AVR.L Share Price (AVR)

......................

Avarae Global Coins, the AIM-listed company dealing in rare and high quality coins, has produced a less than sterling trading update. Revenues for the six months ended September 30th 2012 are expected to be "not less than £0.45m", compared with £1.58m for the same period in 2011. Margins have dropped from 44% to "not less than 15%". Diane Clarke, a director of Avarae, said: "Whilst the company did not benefit this year from the strong performance of our coins in the Hong Kong auction of August last year, a 15 per cent gross profit margin still represents a significant uplift from the carrying value of coins as of March 31st 2012. "The highest quality coins continue to attract strong prices around the world, as evidenced by the recent £780,000 (including buyer's premium) paid for one of Australia's rarest coins, a George V 1920 Sydney mint gold sovereign, which was sold for more than three times the price paid the last time such a coin was available for sale in 2006."

Diane Clarke, a director of Avarae, commented: "As we've previously stated, our investing and divesting activities are largely dependent on our consignments in the major auctions throughout the world. Whilst the Company did not benefit this year from the strong performance of our coins in the Hong Kong auction of August last year, a 15% gross profit margin still represents a significant uplift from the carrying value of coins as of 31 March 2012. The highest quality coins continue to attract strong prices around the world, as evidenced by the recent £780,000 (including buyer's premium) paid for one of Australia's rarest coins, a George V 1920 Sydney mint gold sovereign, which was sold for more than three times the price paid the last time such a coin was available for sale in 2006. The Company continues to purchase only the highest quality coins to add to its significant portfolio, such as a Charles II Two Guinea acquired during the period. The Directors look forward to updating shareholders with the half-year results in due course."

http://www.investegate.co.uk/Article.aspx?id=201210050700039814N

Avarae Global Coins (AVR) expects to report revenues of around 0.45 million pounds for the year ended 30th September, down from 1.58 million pounds in 2011, with gross profit margins falling to 15%, from 44%. The group attributed the weaker performance to a strong comparable, which included sales at a Hong Kong auction in August 2011. However, it noted quality products continued to attract attention, such as the recent sale of a George V 1920 Sydney mint gold sovereign for 0.78 million pounds, three times the price of a similar coin sold in 2006. Avarae shares were unchanged at 10.625p.