7th Aug 2009 07:00
THE STANLEY GIBBONS GROUP PLC
FOR IMMEDIATE RELEASE 7 August 2009
THE STANLEY GIBBONS GROUP PLC
("the Company" or "the Group")
|
Interim Results for the six months ended 30 June 2009 |
The Company today announces its Interim Results for the six months to 30 June 2009.
Financial Highlights
Earnings per share of 5.09p (2008: 4.16p), up 22%.
Profit before tax of £1.4m (2008: £1.2m), up 13%.
Sales up 18% to £9.6m (2008: £8.2m).
Sales achieved in the first half of 2009 do not include the crystallisation of deferred revenue from the prior year of £3.4m, as the terms of those transactions do not expire until December 2009.
Interim dividend declared of 2p net per share (2008: 2p), payable on 28 September 2009 to all holders on the Registrar at the close of business on 21 August 2009.
Other Highlights
Strong sales to overseas clients as a direct result of our growing network of international sales agents, contributing sales in the period of £1.1m
Continued success from our e-marketing approach through the delivery of powerful sales copy to our e-mail database, contributing sales in the period of £0.9m
Excellent performance from auction activities with sales growth of 16% and increased profit contribution of 65%
Martin Bralsford, Non-Executive Chairman commented:
"The Company's performance in the first six months of the financial year is remarkable in the prevailing market conditions. The business has delivered strong profit growth in a period where our primary focus was on building the necessary team of a quality to take forward our longer term growth objectives. We have successfully recruited a Chief Operating Officer and a Group Director of Sales in the period. These key appointments to our executive team create a broader range of skills to enable us to capitalise fully on the untapped potential within our Brand.
The worldwide recognition our brand name already enjoys is now beginning to translate into broad based sales penetration through our successful recruitment of international sales agents. The planned launch of a rare stamp investment fund in the first quarter of 2010 should create the platform required to ensure that rare stamps achieve the recognition they deserve as a credible asset class as part of a sensible wealth diversification strategy. The formation of a regulated investment product will increase the range of investors which can participate in our market, including institutional investors and high net worth individuals who feel more comfortable dealing in a regulated investment product.
Whilst we are currently making some immediate changes to our website to realise some short term benefits, we have also allocated more executive resource to this part of our long-term strategy. Increased focus should ensure that we create a website that encompasses the best attributes of brand leaders such as Amazon.com and Ebay.com, but specifically tailored to the requirements of stamp collectors, which we believe, will transform our marketplace.
The current strength in our core rare stamp market, evident from recent auction realisations, together with a stronger start to trading in the second half to date, leads your Board to remain confident on the Company's 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 +44 (0) 20 7107 8000
Chairman's Statement
On behalf of your Board, I am pleased to present a strong trading performance of The Stanley Gibbons Group plc for the six months ended 30 June 2009. The performance of the Company was in line with the strategy and current trading shows no signs of the trading difficulties we experienced at this time last year, which were a direct consequence of global economic events unfolding at that time.
We have restated the prior period results to exclude sales transactions which were entered into on extended credit terms incorporating buyback guarantees in line with our accounting treatment in the financial statements for the year ended 31 December 2008. The restatement of the prior period result was necessary to enable a like-for-like comparison of trading and to report the interim results in line with the accounting treatment of those transactions for the full year.
Financials
In the half year to 30 June 2009, turnover increased by 18% to £9.6 million (2008: £8.2 million) whilst profit before tax was £1.4 million, up 13%.
Earnings per share for the six months ended 30 June 2009 were 5.09p (2008: 4.16p), representing an increase of 22% benefiting further from a lower effective tax rate in the current period.
In our annual report for the year ended 31 December 2008, we referred to £3.4 million in value of sales transactions entered into on extended credit terms incorporating a 12 month buyback guarantee. Those revenues were not reported in the prior year result as it was considered by the Board prudent to only recognise this revenue and the associated profit when the guarantees have expired and the outcome is certain. No such deferred revenue from the prior year had crystallised by 30 June 2009. The terms of these transactions do not expire until December 2009. The performance achieved on the active management of those clients' portfolios between now and then will determine the likelihood of crystallising such sales in 2009.
Dividend
Your Board is pleased to declare an interim dividend of 2p (2008: 2p) net per Ordinary Share, payable on 28 September 2009 to holders of Ordinary Shares on the Register at the close of business on the record date of 21 August 2009. The Board's dividend policy is maintained, covered 2.5 times by earnings for the six months ended 30 June 2009, having taking into consideration projected cash flow requirements to support the development of our internet strategy and planned refurbishment of our retail premises at 399 Strand following the renewal of our lease in March.
The Company paid a final dividend of 2.75p net per share in respect of the year ended 31 December 2008, on 11 May 2009.
Outlook
Current trading continues to show high demand for quality material and the exceptional result from our own June Public Auction gives us confidence that our market continues to be remarkably resilient in the current economic climate. As a result, together with the growth opportunities available from the successful implementation of our strategy, the Board remains confident of the outlook for 2009 and beyond.
It is inevitable that the internet will continue to transform the dynamics of our market and we fully expect to be the primary beneficiary, being the biggest and most well known brand in our market. We are currently implementing some "quick wins" in our website developments and are in the process of putting in place the right resource and structure to bring this part of our strategy to the forefront of our business development.
The refurbishment of our retail premises at 399 Strand scheduled for early next year will enable us to present our brand better in its position as the premier brand in philately. The improved presentation and quality of service from our retail premises in
London will prove timely in light of the "London 2010 Festival of Stamps", a once in a decade event, which will see thousands of collectors from all over the world congregate in London.
