TIDMSGI
RNS Number : 6955K
Stanley Gibbons Group PLC
27 June 2014
FOR IMMEDIATE RELEASE 27 June 2014
THE STANLEY GIBBONS GROUP PLC ("the Company" or "the Group")
Audited Results for the fifteen months ended 31 March 2014
The Stanley Gibbons Group plc today announced its audited
results for the fifteen months ended 31 March 2014.
Key Financial Highlights
-- Sales of GBP51.8m for the fifteen months ended 31 March 2014
(year ended 31 December 2012: GBP35.6m)
-- Trading profits* for the fifteen months ended 31 March 2014
of GBP6.9m (year ended 31 December 2012: GBP6.3m)
-- Investment in online developments expensed to the statement
of comprehensive income in the fifteen months ended 31 March 2014
of GBP1.8m (year ended 31 December 2012: GBP0.3m)
-- Adjusted profit before tax** for the fifteen months ended 31
March 2014 of GBP5.0m (year ended 31 December 2012: GBP6.0m)
-- Adjusted earnings per share for the fifteen months ended 31
March 2014 of 13.30p (year ended 31 December 2012: 20.98p)
-- Total dividend for the fifteen months ended 31 March 2014 of
7.0p per share (year ended 31 December 2012: 6.5p)
-- Although traditionally the quietest quarter of the year,
turnover was GBP10.2m for the quarter ended 31 March 2014 up 79% on
the same period last year as a result of the Noble acquisition
-- Net assets per share at 31 March 2014 of 180.1p (31 December
2012: 111.5p), representing an increase of 62%
-- Net cash balances of GBP9.5m at 31 March 2014 (31 December 2012: GBP6.8m)
-- Stock at 31 March 2014 stated at historic cost of GBP42.1m
(31 December 2012: GBP20.7m) including stock balances on
acquisition of Noble Investments (UK) plc (Noble) and Murray Payne
Limited of GBP11.1m
*Excludes investment on internet development, exceptional
operating charges and actuarial accounting adjustments
**Excludes exceptional operating charges and actuarial
accounting adjustments
Key Operational Highlights
Key operational highlights for the interim 12 month period ended
31 December 2013, following the change in the Company's year end
from 31 December to 31 March, were provided in our RNS announcement
on 29 March 2014. The operational highlights below provide an
update for the period since 31 December 2013:
-- The beta version of the new Stanley Gibbons branded online
marketplace is currently undergoing rigorous testing by both our
own internal specialists and a taskforce of external users
-- Two "seven-figure" exceptional and prestigious stamp
collections were secured in the quarter ended 31 March 2014. The
quality of our stockholding at this time provides a solid platform
to deliver growth in core dealing activities to both specialist
collectors and investors.
-- The integration of Noble is progressing in line with plan and
we continue to achieve notable success in cross selling between
Stanley Gibbons and Noble
-- Our auction division secured strong consignments in the
quarter ended 31 March 2014, which provides a degree of visibility
to future earnings
Trading Update and Outlook
-- The Group starts its new financial year ending 31 March 2015
with a strong balance sheet position, including net cash of GBP9.5m
and an expanded high quality stockholding of rare collectibles
stated at a historic cost of GBP42.1m
-- The most important milestone for the current financial year
is the forthcoming launch of the new Stanley Gibbons branded online
marketplace
-- Further integration benefits following the acquisition of
Noble in November 2013 are expected in the current financial year
including the proposed sale of the Baldwin's freehold property at
Adelphi Terrace, London
-- It is expected that the cross selling benefits of being able
to provide a first class service in a wide range of collectibles to
our combined client base will provide further increased sales
opportunities in the current year
-- The quality of the recent collections consigned to our
auction division provides an initial indicator that the strength of
the enlarged Group's combined expertise is beginning to be
recognised by the market and potential vendors of major
collections
Martin Bralsford, Chairman, commented:
"The Board remains committed to delivering on the established
Company strategy, with the aim being to transform the Company from
a stamp and collectibles trader generating steady growth to a
leading online marketplace and global auction house for
collectibles with far greater growth potential.
The acquisition of Noble Investments in November 2013 has
diversified the Company's offering and provided a further platform
for growth. Management see the growth prospects from the
development of an online marketplace in collectibles to offer even
greater potential for growth in the medium to long term.
