TIDMSGI
RNS Number : 0056X
Stanley Gibbons Group PLC
14 November 2014
THE STANLEY GIBBONS GROUP PLC
FOR IMMEDIATE RELEASE
14 November 2014
THE STANLEY GIBBONS GROUP PLC ("the Company" or "the Group")
Interim Results for the six months ended 30 September 2014
The Stanley Gibbons Group plc today announces its interim
results for the six months ended 30 September 2014.
Key Financial Highlights
-- Sales up 58% to GBP27.1m (2013: GBP17.2m)
-- Like-for-like sales, excluding acquisitions, were GBP17.2m, in line with the prior period
-- Trading profits* up 217% to GBP6.1m (2013: GBP1.9m)
-- Like-for-like trading profits, excluding acquisitions, were GBP3.7m, up 93%
-- Net investment in online developments expensed in the period of GBP0.8m (2013: GBP0.6m)
-- Adjusted profit before tax** up 307% to GBP5.3m (2013: GBP1.3m)
-- Adjusted earnings per share up 162% to 10.02p (2013: 3.82p)
-- Interim dividend declared of 3.25p per share (2013: 3.00p),
up 8% (payable on 12 January 2015 to all holders on the Register at
the close of business on 28 November 2014)
-- Net debt of GBP3.3m at 30 September 2014 (30 September 2013: cash balances of GBP4.2m)
-- Stock at 30 September 2014 stated at historic cost of
GBP50.7m (30 September 2013: GBP22.2m)
*Excludes investment on internet development, amortisation of
Noble intangibles, exceptional operating charges, share option
charges & IAS 19 pension costs
**Excludes amortisation of Noble intangibles, exceptional
operating charges, share option charges & IAS 19 pension
costs
Key Operational Highlights
-- Important milestone in the delivery of online strategy with
the "soft launch" in November 2014 of the online collectibles
marketplace, which can be viewed at marketplace.stanleygibbons.com,
with the "hard launch" release scheduled for Q1, 2015
-- The integration of Baldwin's with their move to our retail
flagship premises at 399 Strand, London was completed to plan and
opened for trading on Monday 27 October
-- Sale of Baldwin's freehold property at 11 Adelphi Terrace,
London for a consideration of GBP4.5m, with completion scheduled on
17 November 2014
-- Acquisition of Mallett plc ("Mallett") on 20 October 2014 for
a total cash consideration of GBP8.8m, excluding deal costs,
together with net debt in the Mallett business of GBP1.4m. This
represents a 22% discount compared to the GBP11.3m carrying book
cost of Mallett inventories
-- Advantage taken of a number of exceptional opportunities to
purchase high value quality collections providing benefit from
sales to high net worth clients during the period
-- Noble and Murray Payne acquisitions contributed GBP2.4m to
trading profits in the period with integration benefits and cross
selling opportunities being delivered in line with plan
Outlook
-- Focus on further development of online collectibles
marketplace working with key sellers and buyers over the coming
months in enacting further enhancements to the site whilst the
development team work on further added-value features in
preparation for the "hard launch" release scheduled for Q1,
2015
-- The quality of our stockholding at this time provides the
backbone to delivering short term growth
-- It is expected that the cross selling benefits of being able
to provide a first class service in a wider range of collectibles
to our combined client base will progressively deliver increased
sales opportunities in the second half
-- Implementation of immediate integration cost savings
following the acquisition of Mallett and initiation of cross
selling opportunities
Martin Bralsford, Chairman, commented:
"The enlarged Group delivered a strong trading performance in
the six months ended 30 September 2014, which included trading
profits of GBP2.4m contributed from the acquisition of Noble and
Murray Payne in November last year. The growth in like-for-like
profits of 93% in the period was primarily the result of the
initial crystallisation of returns from some recent exceptional
purchases of major high quality collections.
The recent acquisition of Mallett on 20 October 2014
significantly enhances the Group's authority in fine antiques and
decorating arts, consolidating its influence across the broad
market for collectibles. In particular, the acquisition provides a
stronger online auction platform to enhance our stated strategy to
become a leading online collectibles marketplace and global auction
house for fine and decorative arts, collectibles and other
valuables.
As a result of the strength of the Group's combined expertise,
international reach and loyal client base, your Board believes
there are substantial opportunities to increase market share and to
consolidate the market further, particularly from the
commercialisation of our recently launched online marketplace."
