Half Yearly Report

RNS Number : 6128Q

Stanley Gibbons Group PLC

06 August 2010

 

THE STANLEY GIBBONS GROUP PLC

FOR IMMEDIATE RELEASE 6 August 2010

 

THE STANLEY GIBBONS GROUP PLC ("the Company" or "the Group")

 

 

The Company today announces its interim results for the six months ended 30 June 2010.

 

Key Financial Highlights

 

·; Sales up 24% to £11.9m (2009: £9.6m)

·; Profit before tax of £1.6m (2009: £1.4m), up 10%

·; EBITDA of £1.7m (2009: £1.5m), up 12%

·; Earnings per share of 5.58p (2009: 5.09p), up 10%

·; Interim dividend declared of 2.25p per share (2009: 2p), representing an increase of 13%, payable on 27 September 2010 to all holders on the Register at the close of business on 20 August 2010

·; Cash generated from operating activities in period of £0.8m (2009: £1.4m) despite an increased investment in quality stockholding of £1.3m

 

Current Trading and Outlook

 

·; Successful completion of refurbishment works on our flagship retail premises at 399 Strand on the 13th of April

·; Strong presentation of brand at 2010 London Stamp Exhibition in May generating sales of over £0.4m and developing important new client relationships

·; Website and database projects progressing in line with plan

·; First entry into Chinese stamp market with orders received of over £1m expected to be invoiced in third quarter

·; New investment office in Jersey trading ahead of expectations

·; Stamp market remains strong with GB30 Rarities index showing growth of 7% for the year to date backed up by higher levels of trade to collectors through philatelic dealing and auctions

·; Working on a number of potential complementary business acquisitions to strengthen brand offering

 

Martin Bralsford, Non-Executive Chairman, commented:

 

"It is a pleasure to present to our Shareholders another set of positive results for the Stanley Gibbons Group plc in the six months ended 30 June 2010, showing continued growth in sales and profitability.

 

I am satisfied with the progress being made by the management team on the execution of the core aspects of our strategy, particularly with the investment we are now making in our important website and database development projects.

 

Despite associated costs with these developments and management diversion to ensure the successful delivery of the longer term growth opportunities, we continue to grow current sales and profits.

 

Current growth is being assisted by the positive forces now operating within our market at this time. We continue to see an increasing number of new high net worth collectors at the same time as an increasing number of investors looking to place an element of their wealth in a tangible asset with a value embedded in history.

 

The market for stamps in China looks like it could be a major opportunity for us as we gain a better understanding of the characteristics of that market. I believe the Chinese stamp market will ultimately have a substantial impact on our future sales and profitability over the longer term.

 

Based on the above, your Board remains confident on the Company's continued ability to grow both sales and profits for the full financial year."

 

For further information, contact:

 

The Stanley Gibbons Group plc

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

 

Seymour Pierce Ltd, NOMAD/Broker

Jonathan Wright / John Cowie +44 (0) 20 7107 8000

 

 

On behalf of your Board, I am pleased to report another trading period of sustained growth in sales and profits of the Group. Financial performance for the first half of this year and progress against the key elements of our strategy were in line with our expectations.

 

The increase in profits was achieved despite an increase of £0.5 million in overheads during the period necessary to support the development of the Group's longer term strategy, particularly the investment in our internet sites and the database project. A considerable amount of Senior Executive time was devoted to the management of these projects in the first half, which diverts attention from current profit generating activities, making the results even more creditable.

 

Financials

 

Turnover for the half year to 30 June 2010 increased by 24% to £11.9 million (2009: £9.6 million). Profit before tax was £1.6 million, up 10%. EBITDA was £1.7 million, up 12%.

 

Earnings per share were 5.58p (2009: 5.09p), representing an increase of 10%.

 

Dividend

 

Your Board is pleased to declare an increase in the interim dividend of 13% to 2.25p (2009: 2p) per Share, payable on 27 September 2010 to holders of Ordinary Shares on the Register at the close of business on the record date of 20 August 2010. The Board maintains its progressive policy on the dividend which is covered 2.5 times by earnings for the six months ended 30 June 2010.

 

The Company paid a final dividend of 3p per Share in respect of the year ended 31 December 2009, on 17 May 2010.