As a result of our healthy balance sheet position, our quality
product offering, operating in a strong market non-correlated with
other asset classes and our growth strategy showing some early
signs of success, your Board looks forward to the long term
development of its businesses with confidence."
For further information, contact:
The Stanley Gibbons Group plc
Michael Hall, Chief Executive +44 (0) 1534 766711
Donal Duff, Chief Finance Officer
Peel Hunt LLP, NOMAD/Broker
Dan Webster/Matthew Armitt/Richard
Brown +44 (0) 20 7418 8900
Tavistock Communications
John West/Lulu Bridges +44 (0) 20 7920 3150
Chairman's Statement
Introduction
This report relates to the final audited results for the fifteen
months ended 31 March 2014 following the change in the Company's
financial year end from 31 December to 31 March. The prior year
comparative figures presented represent the audited results for the
twelve months ended 31 December 2012.
Financials
Turnover for the fifteen months ended 31 March 2014 was GBP51.8m
compared to GBP35.6m for the twelve months ended 31 December
2012.
Trading profits, before internet costs, exceptional charges and
actuarial accounting adjustments, were GBP6.9m for the fifteen
months ended 31 March 2014 (year ended 31 December 2012: GBP6.3m).
The net investment in our online development project expensed to
the statement of comprehensive income in the fifteen months ended
31 March 2014 was GBP1.8m (year ended 31 December 2012: GBP0.3m).
The investment was in line with plan and financed as part of the
fundraising of GBP6m in November 2012.
Profit before tax for the fifteen months ended 31 March 2014,
after charging internet development costs, but before exceptional
charges and actuarial accounting adjustments, was GBP5.0m (year
ended 31 December 2012: GBP6.0m) reflecting the increased
investment in the development of our online strategy in the
period.
Adjusted earnings per share, excluding exceptional costs and
actuarial accounting adjustments for the fifteen months ended 31
March 2014 were 13.30p (year ended 31 December 2012: 20.98p, as
restated).
Dividend
Your Board declared a second interim dividend, in respect of the
six month period to 31 December 2013, of 4.00p (2012: 3.75p). The
total dividend from earnings for the fifteen months ended 31 March
2014 was 7.00p (2012: 6.50p), an increase of 8%.
Outlook
The Group started its new financial year in April with a strong
balance sheet position, including net cash of GBP9.5m and a high
quality stockholding of rare collectibles carried at a historic
cost of GBP42.1m. Most important in this respect, we have recently
secured two exceptional and prestigious stamp collections. The
quality and breadth of our stockholding at this time provides a
solid platform to deliver growth in core dealing activities to both
specialist collectors and investors.
The integration of Noble Investments (UK) plc ("Noble") is
progressing in line with plan. Our principal leasehold retail
premises at 399 Strand, London are currently undergoing
refurbishment to create additional office space and better
presentation to accommodate the move of the Baldwin's team from
Adelphi Terrace to the Strand later this year. Following this move,
we will be in a position to sell our freehold property at Adelphi
Terrace.
We are already experiencing some notable success in cross
selling between Stanley Gibbons and Noble. It is expected that the
benefits of being able to provide a first class service in a wide
range of collectibles to our combined client base will provide
further increased sales opportunities in the current year.
We are encouraged that we have, in recent months, secured some
strong consignments for our auction business, which provides some
visibility of future earnings. The quality of the recent
collections consigned provides an initial indicator that the
strength of the enlarged Group's combined expertise is beginning to
be recognised by the market and potential vendors of major
collections. Our global reach, specialist expertise and perhaps
most importantly, our integrity, which is central to our brand
values, is of obvious attraction to sellers looking to realise the
best price for their collection.
The most important milestone in the current financial year is
the forthcoming launch of our Stanley Gibbons branded online
marketplace. This will represent the first step towards realising
our ultimate goal, which is to become the globally recognised
marketplace for trading collectibles online.
People
The Group now employs over 250 people as a consequence of our
recent acquisitions and development of our services into a wide
range of collectible categories. It is the dedication and
specialist expertise of our team that ensure our brand name
continues to be revered across the global collectibles community.
Specifically, our team's values ensure that we always strive to
deliver an exceptional service to our clients.
I take this opportunity to formally thank all members of the
Stanley Gibbons Group for their contribution and efforts during the
past fifteen months.
Board
I am delighted to welcome Clive Jones to your Company's Board
following his appointment as independent non-executive director on
28 March 2014. Clive, who until recently was Chairman of the Jersey
Financial Services Commission after a career in banking,
strengthens your Board through his extensive knowledge of corporate
governance, financial regulation and wealth management.