For further information, contact:
The Stanley Gibbons Group plc
Michael Hall, Chief Executive
Donal Duff, Chief Finance Officer +44 (0) 1534 766711
Peel Hunt LLP, NOMAD/Broker
+44 (0) 20 7418
Dan Webster/Richard Brown 8900
Tavistock
+44 (0) 20 7920
Lulu Bridges/Teresa Towner 3150
Chairman's Statement
Introduction
This report relates to the interim unaudited results for the six
month period ended 30 September 2014. As a result of the change in
the Company's financial period end from 31 December to 31 March,
the prior period comparative figures presented are derived from the
Groups' unaudited management accounts for the six months ended 30
September 2013.
On 22 November 2013 and 31 January 2014, the Group acquired
Noble Investments (UK) plc ("Noble") and Murray Payne Limited
("Murray Payne") respectively. Consequently, the prior period does
not include any contribution from those acquisitions and a
like-for-like comparison of performance, where appropriate, is also
provided within this report.
Financials
Turnover for the six months ended 30 September 2014 was
GBP27.1m, up 58% on the prior period. Like-for-like turnover,
excluding acquisitions, was GBP17.2m and in line with the prior
period.
Trading profits, before internet development costs, amortisation
of Noble intangibles, share option charges, IAS 19 pension costs
and exceptional costs, were GBP6.1m for the six months ended 30
September 2014 (2013: GBP1.9m). The net investment in our online
development project expensed to the statement of comprehensive
income in the six months ended 30 September 2014 was GBP0.8m (2013:
GBP0.6m).
Profit before tax for the six months ended 30 September 2014,
after charging internet development costs, but before amortisation
of Noble intangibles, share option charges, IAS 19 pension costs
and exceptional costs, was GBP5.3m (2013: GBP1.3m), up 307%.
Like-for-like profit before tax, excluding acquisitions, was
GBP2.9m, up 123%.
Adjusted earnings per share, excluding amortisation of Noble
intangibles, share option charges, IAS 19 pension costs and
exceptional costs, for the six months ended 30 September 2014 were
10.02p (2013: 3.82p), up 162%.
Net debt at 30 September 2014 was GBP3.3m (30 September 2013:
Net cash GBP4.2m). The cash position has reduced primarily due to
the Group's investment in a number of exceptional opportunities to
acquire high value collections during the period, resulting in an
increased level of inventories at 30 September 2014.
Dividend
Your Board is pleased to approve an increase in the interim
dividend of 8% to 3.25p (2013: 3.00p) per share. The interim
dividend is payable on 12 January 2015 to holders of Ordinary
Shares on the Register at the close of business on the record date
of 28 November 2014 with the shares marked ex-dividend on 26
November 2014.
Outlook
We have reached an important milestone in the delivery of our
online strategy with the "soft launch" delivered this month of our
online collectibles marketplace, which can be viewed at
marketplace.stanleygibbons.com. We will be working with key sellers
and buyers over the coming months in enacting further enhancements
to the site whilst our development team continue to work on further
added-value features in preparation for the "hard launch" release
scheduled for Q1, 2015.
The integration of Baldwin's with their move to our retail
flagship premises at 399 Strand, London was completed to plan and
opened for trading on Monday 27 October. This included the
rebranding of the exterior and interior of our retail premises to
incorporate Baldwin's activities. All of our specialist
collectibles trading and auctions have now been integrated in the
same location further enhancing cross-selling opportunities.
Contracts were exchanged on 4 August 2014 for the sale of
Baldwin's freehold property at 11 Adelphi Terrace, London for a
consideration of GBP4.5m, with completion scheduled on 17 November
2014. The sale illustrates one of the anticipated benefits of the
acquisition of Noble with the ability to rationalise the property
portfolio of the combined businesses, improving operating
efficiencies across the enlarged Group.
On 20 October 2014 the Group acquired Mallett PLC ("Mallett")
for a total cash consideration of GBP8.8m, excluding deal costs,
together with net debt in the Mallett business of GBP1.4m. This
represents a 22% discount compared to the GBP11.3m carrying book
cost of Mallett inventories.
Mallett is one of the oldest established antique dealers in the
world, specialising in the finest pieces of furniture and works of
art, including pictures, clocks and other high quality objects
d'art trading from prestigious premises on London's Dover Street
and New York's Madison Avenue. The acquisition significantly
enhances the Group's authority in fine antiques and decorative
arts, consolidating its influence across the broad market for
collectibles.
This influence is further complemented by Mallett's holdings in
Masterpiece Fairs, which operates the annual Masterpiece art,
antiques, design and jewellery fair in London each year and HJ
Hatfield & Sons, the restoration and conservation studio. The
acquisition of Mallett is in line with our strategy of creating an
online platform with the most comprehensive range of collectibles,
fine and decorative arts and other valuables at all price points
together with substantially enhancing the range of services we can
offer vendors of valuable estates and major collections.
