m)
-- Increased amortisation and depreciation on website
developments and associated hardware (GBP0.1m)
-- Increase in executive team costs to support expansion plans (GBP0.1m)
-- Staff and running costs of new office in Hong Kong (GBP0.1m)
Philatelic Trading and Retail Operations
Philatelic trading and retail sales were GBP0.9m (8%) lower than
the same period last year although profit contribution was up
GBP0.4m (20%). The increase in profits on lower sales was due to
higher gross margins achieved as a result of the change in the
sales mix from the prior period.
Sales of investment products in collectibles were down 17%
compensated by a similar increase in sales to high net worth
collectors. Furthermore, lower margin trade sales conducted in the
period were down from GBP1.3m to GBP1.0m as the prior period
included one large trade sale of GBP0.8m.
The gross margin on sales was higher as a result of
opportunities taken to acquire top quality stamp collections and
key philatelic rarities in the period at substantial discounts to
market value. The sale of such material is expected to have a
positive impact on margins for the remainder of the year.
Furthermore, margins in the period benefited from a write back of
GBP0.2m against the provision made against guarantees made in
previous years to investors under certain investment products as
the underlying assets in such portfolios increased in value by more
than the minimum returns guaranteed.
Demand remained strong for rare stamps from China and benefited
from our ability to source higher levels of top quality material by
virtue of our presence in Hong Kong. As a result, sales of stamps
from China in the period were double that of the prior period at
GBP1.4m.
Auction commissions were up 47% in the period benefiting from
the strong realisation of the first part of the sale of the
prestigious "Arnhold Collection" in May. Auction commissions,
however, remain an immaterial element of overall business
performance. It is expected that this part of our business will
continue to show high levels of growth as we continue to invest and
develop on a global basis in this key element of our business
strategy.
Publishing and Philatelic Accessories
Publishing and philatelic accessory sales were GBP0.2m (12%)
higher than the prior period with profit contribution up GBP0.1m
(51%). Performance benefited from improved focus, following the
restructuring and rationalisation exercise completed last year,
resulting in a stronger publishing schedule and the negotiation of
lower print costs on key catalogue titles.
Sales growth was generated predominantly through our website,
with online sales up 132% in the period accounting for 33% of sales
of our publications, albums and accessory products compared to 19%
in the prior period. Other than the benefits of the improved design
and usability of our website completed at the end of May last year,
online sales benefited from the implementation of more effective
search engine optimisation together with focussed and targeted
online offers and e-mail campaigns led by our experienced marketing
team.
Dealing in Other Collectibles
Sales of other collectibles were GBP0.5m (20%) up on the prior
period, although, despite sales growth, profit contribution
remained at a similar level to the prior period. Dealing in other
collectibles can be further analysed as follows:
6 months 6 months 6 months 6 months Year ended Year ended
to 30 June to 30 June to to 31 December 31 December
2012 2012 30 June 30 June 2011 2011
2011 2011
Sales Profit Sales Profit Sales Profit
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Dealing in autographs,
historical documents,
memorabilia and records 593 65 638 80 1,567 127
Dealing in rare coins
and military medals 799 146 410 104 800 133
Benham first day covers
and other collectibles 1,575 253 1,424 292 2,588 575
------------------------- ----------- ----------- -------- -------- ------------ ------------
Total sales and profit
contribution 2,967 464 2,471 475 4,955 835
------------------------- ----------- ----------- -------- -------- ------------ ------------
Autographs, historical documents, memorabilia and record sales
were down 7% with profit contribution remaining immaterial and down
by 19%. The overall global market for this area of the collectibles
market is showing significant strength and growth in prices, yet
this is not reflected in our own sales performance.
Our stockholding of autographs and historical documents is of
exceptional quality and, based on worldwide auction realisations,
represents an appreciating asset, despite remaining valued in our
balance sheet at historic cost. However, our aim is to increase the
return on capital on this quality asset and consequently we are
currently undertaking a strategic review of this part of our
business focussing primarily on the development of our online
auctions for lower value material and investment services for top
quality rarities and unique pieces of historical importance.
Sales of rare coins and military medals were up 95% in the
period with profit contribution increased by 40%. We strengthened
our internal expertise in the period enabling an increase in stock
acquisitions of premium quality rare coins. Rare coins have proved
attractive to our database of stamp investment clients as a means
of further diversification of their portfolios into the
collectibles market.
