20th Mar 2009 07:54
THE STANLEY GIBBONS GROUP LIMITED
FOR IMMEDIATE RELEASE 20 March 2009
THE STANLEY GIBBONS GROUP LIMITED ("the Company" or "the Group")
|
Audited Results for the year ended 31 December 2008 |
The Stanley Gibbons Group Limited, whose principal businesses include Stanley Gibbons, Fraser's Autographs and Collector Café, today announced its audited results for the year ended 31 December 2008.
Financial Highlights
Earnings per share of 13.22p (2007: 13.46p). Adjusted earnings per share, excluding exceptional operating costs were 13.57p (2007: 13.83p).
Profit before tax of £3.7m (2007: £4.5m). Adjusted profit before tax, excluding exceptional operating costs was £3.8m (2007: £4.6m).
Sales of £19.4m (2007: £20.2m).
Deferral into 2009 of Sales on extended credit terms of £3.4m generating an associated profit of c £1m.
Recommended final dividend of 2.75p net per share, giving a total net dividend for the year of 4.75p (2007: 4.5p) up 6%.
Other Highlights
Total website visitor numbers up 20% year on year
Autograph and memorabilia sales increased by 16% over the previous year benefiting from successful marketing initiatives, extensive media coverage and the increased interest in rare signatures as an alternative investment
Successful recruitment of new, high calibre overseas agents, particularly in the Asia-Pacific and Middle East, resulting in growth of investment sales to overseas clients
The GB30 Rare Stamp Price Index, available on Bloomberg Professional®, increased by 39% in 2008
Growth of investment e-mail database by 126% through online recruitment channels. Delivery of powerful sales copy by e-mail generated sales of £3.3m (17% of total sales) in year.
Acquisition of new publishing title, "Philatelic Exporter" on 23 January 2009
Martin Bralsford, Non-Executive Chairman, commented:
"Our business remains robust and has a market position that cannot be easily replicated by our competitors. "Baby Boomers" are now reaching the age of investigating and commencement of serious collecting which puts us in an attractive place in the current economic conditions. This underlies our recruitment of 17,570 new clients in 2008 and we now have over 200,000 names on our database.
The nature of our markets is heavily fragmented and we believe that the online stamp market will be consolidated at our website. Our strategy is still at the technical development stage but by 2010 we expect to start to reap the rewards from the launch of our philatelic online trading community, linked to our world-renowned price guide. Assuming only a modest conversion of current visitor numbers, the profit payback on our investment will represent many multiples of the cost of its creation. The potential to grow profits without taking any asset holding risk enables us to move towards being a facilitator rather than a trader. With the strength of our brand names, we are the only market participant capable of doing this successfully.
With many banks now offering negligible, and in some cases zero, interest on savings, we are seeing a heightened attention on our investment products. The current weakness in the value of Sterling means that overseas collectors and investors have enhanced buying power over the Sterling dominated items on the UK market, presenting marketing opportunities for us to accelerate our international growth plans.
Such opportunities can be seized in all economic conditions but are relatively more advantageous now than before and our newly enlarged management team has the entrepreneurial drive to grasp these opportunities during the current recession. The fact that rare stamps continued to appreciate in value during preceding comparable times provides us with both comfort for our existing business model and the confidence to promote our investment products to our potential, new investors. "
For further information, contact:
The Stanley Gibbons Group Limited
Michael Hall, Chief Executive +44 (0) 20 7836 8444
Seymour Pierce Ltd, NOMAD/Broker
Jonathan Wright +44 (0) 20 7107 8000
Chairman's Statement
On behalf of your Board, I am pleased to present the results of the Stanley Gibbons Group Limited for the year ended 31 December 2008. Against the backdrop of a global economic crisis, I am satisfied with the performance of both the Group's businesses and the Senior Management team in 2008.
The outcome for the year demonstrates the resilience of the Group's businesses based on the strength of our brands and reputation for fair dealing. During times of recession, only soundly based businesses survive. Stanley Gibbons is the oldest, biggest, most well known and most respected brand in its field and consequently is in an excellent position to prevail through difficult times and emerge stronger in a world where our competitors may have been severely damaged.
The adverse movement on sales in the second half of our financial year was a direct consequence of global economic events. Ironically, at a time when the investment products we offer provided a solution to investors, we found that the levels of apprehension and uncertainty on investment generally temporarily discouraged potential clients from using our products.
However, recent trading is showing a relatively high level of demand for our investment products, which benefit from the current negligible interest rates in most currencies offered by banks, making the secured returns from investing in our collectibles more attractive.