Mallett's London, New York and Hong Kong operations will be
fully integrated and developed under Dreweatts & Bloomsbury
Auctions existing management, led by divisional CEO Stephan Ludwig
with the support of recently appointed divisional Chairman, George
Bailey.
The quality of our stockholding at this time provides the
backbone to delivering short term growth and the Board look forward
to the second half of the financial year with confidence.
Martin Bralsford
Chairman
14 November 2014
Operating Review
6 months 6 months 6 months 6 months 15 months 15 months
to 30 Sept to 30 Sept to 30 Sept to 30 Sept to to
2014 2014 2013 2013 31 March 31 March
2014 2014
Sales Profit Sales Profit Sales Profit
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Philatelic trading and
retail operations 15,138 4,932 13,407 2,857 33,413 7,628
Publishing and philatelic
accessories 1,301 250 1,325 252 3,617 764
Coins and medals 4,941 1,843 692 95 6,981 1,225
Dealing in other collectibles 5,660 707 1,682 240 7,480 982
Corporate overheads - (1,593) - (1,518) - (3,780)
Net finance (charges)/income - (16) - 5 - 33
Trading sales and profits 27,040 6,123 17,106 1,931 51,491 6,852
------------------------------ ----------- ----------- ----------- ----------- --------- ---------
Internet development 79 (830) 111 (632) 281 (1,822)
------------------------------ ----------- ----------- ----------- ----------- --------- ---------
Adjusted sales and profit
before tax 27,119 5,293 17,217 1,299 51,772 5,030
Pension service and share
option charges - (225) - (205) - (563)
Amortisation of Noble
intangibles - (180) - - - -
Finance charges related
to pensions - (69) - (27) - (173)
Exceptional operating
costs - (1,083) - (513) - (2,081)
------------------------------ ----------- ----------- ----------- ----------- --------- ---------
Group total sales and
profit before tax 27,119 3,736 17,217 554 51,772 2,213
------------------------------ ----------- ----------- ----------- ----------- --------- ---------
Overview
Group turnover for the six months ended 30 September 2014 was
GBP27.1m (2013: GBP17.2m), up 58%. Like-for-like turnover,
excluding acquisitions, was GBP17.2m and in line with the prior
period.
The gross margin percentage for the six months ended 30
September 2014 was 60.4% (2013: 40.8%). The substantial improvement
in gross margin percentage reflects the fact that a large
proportion of turnover from acquisitions relates to auction
commissions with no cost of sales attached. Like-for-like gross
margin, excluding acquisitions, was 52.4%. The underlying gross
margin benefited substantially from high margin sales of material
sold from recent purchases of major collections.
Underlying trading profits, before internet development costs,
were GBP6.1m for the six months ended 30 September 2014 (2013:
GBP1.9m). Acquisitions contributed trading profits of GBP2.4m in
the six months ended 30 September 2014. The increase in
like-for-like trading profits of GBP1.8m (93%) is the result of the
substantial improvement in the gross margin percentage compared to
the prior period.
Overheads, excluding exceptional charges, were GBP5.3m (93%)
higher than the prior period, including overheads of GBP5m in
respect of acquisitions. Like-for-like overheads were GBP0.3m (6%)
higher relating mainly to increased investment in online and IT
systems development.
Profit before tax for the six months ended 30 September 2014 was
GBP3.7m (2013: GBP0.6m). Like-for-like profit before tax for the
six months ended 30 September 2014 was GBP1.3m, up 143%, despite
higher exceptional charges of GBP1.1m (2013: GBP0.5m) incurred in
the period.
Philatelic Trading and Retail Operations
Philatelic trading and retail sales were GBP1.7m (13%) higher
than the same period last year with profit contribution up by
GBP2.1m (73%). Acquisitions contributed GBP0.1m to profits from
philatelic trading and retail operations in the period.
Philatelic trading showed a strong performance in the six months
ended 30 September 2014 benefiting from sales made to high net
worth clients from our recent purchases of major collections, with
profit contribution benefiting from the higher gross margin on such
sales. Trading performance in philatelic dealing is largely
influenced by high value sales made to key high net worth clients.
The largest client in the six months ended 30 September 2014
accounted for sales of GBP3.0m (2013: GBP2.7m).
Auction commissions for the six months ended 30 September 2014
were up 44% with an increase in profit contribution from our
philatelic auction activities, excluding acquisitions, of 59%.
Auctions, however, remain a relatively modest element of philatelic
trading accounting for 12% of revenues generated in the period.