 

Outlook

 

The refurbishment of our flagship retail premises at 399 Strand was achieved on schedule, following completion of the works in mid-April providing the business with the solid foundation from which to benefit from the continued growth in the market of collectibles and from the heightened interest in the acquisition of such alternative investments. We now have suitable premises from which to build stronger long term relationships with our clients.

 

Our brand enjoyed a prominent position during the 2010 London Stamp Exhibition in May bringing it to the forefront of philately and providing us with the valuable opportunity to showcase the quality of our stockholding to a wide audience of international collectors. The centrepiece item on display at the exhibition - the 6d IR official - received substantial interest from collectors visiting the Exhibition and was subsequently sold for £0.4 million.

 

Following an extensive tender process which commenced in March of this year, we have outsourced our web development function and are targeting a complete re-launch of our websites, both Stanley Gibbons and Frasers, in early December 2010. This will be followed by our new online trading community functionality in early 2011. The IT project to digitalise our catalogue data in one database is proceeding to plan. The inaugural publication using this new system is due later this year.

 

Our new investment office in Jersey, opened at the end of last year, is trading ahead of our expectations generating additional sales revenue of £0.5 million in the first half of the year. We aim to continue to build our presence and reputation as a provider of a quality alternative investment product in Jersey, where we expect material growth in the long-term.

 

We have made progress in the first half towards our plans to develop into the stamp market in China. Our Chief Executive has visited the Far East to gain an on-the-ground understanding of the characteristics of the market. As a result of this, we have identified, and are working with, suitable trading partners to enable us to access this huge and diverse marketplace. We recently secured a top quality collection of investment grade stamps from China and already have over £1 million of registered orders from investment clients which we hope to fulfil in the third quarter. Further trips to the Far East are planned for September and we intend to develop opportunities there on a number of fronts to exploit the size and strength of this market.

 

The launch of the rare stamp investment fund is currently on hold whilst we focus on other projects and opportunities within the business. We formalised the fund structure in the first half which will include an independent fund manager and a separate independent valuation expert. Although we have a level of pre-registered support for the fund, the viability of it will be dependent on the successful marketing and distribution to reach a critical mass, which can deliver a return to investors when bearing in mind the associated fees and administration costs of a fund.

 

We intend to acquire a number of large stamp collections, and, if successful, they will provide the scale and quality of stockholding we need to satisfy current and anticipated levels of demand for the balance of the year. We remain focussed on securing elusive "once in a generation" opportunities to acquire the finest and rarest stamps and historical signatures as sought by our key clients.

 

Board

 

I am delighted to welcome John Byfield to your Board as a Non-Executive Director. John joined the Company following our AGM on the 28th April. The Company is already benefiting from the wealth of expertise he brings to the Board by virtue of his career successes. John was a founding partner of a substantial law practice and enjoyed subsequent success in building his own AIM listed company, "Essentially Group". He replaces John Wright who stepped down from the Board after completing six years of valuable service for which the Board is very grateful.

 

Martin Bralsford

Chairman

5 August 2010

 

	6 months to 30 June 2010	6 months to 30 June 2010	6 months to 30 June 2009	6 months to 30 June 2009	Year ended 31 December 2009	Year ended 31 December 2009
	Sales	Profit	Sales	Profit	Sales	Profit
	£000	£000	£000	£000	£000	£000
Philatelic trading and retail operations	9,148	1,845	7,215	1,549	17,657	4,056
Publishing and philatelic accessories	1,380	233	1,312	222	3,057	742
Dealing in autographs, records and	1,367	440	1,096	424	2,610	990
related memorabilia
	11,895	2,518	9,623	2,195	23,324	5,788
Internet development	20	(29)	20	(61)	41	(138)
Corporate overheads		(937)		(694)		(1,521)
Interest and similar income/(expenses)		18		(15)		(16)
Group total sales and profit before tax	11,915	1,570	9,643	1,425	23,365	4,113

 

Overview

 

Group turnover for the six months ended 30 June 2010 increased by £2.3 million (24%) compared to the same period last year. The profit before tax for the period of £1.6 million represented an increase of 10% on the prior period. Earnings per share were 5.58p (2009: 5.09p), up 10%.