Martin Bralsford, Chairman
26 June 2014
Operating Review
15 months
to 12 months to 12 months to
31 March 31 December 31 December
2014 2014 2012 2012 2011 2011
Sales Profit Sales Profit Sales Profit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
restated
Philatelic trading and retail
operations 33,413 7,628 26,341 7,099 27,727 5,943
Publishing and philatelic
accessories 3,617 764 3,148 782 2,980 677
Coins and military
medals 6,981 1,225 1,045 239 800 133
Dealing in other collectibles 7,480 982 4,987 877 4,155 702
Corporate overheads - (3,780) - (2,615) - (1,881)
Finance income/(charges) -
net - 33 - (38) - (55)
--------------------------------------------------- -------- -------- -------- --------- -------- --------
Trading sales and
profits 51,491 6,852 35,521 6,344 35,662 5,519
Internet development 281 (1,822) 78 (302) 42 (127)
----------------------------------- ------- ----- -------- -------- -------- --------- -------- --------
Adjusted sales and profit
before tax 51,772 5,030 35,599 6,042 35,704 5,392
Actuarial accounting
adjustments - (563) - (368) - (290)
Finance charges related to
pensions - (173) - (170) - (44)
Exceptional operating
charges - (2,081) - (349) - (112)
Group total sales and profit
before tax 51,772 2,213 35,599 5,155 35,704 4,946
--------------------------------------------------- -------- -------- -------- --------- -------- --------
Overview
Group turnover for the fifteen months ended 31 March 2014 was
GBP51.8m (year ended 31 December 2012: GBP35.6m).
The gross margin percentage for the fifteen months ended 31
March 2014 was 44.1% compared to 43.7% for the year ended 31
December 2012.
Underlying trading profits, excluding investment on internet
development, actuarial accounting adjustments and exceptional
operating charges, were GBP6.9m for the fifteen months ended 31
March 2014 (year ended 31 December 2012: GBP6.3m).
Profit before tax for the fifteen months ended 31 March 2014 was
GBP2.2m (year ended 31 December 2012: GBP5.2m, as restated). The
reduction in statutory profits reflects the increased investment in
online developments with a net investment of GBP1.8m in the fifteen
months ended 31 March 2014 (year ended 31 December 2012: GBP0.3m)
and higher exceptional operating charges of GBP2.1m (2012:
GBP0.3m).
Philatelic Trading and Retail Operations
Philatelic trading and retail sales for the fifteen months ended
31 March 2014 were GBP33.4m (year ended 31 December 2012: GBP26.3m)
with profit contribution of GBP7.6m (2012: GBP7.1m).
Philatelic trading showed a strong performance in the fifteen
months ended 31 March 2014 benefiting from the quality of our
stockholding of high value philatelic rarities and sales made to
our existing high net worth clients. Core trading in stamps from
Great Britain and British Commonwealth countries showed significant
growth in the period.
Chinese rare stamps remain in high demand although sales levels
remain restricted by the limited quantity of material coming on to
the market of "Stanley Gibbons' quality". Despite these inherent
limitations, we are beginning to generate new sources of supply
through our office in Hong Kong with some success.
Enhanced by recent acquisitions, our auction business is
beginning to show promise with our February 2014 public auction
being one of our strongest in recent years.
Publishing and Philatelic Accessories
Publishing and philatelic accessory sales for the fifteen months
ended 31 March 2014 were GBP3.6m (year ended 31 December 2012:
GBP3.1m) with profit contribution of GBP0.8m (2012: GBP0.8m).
Sales performance suffered following the closure of our largest
wholesale distributor and the loss of the substantial bulk orders,
which we would ordinarily have benefited from. We are making
progress, however, in recruiting new trade clients previously
handled by this distributor.
Coins and military medals
Sales of rare coins and military medals for the fifteen months
ended 31 March 2014 were GBP7.0m (year ended 31 December 2012:
GBP1.0m) with profit contribution of GBP1.2m (2012: GBP0.2m). Sales
included GBP2.5m from Baldwin's in respect of the Noble
acquisition. The high level of growth achieved related primarily to
the sale of rare coins from Baldwin's extensive stockholding,
following acquisition in November 2013, to Stanley Gibbons' high
net worth clients.