Our offices in Asia (Hong Kong and Singapore) contributed sales
in the period of GBP1.5m (2013: GBP1.1m) and profits of GBP0.6m
(2013: GBP0.1m). Whilst this represents a positive performance
against the prior period, we believe there are substantial
opportunities to grow our business activities in Asia further based
on continuing to build important client relationships resulting in
recognition over time for the quality of the services in the
collectibles market we can provide.
Publishing and Philatelic Accessories
Publishing and philatelic accessory sales for the six months
ended 30 September 2014 remained consistent at GBP1.3m with a
profit contribution in line with the prior period of GBP0.3m.
Sales of our printed publishing titles and associated
advertising revenues remain consistent with tight control over
gross margins and overheads whilst seeking to reduce inventory
levels ensuring a focus on improving return on capital in
traditional publishing activities. One of the potential benefits of
the launch of our online marketplace will be the introduction of
new online subscription services to access our valuable philatelic
information and up to date market prices.
Coins and military medals
Sales of coins and military medals for the six months ended 30
September 2014 were GBP4.9m (2013: GBP0.7m) with profit
contribution of GBP1.8m (2013: GBP0.1m). The increase in sales and
profits from coins and military medals relates to the contribution
from Baldwin's in the period, following the acquisition of Noble in
November 2013.
Baldwin's auction revenues in the period benefited from the
rescheduling of the auction calendar with an additional sale
scheduled for October taking place in September.
Retail sales from Baldwin's were disappointing in the first half
of the year, partly affected by the disruptions from the move of
operations into 399 Strand, which were completed in October. The
shortfall against management expectations has since been broadly
recovered following stronger retail sales in October.
Dealing in Other Collectibles
Dealing in other collectibles can be further analysed as
follows:
6 months 6 months 6 months 6 months 15 months 15 months
to to to to to to
30 Sept 30 Sept 30 Sept 30 Sept 31 March 31 March
2014 2014 2013 2013 2014 2014
Sales Profit Sales Profit Sales Profit
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Dealing in autographs,
historical documents,
memorabilia, rare books
& records 2,499 131 586 33 3,135 154
Dealing in antiques,
watches, fine wine,
jewellery and other
collectibles 2,398 550 - - 1,535 255
Benham first day covers 763 26 1,096 207 2,810 573
Trading sales and profit
contribution 5,660 707 1,682 240 7,480 982
------------------------- -------- -------- -------- -------- --------- ---------
Sales of other collectibles for the six months ended 30
September 2014 were GBP5.7m (2013: GBP1.7m) with profit
contribution of GBP0.7m (2013: GBP0.2m). Other collectibles
included sales in the period of GBP3.9m and a profit contribution
of GBP0.6m in respect of Dreweatts & Bloomsbury auctions.
Autographs, historical documents, memorabilia, rare books and
record sales for the six months ended 30 September 2014 were
GBP2.5m (2013: GBP0.6m) with profit contribution of GBP0.1m.
Fraser's autographs has been fully integrated into Bloomsbury
Auctions with significant cross selling benefits being experienced
resulting in Fraser's autographs sales showing an increase of 87%
compared to the same period last year. Stock levels are being
actively reduced as we move more towards providing a professional
auction service in this area of the business with particular
emphasis in developing online auction revenues, which management
believe has significant future potential.
Sales of antiques, watches, fine wine, jewellery and other
collectibles relate entirely to auctions commissions from
Dreweatts. Auction commissions at Dreweatts in the six months ended
30 September 2014 were GBP2.4m with a profit contribution of
GBP0.6m. Profit contribution in the period from Dreweatts &
Bloomsbury Auctions was broadly in line with management
expectations.
Benham first day covers sales for the six months ended 30
September 2014 were GBP0.8m (2013: GBP1.1m) with negligible profit
contribution compared to GBP0.2m in the prior period. Performance
suffered in the period from an absence of any lucrative
commemorative events together with a lack of success in overseas
business development opportunities, mainly in China. The recent
news of the second "Royal Baby" provides the potential for new
commemorative products next year.
Internet Development
Sales reported within this division relate solely to commissions
generated from third party sales through our online marketplace,
www.bidstart.com and online subscription revenues. Online
e-commerce retail and auction revenues through our trading
websites, www.stanleygibbons.com, www.frasersautographs.com,
www.baldwin.co.uk, www.bloomsburyauctions.com and www.dreweatts.com
are reported within the respective trading departments.