Investors have generally not yet embraced the opportunities
available by investing in military medals despite the exceptional
strength of the collector market in this area. Despite the current
lack of interest from investors, we have sold GBP0.2m of military
medals to collectors on a retail basis and through our website.
This is despite not being a recognised expert in this market and
illustrates the respect our brand carries together with the
knowledge and expertise of our internal buyer employed in this area
of our business.
Benham first day covers and other collectibles sales were up 11%
although profit contribution was down 13%. The prior period profit
benefited from higher margins on the sale of stock purchased on
acquisition at exceptionally low prices against retail prices. The
benefit of those high margins was lower in the current period as a
larger proportion of sales were from new product issues.
Furthermore, the removal of Low Value Consignment Relief by HMRC
from 1 April 2012 reduced profits on sales made from our Jersey
office to UK customers.
Sales benefited in the period from the sale of commemorative
collectibles issued in respect of the Queen's Diamond Jubilee.
Sales in the period also included GBP0.4m (2011: GBP0.3m) made into
China. We are currently witnessing strong demand for products
issued around the London 2012 Olympics, particularly in China.
Internet Development
Sales reported within this department relate to online
subscription revenue only. Online sales were up 90% on the prior
period and benefit from the redevelopment of our core websites
completed in the first half last year.
Overheads incurred in the period were up GBP0.1m and represent
the increased investment in building the appropriate web
development and support team to take forward the various aspects of
our online strategy expected to deliver growth in sales and profits
in future accounting periods. We completed a substantial strategic
review of our internet development plans in the first half
providing the platform to enable us to develop the next stage of
our plans more effectively and to maximise potential returns in
this respect.
Corporate Overheads
Corporate overheads were GBP0.3m (27%) higher than the same
period last year. Following a change in departmental structures and
reporting, certain overheads previously reported within trading
divisions now form part of corporate overheads, primarily in
relation to the formation of a Group marketing function. When
adjusting for the change in basis of reporting, corporate overheads
on a like-for-like basis were up 16%. Increased corporate overheads
primarily relate to higher costs in respect of IT, marketing and
the executive team to support Group expansion plans.
Corporate overheads include accounting charges, which have no
cash impact, in respect of our defined benefit pension scheme and
IFRS share option charges totalling GBP0.1m (2011: GBP0.1m).
Exceptional Operating Costs
Exceptional operating costs incurred in the period of GBP0.1m
(2011: GBP0.1m) relate to the former Finance Director, Mark Henley
under the terms of his service agreement.
Cashflow
Cash used in operating activities of GBP3.6m (2011: cash
generated of GBP0.9m) is after an increased investment in our
stockholding of GBP7.7m (2011: GBP0.9m). The build up of stock
towards the end of the first half of this year represents a
short-term working capital commitment in relation to the
acquisition of some of the most famous philatelic rarities from
Great Britain. Such stock was acquired specifically to enable us to
supply the appropriate material on the expected launch of the rare
stamp investment fund scheduled for later this year.
It is anticipated that stock levels will reduce and cash levels
increase to historic levels once the rare stamp fund is launched.
Irrespective of the successful launch of the fund, we are
confident, based on the quality of stock recently acquired, that
such stock would be sold through our normal business channels over
the next 12 months.
The reduction in cash during the period of GBP5.0m (2011:
GBP0.6m) reflects dividends paid of GBP0.9m (2011: GBP0.8m), tax
paid of GBP0.2m (2011: GBP0.3m) and investment in capital
expenditure of GBP0.3m (2011: GBP0.2m).
Strategic Focus and Opportunities
Whilst performance in the first half was in line with budget, a
significant amount of the executive team's focus has been towards
developing some of our key strategic opportunities during the
period. In particular, these relate to our online developments,
auction strategy, international expansion plans and launch of a
rare stamp investment fund.
In the second half, we intend to focus primarily on the
following key areas of opportunity:
1) Development of online opportunities
2) Structural and strategic development of the auction business
3) Launch of rare stamp investment fund
4) Opening of new investment office in Singapore
5) Improve sales and return on capital from our quality
stockholding of autographs and historical documents
In summary, the Group continues to show remarkable resilience
during the current turbulent economic climate, partly because of
the underlying strength and reputation of our brand, but also the
result of our success in developing our business internationally in
recent years, thus reducing our dependence on our home market where
trading conditions are more challenging.
As a result of the progress we are making against some of our
key strategic objectives in developing an international online and
auction business in collectibles, we are well placed to continue to
deliver growth in sales and profitability in the second half of the
year.