We also derive additional support from the fact that the value of rare stamps performed well as an asset class during previous recessions which, if repeated, illustrates their benefits in terms of diversification from traditional financial investment.
As a result of all of the above, the Board is confident about the Group's prospects for 2009 and beyond and believes the Group is well placed to continue to grow both sales and profits.
Financials
Turnover for the year was £19.4 million, down 4% on the previous year. Profit before tax and before exceptional charges was £3.7 million, down 18% on the preceding year.
Earnings per share were 13.22 pence, only 2% down on the previous year earnings per share reported of 13.46 pence, due to the benefit of a lower tax rate. This lower effective rate of tax should continue in future years.
In our trading statement released on 20 January 2009, we referred to £3.4 million in value of sales transactions entered into towards the close of 2008 on extended credit terms to several key investment clients. Since these sales were on terms which included a 12 month buyback guarantee, the Board agreed it was more appropriate to recognise this revenue and the associated profit into 2009, when these guarantees will have expired and the outcome is certain. This is in accordance with applicable accounting standards. If the sales recognised into 2009 are included, underlying sales would have shown growth of 13% and profit before tax would have been £4.7 million, 4% above the prior year.
Investment clients have paid a 10% cash deposit on these agreements and the Board does not expect the guarantees to be called. Notwithstanding this, the Board considered that the recognition of the revenue into 2009 is prudent and in line with best market practice, even though the subject items of those sales remain in the possession of Stanley Gibbons, and, hence, there is no credit risk associated with the underlying contracts.
Dividend
Your Board is pleased to recommend to Shareholders, for approval at the forthcoming AGM, a final dividend of 2.75 pence per share which would produce a total dividend from 2008 earnings of 4.75 pence, an increase of 6% over 2007.
The Board's progressive dividend policy is maintained, covered almost 3 times by earnings in 2008, having regard to projected cash flow requirements in 2009 and beyond.
The Board has authorisation from Shareholders to purchase up to 3.7 million (approximately 15%) of its own Shares. The Board proposes the renewal of this authority at the forthcoming AGM. Following recent changes to Jersey Company Law, it will also be proposing to make the necessary alterations to its Articles of Association at the forthcoming AGM in order to facilitate the Company's ability to buyback its own Shares into Treasury, in line with UK practice. Whilst doing so, we are taking the opportunity to update the Company's Articles more generally.
Outlook
Recent trading is showing a good level of demand for our investment products after the successive reductions in interest rates. Furthermore, the relative weakness in the value of Sterling against most other major currencies presents some exciting marketing opportunities to grow substantially sales internationally to US Dollar and Euro based investors.
Although we are experiencing a slight adverse impact on sales in the lower value item segment of our business, this represents a small part of our total profits. More importantly, the market in rare stamps continues to be strong, evidenced by the high value of realisations from recent auction sales.
We have invested substantially during 2008 in our inventory of high-end quality stamps and rare signatures. Inventories of such rare items are an appreciating asset although are reported at historic cost. Despite our confidence in the market and need to invest in the right kind of material to support future sales growth expectations of investment products, the Board has decided to exercise prudence in respect to inventory levels and does not intend to increase inventories above the current level in the foreseeable future.
We were successful during the year in growing investment sales to clients based outside the UK, benefiting from our seminars and exhibition attendances which facilitated the recruitment of new high calibre trading partners in the Asia-Pacific and Middle East. The relationships we have formed with such partners provide us with a professional network from which to distribute our investment products internationally at a very low cost.
The biggest challenge we face in the sale of our various investment products is to overcome the unwillingness of the majority of financial institutions and Independent Financial Advisers to promote an unregulated investment product.
A solution to this problem is to launch a regulated investment fund. During 2008, we had various discussions with banks and fund managers to establish their interest in establishing a rare stamp investment fund under our management. Our aim is to achieve a successful fund launch during 2009. To achieve this aim, we intend to recruit a full time executive with experience in the Financial Services industry, and with specific expertise in the launch and distribution of investment funds; skills that are widely available in the Channel Islands.
Our most effective sales technique is currently the delivery of sales copy to our e-mail database. Sales generated through this route in 2008 were £3.3 million or 17% of total sales. Recognising the importance of this route to market, we focused on growing the size of our e-mail database in 2008 through online marketing channels. As a result, we have more than doubled the size of our investment e-mail database. This provides an excellent base to facilitate future growth in 2009 and beyond and forms the critical component in the success of our marketing strategy.