Dealing in Other Collectibles
Dealing in other collectibles can be further analysed as
follows:
12 months 12 months
15 months to to to
31 March 31 December 31 December
2014 2014 2012 2012 2011 2011
Sales Profit Sales Profit Sales Profit
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Dealing in autographs, historical
documents, memorabilia, rare books
and records 3,135 154 1,615 150 1,567 127
Dealing in antiques, watches, fine
wine, jewellery and other collectibles 1,535 255 - - - -
Benham first day covers 2,810 573 3,372 727 2,588 575
Total sales and profit contribution 7,480 982 4,987 877 4,155 702
---------------------------------------- ------ ------ ------ ------ ------ ------
Sales of other collectibles for the fifteen months ended 31
March 2014 were GBP7.5m (year ended 31 December 2012: GBP5.0m) with
profit contribution of GBP1.0m (2012: GBP0.9m). Other collectibles
sales in the fifteen months ended 31 March 2014 include GBP5.9m in
respect of Noble since acquisition in November 2013.
Autographs, historical documents, memorabilia, rare books and
record sales for the fifteen months ended 31 March 2014 were
GBP3.1m (year ended 31 December 2012: GBP1.6m) with profit
contribution of GBP0.2m (2012: GBP0.2m). Fraser's autographs
business has now been integrated with Bloomsbury auctions, with
Fraser's autographs being relocated from 399 Strand, London to the
Bloomsbury auctions premises at 24 Maddox Street, London. The
integration has shown immediate benefits, with Fraser's autographs
sharing Bloomsbury Auctions' extensive resources and expertise.
Sales of antiques, watches, fine wine, jewellery and other
collectibles relate entirely to auction commission from Dreweatts
as part of the Noble acquisition in November 2013. Auction
commissions from Dreweatts in the period since acquisition to 31
March 2014 were GBP1.5m with a profit contribution of GBP0.3m. The
Dreweatts business is dependent on the timing of major auctions and
the short trading period reported since acquisition does not
reflect the underlying profitability of the business annually.
Benham first day covers and other collectibles sales for the
fifteen months ended 31 March 2014 were GBP2.8m (year ended 31
December 2012: GBP3.4m) with profit contribution of GBP0.6m (2012:
GBP0.7m). Sales in the prior year included GBP0.6m of London 2012
Olympics commemorative products to our trade distributor in China.
Prior year sales and profit contribution also benefited from
commemorative products in respect of the Queen's Diamond
Jubilee.
Corporate Overheads
Corporate overheads for the fifteen months ended 31 March 2014
were GBP3.8m (year ended 31 December 2012: GBP2.6m). The increased
corporate overheads reflect the investment to develop the necessary
support functions to manage the enlarged Group, including Finance,
HR and Group marketing department. These support functions provide
a vital element to delivering future growth in earnings of the
enlarged Group.
Internet Development
Sales reported within this division relate solely to commissions
generated from third party sales through our online marketplace
bidstart.com and online subscription revenues. Online e-commerce
sales through our trading websites stanleygibbons.com,
frasersautographs.com, baldwin.co.uk and dreweatts.com are reported
within the respective trading departments.
Online commissions and subscription revenue was GBP0.3m for the
fifteen months ended 31 March 2014.
The beta version of the new Stanley Gibbons branded online
marketplace is currently undergoing rigorous testing by both our
own internal specialists and a taskforce of external users.
Overheads were expensed in the fifteen months ended 31 March
2014 of GBP2.1m (year ended 31 December 2012: GBP0.4m) with the
increase relating mainly to salary costs of software engineers
making up our internet development team in Raleigh, US and
e-commerce and online marketing team in Jersey, CI and London,
UK.
Actuarial Accounting Adjustments & Finance charges related
to pensions
Actuarial accounting adjustments & finance charges related
to pensions for the fifteen months ended 31 March 2014 were GBP0.7m
(year ended 31 December 2012: GBP0.5m, as restated). In the opinion
of the Directors, such accounting charges do not form part of the
operating performance of the Group.