 

The key contributors to growth in sales and profits in the period were:

 

·; The benefits from the strength of our buying activity during the period of unique and exceptional items of philately and historical documents and signatures

·; High level of new client recruitment during the period including new clients sourced through our investment office in Jersey and a good quality of responses from our press advertising and insert campaigns

·; Increased focus in personal client relationship management enabling us to understand our key clients' needs better to source items of particular interest to them

·; 34% increase in sales to collectors through our philatelic dealing departments highlighting the lack of correlation of the rare stamp market with other turbulent markets

·; Continued growth in our auction business with a record auction held in June realising £0.9 million with over 90% of lots offered sold

 

The gross margin percentage for the six months ended 30 June 2010 was 40.6% compared to 43.4% in the same period last year. The decline in gross margin percentage was in line with our expectations and is partly the result of our strategic decision to take a lower trading spread up-front on sales to investment clients in place of providing future guarantees. The lower margin percentage is also an indicator of our move more towards trading in premium high value collectibles where margins available are inherently lower.

 

Overheads were £0.5 million (20%) higher than the prior period. The overhead increases included an increase in salary costs of £0.2 million and marketing expenditure of £0.2 million. Increased salary costs predominantly relate to new executive and senior management recruitments necessary to support the implementation of our strategy. Increased marketing expenditure incorporated the costs associated with obtaining the maximum exposure during the London 2010 Stamp Exhibition together with our investment in recruiting new high net worth clients, which supported sales growth achieved in the period.

 

Philatelic Trading and Retail Operations

 

Philatelic trading and retail sales were 27% higher than the same period last year with profit contribution up by 19%. The increase in sales to specialised collectors and investment clients compensated for the loss of retail sales during the period of refurbishment works to the 13th of April.

 

Auction commissions were up 28% and reflect the success of our June Public Auction where realisations exceeded expectations. Of particular note was the Chinese stamp section, where realisations achieved were between three and ten times our upper pre-auction estimates. This highlights the high level of demand within the Chinese market at this time and illustrates the potential investment returns available.

 

Last year, sales to collectors of British stamps were flat, impacted to some extent by the weakness in the economy during that time. Despite the continued poor state of the UK's finances, we have witnessed resurgence in demand of British stamps accompanied by a higher level of new collectors entering the market. The result was that sales of British stamps to collectors were up by 74% on the prior period. The GB stamp market has benefited from the London 2010 Stamp Exhibition in May. The resurgence in demand is highlighted by the increase of 7% reflected in the GB30 Rarities Index for the year to date.

 

Our core strategy in respect of the sale of rare stamps as an investment has often been misunderstood. Our focus is primarily on the acquisition and offering of top quality rare stamps, (i.e. those stamps of the right level of rarity and scarcity expected to deliver long term growth in value backed up by long term historic pricing evidence). With this offering, our aim was to educate the market on two fronts:

 

1. To ensure that collectors began to appreciate more the importance of quality and the potential investment returns from exercising extreme diligence on assessing quality when buying

2. To recruit new clients initially interested in the potential investment returns available within our market and to educate them on the pleasure and satisfaction that can be derived from collecting and to encourage them to focus on areas of personal interest

 

I believe we have made significant progress towards achieving these objectives and that the hobby and the stamp trade in general will benefit for many years to come from the fruits of our labour in this respect.

 

Publishing and Philatelic Accessories

 

Publishing and philatelic accessory sales and profit contribution were both 5% higher than in the same period last year.

 

Sales benefited primarily from a strong publishing schedule in the first half, together with increased sales at the London 2010 Stamp Exhibition.

 

We have recently launched a new electronic product featuring our Gibbons Stamp Monthly magazine monthly archive from 1890 to 2009. This provides collectors with over 40,000 pages of philatelic articles and images in a searchable digital format. The Gibbons Stamp Monthly archive represents the most powerful and extensive philatelic research tool on the market. The product is currently available on disc format for the retail price of £199.95. This wealth of philatelic information will feature as one of the core elements of our online philatelic trading community when launched in 2011.

 

Our Publishing division is undergoing a period of dramatic change as we progress the implementation of a new Database Asset Management system. Our biggest selling title, Stamps of the World, will be the first title produced through the new system at the end of October.

 

Autographs, Records and Related Memorabilia

 

Autographs, records and related memorabilia sales were 25% up on the prior period with profit contribution up 4%. Sales to collectors and trade were down by 11% in the period due mainly to the loss of retail business during the refurbishment of 399 Strand.