We are particularly pleased with the sales growth achieved in historical signatures and celebrity autographs in 2008. Sales growth was generated through successful marketing, extensive media coverage and the development of rare signatures as an alternative investment.
We have invested in our long term growth prospects, the cost of which has been charged to this year's profit and loss account, including the costs associated with the recruitment of key personnel, database building and those associated with the development and redesign of our Website. The benefits of this investment will be harvested in future years.
I am pleased to announce that on 23 January 2009, Stanley Gibbons acquired "Philatelic Exporter" from Heritage Studios Limited. Philatelic Exporter is the world's market leading trade philatelic magazine and will benefit from our long established expertise in magazine publishing and distribution to continue to go from strength to strength under a newly recruited Senior Executive. With the support of the marketing and sales expertise of Stanley Gibbons, the magazine will reach extensive global audiences and provide an improved service to readers and advertisers.
Board
Due to the increase in growth opportunities, progress in the implementation of our business plan is being hampered by a lack of Senior Executive resource. As a result, we are delighted to have recently appointed Donal Duff as Chief Operating Officer. His appointment will help us to accelerate the execution of our business plan and projected growth in profits. It allows our Chief Executive to concentrate on the development of new business opportunities and to focus his efforts on those high value areas of the business where his depth of experience can have greatest effect.
We are currently reviewing the possibility of separating Stanley Gibbons Investments from the Stanley Gibbons Group. A dedicated Executive Board of our Investment business could provide the independence and focus necessary to develop into this new market, which we believe holds extensive opportunities that are currently under-exploited. Such segregation should also enable Stanley Gibbons Investments to obtain appropriate financial regulatory approval thus opening up our investment services to a much larger marketplace.
The current period of restructuring is necessary to ensure that your Board provides the resource capable of fulfilling its role in the development of the Group and in maximising the return from the wealth of business opportunities at our disposal.
Stakeholders
I would like to thank all our colleagues in the Group for their hard work and contribution during the year. I also extend my gratitude to other Stakeholders associated with our activities who all support and believe in the strength and potential of the biggest brand name in the world of philately.
Operating Review
Operating results for the year
|
2008 |
2008 |
2007 |
2007 |
2006 |
2006 |
|
|
Sales |
Profit |
Sales |
Profit |
Sales |
Profit |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
Philatelic trading and retail operations |
13,801 |
3,251 |
14,945 |
3,868 |
12,194 |
3,231 |
|
Publishing and philatelic accessories |
2,899 |
785 |
2,919 |
868 |
2,787 |
814 |
|
Dealing in autographs, records and |
2,655 |
1,179 |
2,284 |
1,076 |
1,664 |
793 |
|
related memorabilia |
||||||
|
19,355 |
5,215 |
20,148 |
5,812 |
16,645 |
4,838 |
|
|
Internet development |
39 |
(140) |
43 |
(65) |
39 |
(40) |
|
Corporate overheads |
(1,377) |
(1,269) |
(1,228) |
|||
|
Interest and similar income/charges |
91 |
147 |
176 |
|||
|
Before exceptional items |
19,394 |
3,789 |
20,191 |
4,625 |
16,684 |
3,746 |
|
Exceptional operating costs |
(88) |
(117) |
- |
|||
|
Group total sales and profit before tax |
19,394 |
3,701 |
20,191 |
4,508 |
16,684 |
3,746 |
Overview
Overall Group turnover decreased by £797,000 (4%) compared to last year. The profit before tax for the year of £3,701,000 compared to a profit in 2007 of £4,508,000 representing a reduction of 18%. Excluding exceptional operating costs incurred in the year of £88,000, profit before tax was £3,789,000.
The Group's effective rate of tax in the year was 10% compared to 25% in the prior year as a result of the 0% corporate income tax rate in Guernsey in 2008. The lower effective rate of tax meant that earnings per share for the year were only 2% down on the prior year at 13.22p compared to 13.46p.
The key achievements within our performance for the year can be summarised as follows:
Recruitment of new high calibre overseas agents, particularly in the Asia-Pacific and Middle East, resulting in a growth of investment sales to overseas clients.
Growth in the sale of autographs and rare signatures benefiting from successful marketing, extensive media coverage and the increased interest in rare signatures as an alternative investment mechanism.
Benefit from more effective sales techniques through powerful sales copy to our e-mail database, contributing total sales in 2008 of over £3 million.
