Monday, August 8, 2011

Stanley Gibbons has produced respectable results for the six months

Stanley Gibbons has produced respectable results for the six months to the end of June.

The decline in margins is blamed on "flat" auction revenues, increased trading with rival dealers and a fall in sales of high-margin investment autographs such as a letter signed by Henry VIII to the Pope.

On the other hand, the tax charge remains at around 10 per cent because as much as half of the revenues now come through the company's recently enlarged Jersey office - which caters for high net worth investors.

But prospects are encouraging as Stanley Gibbons goes international. Last September, the company opened an office in Hong Kong and sales of rare Chinese stamps contributed £700,000 to interim turnover.

The Chinese also bought £200,000 worth of Penny Blacks and £300,000 of other collectibles, including gold sovereigns.

There was also strong demand for Indian colonial stamps and management is keen to tie-up a distribution deal in the US.

The somewhat lacklustre trading performance at home reflects, in part, modest price increases for many pre-1952 stamps. That situation may change following some spectacular stamp prices realised at Spink's Chartwell Collection auction in June.

Broker Peel Hunt forecasts 12 months' sales up from £26.4m to £29.7m, pre-tax profits of £700,000 higher at £5m and EPS of 17.4p (from 15.7p in 2010).

If you need any Stanley Gibbons products such Stamp Albums and Catalogues - Check out Boscastle Supplies Online Store

Source: http://www.investorschronicle.co.uk/Companies/ByEvent/Results/Analysis/article/20110808/04138194-c1ac-11e0-b8a0-00144f2af8e8/Steady-progress-at-Stanley-Gibbons.jsp

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