LONDON (Alliance News) - Rare stamps and collectibles retailer Stanley Gibbons Group PLC on Monday said it is in the process of raising funds to back a restructuring and said trading has remained tough, leading it to forecast a full year loss.
The group said it is in the process of raising around GBP10.0 million in new fundraising through an equity issue, which will be used to support a restructuring of the business to cut costs, complete the integration of previous acquisitions and provide further working capital.
It said it has identified around GBP5.0 million in annual saving and has started to implement plans to achieve these.
Stanley Gibbons said it has continued to see lower revenue across the business, with sales of rare collectibles to high net worth clients weaker than expected and trading very difficult in its interiors division. It added the recent acquisitions it has made had missed synergy targets and it has made continued investments in its online platform, further depressing margins.
As a result, the group expects to post an adjusted pretax loss of GBP1.0 million to GBP2.0 million for the year to the end of March, swung from a GBP5.0 million profit a year earlier.
Shares in the company sunk on the news, down 33% to 43.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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