The key negative factors affecting our sales performance for the year can be summarised as follows:
Impact of investment deals with a value of £3,414,000 entered into with a 12 month guaranteed buyback clause excluded from the reported result for 2008.
Lower conversion rates from investment customer prospects generated during the year as a direct reaction to global economic events.
The natural recessionary impact on sales in the lower value end of our business, particularly evident from the reduction in transactions with our trade and wholesale customers.
Our publicity and marketing spend increased by 28% to £706,000. A significant element of the marketing expenditure incurred in the year related to the expanding of our database of investment prospects, which provide the platform to generate future growth. We recruited 17,570 new customers during 2008 demonstrating the continued growth in the hobby together with the increasing interest from investors seeking a means of protecting their wealth in this volatile economic climate.
Philatelic Trading and Retail Operations
Philatelic trading and retail sales were 8% lower than last year with profit contribution down by 16%. The reduction in sales compared to the prior year included a 3% decline in the value of sales to investment clients.
Philatelic dealing sales to collectors were down 8% compared to the prior year. However, the prior year result included an exceptional sale of one philatelic item for £355,000 together with the benefits of a number of trade deals conducted to clear old stock lines. It is a testament to the quality of our current stockholding that the level of trade deals we were able to conduct in 2008 was significantly less. Excluding the impact of both these events in the prior year, sales to collectors of British stamps were 2% higher than the prior year and sales to collectors of British Commonwealth countries were up by 8%. It is also encouraging to note that our philatelic dealing departments recruited a higher number of new customers this year and traded with 12% more customers than in the prior year, highlighting the underlying strength in our business to collectors and in the stamp market as a whole.
Despite the natural recessionary pressures in the lower value end of our business, sales from our retail outlet at 399 Strand were 2% up on the prior year. This was achieved despite a lower footfall and was mainly achieved through improvements to our stock range of publications and accessories together with a better attention to detail in the presentation of our products and in-store sales initiatives.
Publishing and Philatelic Accessories
Publishing and philatelic accessory sales were 1% lower than last year with profit contribution down 10%. Sales were held relatively constant to the prior year despite an 18% reduction in sales made to our three main wholesale customers and a 20% decline in sales to library suppliers following a reduction in their budgets directed by central government.
Online sales were however up by 15% benefiting from some exciting new product launches and improved online marketing techniques during the year.
In September, we appointed a new experienced Publishing Director with the key aims of developing a worldwide distribution of our publishing titles and implementing improved processes within our catalogue production department to ensure that scheduled titles are delivered on time. We have already achieved an improvement in our procedures improving our ability to increase our range of publications in 2009 and we now hope to begin making progress towards creating new distribution channels for all of our publications worldwide.
Autographs, Records and Related Memorabilia
Autographs, records and related memorabilia sales were 16% higher than last year with profit contribution up by 10%. Performance in this area of our business was a resounding success in 2008 in all areas of trading including investment services, retail, auction and mail order. The growth in sales is particularly pleasing when taking into account that the prior year included two large individual sales of top investment pieces with a combined sales value of £295,000.
The fact that autographs and rare historical signatures appeal to a wider audience than rare stamps provides us with significant opportunities to develop sales further in this respect. Our creative direct marketing approach is most effective in this part of our business.
Internet Development
Sales reported within this department relate to online subscription revenue only. Online sales represented 8% of total revenue compared to 7% in the prior year, when excluding investment sales.
New visitors to our website accounted for 49% of total visits in 2008. The total visitor numbers were up 20%. This would imply encouraging retention rates 15% higher than the benchmark figures published by Google. Overall, the growth shown in the visitors to our site is encouraging and consistent with previous years. With the significant improvements made to our website systems in recent months, the Group can now push forward into new global regions and segments of the market online.
On a technical level, we have made some encouraging steps in 2008 towards creating a more stable and flexible web platform to deploy all future developments. The total cost of developing our website charged to the profit and loss account in 2008 was £179,000.
Corporate Overheads
Corporate overheads were £108,000 (9%) higher than last year. Increased costs in this respect include a £43,000 increase in legal and professional fees mainly comprising costs of an external PR agency. Management of Public Relations and Brand Management were brought in-house in November at a significantly lower cost.
Corporate overheads also include a charge of £48,000 in respect of the IFRS2 Share based payment actuarial charge.
Exceptional Operating Costs
Exceptional operating costs of £88,000 relate to remuneration paid to former Chairman, Paul Fraser, under the terms of his service agreement which expired in April 2008 (2007: £117,000).