 

Sales to investors and high net worth clients of historical documents and signatures were however up by 46%. Improvements to our stock acquisition strategy to focus on the procurement of fascinating items of historical importance, has delivered the expected returns with most items being acquired placed with clients within a week of purchase. Buying the most exciting items is the key element to building strong long term client relationships and represents our core strength.

 

Our e marketing continues to provide the most effective means of communicating the fascinating and compelling history behind the items we offer for sale. E-mail is the most efficient and cost effective way to communicate to the highest number of clients simultaneously and the copy we write serves to educate prospective clients to assist them in arriving at an informed decision.

 

Internet Development

 

Sales reported within this department relate to online subscription revenue only. Online sales represented 7% of revenue in both periods. The website generated investment sales totalling £0.6 million in the period illustrating the importance of our website strategy to provide a seamless information tool enabling investors to conduct full online research of our services.

 

Corporate Overheads

 

Corporate overheads were £0.2 million (35%) higher than the same period last year representing the planned increased investment in Senior Executive resource for the six months under review. A large proportion of senior executive time during the period was required to manage the projects regarding our website development and implementation of a Database Asset Management system, from which benefits will not accrue until future accounting periods.

 

Corporate overheads include an IFRS2 actuarial accounting charge for share options of £54,000 (2009: £24,000).

 

Cashflow

 

Cash generated from operating activities of £0.8 million (2009: £1.4 million) is net of our increased investment in our stockholding of £1.3 million. Investment was mainly in higher value rarities where our average stock turnover times are no more than 3 months.

 

The reduction in cash during the period of £1.3 million reflects dividends paid of £0.8 million, tax paid of £0.3 million and capital expenditure of £1 million. Capital expenditure investment includes £0.7 million in respect of the refurbishment of 399 Strand and £0.3 million in the development of our Database Asset Management system necessary to support the core development of our internet strategy and proposed online trading community. Both of these investments increase the long term value of the business and are expected to generate substantial cashflows in future accounting periods.

 

Strategic Focus and Opportunities

 

The successful re-opening of 399 Strand in April and the subsequent prominent presentation of our brand at the 2010 London Stamp Exhibition saw our key strategic objectives of the first half being achieved. These achievements provide longer term benefits through presenting a more professional image of our brand at the Strand together with the strong client relationships formed during the London Stamp Exhibition.

 

Our strategic focus in the second half of the year in order of priority is as follows:

 

1. Implementation of developments to website and Database Asset Management system

2. Increased focus in our buying efforts to acquire unique pieces and items of the highest level of rarity and hence providing the best long term investment potential

3. Further development of identified business opportunities in China

4. Completion of strategic acquisitions currently in progress

5. Continued promotion and relationship building to develop sales to new investment clients from our Jersey office

6. Distribution of rare stamp investment fund

 

The business remains in a strong position financially by virtue of our cash balances and the strength of our stockholding which is reported in the Balance Sheet at historic cost, not market value. We enter the second half of the year with a strong order book giving confidence in the potential to continue to grow sales and profitability in the short term. Progress against our longer term strategy has accelerated in the first half of the year and our focus in the second half remains on achieving the key milestones towards delivery of a broader based internet strategy.

 

Michael Hall

Chief Executive

5 August 2010

 

 

 

		6 months to	6 months to	Year ended
		30 June	30 June	31 December
		2010	2009	2009
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Revenue	3	11,915	9,643	23,365
Cost of sales		(7,079)	(5,459)	(13,345)
Gross Profit		4,836	4,184	10,020
Administrative expenses		(1,082)	(843)	(1,817)
Selling and distribution expenses		(2,202)	(1,901)	(4,074)
Operating Profit		1,552	1,440	4,129
Finance income		18	1	2
Finance costs		-	(16)	(18)
Profit before tax		1,570	1,425	4,113
Taxation	4	(166)	(143)	(413)
Profit for the period		1,404	1,282	3,700
Other comprehensive income:
Actuarial losses recognised in the pension scheme		-	-	(352)
Tax on actuarial losses recognised in the pension scheme		-	-	80
Other comprehensive income for the period, net of tax		-	-	(272)
Total comprehensive income for the period		1,404	1,282	3,428
Basic earnings per Ordinary Share	5	5.58p	5.09p	14.70p
Diluted earnings per Ordinary Share	5	5.57p	5.09p	14.69p

 

All profit and total comprehensive income is attributable to the owners of the parent; there are no non-controlling interests.

