Download Slide 1 - Stanley Gibbons

STANLEY GIBBONS
Rare Stamps & Autographs
Interim Results - 2011
Investors Presentation
August 2011
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Contents
1.
2.
3.
4.
5.
Pages
3-4
5-7
8
9
10
Financial Highlights
Operating Highlights
Outlook & Strategic Focus
Internet Development Update
Management Team
Appendix I
Appendix II
Appendix III
Appendix IV
Income Statement
Balance Sheet
Cashflows
Contact Details
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13-14
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Financial Highlights
6 months to
30 June 2011
6 months to
30 June 2010
Variance %
Revenue
£15.0m
£11.9m
+ 25%
Adjusted profit before tax*
£1.8m
£1.6m
+ 12%
Adjusted earnings per share
6.18p
5.58p
+ 11%
Dividend per share (net)
2.50p
2.25p
+ 11%
Dividend cover (times)
2.47
2.48
0%
Net assets per share
86p
75p
+ 15%
Cash
£1.3m
£1.8m
- 28%
Inventories (at cost)
£15.6m
£10.6m
+ 48%
* before exceptional charges
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Financial Highlights
•
Sales up 25% with particularly strong performance from philatelic trading and retail
operations
•
Strong performance from the Benham Group (acquired in September 2010 for
£1.5m), contributing profits of £0.3m in the first half
•
Gross margin % down from 40.6% to 37.9%, impacted by higher level of trade
sales in period and change in sales mix. Gross margins expected to improve in
second half of year
•
Adjusted profit before tax, excluding exceptional charges, of £1.8m (2010: £1.6m),
up 12%
•
Interim dividend increased by 11% to 2.50p
•
£0.9m of cash generated from operations (2010: £0.8m) despite an increased
investment in stockholding of £0.9m since beginning of the year
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Philatelic
•
Strong trade sales in period through
building of mutually beneficial trading
relationships
•
Development into Chinese rare stamp
market generated £0.7m sales in period
•
Sales of £0.2m “fine used” penny blacks
to the Chinese market
•
Retail sales from 399 Strand up 21%,
benefiting from the refurbishment
completed in April last year
•
Increased demand from investors seeking
a means of diversifying, protecting and
growing their wealth in a tangible asset
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Publishing
•
Poor performance from Publishing
division in period with a £0.03m (13%)
drop in profit contribution, although
compares to a strong prior period, which
benefited from the London 2010 Stamp
Exhibition
•
Exceptional costs incurred of £0.1m from
rationalisation of Publishing division in
first quarter, although generating future
annual cost savings of £0.15m
•
Stronger publishing schedule for second
half with key annual titles on course for
publication ahead of schedule
•
Restructured team better focussed to
deliver improved performance from
implementation of strategic opportunities
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Other Collectibles
•
Acquired specialist expertise to extend
product offering into rare coins,
commemorative medallions and military
medals, with £0.4m sales of rare coins in
the month of June
•
The Benham Group contributed sales of
£1.4m (including £0.3m product sales into
the Chinese market) and profits of £0.3m
•
Royal Wedding commemorative
collectible sales lower than initially
anticipated. Longer term benefits from
recruitment of new clients for continuity
programmes
•
Reduction in autograph sales to investors
during period due to shift in marketing
focus, together with a lack of suitable
material coming onto the market
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Outlook & Strategic Focus
•
Online trading platform scheduled for launch in late 2011
•
Opening a new office in Hong Kong in September 2011
•
Moving to larger premises in Jersey in August 2011 providing increased retail
gallery space
•
Meetings scheduled with potential trading partners in the US in September
•
Continue to diversify our quality product offering into other collectibles including
rare coins, commemorative medallions and military medals
•
Potential launch of rare stamp investment fund remains on agenda, although as a
lower priority
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Internet Development Update
•
New Fraser’s Autographs website, www.frasersautographs.com launched in