Exceptional Operating Charges
Exceptional operating charges can be further analysed as
follows:
15 months to 12 months to
31 31 December
March 2014 2012
GBP000 GBP000
Legal costs in respect of defined benefit
pension scheme 820 -
Aborted IT system development costs 139 -
Aborted overseas offices opening costs 121 -
Re-organisation and restructuring costs 290 130
Stock rationalisation 208 -
Acquisition costs 503 154
Fair value adjustment relating to Benham acquisition - 65
----------------------------------------------------- ------------ ------------
Total exceptional operating charges 2,081 349
----------------------------------------------------- ------------ ------------
Legal costs in respect of the defined benefit scheme incurred of
GBP0.8m relate to legal action for recovery against the
professional advisers in respect of the Company's defined benefit
pension scheme. Acquisition costs of GBP0.5m relate primarily to
legal and professional fees in respect of the acquisition of Noble.
Re-organisation and restructuring costs of GBP0.5m represent
one-off charges in respect of restructuring Group head office
functions and the integration of Noble.
Michael Hall, Chief Executive
26 June 2014
Financial Review
Balance Sheet
Net assets have increased substantially during the fifteen month
period from GBP31.7m to GBP83.9m mainly from the successful placing
and fundraising of GBP40m for the acquisition of Noble Investments
(UK) plc on 21 November 2013. Details of this acquisition, along
with that of Murray Payne Limited, are outlined in the financial
statements. These transactions have resulted in the identification
of intangible assets of GBP30.0m including goodwill (GBP23.9m),
customer lists (GBP2.6m), brands and trademarks (GBP3.5m).
The Group increased its stockholding significantly during the
fifteen months, as indicated below:
31 March 31 December
2014 2012
GBP000 GBP000
Philatelic rarities 19,891 8,318
Philatelic stock (general) 4,212 2,160
Coins and medals 7,888 1,112
Autographs, historical documents and related
memorabilia 5,341 4,545
First day covers and other collectibles 3,379 2,969
Publications, albums and accessories 1,407 1,624
--------- ------------
42,118 20,728
--------- ------------
The Group acquired GBP11.1m of inventory through two
acquisitions during the year. In view of the strong demand we are
witnessing for collectibles and our history of delivering strong
returns on this asset class, we remain confident that this type of
investment is a very effective use of Shareholder Funds.
Cash Flow
EBITDA for the period, as outlined below, was GBP6.1m (2012:
GBP6.5m), a decrease of GBP0.4m. A summary reconciliation of this
important financial metric to cash generated from operating
activities is given below:
15 months 12 months to
to 31 March 31 December
2014 2012
GBP000 GBP000
Operating profit 2,354 5,363
Exceptional items 2,081 349
Depreciation/Amortisation/asset writeoffs 1,121 439
IAS 19 employee benefit costs 375 260
IFRS2 accounting charge for share options 188 108
------------------------------------------------------ ------------- -------------
EBITDA 6,119 6,519
Increase in inventories (10,280) (3,927)
Net decrease/(increase) in debtors and creditors 2,500 (761)
Cash contributions to defined benefit pension scheme (177) (150)
Increase/(decrease) in contract provision 15 (325)
Exceptional items (2,081) (349)
Operating cash (consumed)/generated in period/year (3,904) 1,007
------------------------------------------------------ ------------- -------------
The Group's cash funds at 31 March 2014 were GBP9.5m, compared
to GBP6.8m at 31 December 2012. The Board is satisfied that the
Group has sufficient funds to meet its forecast working capital and
capital expenditure plans over the next 12 months.
The increase in cash during the fifteen months to March 2014 of
GBP2.7m (year ended 31 December 2012: increase of GBP3.5m) is net
of dividends paid of GBP1.9m (2012: GBP1.6m), tax paid of GBP0.4m
(2012: GBP0.6m) and a net drawdown of borrowings of GBP0.6m (2012:
net repayment of GBP0.3m). It further includes balances acquired on
the acquisition of Noble of GBP6.3m and net surplus funds raised
from the share placing of GBP4.6m which have since largely been
reinvested in high quality stock acquisitions.
Surplus funds are currently invested in short term deposits
which generate low rates of interest in the current economic
climate but with lower risk. It is Group policy to re-invest cash
funds into business assets, which deliver a higher return on
capital including its inventory of rare collectibles, IT systems
and value enhancing acquisitions. It is not Group policy to engage
in speculative activity using financial derivatives or other
complex financial instruments.
At 31 March 2014, the Group had bank borrowings of GBP0.8m (31
December 2012: GBP0.2m) with NatWest Bank PLC. This primarily
relates to a loan drawn down in January 2014 to fund the
acquisition of Murray Payne Limited at that time. It bears a rate
of LIBOR plus 1.5% and will be repaid quarterly over a 3-year
period. The outstanding loan balance from the prior year relating
to the Benham acquisition was repaid in full during 2013.
