LONDON (Alliance News) - Stanley Gibbons Group PLC Friday reported a decline in pretax profit due to increased investment under its efforts to establish its presence online.
Stanley Gibbons is preparing to launch its online marketplace, with the beta version currently undergoing testing by its own internal specialists and an external taskforce.
"The board remains committed to delivering on the established company strategy, with the aim being to transform the company from a stamp and collectibles trader generating steady growth to a leading online marketplace and global auction house for collectibles with far greater growth potential," Chairman Martin Bralsford said in a statement.
In a statement, Stanley Gibbons, which has moved its year-end forward by three months, said it made a GBP2.2 million pretax profit in the 15 months ended March 31, which it compared with the GBP5.2 million pretax profit it made in the twelve months of 2012.
Revenue increased to GBP51.8 million in the 15-month period, from GBP35.6 million in 2012. Administrative expenses increased to GBP9.9 million, from GBP3.7 million, due to higher salary costs of staff working on its online developments, servicing its defined benefit pension scheme, and acquisitions, said the company.
Stanley Gibbons noted that it made GBP10.2 million in revenue in the quarter to the end of March, traditionally its quietest quarter, a 79% increase on the same period last year, due to its acquisition of Noble Investments (UK) Ltd last year. That acquisition, along with its deal for Murray Payne earlier this year, has increased Stanley Gibbons' stock balances to GBP42.1 million, from GBP20.7 million, over the course of the fifteen months. On Friday, it said it acquired two "seven-figure exceptional and prestigious stamp collections" in the quarter ended March 31.
Bralsford said that the company has already experienced the benefits of cross-selling between itself and Noble.
Stanley Gibbons said it will pay a 7.00 pence dividend for the 15-month period. It paid 6.50 pence in dividends in 2012.
Stanley Gibbons shares were Friday quoted at 288.00 pence, up 3.6%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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