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Final Results Investors Presentation March 2012

The Stanley Gibbons Group. Final Results Investors Presentation March 2012. Contents. Pages 1. Financial Highlights 3-5 Operating Highlights 6 Philatelic 7 Publishing 8 Other Collectibles 9 Internet 10

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Final Results Investors Presentation March 2012

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  1. The Stanley Gibbons Group Final Results Investors Presentation March 2012 1

  2. Contents Pages 1. Financial Highlights 3-5 • Operating Highlights 6 • Philatelic 7 • Publishing 8 • Other Collectibles 9 • Internet 10 • Outlook & Strategic Focus 11-12 • Management Team 13 Appendix I Income Statement 14 Appendix II Balance Sheet 15 Appendix III Cashflows 16-17 Appendix IV Contact Details 18 2

  3. Financial Highlights 3

  4. Financial Highlights • Sales up 35% with key growth areas being online trading, philatelic dealing and investment services • Online sales of £4.3m (2010: £2.5m) up 72% • The Benham Group acquisition, completed in September 2010, contributed sales of £2.6m. Like-for-like sales, excluding Benham, were up 28% • Gross margin% down from 43.8% to 38.7% reflecting substantial change in sales mix with an increase in the sale of high value rarities at lower trading spreads • Profit before tax of £5.1m (2010: £4.3m) up 19% • Proposed final dividend of 3.5p (2010: 3.25p), giving a total dividend for the year of 6p (2010: 5.5p), up 9% 4

  5. Financial Highlights • Cash generated from operating activities of £4.1m (2010: £2.2m) after reinvestment of cash in stockholding of £2m (2010: £4.1m) • Cash funds at 31 December 2011 of £3.2m (2010: £1.8m) after payment of dividends in year of £1.4m (2010: £1.3m) • Stock levels at 31 December 2011 stated at historic cost of £16.8m (2010: £14.8m), representing 280 days stock held (2010: 363 days) 5

  6. Operating Highlights – Segmental Overview 6

  7. Philatelic • Increase in sales to investors and high net worth individuals seeking diversification into collectibles market • Sales to Channel Islands residents of £4.9m (2010: £2m) benefiting from opening of larger investment offices in Jersey in August • Hong Kong office opened at the end of September, generating sales of £0.5m in the last quarter of the year • Continued development into the Chinese rare stamp market generated sales of £1.1m (2010: £1m) • Retail sales from 399 Strand up 15% 7

  8. Publishing • Broadly flat full year performance. Prior year benefited from additional sales from London 2010 Stamp Exhibition • Exceptional costs incurred of £0.1m from rationalisation programme completed in April 2011 • Profit contribution up 8% in the second half of 2011 benefiting from improvements to production efficiencies and negotiation of lower print costs • Improved online distribution of our catalogue titles through own website, eBay.com and Amazon.com • Substantial progress made in year in evolving traditional print business to e-publishing 8

  9. Other Collectibles • Sales up 30%, profit down 23% due to substantial change in the mix of sales to lower margin products • The Benham Group contributed sales of £2.6m and profits of £0.6m, (including £0.3m of sales into Chinese market) • Successful diversification of product offering to include rare coins and military medals generating sales of £0.8m in seven months and profits of £0.1m • Fall in sales and profits of autographs and historical documents due to lower sales of high value rarities to investors 9

  10. Internet • www.frasersautographs.com re-launched in February 2011. Online revenues of autographs were up 57% in the year • www.stanleygibbons.com re-launched at end of May 2011. Online revenues for the second half were up 67% • New high net worth client leads sourced from the website generated sales of £3.4m (2010: £1.8m), up 89% • Improved SEO & web offers increasing site traffic and doubling of conversion rates over past 6 months • Extensive stockholding of lower value stamps made available to purchase online • Online price catalogue and stamp album management functionality developed 10

  11. Outlook & Strategic Focus • Reviewing strategic options before progressing to the next stage of planned online developments with an aim of accelerating and maximising returns from launch of an online trading platform and auctions • Further online developments scheduled for 2012 include: • Enhanced online stamp catalogue to comprise specialised philatelic information • Launch of foreign language versions of website to support international developments • Provision of mobile applications for our primary online content • Potential new offices being explored in Brazil, Switzerland, Singapore, Monaco, Gibraltar and Edinburgh to replicate success of investment offices in Guernsey and Jersey. New offices support future online and auction growth objectives • Progression of identified opportunities to develop the brand and sales into the US market 11

  12. Outlook & Strategic Focus • Stronger team in place to develop auction business. Recently secured a major collection, with an auction estimate in excess of £1m. The sale will be held over two auctions in May and September • Continued development of in-house expertise in rare coins and military medals with additional collectible categories under consideration • Opportunities to benefit from commemorative collectibles produced for Queen’s Diamond Jubilee and the London Olympics 2012 • Working towards launch of £10m rare stamp investment fund in 2012 • Reviewing strategic opportunities in both stamps and other collectibles to compliment and strengthen our overall brand offering 12

  13. Management Team • Board changes: • John Byfield, appointed as Corporate Development Director in February 2012 (previously a non-executive director since April 2010) • Mark Henley, resigned as Finance Director in November 2011 • Donal Duff, Chief Operating Officer, assumed the Finance Director responsibilities in November 2011 • Bob Henkhuzens (non executive and Chairman of audit committee), announcement of completion of term and retirement at forthcoming AGM in May • Process to identify suitable successor for Chairman of audit committee in progress • Key managerial appointments in year: • Managing Director of Benham Group appointed as Business Development Director • Head of Auctions (recently promoted to Managing Director, London) to ensure a broader responsibility for the philatelic operation • Publisher • Retail Manager, 399 Strand 13

  14. Appendix I - Income Statement 14

  15. Appendix II – Balance Sheet 15

  16. Appendix III - Cashflows 16

  17. Appendix III - Cashflows 17

  18. The Stanley Gibbons Group plc, Registered Office Martin Bralsford, Chairman Mike Hall, Chief Executive Donal Duff, Chief Operating Officer & Finance Director 18 Hill Street St. Helier, Jersey, JE2 4UA Tel: 01534 766711 Email: dduff@stanleygibbons.com Stanley Gibbons Limited Richard Purkis, Corporate Services Director 399 StrandLondon, WC2R 0LXTel: 020 78368444 Email: rpurkis@stanleygibbons.com Appendix IV - Contact details 18

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