The Group invested GBP2.0m (year ended 31 December 2012:
GBP0.5m) in capital expenditure, excluding assets acquired as part
of the Noble and Murray Payne acquisitions during the period, and
this can be analysed as follows:
15 months Year ended
ended 31 December
31 March 2014 2012
2014 2012
GBP000 GBP000
System upgrades 489 192
Refurbishment of offices 235 211
Website development costs 1,047 43
Reference collection 74 37
Other tangible and intangible capital expenditure 219 23
Total Capital Expenditure in the period/year 2,064 506
--------------------------------------------------- --------------- -------------
Such capital investment is expected to increase the long-term
value of the business and to generate substantial cash flows in
future accounting periods.
Finance income/(costs)
Group cash funds generated GBP32,000 (year ended 31 December
2012: GBP3,000) bank interest for the reporting period.
Finance Costs comprise a cost of GBP173,000 (year ended 31
December 2012: GBP170,000, as restated), representing the interest
on net defined benefit liabilities under IAS19 (Amendment)
"Employee Benefits". The prior year figure also includes GBP17,000
of overdraft fees incurred for one off facilities to finance short
term working capital requirements.
Taxation
The tax charge for the fifteen months to 31 March 2014
(excluding deferred taxation) was GBP182,000 (year ended 31
December 2012: GBP351,000) incurred on UK and overseas profits,
resulting in an effective rate of 8.2% (31 December 2012: 6.8%).
Profits from Channel Island trading companies are currently subject
to tax at 0%.
Dividend
The Board has declared total dividends of 7.00p for the fifteen
months to 31 March 2014 (year ended 31 December 2012: 6.50p)
representing an increase of 8% and covered almost two times by
adjusted earnings for the period.
Donal Duff, Chief Finance Officer
26 June 2014
Consolidated statement of comprehensive income
for the fifteen months ended 31 March 2014
15 months ended Year ended
31 March 2014 31 December
2012
(restated)
Notes GBP'000 GBP'000
--------------- -----------
Revenue 51,772 35,599
Cost of sales (28,937) (20,031)
------------------------------------------------------- --------------- -----------
Gross Profit 22,835 15,568
Administrative expenses before defined
benefit pension service costs and exceptional
operating costs (7,404) (3,072)
Defined benefit pension service costs (375) (260)
Exceptional operating charges (2,081) (349)
------------------------------------------------------- --------------- -----------
Total administrative expenses (9,860) (3,681)
------------------------------------------------------- --------------- -----------
Selling and distribution expenses (10,621) (6,524)
------------------------------------------------------- --------------- -----------
Operating Profit 2,354 5,363
Finance income 32 3
Finance costs (173) (211)
------------------------------------------------------- --------------- -----------
Profit before tax 2,213 5,155
Taxation (78) (389)
------------------------------------------------------- --------------- -----------
Profit for the financial period/year 2,135 4,766
Other comprehensive income:
Actuarial gains/(losses) recognised
in the pension scheme 247 (120)
Tax on actuarial gains/(losses) recognised
in the pension scheme (98) 21
Revaluation of financial assets for
sale 99 -
Other comprehensive income/(loss) for
the period/year, net of tax 248 (99)
------------------------------------------------------- --------------- -----------
Total comprehensive income for the period/year 2,383 4,667
------------------------------------------------------- --------------- -----------
Basic earnings per Ordinary share 36.32p 18.48p
Diluted earnings per Ordinary share 36.25p 18.10p
------------------------------------ ----- ------
Consolidated Statement of financial position
as at 31 March 2014
31 March 31 December 31 December
2014 2012 2011
GBP'000 GBP'000 GBP'000
-------- ----------- -----------
Non-current assets
Intangible assets 32,571 1,723 1,133
Property, plant and equipment 6,294 2,145 2,032
Deferred tax asset 1,016 735 732
Available for sale financial assets 1,473 - -
Trade and other receivables - 229 420
41,354 4,832 4,317
------------------------------------ -------- ----------- -----------
Current Assets
Inventories 42,118 20,728 16,801
Trade and other receivables 14,144 11,668 9,178
Current tax receivable 135 - -
Cash and cash equivalents 9,499 6,766 3,230
------------------------------------ -------- ----------- -----------
65,896 39,162 29,209
------------------------------------ -------- ----------- -----------
Total assets 107,250 43,994 33,526
------------------------------------ -------- ----------- -----------
Current liabilities
Trade and other payables 15,928 8,179 6,641
Deferred consideration 2,153 - -
Borrowings 276 188 250
Current tax payable - 169 370
------------------------------------ -------- ----------- -----------
18,357 8,536 7,261
------------------------------------ -------- ----------- -----------
Non-current liabilities
Retirement benefit obligations 3,285 3,161 2,761
Borrowings 528 - 188
Deferred tax liabilities 760 233 213
