Transcript Slide 1

The Stanley Gibbons Group
Final Results
Investors Presentation
27 June 2014
1
Contents
Pages
3
4
1. Financial Highlights
2. Operating Review
3. Operating Highlights
a) Philatelic Dealing
b) Auctions
c) Publishing
d) Other Collectibles
e) Internet
4. Online Marketplace
5. Outlook & Strategic Focus
6. The Board
5
6
7
8
9
10-11
12
13
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Financial Highlights
Year ended
31 Dec 2013
Year ended
31 Dec 2012
Variance %
(adjusted)
Revenue
£41.6m
£35.6m
+ 16%
Trading profits*
£6.9m
£6.3m
+ 9%
Adjusted profit before tax**
£5.6m
£6.0m
- 8%
Adjusted earnings per share**
16.77p
20.98p
- 20%
Dividend per share
7.00p
6.50p
+ 8%
Dividend cover (times)
2.4
3.2
At
31 Dec 2012
111.5
Variance %
Net assets per share (p)
At
31 March 2014
180.1
Cash balances
£9.5m
£6.8m
+ 40%
Inventories – at historic cost
£42.1m
£20.7m
+ 103%
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* Excludes investment on internet development, exceptional operating charges and actuarial accounting adjustments.
** Excludes exceptional operating charges and actuarial accounting adjustments
+ 62%
Operating Review
Year ended Year ended
31-Dec-13
Profit before tax 2012/2011
Profit variance in:
Philatelic trading and retail operations
Publishing and philatelic accessories
Dealing in other collectibles
Corporate overheads
Finance income
Trading profits
Profit variance in:
Internet development
Actuarial accounting adjustments
Exceptional costs
Profit before tax 2013/2012
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5.2
31-Dec-12
Restated
4.9
0.2
(0.1)
0.8
(0.3)
0.1
0.7
1.2
0.1
0.3
(0.7)
0.9
(1.0)
(0.1)
(1.1)
(2.2)
3.7
(0.2)
(0.2)
(0.2)
(0.6)
5.2
Philatelic Dealing
•
2% profit growth, primarily supported by
sales of philatelic rarities to high net worth
collectors and investors
•
Hong Kong office contributed total sales
of £3.3m (2012: £2.6m) and profits of
£0.7m (2012: £0.6m)
•
New office in Singapore opened in April
2013 contributed sales of £0.2m in year,
with a net loss of £0.1m
•
Two “seven-figure” exceptional and
prestigious stamps collections secured,
providing strong platform to deliver
growth in core dealing activities in current
financial year
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Auctions
•
Auction revenues for the year ended 31
December 2013 broadly in line with prior
year
•
Philatelic auctions business strengthened
by acquisitions of Murray Payne Limited
and Apex Philatelics (part of Noble
Group)
•
Stanley Gibbons February 2014 public
auction was one of our strongest in recent
years
•
Secured strong consignments in the
quarter ended 31 March 2014 providing a
degree of visibility to future earnings
•
Sale of British Guiana 1c Magenta by
Sotheby’s, New York in June for $9.5m,
representing a world record
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Publishing
•
12% fall in profits as a result of retirement
and closure of our major wholesale
distributor in the second half of the year
•
Progress being made in recruiting new
trade clients previously handled by this
distributor
•
New catalogue database developed as
integral part of our internet project
substantially improves publishing
efficiencies and printing options
•
Online catalogue data will be an integral
element of online marketplace
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Other Collectibles
•
68% profit growth benefiting from Noble
acquisition at end of November last year
•
Substantial success in cross selling rare
coins from Baldwin’s stockholding to SG
high net worth clients
•
Autograph division integrated and
relocated to Bloomsbury Auction premises
at Maddox Street in first quarter of 2014,
showing immediate benefits
•
Benham First Day Covers business
delivered acceptable return in year despite
absence of any significant commemorative
events
•
Dreweatts auctions performing well and
embracing cross selling opportunities
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Internet
•
Development costs incurred in year of
£1.6m (2012: £0.4m) in line with plan and
financed by the fundraising of £6m in
November 2012
•
Total online revenues of £3.5m, in line
with prior year
•
Bid start acquisition contributed online
commission income of £0.2m in year
•
Beta version of Stanley Gibbons branded
online marketplace is currently undergoing
rigorous testing by both our own internal
specialists and a taskforce of external
users
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Online Marketplace
•
Key technical projects delivered in the
fifteen months ended 31 March 2014:
– Digital Catalogue Data Management
System (“Oreo”)
– Imported “Stamps of the World” (6
volumes, 500,000+ stamps) into
digital catalogue
– Imported 5 million 3rd party stamp
listings into marketplace
– Linked stamp listings to our digital
catalogue
– Search and browse facility using
digital catalogue data
– Enhanced product listings
– Developed and launched the
foundation (in Beta) of the Stanley
Gibbons Marketplace
•
Investment has been focussed on technical
development work rather than driving
increased sales through online marketing
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Online Marketplace
•
Technical milestones over next 12 months:
– Complete migration to “open source
platforms”
– Launch seller features
– Stanley Gibbons payment system
– Store features
– First of social features (My
Collection, Groups)
– Buyer/seller auctioning and live
auctions
– Social sharing tools &
recommendations, social dashboard
– Coin features & tools
– Stamp image recognition software
•
Supported by commercial team with sales
and marketing plan to deliver growth in
