Stanley Gibbons confident of outlook for 2009 and beyond after reporting strong interims

Proactiveinvestors.com (07.08.09) - Stanley Gibbons Group PLC (AIM: SGI) reported interim results which it called “remarkable in the prevailing market conditions”, showing an 18 percent rise in sales to £9.6 million, while pratex profit rose 13 percent from the previous first half to £1.4 million.

Chairman Martin Bralsford said in a statement: “The business has delivered strong profit growth in a period where our primary focus was on building the necessary team of a quality to take forward our longer term growth objectives. The board remains confident of the outlook for 2009 and beyond.”

The company, specialised in stamps, autographs/memorabilia and related investment products, appointed Keith Heddle as group sales director during the first half to end-June 2009. In a separate statement today, it said it made Donal Duff, who joined Stanley Gibbons’ executive team in March of this year, chief operating officer.

The worldwide recognition of its brand name is now beginning to translate into broad based sales penetration through the recruitment of international sales agents, the group said. The period under review saw strong sales to overseas clients as a direct result of its growing international network, contributing £1.1 million to first half sales.

Sales to investment clients and high net worth collectors increased by 39 percent compared with the first half of 2008.

“The planned launch of a rare stamp investment fund in the first quarter of 2010 should create the platform required to ensure that rare stamps achieve the recognition they deserve as a credible asset class as part of a sensible wealth diversification strategy,” the group said.

The period also saw a good performance from its auction activities with sales growth of 16 percent and increased profit contribution of 65 percent.

Current trading continues to show high demand for quality material and the exceptional result from its own public auction in June gives the group confidence that its market continues to be remarkably resilient in the current economic climate, it said.

“The current strength in our core rare stamp market, evident from recent auction realisations, together with a stronger start to trading in the second half to date, leads your board to remain confident on the company's ability to grow both sales and profits for the full financial year,” chairman Bralsford said.

Its new investment sales office in Jersey is scheduled to open in October. The new outlet is expected to result in the recruitment of new investment clients in the second half.

Stanley Gibbons is maintaining the interim dividend at 2 pence a share, thus keeping the payout covered 2.5 times by earnings, having taking into consideration projected cash flow requirements to support the development of its internet strategy and planned refurbishment of its retail premises at 399 Strand, London, following the renewal of its lease in March.

(Quelle: http://www.proactiveinvestors.com/companies/news/2112/stanley-gibbons-confident-of-outlook-for-2009-and-beyond-after-reporting-strong-interims--2112.html)