Stanley Gibbons Group PLC Trading Update (8766Z)
September 23 2015 - 2:00AM
UK Regulatory
TIDMSGI
RNS Number : 8766Z
Stanley Gibbons Group PLC
23 September 2015
THE STANLEY GIBBONS GROUP PLC
FOR IMMEDIATE RELEASE 23 September 2015
THE STANLEY GIBBONS GROUP PLC ("the Company" or "the Group")
Trading Update
The Directors note the recent movement in the Company's share
price and are providing an update to the market on trading in
advance of the six month period ended 30 September 2015.
The Group's auction calendar for this year is more heavily
weighted towards the second half than last year and the Group is
therefore budgeted to deliver materially higher revenues and
profits in the second half of its financial year. In addition, the
Group is currently working on a number of high value sales with
potential new clients, the completion of which would have a
material impact on trading and would represent a key element of the
Group's performance for the first half of the year. Given weakness
in particular in our Asian operations during the first half, it is
currently uncertain whether high value sales completed by 30
September 2015 will be at the level required to achieve the Group's
internal budgets for the first half of the year but detailed
dialogue is ongoing with a number of interested parties.
Notwithstanding the potential half on half split, the Directors
continue to believe that the Group will achieve market forecasts
for the full year ended 31 March 2016 based on trading initiatives
in place, the realisation of integration benefits from recent
acquisitions and through continued expected sales of our strong
stockholding of rare high quality collectibles.
Update on online performance
As reported in our Annual Report and Accounts for the year ended
31 March 2015, total online revenues were up 22% compared to the
year ended 31 March 2014. We have continued to achieve double-digit
growth in our total online revenues in the current financial year
to date.
Our new Marketplace is yet to make a material contribution to
this growth. Following its launch in late May, we have been
monitoring our web data and gathering feedback from buyers and
sellers. This feedback is being used to prioritise the development
of further improvements to user experience. We are beginning to see
signs of sentiment improving, and expect this to translate into
improved traffic and conversion in the coming months as further
enhancements are delivered, including a revised look for the site
and the use of content to enrich the customer experience. Until we
start to see advocacy and conversion improve we are holding off
from investing in any material marketing spend to drive sales to
the Marketplace.
Integration and cost savings initiatives
The Group has made a number of significant strategic
acquisitions in the past two years, including Noble Investments
(UK) plc and Mallett plc. The Board is now implementing the final
stages of the integration of these businesses, which includes
simplifying the management structure and combining certain
functions at Group level. Rationalisation costs savings implemented
in the first half, excluding exceptional costs, are expected to
generate annualised costs savings of GBP1.4 million.
Consolidating functions such as the customer service and
marketing teams will allow us to realise both financial and
operational synergies and benefits from the enlarged Group. We will
be better positioned to cross sell our products and services across
our customer base, in line with the Board's strategy.
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
Dan Webster/Richard Brown/George +44 (0) 20 7418
Sellar 8900
Tavistock
+44 (0) 20 7920
Lulu Bridges/Niall Walsh 3150
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTSEWFMEFISEDU
(END) Dow Jones Newswires
September 23, 2015 02:00 ET (06:00 GMT)
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