LONDON (Alliance News) - Rare-stamp merchant Stanley Gibbons Group PLC Friday reported a 16% rise in revenues for 2013, but said its profits for the year were lower, as it spent money on online development in preparation for the upcoming launch of its online collectibles marketplace later this year.
The AIM-listed company, which specialises in the retailing of collectable postage stamps and similar products, declared a second interim dividend of 4.00 pence per share, up 6.7% from 3.75 pence a year earlier, bringing its total dividend for the year to 7.00 pence, an increase of 7.7% from 6.50p in 2012.
"The most exciting event of the current year is in the impending launch of our online collectibles marketplace where the board believes there are opportunities, further enhanced by the acquisition of Noble, to deliver substantial online revenues from the global collectibles market," said Chairman Martin Bralsford in a statement.
The company said it aims to launch the Stanley Gibbons-branded online marketplace in the second half of 2014.
Revenues rose by 16% in 2013 to GBP41.6 million, up from GBP35.6 million in 2012, which the company said was boosted by GBP45 million acquisition of Noble Investments UK during the year. It said that online sales represented 8% of total revenues for the year.
Noble is comprised of Baldwin's, a rare coin dealer; Dreweatts, an antiques auctioneer; Bloomsbury, an auctioneer of books, manuscripts and art; and Apex Philatelics.
However, Stanley Gibbons reported a lower pretax profit for the year of GBP3.7 million, compared with GBP5.3 million a year earlier. The group said trading profits for the year, excluding investment in online development, exceptional operating charges and actuarial accounting adjustments, rose 9.5% to GBP6.9 million, up from GBP6.3 million a year earlier.
The gross margin percentage for the twelve month period was 43.2%, compared with 43.7% last year.
"It is expected that a wider range of cross selling opportunities between Stanley Gibbons and Noble will further increase sales in the current year. Integration cost savings across the enlarged group and the implementation of improved efficiencies are expected to deliver benefits later in 2014," the company said in a statement.
Stanley Gibbons also said that its is actively investigating potential opportunities in Geneva in Switzerland, New York in the US, and Sydney in Australia.
The group said it increased its net cash position by GBP9.5 million in the six months to December 31, 2013, to GBP17.3 million.
It said that its stock-holding at the end of the year of rare stamps and collectibles were stated at a historic cost of GBP30.6 million, up from GBP20.7 million the prior year, which it said provides a strong asset base for future trading profits.
Shares in Stanley Gibbons were trading 1.0% higher at 340.75 pence per share Friday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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