LONDON (Alliance News) - Collectibles trader Stanley Gibbons Group PLC Friday said its chief executive and chief financial officer have stepped down from the board as it decided to move management to the UK as part of its ongoing repositioning.
The company said that it has already exceeded its planned GBP5 million in targeted cost savings from its rationalisation and repositioning plan, and said that following acquisitions in recent years, it has recognised that the majority of its activities are now in the UK and is now "reconsidering the benefits of off-shore status" for the group as a whole.
As such, it has decided that the location of its executive board and management team should have "more UK emphasis" in order to better meet the needs of the company.
This has resulted in Chief Executive Mike Hall and Chief Financial Officer Donal Duff stepping down from the board. Newly appointed Managing Director Andrew Cook has joined the board as chief financial officer, whilst also newly appointed Chairman Elect Harry Wilson will become executive chairman.
Martin Bralsford, who stepped down as chairman at the same time of Wilson's appointment in May, has resigned as a director of the company, whilst Non-Executive Simon Perree opted not to seek re-election at Stanley Gibbons' next annual general meeting, and has instead decided to resign.
Stanley Gibbons has been undertaking a business rationalisation in order to reduce its reliance on one-off high-value sales or major auction consignments. On top of the targeted GBP5 million in savings, the company has also restructured its Interiors Division to accommodate a "lower and more realistic revenue target", and is undertaking a full review of its e-commerce strategy.
Elsewhere, the company flagged that as part of the audit process ahead of the release of its results for the year to end-March 2016, it is "currently reviewing its accounting policy and past accounting treatment".
Specifically it is reviewing its past accounting in regards to the recognition of revenue in its philatelic trading business, particularly some investment plans that had been offered by the company in earlier years. Stanley Gibbons said that its new auditors consider that "the previous recognition of revenue related to certain of the investment plans may not have been appropriate".
The company is likely to correct this in its full-year financial statements through a prior year adjustment, which will result in a reduction in revenue from the philatelic trading business in prior years.
These accounting adjustments would result in a reduction in Stanley Gibbons' underlying net asset value, it said, but the board thinks it would also encourage and support its sales strategy to reduce historic stock build up and to generate cash.
Stanley Gibbons said it also is reviewing the carrying value of some other assets, particularly goodwill relating to some of its recent investments and capitalised computer costs. It will make a write down against these assets in the full year results, but emphasised that this will not hit its reported cash position.
"The restructuring of Stanley Gibbons is unsettling for all concerned with the business and the directors would like to thank both its staff and customers for their ongoing support. Whilst there are undoubtedly challenges ahead, at the heart of the business are some of the leading experts in their respective fields together with stock items that are the envy of our competitors the world over. This combination is an excellent platform from which to restore the trading fortunes and reputation of the group," said Wilson in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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