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AGM Trading Statement

2 May 2012 07:00

RNS Number : 5236C
Stanley Gibbons Group PLC
02 May 2012
 

THE STANLEY GIBBONS GROUP PLC

 

 

FOR IMMEDIATE RELEASE 2 May 2012

 

THE STANLEY GIBBONS GROUP PLC ("the Company")

 

Trading Statement

 

Ahead of the Annual General Meeting to be held later today, the Board of the Company updates the market with the following Trading Statement:

 

"Overall, trading performance for the first four months of the year, in what is traditionally our quietest period, has been broadly in line with our expectations.

 

Most notably, online sales continue to show strong growth and were double the levels achieved last year. We undertook a substantial strategic review of our internet development plans in the first quarter. We expect the results of that review and actions taken to further support and accelerate our online developments for the remainder of this year.

 

As part of this development, we launched our first mobile application last month in respect of our Gibbons Stamp Monthly magazine available to download on iTunes. We intend to launch a second mobile application, also on the Apple platform, later this month, offering clients the ability to download and view our most popular price catalogues and to provide collectors worldwide with easier and greater access to our key inventory. This second mobile application will also allow clients to access auction and product brochures from Stanley Gibbons companies.

 

The strategy to grow our auction division is beginning to bear fruit. We are experiencing unprecedented interest in the forthcoming sale of the "Arnhold" collection. The sale of this prestige, international collection takes place over two auctions, with the first sale on the 17th of May.

 

Sales from our recently opened Hong Kong office were higher than our expectations for the first four months of this year vindicating our plans to open new investment offices later this year. They included the sale of Britain's most expensive stamp, the iconic Plate 77 Penny Red for £550,000.

 

We have also completed our scoping for a new office in Singapore, which we expect to open in the second half of the year. Furthermore, we have also commenced market research on a potential office in Rio de Janeiro, with a further visit scheduled for later this month.

 

These international offices will not only be profitable in their own right but will form part of the global footprint that is fundamental to our strategic online and auction development.

 

We have made progress towards the launch of a rare stamp investment fund and the legal aspects of the structure are currently being finalised. We expect to be in a position to seek the necessary formal regulatory approval by the end of this month.

 

As expected, commemorative collectibles issued in respect of the Queen's Diamond Jubilee are showing strong demand and we expect further benefits from similar collectibles produced around the London 2012 Olympics in the summer.

 

Sales and profit contribution have improved in our Publishing division benefiting from improved focus following the restructuring exercise, which was completed last year.

 

In summary, progress in the implementation of our strategy is on plan and the business remains well placed to continue to deliver growth in sales and profitability for the remainder of the year.

 

If approved today, the Company's final dividend of 3.5p per share will be paid to Shareholders on 21 May 2012 and our interim results for the six months ending 30 June 2012 will be announced on 10 August 2012."

 

For further information, contact:

 

The Stanley Gibbons Group plc

Michael Hall, Chief Executive +44 (0) 1534 766711

 

Peel Hunt LLP, NOMAD/Broker

Dan Webster/Matthew Armitt/Richard Brown +44 (0) 20 7418 8900

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTABMFTMBMMBJT
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