24th Aug 2015 10:00
LONDON (Alliance News) - Avarae Global Coins PLC, which buys, holds and sells rare coins, on Monday reported a jump in profit, bolstered by revaluation of its coins and improved margins.
In a statement, the company said it made a GBP379,000 pretax profit in the year ended March 31, compared with GBP252,000 in the prior year. Avarae maintained its dividend for the year at 0.15 pence per share.
Sales fell to GBP626,000 from GBP1.6 million, but cost of sales shrunk to GBP425,000 from GBP1.3 million and coin revaluation increased to GBP618,000 from GBP367,000, resulting in gross margin improving to 32% from 18%.
"Avarae remains well positioned as an alternative asset investment. Where other alternative asset players have suffered as a result of volatile international markets and fluctuating commodity prices, Avarae has continued to be successful, posting ever-increasing net asset values and paying regular dividends," Director Diane Clarke said in a statement.
Clarke said that trading since the end of March has been active, with the company selling more than 150 coins and recording about GBP510,000 in revenue. It has also acquired coins valued at about GBP160,000 in total in the same period.
"The directors remain optimistic about the company's future prospects both for the current year and longer term," Clarke said.
Avarae shares were up 3.0% at 11.98 pence Monday.
By Samuel Agini; [email protected]; @samuelagini
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