Gross Merchandise Value ("GMV") through our US online
marketplace, Bidstart, was $1.04m in the six months ended 30
September 2014 (2013: $1.26m), down 17% with commissions generated
of GBP0.08m (2013: GBP0.11m). The reduction in GMV and commissions
are due to the absence of any development work or sales promotional
activity in the period as focus was directed towards the delivery
of the new Stanley Gibbons branded online marketplace.
Overheads expensed in the six months ended 30 September 2014
were GBP0.9m (2013: GBP0.7m) relating mainly to salary costs of
software engineers making up our internet development team in
Raleigh, US.
Online retail sales of our own products were GBP0.5m in the six
months ended 30 September 2014, up 4% on the same period last year.
Furthermore, sales of GBP1.3m were completed in the period to high
net worth investment clients sourced from the investment section of
our website.
The acquisition of Noble has resulted in a material increase of
online auction revenues, contributing GMV of GBP7.8m in the six
months ended 30 September 2014. This represents an important
element of our strategy, which we intend to develop further in line
with the auction industry trend of an increasing amount of bidding
taking place online.
Corporate Overheads
Corporate overheads for the six months ended 30 September 2014
were GBP1.6m (2013: GBP1.5m). The increased corporate overheads
from acquisitions and necessary support functions to manage the
enlarged Group including IT, Finance and HR were broadly balanced
by other corporate overhead savings made in the period.
Pension service & share option charges, amortisation of
Noble intangibles & finance charges related to pensions
Pension service & share option charges, amortisation of
Noble intangibles & finance charges related to pensions for the
six months ended 30 September 2014 were GBP0.5m (2013: GBP0.2m). In
the opinion of the Directors, such accounting charges do not form
part of the operating performance of the Group.
Exceptional Operating Costs
Exceptional operating costs can be further analysed as
follows:
6 months to 6 months 15 months
30 Sept 2014 to to
30 Sept 31 March 2014
2013
GBP000 GBP000 GBP000
Acquisition costs 550 - 503
Legal costs in respect of defined
benefit pension scheme 440 398 820
Aborted IT system development costs - - 139
Aborted overseas offices opening costs - - 121
Reorganisation & restructuring costs 5 115 290
Stock rationalisation - - 208
Other 88 - -
1,083 513 2,081
--------------------------------------- ------------- -------- --------------
Acquisition costs of GBP0.6m relate to legal and professional
fees in respect of the acquisition of Mallett PLC that were
irrevocably committed at the balance sheet date. Legal costs in
respect of the defined benefit pension scheme incurred of GBP0.4m
relate to legal action for recovery against the professional
advisers in respect of the Company's defined benefit pension
scheme. Other exceptional operating costs of GBP0.1m relate to
one-off restructuring costs incurred in the period.
Cashflow
Cash used in operations in the six months ended 30 September
2014 of GBP8.2m (2013: GBP0.2m) is after an increase in the
investment in our inventories of rare collectibles of GBP8.5m
(2013: reduction of GBP1.5m). The material increase in the level of
inventories held at the end of the half year relates to recent
exceptional purchases of high value quality collections, which will
support anticipated demand and sales in the future together with
providing significant protection to gross margin percentage over
the next few years.
Net debt at 30 September 2014 was GBP3.3m (30 September 2013:
Net cash GBP4.2m) and is after investments in fixed assets of
GBP1.8m (2013: GBP0.7m) and the payment of dividends of GBP1.9m
(2013: GBP1.9m).
