LONDON (Alliance News) - Stamp collecting company Stanley Gibbons Group PLC, which recently bought antique furniture dealer Mallett PLC, on Friday posted a strong increase in both first-half profit and sales, driven by the recent acquisitions.
The group's pretax profit of GBP3.7 million for the six months to September 30, up from GBP554,000 the prior year, was boosted by the acquisition of Noble and Murray Payne in November last year, which it said contributed GBP2.4 million to trading period during the half year.
"The growth in like-for-like profits of 93% in the period was primarily the result of the initial crystallisation of returns from some recent exceptional purchases of major high quality collections," said Chairman Martin Bralsford in a statement.
Stanley Gibbons' gross margin in the period increased to 60.4%, up from 40.8% last year, which it said reflects the fact that a large proportion of revenue from its acquisitions relates to auction commissions, with no cost of sales attached.
Revenue came in at GBP27.1 million, up from GBP17.2 million the prior year, driven by the acquisitions, while like-for-like sales excluding acquisitions were flat at GBP17.2 million.
Last month, Stanley Gibbons bought Mallett for GBP8.8 million, a deal which it said enhances its offering and consolidates its influence across the broad market for collectibles, as well as provides a stronger online auction platform, an area it is looking to develop further.
"The board believes there are substantial opportunities to increase market share and to consolidate the market further, particularly from the commercialisation of our recently launched online marketplace," said Bralsford.
Stanley Gibbons is in the process of fully launching its online marketplace, with further enhancements scheduled for launch in the first quarter of 2015, it said.
The company declared a 8% increase in its interim dividend to 3.25 pence per share.
Stanley Gibbons shares were trading at 287.00 pence Friday morning, up 0.5%.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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