February 2011 resulting in 13% increase in online sales compared to prior period
•
Principal components of primary website, www.stanleygibbons.com launched on 31
May with growth in sales and visitor numbers encouraging to date. Sales in the
period under review were down 14% as a result of disruption to services during the
web development process
•
Online trading platform scheduled for launch in late 2011
•
Focus now on:
– Ensuring we have appropriate e-infrastructure in place to react to the changing
marketplace
– Building our dedicated in-house e-commerce team to ensure we are adequately
resourced to capitalise on recent technical developments
– Developing relationships with clients of our e-commerce software providers
and established e-commerce industry experts
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Management Team
•
Key new managerial appointments in period:
– Managing Director of Benham Group appointed as Business Development
Director focussing, in the short term, on development of opportunities in China
and the Far East
– Head of Auctions
– Publisher
– Retail Manager, 399 Strand
•
Key appointments planned for the second half of 2011:
– Head of E-commerce
– Local manager for Hong Kong office
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Appendix I - Income Statement
6 months to
6 months to
30-Jun-11
30-Jun-10
£'000
£'000
Revenue
14,951
11,915
Cost of sales
(9,282)
(7,079)
Gross profit
5,669
4,836
Gross profit %
37.9%
40.6%
Administrative expenses
(1,273)
(1,082)
Selling and distribution expenses
(2,647)
(2,202)
Exceptional operating costs
(105)
-
Operating profit
1,644
1,552
Finance income
28
18
(22)
-
Profit before tax
1,650
1,570
Taxation
(170)
(166)
Profit after tax
1,480
1,404
Effective tax rate
10.3%
10.6%
Basic
5.88p
5.58p
Adjusted (excluding exceptional charges)
6.18p
5.58p
Finance costs
Earnings per share
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Appendix II – Balance Sheet
At 30 Jun 11
£000
At 30 Jun 10
£000
Intangible assets
1,087
461
Property, plant and equipment
1,872
1,784
Deferred tax asset
32
124
Non-current assets
2,991
2,369
15,629
10,574
Trade and other receivables
7,993
9,663
Cash and cash equivalents
1,271
1,776
Current assets
24,893
22,013
Trade and other payables
(4,585)
(3,898)
Borrowings
(250)
-
Current tax payable
(204)
(176)
(5,039)
(4,074)
(75)
(442)
Borrowings
(312)
-
Other provisions for liabilities
(706)
(1,006)
Non-current liabilities
(1,093)
(1,448)
Net assets
21,752
18,860
Inventories
Current liabilities
Retirement benefit obligations
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Appendix III - Cashflows
6 months to
30 Jun 11
6 months to
30 Jun 10
£'000
£'000
Cash generated from operations (page 14)
891
779
Interest paid
(22)
-
(315)
(275)
554
504
Purchase of property, plant and equipment
(126)
(747)
Purchase of intangible assets
(101)
(288)
1
-
Net cash used in investing activities
(226)
(1,035)
Dividends paid to company shareholders
(818)
(755)
Repayment of borrowings
(125)
-
48
-
Net cash used in financing activities
(895)
(755)
Net decrease in cash and cash equivalents
(567)
(1,286)
Cash and cash equivalents at start of period
1,838
3,062
Cash and cash equivalents at end of period
1,271
1,776
Taxes paid
Net cash generated from operations
Interest received
Share options exercised
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Appendix III - Cashflows
6 months to
30 Jun 11
6 months to
30 Jun 10
£'000
£'000
1,644
1,552
Depreciation
116
66
Amortisation
29
13
(Decrease)/increase in provisions
(4)
192
Cost of share options
54
54
(856)
(1,285)
873
303
(965)
(116)
891
779
Operating profit
Increase in inventories
Decrease in trade and other receivables
Decrease in trade and other payables
Cash generated from operations
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Appendix IV - Contact details
The Stanley Gibbons Group plc
•
•
Stanley Gibbons (Jersey) Limited
399 Strand
London, WC2R 0LX
Tel: +44(0)20 78368444
Email: [email protected]
18 Hill Street
St. Helier, Jersey, JE2 4UA
Tel: +44(0)1534 766711
Email: [email protected]
•
Stanley Gibbons Limited
7 Parkside, Christchurch Road
Ringwood, Hampshire, BH24 3SH
Tel: +44(0)1425 472363
Email: [email protected]
Stanley Gibbons (Guernsey) Limited
18 Le Bordage
St. Peter Port, Guernsey, GY1 1DE
Tel: +44(0)1481 708270
Email: [email protected]
www.stanleygibbons.com
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