 

 

 

 

 

 

		30 June	30 June	31 December
		2010	2009	2009
		(unaudited)	(unaudited)	(audited)
		£'000	£'000	£'000
Non-current assets
Intangible assets		461	134	186
Property, plant and equipment		1,784	957	1,103
Deferred tax asset		124	23	124
Trade and other receivables		-	1,855	118
		2,369	2,969	1,531
Current assets
Inventories		10,574	11,356	9,289
Trade and other receivables		9,663	4,980	9,848
Cash and cash equivalents		1,776	394	3,062
		22,013	16,730	22,199
Total assets		24,382	19,699	23,730
Current liabilities
Trade and other payables		3,898	2,156	4,014
Current tax payable		176	163	296
		4,074	2,319	4,310
Non-current liabilities
Retirement benefit obligations		442	86	442
Deferred tax liabilities		172	150	161
Provisions		834	695	660
		1,448	931	1,263
Total liabilities		5,522	3,250	5,573
Net assets		18,860	16,449	18,157
Equity
Called up share capital		252	252	252
Share premium account		5,195	5,195	5,195
Share compensation reserve		217	116	163
Capital redemption reserve		38	38	38
Revaluation reserve		201	182	201
Retained earnings		12,957	10,666	12,308
Equity shareholders' funds		18,860	16,449	18,157

 

 

 

	Called up share capital	Share premium account	Share compensation reserve	Revaluation reserve	Capital redemption reserve	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2010	252	5,195	163	201	38	12,308	18,157
Total comprehensive income for the period	-	-	-	-	-	1,404	1,404
Dividends	-	-	-	-	-	(755)	(755)
Cost of share options	-	-	54	-	-	-	54
At 30 June 2010	252	5,195	217	201	38	12,957	18,860
At 1 January 2009	252	5,195	92	182	38	10,076	15,835
Total comprehensive income for the period	-	-	-	-	-	1,282	1,282
Dividends	-	-	-	-	-	(692)	(692)
Cost of share options	-	-	24	-	-	-	24
At 30 June 2009	252	5,195	116	182	38	10,666	16,449
At 1 January 2009	252	5,195	92	182	38	10,076	15,835
Total comprehensive income for the year	-	-	-	-	-	3,428	3,428
Dividends	-	-	-	-	-	(1,196)	(1,196)
Cost of share options	-	-	71	-	-	-	71
Revaluation of reference collection (net of deferred tax)	-	-	-	19	-	-	19
At 31 December 2009	252	5,195	163	201	38	12,308	18,157

 

 

		6 months to	6 months to	Year ended
		30 June	30 June	31 December
		2010	2009	2009
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Cash generated from operations	6	779	1,353	4,897
Interest paid		-	(3)	(4)
Taxes paid		(275)	(638)	(783)
Net cash generated from operating activities		504	712	4,110
Investing activities
Purchase of property, plant and equipment		(747)	(110)	(275)
Purchase of intangible assets		(288)	(52)	(114)
Interest received		-	1	2
Net cash used in investing activities		(1,035)	(161)	(387)
Financing activities
Dividends paid to company shareholders	7	(755)	(692)	(1,196)
Net cash used in financing activities		(755)	(692)	(1,196)
Net (decrease)/increase in cash and cash equivalents		(1,286)	(141)	2,527
Cash and cash equivalents at start of period		3,062	535	535
Cash and cash equivalents at end of period		1,776	394	3,062

 

 

 

 

 

 

1 Basis of preparation

These condensed financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting (as amended).

2 Significant accounting policies

The accounting policies followed in the preparation of this condensed interim report have been applied consistently to all periods in these financial statements and are the same as those applied by the Group in the preparation of its Annual Report for the year ended 31 December 2009. No actuarial valuation of the pension scheme had been undertaken at 30 June 2010 or at 30 June 2009.

 

3 Segmental analysis

As outlined in the Operating Review the company has four main business segments, operations being split between Philatelic trading, Publishing and philatelic accessories, Autographs, records and memorabilia and Internet development. This is based upon the Group's internal organisation and management structure and is the primary way in which the board of directors is provided with financial information.