Michael Hall
Chief Executive
14 November 2014
Condensed statement of comprehensive income
6 months to 6 months to 15 months
to
30 September 30 September 31 March
2014 2013 2014
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
------------ ------------ ---------
Revenue 3 27,119 17,217 51,772
Cost of sales (10,736) (10,186) (28,937)
----------------------------------- ----- ------------ ------------ ---------
Gross Profit 16,383 7,031 22,835
Administrative expenses before
defined benefit pension service
costs and exceptional operating
costs (6,795) (1,592) (7,404)
Defined benefit pension service
cost (150) (130) (375)
Exceptional operating costs (1,083) (513) (2,081)
----------------------------------- ----- ------------ ------------ ---------
Total administrative expenses (8,028) (2,235) (9,860)
----------------------------------- ----- ------------ ------------ ---------
Selling and distribution expenses (4,534) (4,220) (10,621)
----------------------------------- ----- ------------ ------------ ---------
Operating Profit 3,821 576 2,354
Finance income 4 7 32
Finance costs (89) (29) (173)
----------------------------------- ----- ------------ ------------ ---------
Profit before tax 3,736 554 2,213
Taxation 4 (466) (48) (78)
----------------------------------- ----- ------------ ------------ ---------
Profit for the period 3,270 506 2,135
Other comprehensive (cost)/income:
Actuarial gains recognised in
the pension scheme - - 247
Tax on actuarial gains recognised
in the pension scheme - - (98)
Revaluation of financial assets
for sale (49) - 99
Other comprehensive (cost)/income
for the period, net of tax (49) - 248
----------------------------------- ----- ------------ ------------ ---------
Total comprehensive income for
the period 3,221 506 2,383
----------------------------------- ----- ------------ ------------ ---------
Basic earnings per Ordinary
Share 5 7.02p 1.76p 6.32p
Diluted earnings per Ordinary
Share 5 6.69p 1.72p 6.25p
----------------------------------- ----- ------------ ------------ ---------
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 September 30 September 31 March
2014 2013 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------ ------------ ---------
Non-current assets
Intangible assets 33,126 1,958 32,571
Property, plant and equipment 6,800 2,243 6,294
Deferred tax asset 900 735 1,016
Available for sale financial
assets 1,424 - 1,473
Trade and other receivables - 262 -
-------------------------------- ------------ ------------ ---------
42,250 5,198 41,354
------------------------------- ------------ ------------ ---------
Current assets
Inventories 50,657 22,158 42,118
Trade and other receivables 15,086 6,033 14,144
Tax receivable - - 135
Cash and cash equivalents - 4,208 9,499
-------------------------------- ------------ ------------ ---------
65,743 32,399 65,896
------------------------------- ------------ ------------ ---------
Total assets 107,993 37,597 107,250
-------------------------------- ------------ ------------ ---------
Current liabilities
Trade and other payables 10,480 3,063 15,928
Deferred consideration 2,153 - 2,153
Bank overdraft 2,712 - -
Borrowings 276 - 276
Current tax payable 96 48 -
-------------------------------- ------------ ------------ ---------
15,717 3,111 18,357
------------------------------- ------------ ------------ ---------
Non-current liabilities
Trade and other payables 1,800 - -
Retirement benefit obligations 3,504 3,321 3,285
Borrowings 361 - 528
Deferred tax liabilities 750 225 760
Provisions 484 608 375
-------------------------------- ------------ ------------ ---------
6,899 4,154 4,948
------------------------------- ------------ ------------ ---------
Total liabilities 22,616 7,265 23,305
-------------------------------- ------------ ------------ ---------
Net assets 85,377 30,332 83,945
-------------------------------- ------------ ------------ ---------
Equity
Called up share capital 466 301 466
Share premium account 62,565 11,527 62,565
Shares to be issued 209 209 209
Share compensation reserve 723 572 648
Capital redemption reserve 38 38 38
Revaluation reserve 304 254 353
Retained earnings 21,072 17,431 19,666
-------------------------------- ------------ ------------ ---------
Equity shareholders' funds 85,377 30,332 83,945
-------------------------------- ------------ ------------ ---------
Condensed statement of changes in equity
Called Share Shares Share Capital
up share premium to be compensation Revaluation redemption Retained
capital account issued reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2014 466 62,565 209 648 353 38 19,666 83,945
Profit for the
period - - - - - - 3,270 3,270
Revaluation of
financial
asset - - - - (49) - - (49)
----------------- --------- --------- -------- ---------------- ------------- ------------ ---------- --------
Total
comprehensive
income - - - - (49) - 3,270 3,221
Dividends - - - - - - (1,864) (1,864)
Cost of share
options - - - 75 - - - 75
At 30 September
2014 466 62,565 209 723 304 38 21,072 85,377
----------------- --------- --------- -------- ---------------- ------------- ------------ ---------- --------
At 1 April 2013 301 11,527 209 497 254 38 18,865 31,691
Profit and total
comprehensive
income for the
period - - - - - - 506 506
Dividends - - - - - - (1,940) (1,940)
Cost of share
options - - - 75 - - - 75
At 30 September
2013 301 11,527 209 572 254 38 17,431 30,332
----------------- --------- --------- -------- ---------------- ------------- ------------ ---------- --------
At 1 January 2013 284 11,137 209 460 254 38 19,322 31,704
Profit for the
financial
period - - - - - - 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
pensions
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
----------------- --------- --------- -------- ---------------- ------------- ------------ ---------- --------
Condensed statement of cash flows
6 months to 6 months to 15 months to
30 September 30 September 31 March
2014 2013 2014
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
