Stanley Gibbons Interim Results for the six months ended 30 June 2013

Jersey-based The Stanley Gibbons Group plc announces the Group's interim results for the six months ended 30 June 2013.

Key Financial Highlights

• Sales up 17% to £17.2m (2012: £14.7m)
• Total revenues generated online of £1.2m, up 16%
• Trading profits* up 9% to £2.3m (2012: £2.1m)
• Investment in online developments expensed to the profit and loss account in the period of £0.56m (2012: £0.13m)
• Adjusted profit before tax** of £1.8m (2012: £2.0m)
• Adjusted earnings per share of 5.58p (2012: 7.23p)
• Revenue derived from outside of UK represented 61% of total revenue in period (2012: 47%)
• Interim dividend declared of 3.00p per share (2012: 2.75p), up 9%, (payable on 30 September 2013 to all holders on the Register at the close of business on 16 August 2013)
• 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) sufficient to deliver future organic growth from core trading activities

*Excludes investment on internet development, exceptional operating costs and actuarial accounting adjustments
**Excludes exceptional operating costs and actuarial accounting adjustments

Key Operational Highlights

• The work to integrate our existing online services with the bidStart platform to create a global online collectibles trading platform is progressing in line with plan
• Substantial progress in achieving our primary objective for the first half of the year in building the team and expertise required to deliver on our technical software development projects and online marketing plans
• New office in Singapore opened at the end of April and trading profitably only 3 months after opening
• Auction business delivered an improved performance with revenues up by 13% as we continue to make solid progress in developing the Stanley Gibbons auction services to their full potential
• Secured another seven-figure highly prestigious and internationally recognised collection of early Great Britain postal history in the first half, which will assist in supporting the demand we are currently experiencing from both our investment clients and the rising number of high net worth collectors

Outlook

• Primary focus for the second half is to deliver on the Group's online strategy
• Immediate opportunity to deliver short term growth from core trading operations through converting into sales the investment made in recent years to build an exceptional stockholding of rare collectibles
• Continued interest from investors seeking diversification with rare collectibles representing an attractive option as a tangible asset and a track record of delivering long term stable growth
• Increased focus on the international development of our brand, which has delivered positive returns to date and has the added benefit of ensuring that our profitability is not dependent on any one geographical region
• Commemorative products celebrating the birth of the “Royal Baby” will assist performance in the second half of the year

Martin Bralsford, Chairman, commented:

“Group trading performance was strong in the first half of 2013, with a 17% increase in revenues and a 9% increase in trading profits.

The net investment in our online developments expensed to the profit and loss account in the period of £0.56m was financed by the fundraising of £6m completed in November last year and hence does not have any impact on the underlying trading performance of the Group. Consequently, the increase of 9% in the interim dividend declared is in line with the growth in underlying earnings and reflects the continued confidence your Board has in the Group's future prospects.

This is an exciting time for the Stanley Gibbons Group as we embark on a strategy that seeks to transform a traditional respected brand into an exciting online business, whilst retaining and building on our core brand strengths and competitive advantages.”