GMV later in year
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Outlook & Strategic Focus
•
Strong balance sheet position in terms of cash resources and quality stockholding which is
expected to generate growth in the current financial year from core dealing activities
•
Most important milestone for the current financial year is the forthcoming launch of the
Stanley Gibbons branded online marketplace
•
Delivery of further integration cost savings following the acquisition of Noble in November
2013, including the move of the Baldwin’s team from Adelphi Terrace to the Strand later this
year
•
Plans to sell Adelphi Terrace freehold property with a book value of £3m
•
Delivery of continued cross selling benefits from being able to provide a first class service in
a wide range of collectibles to our combined client base
•
Focus on securing further top quality collections for our auction division benefiting from the
enlarged Group’s combined expertise
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The Board
•
The executive team was augmented in the year with the appointment of the Chief Executive
of Noble, Ian Goldbart to the Board as Managing Director of Dealing & Auctions based in
London
•
Donal Duff appointed as Chief Finance Officer (previously Finance Director and Chief
Operating Officer) reflecting the substantial increase in responsibility in respect of managing
the Finance function of the enlarged Group following recent acquisitions
•
The board of independent non executive directors was strengthened in the year with the
appointment of Simon Perree (co-founder of Play.com) and Clive Jones (previously Chairman
of the Jersey Financial Services Commission)
•
The Board now consists of four executive directors and four independent non-executive
directors, representing a well balanced Board composition and in accordance with accepted
best corporate governance practice
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Appendices
Appendix I
Appendix II
Appendix III
Appendix IV
Pages
15
16
17-18
19
Income Statement
Balance Sheet
Cashflows
Contact Details
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Appendix I - Income Statement
15 months ended
Year ended
31-Mar-14
31-Dec-12 (restated)
£'000
£'000
51,772
35,599
(28,937)
(20,031)
22,835
15,568
44.1%
43.7%
(7,779)
(3,332)
(10,621)
(6,524)
(2,081)
(349)
Operating profit
2,354
5,363
Finance income
32
3
Finance costs
(173)
(211)
Profit before tax
2,213
5,155
(78)
(389)
2,135
4,766
8.2%
6.8%
6.32p
18.48p
13.30p
20.98p
Revenue
Cost of sales
Gross profit
Gross profit %
Administrative expenses
Selling and distribution expenses
Exceptional operating costs
Taxation
Profit after tax
Effective tax rate
Earnings per share
Basic
Adjusted
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Appendix II – Balance Sheet
At 31 Mar 14 £000
At 31 Dec 12 £000
32,571
1,723
Property, plant and equipment
6,294
2,145
Deferred tax asset
1,016
735
Available for sale financial assets
1,473
-
-
229
Non-current assets
41,354
4,832
Inventories
42,118
20,728
Trade and other receivables
14,144
11,668
135
-
9,499
6,766
65,896
39,162
(15,928)
(8,179)
(2,153)
-
(276)
(188)
-
(169)
(18,357)
(8,536)
(3,285)
(3,161)
(528)
-
Other provisions for liabilities
(1,135)
(593)
Non-current liabilities
(4,948)
(3,754)
Net assets
83,945
31,704
Intangible assets
Trade and other receivables
Current tax receivable
Cash and cash equivalents
Current assets
Trade and other payables
Deferred consideration
Borrowings
Current tax payable
Current liabilities
Retirement benefit obligations
Borrowings
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Appendix III - Cashflows
15 months ended 31-Mar-14
Year ended 31-Dec-12
£'000
£'000
(3,904)
1,007
(4)
(41)
(433)
(552)
(4,341)
414
(536)
(368)
(1,528)
(138)
(29,036)
(382)
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3
(31,064)
(885)
(1,940)
(1,581)
588
(250)
Net proceeds from issue of ordinary share capital
39,490
5,838
Net cash generated from financing activities
38,138
4,007
Net increase in cash and cash equivalents
2,733
3,536
Cash and cash equivalents at start of year
6,766
3,230
Cash and cash equivalents at end of year
9,499
6,766
Cash (consumed)/generated from operations
Interest paid
Taxes paid
Net cash (consumed)/generated from operations
Purchase of property, plant and equipment
Purchase of intangible assets
Acquisition of business assets (net of cash acquired)
Interest received
Net cash used in investing activities
Dividends paid to company shareholders
Net borrowings
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Appendix III - Cashflows
15 months ended 31-Mar-14
Year ended 31-Dec-12
£'000
£'000
2,354
5,363
Depreciation
475
255
Amortisation
507
184
Write off of intangibles
139
-
Increase/(decrease) in provisions
139
(216)
Cost of share options
188
108
(10,280)
(3,927)
5,774
(2,299)
(3,200)
1,539
(3,904)
1,007
Operating profit
Increase in inventories
Decrease/(increase) in trade and other receivables
(Decrease)/increase in trade and other payables
Cash (consumed)/generated from operations
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Appendix IV - Contact details
•
The Stanley Gibbons Group plc,
Registered Office
•
Martin Bralsford, Chairman
Mike Hall, Chief Executive
Donal Duff, Chief Finance Officer
2nd Floor, Minden House, Minden Place
St. Helier, Jersey, JE2 4WQ
Channel Islands
Tel: 01534 766711
Email: [email protected]
Email: [email protected]
Stanley Gibbons Limited
Richard Purkis, Company Secretary
399 Strand
London, WC2R 0LX
Tel: 020 78368444
Email: [email protected]
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