Strategic Focus and Opportunities
The Group has significant opportunity to grow profits across all areas of the business in both the short and long term. Our initial focus is in creating a structure and senior management team capable of delivering on the business plan.
Our biggest long-term opportunity lies within our internet development plans. Our goal is to bring the fragmented philatelic market together on our website. We believe we can monetise our website visitors through the creation of a philatelic online trading community underpinned by our online catalogue and prices.
The size of the potential market for our investment services provides exceptional growth potential. The creation of a more professional and regulated framework from which to conduct this business, we believe will provide the catalyst to distribute our products worldwide through our growing number of investment partners.
Consolidated Income Statement
for the year ended 31 December 2008
|
Year ended |
Year ended |
||||||
|
31 December 2008 |
31 December 2007 |
||||||
|
Notes |
£'000 |
£'000 |
|||||
|
Revenue |
19,394 |
20,191 |
|||||
|
Cost of sales |
(10,135) |
(10,815) |
|||||
|
Gross Profit |
9,259 |
9,376 |
|||||
|
Administrative expenses |
(1,734) |
(1,610) |
|||||
|
Distribution costs |
(3,827) |
(3,288) |
|||||
|
Exceptional operating costs |
(88) |
(117) |
|||||
|
Operating Profit |
3,610 |
4,361 |
|||||
|
Finance income |
103 |
149 |
|||||
|
Finance costs |
(12) |
(2) |
|||||
|
Profit before tax |
3,701 |
4,508 |
|||||
|
Taxation |
(378) |
(1,125) |
|||||
|
Profit for the financial year |
3,323 |
3,383 |
|||||
|
Basic Earnings per Ordinary share |
3 |
13.22p |
13.46p |
||||
|
Diluted earnings per Ordinary share |
3 |
13.19p |
13.41p |
Statements of Recognised Income & Expense
|
Group |
Group |
Company |
Company |
|
|
31 December 2008 |
31 December 2007 |
31 December 2008 |
31 December 2007 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Profit / (loss) for the financial year |
3,323 |
3,383 |
(1) |
(1) |
|
Actuarial gains / (losses) recognised in the pension scheme |
160 |
(115) |
- |
- |
|
Tax on items taken directly to equity |
(62) |
36 |
- |
- |
|
Total recognised income/(expense) for the year |
3,421 |
3,304 |
(1) |
(1) |
All activities have arisen from continuing operations.
Balance Sheets
at 31 December 2008
|
Group |
Group |
Company |
Company |
||||
|
31 December 2008 |
31 December 2007 |
31 December 2008 |
31 December 2007 |
||||
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
|||
|
Non-current assets |
|||||||
|
Intangible assets |
64 |
37 |
- |
- |
|||
|
Property, plant and equipment |
901 |
978 |
- |
- |
|||
|
Deferred tax asset |
|
21 |
71 |
- |
- |
||
|
Trade and other receivables |
2,801 |
2,846 |
- |
- |
|||
|
Investment in Subsidiary |
- |
- |
5,903 |
5,855 |
|||
|
3,787 |
3,932 |
5,903 |
5,855 |
||||
|
Current Assets |
|||||||
|
Inventories |
11,745 |
7,109 |
- |
- |
|||
|
Trade and other receivables |
3,988 |
4,248 |
- |
- |
|||
|
Cash and cash equivalents |
535 |
3,013 |
31 |
27 |
|||
|
16,268 |
14,370 |
31 |
27 |
||||
|
Total assets |
20,055 |
18,302 |
5,934 |
5,882 |
|||
|
Current liabilities |
|||||||
|
Trade and other payables |
2,828 |
3,118 |
351 |
394 |
|||
|
Current tax payable |
656 |
908 |
- |
- |
|||
|
3,484 |
4,026 |
351 |
394 |
||||
|
Non-current liabilities |
|||||||
|
Retirement benefit obligations |
75 |
252 |
- |
- |
|||
|
Deferred tax liabilities |
144 |
150 |
- |
- |
|||
|
Provisions |
517 |
362 |
- |
- |
|||
|
736 |
764 |
- |
- |
||||
|
Total liabilities |
4,220 |
4,790 |
351 |
394 |
|||
|
Net assets |
15,835 |
13,512 |
5,583 |
5,488 |
|||
|
Equity |
|||||||
|
Called up share capital |
252 |
251 |
252 |
251 |
|||
|
Share premium account |
5,195 |
5,148 |
5,195 |
5,148 |
|||
|
Share compensation reserve |
92 |
44 |
92 |
44 |
|||
|
Capital redemption reserve |
38 |
38 |
38 |
38 |
|||
|
Revaluation reserve |
182 |
182 |
- |
- |
|||
|
Retained earnings |
10,076 |
7,849 |
6 |
7 |
|||
|
Equity shareholders' funds |
15,835 |
13,512 |
5,583 |