Michael Hall
Chief Executive
10 August 2012
Condensed statement of comprehensive income
6 months to 6 months Year ended
to
30 June 30 June 31 December
2012 2011 2011
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
----------- ----------- -----------
Revenue 3 14,712 14,951 35,704
Cost of sales (8,161) (9,282) (21,872)
------------------------------------ ----- ----------- ----------- -----------
Gross Profit 6,551 5,669 13,832
Administrative expenses before
exceptional operating costs (1,671) (1,273) (2,730)
Selling and distribution expenses (2,990) (2,647) (5,882)
------------------------------------ ----- ----------- ----------- -----------
Operating Profit before exceptional
items 1,890 1,749 5,220
Exceptional operating costs (110) (105) (112)
------------------------------------ ----- ----------- ----------- -----------
Operating Profit 1,780 1,644 5,108
Finance income 19 28 53
Finance costs (12) (22) (56)
------------------------------------ ----- ----------- ----------- -----------
Profit before tax 1,787 1,650 5,105
Taxation 4 (138) (170) (430)
------------------------------------ ----- ----------- ----------- -----------
Profit for the period 1,649 1,480 4,675
Other comprehensive income:
Actuarial losses recognised
in the pension scheme - - (809)
Tax on actuarial losses recognised
in the pension scheme - - 172
Revaluation of the reference
collection net of deferred tax - - 53
------------------------------------ ----- ----------- ----------- -----------
Other comprehensive income for
the period, net of tax - - (584)
------------------------------------ ----- ----------- ----------- -----------
Total comprehensive income for
the period 1,649 1,480 4,091
------------------------------------ ----- ----------- ----------- -----------
Basic earnings per Ordinary
Share 5 6.53p 5.88p 18.54p
Diluted earnings per Ordinary
Share 5 6.39p 5.67p 18.30p
------------------------------------ ----- ----------- ----------- -----------
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 June 30 June 31 December
2012 2011 2011
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
----------- ----------- -----------
Non-current assets
Intangible assets 1,117 1,087 1,133
Property, plant and equipment 2,074 1,872 2,032
Deferred tax asset 224 32 224
Trade and other receivables 862 - 420
4,277 2,991 3,809
------------------------------- ----------- ----------- -----------
Current assets
Inventories 24,463 15,629 16,801
Trade and other receivables 8,298 7,993 9,178
Cash and cash equivalents - 1,271 3,230
------------------------------- ----------- ----------- -----------
32,761 24,893 29,209
------------------------------- ----------- ----------- -----------
Total assets 37,038 27,884 33,018
------------------------------- ----------- ----------- -----------
Current liabilities
Trade and other payables 6,867 4,585 6,641
Bank overdraft 1,808 - -
Borrowings 250 250 250
Current tax payable 287 204 370
------------------------------- ----------- ----------- -----------
9,212 5,039 7,261
------------------------------- ----------- ----------- -----------
Non-current liabilities
Trade and other payables 1,628 - -
Retirement benefit obligations 809 75 842
Borrowings 63 312 188
Deferred tax liabilities 200 194 213
Provisions 456 512 685
------------------------------- ----------- ----------- -----------
3,156 1,093 1,928
------------------------------- ----------- ----------- -----------
Total liabilities 12,368 6,132 9,189
------------------------------- ----------- ----------- -----------
Net assets 24,670 21,752 23,829
------------------------------- ----------- ----------- -----------
Equity
Called up share capital 253 252 253
Share premium account 5,307 5,243 5,285
Share compensation reserve 406 298 352
Capital redemption reserve 38 38 38
Revaluation reserve 254 201 254
Retained earnings 18,412 15,720 17,647
------------------------------- ----------- ----------- -----------
Equity shareholders' funds 24,670 21,752 23,829
------------------------------- ----------- ----------- -----------
Condensed statement of changes in equity
Called Share Capital
up share premium Share compensation Revaluation redemption Retained
capital account reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2012 253 5,285 352 254 38 17,647 23,829
Profit and total comprehensive
income for the period - - - - - 1,649 1,649
Dividends - - - - - (884) (884)
Share options exercised - 22 - - - - 22
Cost of share options - - 54 - - - 54
At 30 June 2012 253 5,307 406 254 38 18,412 24,670
------------------------------ --------- -------- ------------------ ------------ ----------- --------- -------
At 1 January 2011 252 5,195 244 201 38 15,058 20,988
Profit and total comprehensive
income for the period - - - - - 1,480 1,480
Dividends - - - - - (818) (818)
Share options exercised - 48 - - - - 48
Cost of share options - - 54 - - - 54
