Transcript Slide 1

The Stanley Gibbons Group
Final Results
Investors Presentation
March 2012
1
Contents
1. Financial Highlights
2. Operating Highlights
a) Philatelic
b) Publishing
c) Other Collectibles
d) Internet
3. Outlook & Strategic Focus
4. Management Team
Pages
3-5
6
7
8
9
10
11-12
13
Appendix I
Appendix II
Appendix III
Appendix IV
14
15
16-17
18
Income Statement
Balance Sheet
Cashflows
Contact Details
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Financial Highlights
2011
2010
Variance %
Revenue
£35.7m
£26.4m
+ 35%
Profit before tax
£5.1m
£4.3m
+ 19%
EBITDA*
£5.7m
£4.7m
+ 20%
Earnings per share
18.5p
15.2p
+ 22%
Dividend per share (net)
6.00p
5.50p
+ 9%
Dividend cover (times)
3.09
2.77
+ 12%
Net assets per share
94p
83p
+ 13%
Cash balances
£3.2m
£1.8m
+ 78%
Inventories (at historic cost)
£16.8m
£14.8m
+ 14%
*Excludes exceptional operating costs, interest, tax, depreciation and amortisation and IFRS share option charges.
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Financial Highlights
•
Sales up 35% with key growth areas being online trading, philatelic dealing and
investment services
•
Online sales of £4.3m (2010: £2.5m) up 72%
•
The Benham Group acquisition, completed in September 2010, contributed sales of
£2.6m. Like-for-like sales, excluding Benham, were up 28%
•
Gross margin% down from 43.8% to 38.7% reflecting substantial change in sales
mix with an increase in the sale of high value rarities at lower trading spreads
•
Profit before tax of £5.1m (2010: £4.3m) up 19%
•
Proposed final dividend of 3.5p (2010: 3.25p), giving a total dividend for the year
of 6p (2010: 5.5p), up 9%
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Financial Highlights
•
Cash generated from operating activities of £4.1m (2010: £2.2m) after reinvestment
of cash in stockholding of £2m (2010: £4.1m)
•
Cash funds at 31 December 2011 of £3.2m (2010: £1.8m) after payment of
dividends in year of £1.4m (2010: £1.3m)
•
Stock levels at 31 December 2011 stated at historic cost of £16.8m (2010: £14.8m),
representing 280 days stock held (2010: 363 days)
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Operating Highlights –
Segmental Overview
2011
2011
2011
2010
2010
2010
%
change
%
change
Sales
Profit
Profit
Sales
Profit
Profit
Sales
Profit
£000
£000
%
£000
£000
%
%
%
27,727
5,943
21%
19,422
4,621
24%
43%
29%
Publishing and philatelic accessories
2,980
677
23%
3,146
672
21%
-5%
1%
Dealing in other collectibles
4,955
835
17%
3,820
1,082
28%
30%
-23%
35,662
7,455
21%
26,388
6,375
24%
35%
17%
Internet development
42
(127)
-
41
(24)
-
-
-
Corporate overheads
-
(2,108)
-
-
(1,914)
-
-
10%
Net interest
-
(3)
-
-
17
-
-
-118%
35,704
5,217
15%
26,429
4,454
17%
35%
17%
-
(112)
-
-
(150)
-
-
-
35,704
5,105
14%
26,429
4,304
16%
35%
19%
Philatelic trading and retail operations
Before exceptional costs
Exceptional operating costs
Group total sales and profit before tax
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Philatelic
•
Increase in sales to investors and high net
worth individuals seeking diversification
into collectibles market
•
Sales to Channel Islands residents of
£4.9m (2010: £2m) benefiting from
opening of larger investment offices in
Jersey in August
•
Hong Kong office opened at the end of
September, generating sales of £0.5m in
the last quarter of the year
•
Continued development into the Chinese
rare stamp market generated sales of
£1.1m (2010: £1m)
•
Retail sales from 399 Strand up 15%
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Publishing
•
Broadly flat full year performance. Prior
year benefited from additional sales from
London 2010 Stamp Exhibition
•
Exceptional costs incurred of £0.1m from
rationalisation programme completed in
April 2011
•
Profit contribution up 8% in the second
half of 2011 benefiting from
improvements to production efficiencies
and negotiation of lower print costs
•
Improved online distribution of our
catalogue titles through own website,
eBay.com and Amazon.com
•
Substantial progress made in year in
evolving traditional print business to epublishing
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Other Collectibles
•
Sales up 30%, profit down 23% due to
substantial change in the mix of sales to
lower margin products
•
The Benham Group contributed sales of
£2.6m and profits of £0.6m, (including
£0.3m of sales into Chinese market)
•
Successful diversification of product
offering to include rare coins and military
medals generating sales of £0.8m in seven
months and profits of £0.1m
•
Fall in sales and profits of autographs and
historical documents due to lower sales of
high value rarities to investors
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Internet
•
www.frasersautographs.com re-launched
in February 2011. Online revenues of
autographs were up 57% in the year
•
www.stanleygibbons.com re-launched at
end of May 2011. Online revenues for the
second half were up 67%
•
New high net worth client leads sourced
from the website generated sales of £3.4m
(2010: £1.8m), up 89%
•
Improved SEO & web offers increasing
site traffic and doubling of conversion
rates over past 6 months
•
Extensive stockholding of lower value
stamps made available to purchase online
•
Online price catalogue and stamp album
management functionality developed
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Outlook & Strategic Focus
•
Reviewing strategic options before progressing to the next stage of planned online