5,488 |
Consolidated Cash Flow Statement
for the year ended 31 December 2008
|
Group |
Group |
Company |
Company |
||||||
|
31 December 2008 |
31 December 2007 |
31 December 2008 |
31 December 2007 |
||||||
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
|||||
|
Cash (used in) / generated from operations |
(601) |
1,782 |
4 |
(6) |
|||||
|
Interest paid |
(12) |
(2) |
- |
- |
|||||
|
Taxes paid |
(647) |
(770) |
- |
- |
|||||
|
Net cash (used in) / generated from operating activities |
(1,260) |
1,010 |
4 |
(6) |
|||||
|
Investing activities |
|||||||||
|
Purchase of property, plant and equipment |
(69) |
(88) |
- |
- |
|||||
|
Purchase of intangible assets |
(53) |
(7) |
- |
- |
|||||
|
Interest received |
50 |
83 |
- |
1 |
|||||
|
Dividends received |
- |
- |
1,194 |
1,068 |
|||||
|
Net cash (used in) / generated by investing activities |
(72) |
(12) |
1,194 |
1,069 |
|||||
|
Financing activities |
|||||||||
|
Dividends paid to company shareholders |
(1,194) |
(1,068) |
(1,194) |
(1,068) |
|||||
|
Net proceeds from issue of ordinary share capital |
48 |
- |
- |
- |
|||||
|
Net cash used in financing activities |
(1,146) |
(1,068) |
(1,194) |
(1,068) |
|||||
|
Net (decrease) / increase in cash and cash equivalents |
(2,478) |
(70) |
4 |
(5) |
|||||
|
Cash and cash equivalents at start of year |
3,013 |
3,083 |
27 |
32 |
|||||
|
Cash and cash equivalents at end of year |
535 |
3,013 |
31 |
27 |
|||||
Notes to Accounts
1. Basis of preparation
The financial information set out in this announcement does not constitute the Group's statutory financial statements for the years ended 31 December 2008 and 31 December 2007.
The financial information for the year ended 31 December 2007 has been extracted from the audited statutory financial statements for that year which include an unqualified audit report and have been filed with the Registrar of Companies in Jersey. The financial information for the year ended 31 December 2008 has been extracted from the audited financial statements of the Group for the year ended 31 December 2008 which were approved by the Board of Directors on 19 March 2009.
2. Dividends
Subject to approval at the AGM on 29 April 2009, the final dividend of 2.75p net per Ordinary Share will be paid on 11 May 2009 to all shareholders on the register on 3 April 2009.
3. Earnings per ordinary share
The calculation of basic earnings per ordinary share is based on the weighted average number of shares in issue during the year. Adjusted earnings per share has been calculated to exclude the effect of exceptional operating costs. The Directors believe this gives a more meaningful measure of the underlying performance of the Group.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group has only one category of dilutive ordinary shares: those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year. Also in existence were 420,702 options issued under the Company's 2007 Long-Term Incentive Plan (LTIP). These options were not dilutive at 31 December 2008.
|
Year ended |
Year ended |
|
|
31 December 2008 |
31 December 2007 |
|
|
Weighted average number of ordinary shares in issue (No.) |
25,145,312 |
25,137,443 |
|
Dilutive potential ordinary shares: Employee share options (No.) |
39,496 |
81,113 |
|
Profit after tax (£) |
3,323,000 |
3,383,000 |
|
Exceptional operating cost (net of tax) |
88,000 |
94,000 |
|
Adjusted profit after tax (£) |
3,411,000 |
3,477,000 |
|
Basic earnings per share - pence per share (p) |
13.22p |
13.46p |
|
Diluted earnings per share - pence per share (p) |
13.19p |
13.41p |
|
Adjusted earnings per share - pence per share (p) |
13.57p |
13.83p |
4. Annual report and accounts
The Annual Report and Accounts for the year ended 31 December 2008 will be posted to shareholders shortly. Further copies can be obtained from the Company Secretary at 399 Strand, London WC2R 0LX or the Company's Broker, Seymour Pierce Limited at 20 Old Bailey, London EC4M 7EN or can be viewed on the Company's website at www.stanleygibbons.com.
Related Shares:
SGI.L