At 30 June 2011 252 5,243 298 201 38 15,720 21,752
------------------------------ --------- -------- ------------------ ------------ ----------- --------- -------
At 1 January 2011 252 5,195 244 201 38 15,058 20,988
Profit for the year - - - - - 4,675 4,675
Actuarial loss on pension
scheme net of deferred
tax - - - - - (637) (637)
Revaluation of the reference
collection net of deferred
tax - - - 53 - - 53
------------------------------ --------- -------- ------------------ ------------ ----------- --------- -------
Total comprehensive
income for the year - - - 53 - 4,038 4,091
Dividends - - - - - (1,449) (1,449)
Cost of share options - - 108 - - - 108
Share options exercised 1 90 - - - - 91
At 31 December 2011 253 5,285 352 254 38 17,647 23,829
------------------------------ --------- -------- ------------------ ------------ ----------- --------- -------
Condensed statement of cash flows
6 months 6 months Year ended
to to
30 June 30 June 31 December
2012 2011 2011
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
----------- ----------- -----------
Cash (used in)/ generated
from operations 6 (3,556) 891 4,051
Interest paid (12) (22) (56)
Taxes paid (234) (315) (420)
------------------------------ ----- ----------- ----------- -----------
Net cash (used in)/generated
from operating activities (3,802) 554 3,575
------------------------------ ----- ----------- ----------- -----------
Investing activities
Purchase of property, plant
and equipment (176) (126) (344)
Purchase of intangible assets (74) (101) (231)
Interest received 1 1 1
------------------------------ ----- ----------- ----------- -----------
Net cash used in investing
activities (249) (226) (574)
------------------------------ ----- ----------- ----------- -----------
Financing activities
Dividends paid to company
shareholders 7 (884) (818) (1,449)
Repayment of borrowings (125) (125) (251)
Net proceeds from issue of
ordinary share capital 22 48 91
Net cash used in financing
activities (987) (895) (1,609)
------------------------------ ----- ----------- ----------- -----------
Net (decrease)/increase in
cash and cash equivalents (5,038) (567) 1,392
------------------------------ ----- ----------- ----------- -----------
Cash and cash equivalents
at start of period 3,230 1,838 1,838
------------------------------ ----- ----------- ----------- -----------
Cash and cash equivalents
at end of period (1,808) 1,271 3,230
------------------------------ ----- ----------- ----------- -----------
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 2011.
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, Other collectibles
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 Other Internet Unallocated Group
trading and philatelic collectibles development
accessories
Segmental GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
income statement
6 months to
30 June 2012
Revenue 10,302 1,416 2,967 27 - 14,712
Operating
costs (7,750) (1,111) (2,503) (161) (1,297) (12,822)
Exceptional
costs - - - - (110) (110)
Net finance
income - - - - 7 7
------------------- ----------- ---------------- -------------- ------------- ------------ ---------
Profit/(loss)
before tax 2,552 305 464 (134) (1,400) 1,787
Tax - - - - (138) (138)
------------------- ----------- ---------------- -------------- ------------- ------------ ---------
Profit/(loss)
for the period 2,552 305 464 (134) (1,538) 1,649
------------------- ----------- ---------------- -------------- ------------- ------------ ---------
6 months to
30 June 2011
Revenue 11,193 1,265 2,472 21 - 14,951
Operating
costs (9,063) (1,063) (1,996) (61) (1,019) (13,202)
Exceptional
costs - (105) - - - (105)
Net finance
income - - - - 6 6
------------------- ----------- ---------------- -------------- ------------- ------------ ---------
Profit/(loss)
before tax 2,130 97 476 (40) (1,013) 1,650
Tax - - - - (170) (170)
------------------- ----------- ---------------- -------------- ------------- ------------ ---------
Profit/(loss)
for the period 2,130 97 476 (40) (1,183) 1,480
------------------- ----------- ---------------- -------------- ------------- ------------ ---------
Year ended
31 December
2011
Revenue 27,727 2,980 4,955 42 - 35,704
Operating
costs (21,784) (2,303) (4,120) (169) (2,108) (30,484)
Exceptional
costs - (112) - - - (112)
Net finance
cost - - - - (3) (3)
------------------- ----------- ---------------- -------------- ------------- ------------ ---------
Profit/(loss)
before tax 5,943 565 835 (127) (2,111) 5,105
Tax - - - - (430) (430)
------------------- ----------- ---------------- -------------- ------------- ------------ ---------
Profit/(loss)
for the year 5,943 565 835 (127) (2,541) 4,675
------------------- ----------- ---------------- -------------- ------------- ------------ ---------
Exceptional costs in 2012 relate to payments to the former
Finance Director under the terms of his service agreement.