developments with an aim of accelerating and maximising returns from launch of an online
trading platform and auctions
•
Further online developments scheduled for 2012 include:
– Enhanced online stamp catalogue to comprise specialised philatelic information
– Launch of foreign language versions of website to support international developments
– Provision of mobile applications for our primary online content
•
Potential new offices being explored in Brazil, Switzerland, Singapore, Monaco, Gibraltar and
Edinburgh to replicate success of investment offices in Guernsey and Jersey. New offices
support future online and auction growth objectives
•
Progression of identified opportunities to develop the brand and sales into the US market
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Outlook & Strategic Focus
•
Stronger team in place to develop auction business. Recently secured a major
collection, with an auction estimate in excess of £1m. The sale will be held over
two auctions in May and September
•
Continued development of in-house expertise in rare coins and military medals with
additional collectible categories under consideration
•
Opportunities to benefit from commemorative collectibles produced for Queen’s
Diamond Jubilee and the London Olympics 2012
•
Working towards launch of £10m rare stamp investment fund in 2012
•
Reviewing strategic opportunities in both stamps and other collectibles to
compliment and strengthen our overall brand offering
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Management Team
•
Board changes:
– John Byfield, appointed as Corporate Development Director in February 2012
(previously a non-executive director since April 2010)
– Mark Henley, resigned as Finance Director in November 2011
– Donal Duff, Chief Operating Officer, assumed the Finance Director responsibilities in
November 2011
– Bob Henkhuzens (non executive and Chairman of audit committee), announcement of
completion of term and retirement at forthcoming AGM in May
– Process to identify suitable successor for Chairman of audit committee in progress
•
Key managerial appointments in year:
– Managing Director of Benham Group appointed as Business Development Director
– Head of Auctions (recently promoted to Managing Director, London) to ensure a broader
responsibility for the philatelic operation
– Publisher
– Retail Manager, 399 Strand
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Appendix I - Income Statement
Year ended
Year ended
31-Dec-11
31-Dec-10
£'000
£'000
35,704
26,429
(21,872)
(14,859)
13,832
11,570
38.7%
43.8%
Administrative expenses
(2,730)
(2,269)
Selling and distribution expenses
(5,882)
(4,864)
Exceptional operating costs
(112)
(150)
Operating profit
5,108
4,287
Finance income
53
36
(56)
(19)
Profit before tax
5,105
4,304
Taxation
(430)
(473)
Profit after tax
4,675
3,831
8.4%
11.0%
Basic
18.54p
15.22p
Adjusted (excluding exceptional charges)
18.87p
15.69p
Revenue
Cost of sales
Gross profit
Gross profit %
Finance costs
Effective tax rate
Earnings per share
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Appendix II – Balance Sheet
At 31 Dec 11 £000
At 31 Dec 10 £000
Intangible assets
1,133
1,014
Property, plant and equipment
2,032
1,862
Deferred tax asset
224
32
Trade and other receivables
420
-
3,809
2,908
16,801
14,774
Trade and other receivables
9,178
8,866
Cash and cash equivalents
3,230
1,838
Current assets
29,209
25,478
Trade and other payables
(6,641)
(5,550)
Borrowings
(250)
(252)
Current tax payable
(370)
(349)
(7,261)
(6,151)
Retirement benefit obligations
(842)
(114)
Borrowings
(188)
(435)
Other provisions for liabilities
(898)
(698)
Non-current liabilities
(1,928)
(1,247)
Net assets
23,829
20,988
Non-current assets
Inventories
Current liabilities
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Appendix III - Cashflows
Year ended
31 Dec 11
Year ended
31 Dec 10
£'000
£'000
4,051
2,211
(56)
(19)
Taxes paid
(420)
(408)
Net cash generated from operations
3,575
1,784
Purchase of property, plant and equipment
(344)
(871)
Purchase of intangible assets
(231)
(604)
Acquisition of business
-
(900)
Interest received
1
2
(574)
(2,373)
(1,449)
(1,322)
Proceeds from borrowings
-
750
Repayments of borrowings
(251)
(63)
91
-
(1,609)
(635)
Net increase/(decrease) in cash and cash equivalents
1,392
(1,224)
Cash and cash equivalents at start of year
1,838
3,062
Cash and cash equivalents at end of year
3,230
1,838
Cash generated from operations
Interest paid
Net cash used in investing activities
Dividends paid to company shareholders
Net proceeds from issue of ordinary share capital
Net cash used in financing activities
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Appendix III - Cashflows
Year ended
31 Dec 11
Year ended
31 Dec 10
£'000
£'000
5,108
4,287
Depreciation
239
170
Amortisation
112
32
Increase/(decrease) in provisions
152
(95)
Cost of share options
108
81
(2,027)
(4,081)
(Increase)/decrease in trade and other receivables
(732)
1,181
Increase in trade and other payables
1,091
636
Cash generated from operations
4,051
2,211
Operating profit
Increase in inventories
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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 Operating Officer &
Finance Director
18 Hill Street
St. Helier, Jersey, JE2 4UA
Tel: 01534 766711
Email: [email protected]
Stanley Gibbons Limited
Richard Purkis, Corporate Services
Director
399 Strand
London, WC2R 0LX
Tel: 020 78368444
Email: [email protected]
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