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*The Stanley Gibbons Group Interim Results - 2013Investors Presentation
August 2013
*ContentsPages1.Financial Highlights 3-4Operating Highlights 5Philatelic 6Publishing 7Other Collectibles 8Internet 9Outlook & Strategic Focus 10Management Team 11
Appendix IIncome Statement 13Appendix IIBalance Sheet 14Appendix IIICashflows15-16Appendix IVContact Details 17
*Financial Highlights
6 months to 30/6/13
6 months to 30/6/12
Variance %
Revenue
17.2m
14.7m
+ 17%
Online revenues
1.2m
1.0m
+ 16%
Trading profits*
2.3m
2.1m
+ 9%
Adjusted profit before tax**
1.8m
2.0m
- 11%
Adjusted earnings per share**
5.58p
7.23p
- 23%
Dividend per share
3.00p
2.75p
+ 9%
Net assets per share
112p
91p
+ 23%
Cash balances
7.7m
(1.8m)
Inventories (at historic cost)
21.5m
24.5m
- 12%
*Excludes investment on internet development, exceptional operating costs and actuarial accounting adjustments.
** Excludes exceptional operating costs and actuarial accounting adjustments.
*Financial HighlightsSales up 17% and trading profits up 9%, benefiting from the strength of stockholding and sale of high value philatelic rarities to key high net worth clients in period
Online revenues up 16%, benefiting from new investment clients recruited directly from website and online third party commission income from bidStart acquisition
Revenue derived from outside of UK represented 61% of total revenue (2012: 47%)
Gross margin of 42.7% (2012: 44.5%) with prior period benefiting from provision adjustment
Adjusted earnings per share down 23% to 5.58p as a result of net investment in online developments in period of 0.6m (2012: 0.1m) and increased issued share capital following fundraising completed in November last year
Interim dividend increased by 9% to 3.00p, in line with increase in underlying earnings
Cash balances increased by 1m in the six months ended 30 June 2013 to 7.7m
Stock at 30 June 2013 stated at historic cost of 21.5m (30 June 2012: 24.5m) giving healthy asset base from which to trade in second half of year
*Operating Review
*Philatelic
Profits up 22% principally from the sale of high value rarities in period to high net worth clients
Marketing and sales focus in overseas markets
Hong Kong office contributed sales of 1.1m and profits of 0.2m in first half
New office in Singapore opened at the end of April already trading profitably by July
Secured another seven-figure highly prestigious and internationally recognised collection of early British Postal History
Auction business delivered improved performance with revenues up 13%
*Publishing
Profits up 16% benefiting from growth in website sales and improvements to product range
Concentration on improving gross margins, reducing inventory levels and exercising tight controls over costs
SG numbering system and catalogue information represents one of the most valued aspects of our brand recognised and respected worldwide
Future growth expected from monetising of our catalogue information online
*Other Collectibles
Profits down 0.1m (24%) as prior period included strong sales from products issued around the Queens Diamond Jubilee and the London Olympics 2012
Market in rare coins represents key diversification opportunity and is dependent on developing the necessary specialist expertise
Contribution from the Benham Group remained consistent despite lower sales. Commemorative products around the birth of the Royal Baby will assist performance in the second half
Future growth potential of autographs business dependent on development of professional online auction service
*InternetTotal online revenues up 16% to 1.2m, now 7% of Group revenue
Increased investment in development of online collectibles trading platform with costs of 0.7m expensed in first half
Technical development projects progressing in line with plan
Quality recruitments in period building development team in Raleigh, US and e-commerce and online marketing team in Jersey, Channel Islands
Intention to increase investment in online marketing in second half to grow revenues
IT support systems being replaced to create a fully integrated solution