Provisions 375 360 685
4,948 3,754 3,847
------------------------------------ -------- ----------- -----------
Total liabilities 23,305 12,290 11,108
------------------------------------ -------- ----------- -----------
Net assets 83,945 31,704 22,418
------------------------------------ -------- ----------- -----------
Equity
Called up share capital 466 284 253
Share premium account 62,565 11,137 5,285
Shares to be issued 209 209 -
Share compensation reserve 648 460 352
Capital redemption reserve 38 38 38
Revaluation reserve 353 254 254
Retained earnings 19,666 19,322 16,236
------------------------------------ -------- ----------- -----------
Equity shareholders' funds 83,945 31,704 22,418
------------------------------------ -------- ----------- -----------
Consolidated Statement of changes in equity
for the fifteen months ended 31 March 2014
Called up Share Share Capital
share premium Shares compensation Revaluation redemption Retained
capital account to be issued reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2013 284 11,137 209 460 254 38 19,322 31,704
Profit for the
financial
period/year - - - - - - 2,135 2,135
Amounts which may
be subsequently
reclassified to
profit & loss
Revaluation of
financial asset - - - - 99 - - 99
Amounts which will
not be
subsequently
reclassified to
profit & loss
Remeasurement of
pension scheme
net of deferred
tax - - - - - - 149 149
Total
comprehensive
income - - - - 99 - 2,284 2,383
Dividends - - - - - - (1,940) (1,940)
Cost of share
options - - - 188 - - - 188
Share options
exercised 8 937 - - - - - 945
Issue of ordinary
share capital
for acquisition 38 12,082 - - - - - 12,120
Gross proceeds
from issue of
ordinary share
capital 136 39,864 - - - - - 40,000
Placement costs - (1,455) - - - - - (1,455)
At 31 March 2014 466 62,565 209 648 353 38 19,666 83,945
------------------ --------- --------- ------------- ------------- ----------- ----------- --------- ---------
At 1 January 2012 253 5,285 - 352 254 38 16,236 22,418
Profit for the
financial year
-as originally
stated - - - - - - 4,883 4,883
Prior year
adjustment - - - - - (117) (117)
------------------ --------- --------- ------------- ------------- ----------- ----------- --------- ---------
Profit for the
financial year
- restated - - - - - - 4,766 4,766
------------------ --------- --------- ------------- ------------- ----------- ----------- --------- ---------
Amounts which will
not be
subsequently
reclassified to
profit & loss
Remeasurement of
pension scheme
net of deferred
tax - as
originally
stated - - - - - - (216) (216)
Prior year
adjustment - - - - - 117 117
------------------ --------- --------- ------------- ------------- ----------- ----------- --------- ---------
Actuarial loss on
pension scheme
net of
deferred tax -
restated - - - - - - (99) (99)
------------------ --------- --------- ------------- ------------- ----------- ----------- --------- ---------
Total
comprehensive
income - - - - - - 4,667 4,667
Dividends - - - - - - (1,581) (1,581)
Cost of share
options - - - 108 - - - 108
Share options
exercised - 78 - - - - - 78
Deferred
consideration - - 209 - - - - 209
Net proceeds from
issue of
ordinary share
capital 31 5,774 - - - - - 5,805
At 31 December
2012 284 11,137 209 460 254 38 19,322 31,704
------------------ --------- --------- ------------- ------------- ----------- ----------- --------- ---------
Consolidated Statement of cash flows
for the fifteen months ended 31 March 2014
15 months ended Year ended
31 March 31 December
2014 2012
Notes GBP'000 GBP'000
----- --------------- ------------
Cash (consumed)/generated from operations 4 (3,904) 1,007
Interest paid (4) (41)
Taxes paid (433) (552)
--------------------------------------------- ----- --------------- ------------
Net cash (consumed)/generated from
operating activities (4,341) 414
--------------------------------------------- ----- --------------- ------------
Investing activities
Purchase of property, plant and equipment (536) (368)
Purchase of intangible assets (1,528) (138)
Acquisition of business assets (net
of cash acquired) (29,036) (382)
Interest received 36 3
Net cash used in investing activities (31,064) (885)
--------------------------------------------- ----- --------------- ------------
Financing activities
Net proceeds from issue of ordinary
share capital 39,490 5,838
Dividends paid to company shareholders (1,940) (1,581)
Net borrowings 588 (250)
Net cash generated from financing activities 38,138 4,007
--------------------------------------------- ----- --------------- ------------
Net increase in cash and cash equivalents 2,733 3,536
--------------------------------------------- ----- --------------- ------------
Cash and cash equivalents at start
of period/year 6,766 3,230
--------------------------------------------- ----- --------------- ------------
Cash and cash equivalents at end of
period/year 9,499 6,766
--------------------------------------------- ----- --------------- ------------
1. Basis of preparation
The financial information set out in this announcement does not
comprise the Group's statutory financial statements for the period
ended 31 March 2014 or the year ended 31 December 2012.
