TIDMSGI
RNS Number : 3138V
Stanley Gibbons Group PLC
11 January 2013
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 2012, and a trading
outlook for the current year.
2012 trading results
The Board anticipates the Group's level of profitability for the
year ended 31 December 2012 to be in line with market expectations.
This includes a strong balance sheet position as at 31 December
2012, including net cash balances of approximately GBP7 million and
a substantial stockholding of top quality rare collectibles.
Key performance highlights
-- Acquisition of bidStart, a US-based online collectibles
trading platform, for a total consideration of $1 million,
providing a base from which to leverage the Stanley Gibbons brand
in the low value/high volume end of the online global collectibles
market
-- Successful placing and fundraising of GBP6 million to finance
the cash portion of the consideration to acquire bidStart and to
provide the finance to accelerate and enhance the development of
the global online collectibles trading platform
-- Internet sales from core website, www.stanleygibbons.com,
were up 55% in the year (2011: up 67%) benefiting from the
significant investment to date in improving online offering
-- New office in Hong Kong, opened in September 2011, assisted
in generating substantial new business in the Far East leading to
plans to open further overseas offices in 2013
-- A number of top quality prestigious collections purchased
during the year, at substantial discounts to market value, provided
higher gross margins on subsequent sales compared to the prior
year
-- Continued growth in sales of rare stamps from China
benefiting from the ability to source suitable material through
office in Hong Kong and prevailing strong demand for this lucrative
area of the philatelic market
-- Success in building recognition of the quality of auction
division illustrated by the sale of the prestigious "Arnhold
Collection" achieving a total realisation of GBP1.6 million.
Furthermore, the SG general auction in December 2012 was the
strongest in over a decade.
-- Benefit of sales of commemorative collectibles during year
related to the Queen's Diamond Jubilee and the London 2012
Olympics, including new demand for such products generated from
Chinese market
-- Launch of the GB250 Stamp Price Index providing a definitive
measure of the performance of the GB rare stamp market, which
showed growth of 11% in the year despite the weak economic
conditions in our home market, thus illustrating the
diversification benefits of an investment in rare stamps
Current trading and outlook
The acquisition of bidStart and associated fundraising enables
the acceleration of the delivery of the key aspect of the Group's
online strategy and consequent shareholder returns. The objective
is to utilise the strength of the Stanley Gibbons brand, network,
industry expertise and financial strength aiming to rapidly grow
the bidStart platform and to build on bidStart's technology to
create a substantial global online collectibles trading
platform.
We expect the current heightened interest in collectibles as an
alternative asset class to increase further in 2013, evidenced by
the size of our current order book, as the economic climate results
in a desire for investors to allocate more capital into tangible
assets. We expect this higher demand to underpin the prices of top
quality rare collectibles whilst providing investors with
attractive returns and a hedge against inflation.
The Board starts the current year in a strong financial
position, in a resilient market with substantial opportunities,
through the implementation of our strategy, to deliver substantial
increases in shareholder returns in the future.
Martin Bralsford, Chairman commented:
"The financial year just passed represented yet another success
delivering growth in profitability in line with market forecast.
This was achieved despite the costly work undertaken in the year
developing our wider strategy. Most important, the acquisition of
bidStart and associated fundraising represents a key milestone
towards achieving our core objective in the development of the
global online collectibles trading community.
The strength of our Balance Sheet at this time is key, with
substantial cash reserves together with the quality of our current
stockholding of rare collectibles. As a result, the Group and its
stakeholders enjoy the financial security and funding required to
support the development of future growth opportunities.
I congratulate the management team on their success in creating
the platform for future growth in the past year, which puts the
Group 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
Donal Duff, Chief Operating Officer and Finance Director
Peel Hunt LLP, NOMAD/Broker
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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