*Outlook & Strategic FocusPrimary focus for the second half is to deliver on the key aspect of the Groups online strategy
Delivery of short term growth from core trading operations through utilising strength of current stockholding of rare collectibles
Providing a professional service to investors seeking diversification with rare collectibles representing an attractive option as a tangible asset and a track record of delivering long term stable growth
Continued focus on the international development of our brand through representative overseas offices and appropriate business partners
*Management TeamBoard changes:Simon Perree appointed as independent non-executive director at the AGM in May 2013, bringing relevant experience to support online strategyBoard is now composed of a majority of non-executive directors in line with best practice
Key managerial appointments in period:Venkat Mavram, with 11 years experience in senior role at eBay, appointed as Vice President of Engineering in Raleigh, USTony Ganzon, with 12 years experience in senior role at Cisco, appointed as Internal IT Operations Manager in Raleigh, USJohn Gregory, an experienced financial professional, appointed as Group Financial Controller in Jersey, CI
*AppendicesPagesAppendix IIncome Statement 13Appendix IIBalance Sheet 14Appendix IIICashflows15-16Appendix IVContact Details 17
*Appendix I - Income Statement
6 months to6 months to30-Jun-1330-Jun-12 (restated)'000'000Revenue17,242 14,712 Cost of sales(9,875)(8,161)Gross profit7,367 6,551 Gross profit %42.7%44.5%Administrative expenses(2,224)(1,741)Selling and distribution expenses(3,584)(2,990)Exceptional operating costs(410)(110)Operating profit1,149 1,710 Finance income8 1 Finance costs(30)(39)Profit before tax1,127 1,672 Taxation(97)(138)Profit after tax1,030 1,534 Effective tax rate8.6%8.3%Earnings per shareBasic3.59p6.07pAdjusted (excluding exceptional charges)5.58p7.23p
*Appendix II Balance Sheet
At 30 Jun 13 000At 30 Jun 12 000 (restated)Intangible assets1,622 1,117 Property, plant and equipment2,256 2,074 Deferred tax asset735 732 Trade and other receivables262 862 Non-current assets4,875 4,785 Inventories21,489 24,463 Trade and other receivables8,005 8,298 Cash and cash equivalents7,742 - Current assets37,236 32,761 Trade and other payables(5,906)(6,867)Bank overdraft-(1,808)Borrowings(63)(250)Current tax payable(135)(287)Current liabilities(6,104)(9,212)Trade and other payables-(1,628)Retirement benefit obligations(3,242)(2,843)Borrowings-(63)Other provisions for liabilities(627)(656)Non-current liabilities(3,869)(5,190)Net assets32,138 23,144
*Appendix III - Cashflows
6 months to 30 Jun 136 months to30 Jun 12'000'000Cash generated from/(used in) operations2,209(3,556)Interest paid(3)(12)Taxes paid(140)(234)Net cash generated from/(used in) operations2,066(3,802)Purchase of property, plant and equipment(253)(176)Purchase of intangible assets(49)(74)Interest received81Net cash used in investing activities(294)(249)Dividends paid to company shareholders(1,078)(884)Repayments of borrowings(125)(125)Net proceeds from issue of ordinary share capital40722Net cash used in financing activities(796)(987)Net increase/(decrease) in cash and cash equivalents976(5,038)Cash and cash equivalents at start of period6,7663,230Cash and cash equivalents at end of period7,742 (1,808)
*Appendix III - Cashflows
6 months to30 Jun 136 months to30 Jun 12 (restated)'000'000Operating profit1,1491,710Depreciation142134Amortisation15090Increase/(decrease) in provisions97(174)Cost of share options7554Increase in inventories(761)(7,662)Decrease in trade and other receivables3,630438(Decrease)/increase in trade and other payables(2,273)1,854
Cash generated from/(used in) operations2,209(3,556)
*Appendix IV - Contact detailsThe Stanley Gibbons Group plc, Registered Office
Martin Bralsford, ChairmanMike Hall, Chief ExecutiveDonal Duff, Chief Operating Officer & Finance Director2nd Floor, Minden House, Minden PlaceSt. Helier, Jersey, JE2 4WQTel: 01534 766711Email: [email protected]: [email protected]
Stanley Gibbons Limited Richard Purkis, Company Secretary399 Strand London, WC2R 0LX Tel: 020 78368444Email: [email protected]
Locations*
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