------------ ------------ ------------
Cash used in operations 6 (8,273) (182) (3,904)
Interest paid (89) (29) (4)
Taxes paid (67) (70) (433)
------------------------------- ----- ------------ ------------ ------------
Net cash used in operating
activities (8,429) (281) (4,341)
------------------------------- ----- ------------ ------------ ------------
Investing activities
Purchase of property, plant
and equipment (817) (265) (536)
Purchase of intangible assets (938) (418) (1,528)
Acquisition of business assets - - (29,036)
Interest received 4 7 36
------------------------------- ----- ------------ ------------ ------------
Net cash used in investing
activities (1,751) (676) (31,064)
------------------------------- ----- ------------ ------------ ------------
Financing activities
Dividends paid to company
shareholders 7 (1,864) (1,940) (1,940)
Net borrowings (167) (125) 588
Net proceeds from issue of
ordinary share capital - - 39,490
Net cash (used in)/generated
from financing activities (2,031) (2,065) 38,138
------------------------------- ----- ------------ ------------ ------------
Net (decrease)/increase in
cash and cash equivalents (12,211) (3,022) 2,733
------------------------------- ----- ------------ ------------ ------------
Cash and cash equivalents
at start of period 9,499 7,230 6,766
------------------------------- ----- ------------ ------------ ------------
Cash and cash equivalents
at end of period (2,712) 4,208 9,499
------------------------------- ----- ------------ ------------ ------------
Notes to the condensed financial statements
1 Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with IFRS as adopted
by the European Union. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board
(IASB) and the IFRS Interpretations Committee and there is an
ongoing process of review and endorsement by the European
Commission. The financial information has been prepared on the
basis of IFRS that the Directors expect to be adopted by the
European Union and applicable as at 31 March 2015.
2 Significant accounting policies
The accounting policies applied by the Group in this interim
report are the same as those applied by the Group in the
consolidated financial statements for the year ended 31 March
2014.
Income tax
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
3 Segmental analysis
As outlined in the Operating Review the company has five main
business segments, operations being split between Philatelic
trading, Publishing and philatelic accessories, Coins and medals,
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
trading& Publishing Coins
retail and philatelic & Other Internet
operations accessories medals collectibles development Unallocated Group
Segmental income GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
statement
6 months to 30
September 2014
Revenue 15,138 1,301 4,941 5,660 79 - 27,119
Operating costs (10,206) (1,051) (3,098) (4,953) (909) (1,998) (22,215)
Exceptional costs - - - - - (1,083) (1,083)
Net finance costs - - - - - (85) (85)
------------------ -------------- ---------------- -------- -------------- ------------- ------------ ---------
Profit/(loss)
before tax 4,932 250 1,843 707 (830) (3,166) 3,736
Tax - - - - - (466) (466)
------------------ -------------- ---------------- -------- -------------- ------------- ------------ ---------
Profit/(loss)
for the period 4,932 250 1,843 707 (830) (3,632) 3,270
------------------ -------------- ---------------- -------- -------------- ------------- ------------ ---------
6 months to 30
September 2013
Revenue 13,407 1,325 692 1,682 111 - 17,217
Operating costs (10,550) (1,073) (597) (1,442) (743) (1,723) (16,128)
Exceptional costs - - - - - (513) (513)
Net finance costs - - - - - (22) (22)
------------------ -------------- ---------------- -------- -------------- ------------- ------------ ---------
Profit/(loss)
before tax 2,857 252 95 240 (632) (2,258) 554
Tax - - - - - (48) (48)
------------------ -------------- ---------------- -------- -------------- ------------- ------------ ---------
Profit/(loss)
for the period 2,857 252 95 240 (632) (2,306) 506
------------------ -------------- ---------------- -------- -------------- ------------- ------------ ---------
15 months to
31 March 2014
Revenue 33,413 3,617 6,981 7,480 281 - 51,772
Operating costs (25,785) (2,853) (5,756) (6,498) (2,103) (4,342) (47,337)
Exceptional costs (18) (150) - (40) - (1,873) (2,081)
Net finance costs - - - - - (141) (141)
------------------ -------------- ---------------- -------- -------------- ------------- ------------ ---------
Profit/(loss)
before tax 7,610 614 1,225 942 (1,822) (6,356) 2,213
Tax - - - - - (78) (78)
------------------ -------------- ---------------- -------- -------------- ------------- ------------ ---------
Profit/(loss)
for the period 7,610 614 1,225 942 (1,822) (6,434) 2,135
------------------ -------------- ---------------- -------- -------------- ------------- ------------ ---------
Geographical information
Analysis of revenue by origin and destination
6 months 15 months
6 months to to
6 months to to 30 Sept 15 months 31 March
30 Sept 2014 30 Sept 2014 6 months to 2013 to 2014
Sales by Sales by 30 Sept 2013 Sales by 31 March 2014 Sales by
destination origin Sales by destination origin Sales by destination origin
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Channel Islands 771 9,333 3,684 10,707 8,281 27,142
United Kingdom 17,861 16,313 6,972 5,549 25,921 21,644
Hong Kong 958 1,473 861 961 2,466 2,986
Europe 536 - 874 - 2,905 -
North America 2,057 - 820 - 3,036 -
Singapore 3,057 - 2,667 - 5,844 -
Asia 841 - 180 - 807 -
Rest of the
World 1,038 - 1,159 - 2,512 -
---------------- ------------------- ------------- -------------------- --------- -------------------- ---------
27,119 27,119 17,217 17,217 51,772 51,772
---------------- ------------------- ------------- -------------------- --------- -------------------- ---------
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.