Exceptional costs in 2011 relate to staff and legal costs incurred
in the rationalisation of the Publishing division. Notes to the
condensed financial statements
3 Segmental analysis (continued)
Geographical information
Analysis of revenue by origin and destination
Period ended Period ended Period ended Period ended Year ended Year ended
30 June 2012 30 June 2012 30 June 2011 30 June 2011 31 December 31 December
Sales by Sales by Sales by Sales by origin 2011 2011
destination origin destination Sales by Sales by
destination origin
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Channel Islands 797 6,187 2,014 8,192 4,854 19,592
United Kingdom 7,784 7,232 9,444 6,759 20,277 14,270
Hong Kong 240 1,293 65 - 455 1,842
Europe 799 - 752 - 1,967 -
Singapore 1,093 - 38 - 2,340 -
Rest of Asia 595 - 866 - 1,281 -
North America 768 - 1,016 - 1,875 --
Rest of the
World 2,636 - 756 - 2,655 --
---------------- ---------------- ------------- ---------------- ---------------- ----------------- ------------
14,712 14,712 14,951 14,951 35,704 35,704
---------------- ---------------- ------------- ---------------- ---------------- ----------------- ------------
Destination is defined as the location of the customer.
Origin is defined as the country of domicile of the Group
company making the sale. All of the sales relate to external
customers.
Rest of the World sales in the period ended 30 June 2012 include
sales of GBP1,987,000 to one individual customer. There were no
customers in the period to 30 June 2011 from which the Group earned
more than 10% of its revenues.
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.
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.
6 months 6 months Year ended
to to
30 June 2012 30 June 31 December
2011 2011
(unaudited) (unaudited) (audited)
Weighted average number of ordinary
shares in issue (No.) 25,269,514 25,183,631 25,217,437
Dilutive potential ordinary shares:
Employee share options (No.) 524,525 914,314 327,837
Profit after tax (GBP) 1,649,000 1,480,000 4,675,000
Exceptional operating cost (net
of tax) 82,000 77,000 83,000
Adjusted profit after tax (GBP) 1,731,000 1,557,000 4,758,000
------------------------------------ ------------ ----------- -----------
Basic earnings per share - pence
per share (p) 6.53p 5.88p 18.54p
Diluted earnings per share - pence
per share (p) 6.39p 5.67p 18.30p
Adjusted earnings per share - pence
per share (p) 6.85p 6.18p 18.87p
Adjusted diluted earnings per share
- pence per share (p) 6.71p 5.97p 18.63p
------------------------------------ ------------ ----------- -----------
17,716 shares were issued on 18 April 2012 following the
exercise of share options by a former employee. Notes to the
condensed financial statements
6 Cash (used in)/generated from operations
6 months 6 months Year ended
to to
30 June 2012 30 June 2011 31 December
2011
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Operating profit 1,780 1,644 5,108
Depreciation 134 116 239
Amortisation 90 29 112
(Decrease) / increase in provisions (244) (4) 152
Cost of share options 54 54 108
Increase in inventories (7,662) (856) (2,027)
Decrease/ (increase) in trade
and other receivables 438 873 (732)
Increase/ (decrease) in trade
and other payables 1,854 (965) 1,091
------------------------------------ ------------ ------------ -----------
Cash (used in)/generated from
operations (3,556) 891 4,051
------------------------------------ ------------ ------------ -----------
At the balance sheet date, the Group had an overdraft facility
of GBP2.75m in place secured by way of floating charge over the
assets of the Group.
7 Dividends
6 months 6 months Year ended
to to 31 December
30 June 30 June 2011
2012 2011
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Amounts recognised as distribution
to equity holders in period:
Dividend paid 884 818 1,449
------------------------------------ ------------ ------------ -------------
Dividend paid per share 3.50p 3.25p 5.75p
------------------------------------ ------------ ------------ -------------
Dividend proposed but not
paid 695 631 884
------------------------------------ ------------ ------------ -------------
Dividend proposed per share 2.75p 2.50p 3.50p
------------------------------------ ------------ ------------ -------------
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, 18 Hill Street, St
Helier, Jersey, JE2 4UA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GMGGRKLRGZZM
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