The financial information for the period ended 31 March 2014 and
the year ended 31 December 2012 and 31 December 2011 has been
extracted from the Group's statutory financial statements. The
auditors have reported on those financial statements; their reports
were unqualified and did not include references to any matters to
which auditors drew attention by way of emphasis.
The statutory accounts for the year ended 31 December 2012 has
been delivered to the Registrar of Companies in Jersey, whereas
those for the period ended 31 March 2014 will be delivered to the
Registrar of Companies in Jersey following the Company's Annual
General Meeting.
2. Accounting policies
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
("IFRSs") as approved for use in the European Union and IFRS
Interpretations Committee interpretations. Except for IAS 19
(Amendment), "Employee benefits", there have been no changes to the
accounting policies adopted since the last consolidated financial
statements were published.
3. 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.
Adjusted earnings per share has been calculated to exclude the
effect of exceptional operating charges and actuarial accounting
adjustments. The Directors believe this gives a more meaningful
measure of the underlying performance of the Group.
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.
15 months ended Year ended
31 March 2014 31 December 2012
restated
Weighted average number of ordinary shares
in issue (No.) 33,769,106 25,788,461
Dilutive potential ordinary shares: Employee
share options (No.) 398,334 539,804
---------------------------------------------- --------------- ----------------
Profit after tax (GBP) 2,134,700 4,766,600
Pension service cost (net of tax) 420,864 236,300
Cost of share options (net of tax) 188,000 108,000
Exceptional operating costs (net of tax) 1,746,668 300,200
---------------------------------------------- --------------- ----------------
Adjusted profit after tax (GBP) 4,490,232 5,411,100
---------------------------------------------- --------------- ----------------
Basic earnings per share - pence per share
(p) 6.32p 18.48p
---------------------------------------------- --------------- ----------------
Diluted earnings per share - pence per share
(p) 6.25p 18.10p
Adjusted earnings per share - pence per share
(p) 13.30p 20.98p
---------------------------------------------- --------------- ----------------
Adjusted diluted earnings per share - pence
per share (p) 13.14p 20.55p
---------------------------------------------- --------------- ----------------
4 Cash (consumed)/generated from operations
15 months
ended Year ended
31 March 31 December
2014 2012
GBP'000 GBP'000
Operating profit 2,354 5,363
Depreciation 475 255
Amortisation 507 184
Write off of intangibles 139 -
Increase/(decrease) in provisions 139 (216)
Cost of share options 188 108
Increase in inventories (10,280) (3,927)
Decrease/(Increase) in trade and other receivables 5,774 (2,299)
(Decrease)/Increase in trade and other payables (less
deferred consideration) (3,200) 1,539
------------------------------------------------------ --------- -------------
Cash (consumed)/generated from operations (3,904) 1,007
------------------------------------------------------ --------- -------------
5 Annual report and accounts
The Annual Report and Accounts for the period ended 31 March
2014 will be posted to shareholders shortly. Further copies can be
obtained from the Company Secretary at 2(nd) Floor, Minden House,
Minden Place, St Helier, Jersey, JE2 4WQ, or the Company's Broker,
Peel Hunt LLP at Moor House, 120 London Wall, London EC2Y 5ET or
can be viewed on the Company's website at
www.stanleygibbons.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR QKADBCBKDAAB
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