 

	Philatelic trading	Publishing and philatelic accessories	Autographs, records and memorabilia	Internet development	Unallocated	Group
Segmental income statement	£'000	£'000	£'000	£'000	£'000	£'000
6 months to 30 June 2010
Revenue	9,148	1,380	1,367	20	-	11,915
Operating costs	(7,303)	(1,147)	(927)	(49)	(937)	(10,363)
Net finance income	-	-	-	-	18	18
Profit before tax	1,845	233	440	(29)	(919)	1,570
Tax	-	-	-	-	(166)	(166)
Profit for the period	1,845	233	440	(29)	(1,085)	1,404
6 months to 30 June 2009
Revenue	7,215	1,312	1,096	20	-	9,643
Operating costs	(5,666)	(1,090)	(672)	(81)	(694)	(8,203)
Net finance costs	-	-	-	-	(15)	(15)
Profit before tax	1,549	222	424	(61)	(709)	1,425
Tax	-	-	-	-	(143)	(143)
Profit for the period	1,549	222	424	(61)	(852)	1,282
Year ended 31 December 2009
Revenue	17,657	3,057	2,610	41	-	23,365
Operating costs	(13,601)	(2,315)	(1,620)	(179)	(1,521)	(19,236)
Net finance costs	-	-	-	-	(16)	(16)
Profit before tax	4,056	742	990	(138)	(1,537)	4,113
Tax	-	-	-	-	(413)	(413)
Profit for the year	4,056	742	990	(138)	(1,950)	3,700

   

Geographical information

Analysis of revenue by origin and destination

	Period ended 30 June 2010 Sales by destination	Period ended 30 June 2010 Sales by origin	Period ended 30 June 2009 Sales by destination	Period ended 30 June 2009 Sales b origin	Year ended 31 December 2009 Sales by destination	Year ended 31 December 2009 Sales by origin
	£'000	£'000	£'000	£'000	£'000	£'000
Channel Islands	656	6,528	286	4,645	1,162	12,689
United Kingdom	7,682	5,387	6,939	4,998	16,813	10,676
Europe	482	-	368	-	1,253	-
North America	501	-	512	-	1,352	-
Rest of the World	2,594	-	1,538	-	2,785	-
	11,915	11,915	9,643	9,643	23,365	23,365

 

4 Taxation

The charge for taxation is based on the results for the period and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred tax is recognised on a full provision basis in respect of all temporary differences which have originated, but not reversed at the balance sheet date. The provision is not discounted.

 

5 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 period. 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 period. Also in existence were 228,803 options issued under the Company's 2007 Long-Term Incentive Plan (LTIP). These options were not dilutive at 30 June 2010.

 

	6 months to	6 months to	Year ended
	30 June 2010	30 June 2009	31 December 2009
	(unaudited)	(unaudited)	(audited)
Weighted average number of ordinary shares in issue	25,177,443	25,177,443	25,177,443
Dilutive potential ordinary shares: Employee share options	42,534	2,143	5,842
Profit after tax (£)	1,404,000	1,282,000	3,700,000
Basic earnings per share - pence per share (p)	5.58p	5.09p	14.70p
Diluted earnings per share - pence per share (p)	5.57p	5.09p	14.69p

 

 

6 Cash generated from operations

 

	6 months to	6 months to	Year ended
	30 June 2010	30 June 2009	31 December 2009
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Operating profit	1,552	1,440	4,129
Depreciation	66	55	99
Amortisation	13	12	23
Increase in provisions	192	181	140
Cost of share options	54	24	71
(Increase) / decrease in inventories	(1,285)	389	2,456
Decrease / (increase) in trade and other receivables	303	(37)	(3,168)
(Decrease) / increase in trade and other payables	(116)	(711)	1,147
Cash generated from operations	779	1,353	4,897

 

 

7 Dividends

 

		6 months to  30 June 2010	6 months to 30 June 2009	Year ended 31 December 2009
		(unaudited)	(unaudited)	(audited)
		£'000	£'000	£'000
Amounts recognised as distribution to equity holders in period:
Dividend paid		755	692	1,196
Dividend paid per share		3.0p	2.75p	4.75p
Dividend proposed but not paid		566	504	755
Dividend proposed per share		2.25p	2.0p	3.0p

 

 

8 Further copies of this statement

Copies of this statement are being sent to shareholders and can be viewed on the Company's website at www.stanleygibbons.com. Further copies are available on request from: The Company Secretary, The Stanley Gibbons Group plc, 6 Vine Street, St Helier, Jersey, JE2 4WB.

 

This information is provided by RNS

The company news service from the London Stock Exchange