Singapore sales in the period ended 30 September 2014 include
GBP3,000,700 to one individual customer (2013: GBP2,547,000).
Channel Islands sales in the period ended 30 September 2013 include
GBP2,721,000 to one individual customer.
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 to 6 months to 15 months
to
30 September 30 September 31 March 2014
2014 2013
(unaudited) (unaudited) (audited)
Weighted average number of ordinary
shares in issue (No.) 46,597,859 28,742,267 33,769,106
Dilutive potential ordinary shares:
Employee share options (No.) 2,266,549 647,162 398,334
------------------------------------ ------------ ------------ -------------
Profit after tax (GBP) 3,270,000 505,965 2,134,700
Pension service costs (net of tax) 173,010 121,044 420,864
Cost of share options (net of tax) 75,000 75,000 188,000
Amortisation of Noble intangibles 180,000 - -
Exceptional operating costs (net
of tax) 971,115 394,903 1,746,668
Adjusted profit after tax (GBP) 4,669,125 1,096,912 4,490,232
------------------------------------ ------------ ------------ -------------
Basic earnings per share - pence
per share (p) 7.02p 1.76p 6.32p
Diluted earnings per share - pence
per share (p) 6.69p 1.72p 6.25p
Adjusted earnings per share - pence
per share (p) 10.02p 3.82p 13.30p
Adjusted diluted earnings per share
- pence per share (p) 9.56p 3.73p 13.14p
------------------------------------ ------------ ------------ -------------
6 Cash used from operations
6 months to 6 months to 15 months
to
30 Sept 2014 30 Sept 2013 31 March 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Operating profit 3,821 576 2,354
Depreciation 310 153 475
Amortisation 384 149 507
Write-off of intangibles - - 139
Increase in provisions 329 108 139
Cost of share options 75 75 188
(Increase)/decrease in inventories (8,539) 1,462 (10,280)
(Increase)/decrease in trade and
other receivables (2,594) 2,094 5,774
Decrease in trade and other payables (2,059) (4,799) (3,200)
------------------------------------- ------------ ------------ -------------
Cash used from operations (8,273) (182) (3,904)
------------------------------------- ------------ ------------ -------------
7 Dividends
6 months 6 months to 15 months
to 30 Sept 2013 to
30 Sept 31 March
2014 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Note 1
Amounts recognised as distribution
to equity holders in period:
Dividend paid 1,864 1,940 1,940
------------------------------------ ------------ -------------- ----------
Dividend paid per share 4.00p 6.75p 6.75p
------------------------------------ ------------ -------------- ----------
Dividend proposed but not paid 1,517 - 1,864
------------------------------------ ------------ -------------- ----------
Dividend proposed per share 3.25p - 4.00p
------------------------------------ ------------ -------------- ----------
Note 1: The Company declared a second interim dividend in
respect of the six month period to 31 December 2013 of 4.00p and
this was paid in May 2014.
8 Acquisition of Mallett PLC
On 29 September 2014 the Company announced that it had reached
agreement on the terms of a recommended cash offer for the entire
issued and to be issued share capital of Mallett PLC.
On 20 October 2014 the Company announced that the acceptance
condition to the Offer had been satisfied and the Offer thereby
became unconditional as to acceptances.
The assets and liabilities of Mallett PLC are not reflected in
these financial statements. However, the costs of the transaction
to the extent that they have been irrevocably committed at the
balance sheet date have been accrued and expensed and reported
within exceptional items.
9 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, 2(nd) Floor, Minden
House, Minden Place, Jersey JE2 4WQ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MMMMMRFKGDZM
Stanley Gibbons (LSE:SGI)
Historical Stock Chart
From May 2024 to Jun 2024
Stanley Gibbons (LSE:SGI)
Historical Stock Chart
From Jun 2023 to Jun 2024