We are now making some tangible progress, working with an investment partner, in the launch of a rare stamp investment fund. We hope that the launch of such a fund will provide the recognition that rare stamps deserves as a credible asset class as part of a sensible wealth diversification strategy.
Our new investment sales office in Jersey is scheduled to open in October. Our marketing plans surrounding the opening of our new office there are expected to result in the recruitment of new investment clients in the second half of the year.
People
On behalf of the Board, I would like to welcome our new employees who have joined Stanley Gibbons at this exciting time for us and to thank everyone in the team for their contribution to the positive result achieved for the first half of the year. I take this opportunity to welcome Donal Duff to the Main Board as Chief Operating Officer and Keith Heddle to the Senior Executive Team as Group Director of Sales. I am confident that our quality new additions to the team will quickly contribute to our continued growth plans.
Martin BralsfordChairman
6 August 2009
Operating Review
|
6 months to 30 June 2009 |
6 months to 30 June 2009 |
6 months to 30 June 2008 (restated) |
6 months to 30 June 2008 (restated) |
Year ended 31 December 2008 |
Year ended 31 December 2008 |
|
|
Sales |
Profit |
Sales |
Profit |
Sales |
Profit |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
Philatelic trading and retail operations |
7,215 |
1,549 |
5,718 |
1,197 |
13,801 |
3,251 |
|
Publishing and philatelic accessories |
1,312 |
222 |
1,309 |
318 |
2,899 |
785 |
|
Dealing in autographs, records and |
1,096 |
424 |
1,155 |
501 |
2,655 |
1,179 |
|
related memorabilia |
||||||
|
9,623 |
2,195 |
8,182 |
2,016 |
19,355 |
5,215 |
|
|
Internet development |
20 |
(61) |
19 |
(66) |
39 |
(140) |
|
Corporate overheads |
(694) |
(669) |
(1,377) |
|||
|
Interest and similar income/(expenses) |
(15) |
69 |
91 |
|||
|
Before exceptional items |
9,643 |
1,425 |
8,201 |
1,350 |
19,394 |
3,789 |
|
Exceptional operating costs |
- |
(88) |
(88) |
|||
|
Group total sales and profit before tax |
9,643 |
1,425 |
8,201 |
1,262 |
19,394 |
3,701 |
Overview
Group turnover increased by £1,442,000 (18%) compared to the same period last year. The profit before tax for the period of £1,425,000 compared to a profit in the prior period of £1,262,000, representing an increase of 13%. Earnings per share for the six months ended 30 June 2009 were 5.09p (2008: 4.16p), up 22%.
The key contributors to growth in the period were:
Strong sales to overseas clients as a direct result of our growing network of international sales agents, contributing total sales in the period of £1.1 million
Continued successful responses from the delivery of powerful sales copy to our e-mail database, contributing total sales in the period of £0.9 million
Excellent performance from our auction department in the period achieving sales growth of 16% and increased profit contribution of 65%
Sales of material re-acquired from guaranteed minimum return contracts which reached maturity of £1.3 million. Material sold on these contracts, as previously stated, represented some of our finest stock items and as such has provided a boost to sales for the period.
The gross margin percentage for the six months ended 30 June 2009 was 43.4% compared to 48.6% in the same period last year. The decline in the gross margin percentage was in line with our expectations for the period and reflects the shift in business more towards higher value rarities.
Overheads remained relatively stable in the period despite the expected pressures from the costs required to build the correct team of personnel to take forward our strategy effectively. All other overheads have remained under tight control to retain our fixed cost base at a consistent level.
Philatelic trading and retail operations
Philatelic trading and retail sales were 26% higher than the same period last year with profit contribution up by 29%. Traditional business activities servicing collectors have shown a robust trading performance during this recessionary period.
Our auction business showed strong growth in the first half with sales up by 16%. Realisations from our June Public Auction surpassed our own expectations with a number of the higher value lots included within the auction achieving realisations well above estimates and, quite frequently, above listed catalogue retail prices.
Sales to collectors of British stamps were 5% higher than in the same period last year and sales to collectors of British Commonwealth countries were up by 18%. The improved sales performance is predominantly the result of strong buying of quality collections during the period including material re-acquired from guaranteed minimum return contracts.
Sales to investment clients and high net worth collectors increased by 39%. We recently launched a new investment product called the "Capital Protected Growth Plan" which is expected to reduce the Company's overall buyback obligations under investment sales in the future. The main strength of the product to investors is a lower trading spread. Early indications show positive demand for this product which will flow through into the second half of the year.
Publishing and philatelic accessories
Publishing and philatelic accessory sales were flat although profit contribution was down 30% from the same period last year. The lower profit contribution is partly because of lower gross margins due mainly to the fact that the biggest downturn in sales was witnessed in catalogues which generate the highest margins. Profit contribution is further impacted by the increase in overheads as a result of the recruitment of a Publishing Director last year.
We are witnessing a recessionary impact on our Publishing division which is affecting sales of our catalogue titles, which are deemed a luxury product by collectors, and advertising sales in our magazines. Despite those negative influences, sales have remained consistent through focussed sales efforts in the period. We have scheduled additional catalogue titles for publication in the second half which will provide a boost to revenues and are working on increasing distribution channels worldwide. We recently signed up a distributor of catalogues in India which will provide a benefit to sales in the second half.
Autographs, records and related memorabilia
Autographs, records and related memorabilia sales were 5% lower than the same period last year with profit contribution down by 15%. Sales to collectors were up by 20% in the period benefiting from the improved strength of our auctions and mail order catalogues together with strong customer recruitment from our marketing activities.
Sales to investors were, however, down by £111,000 (14%) in the period. Autograph investment sales in the current period were impacted by a large credit issued to one customer invoiced in the prior year of £101,000. When adjusting for this credit, autograph investment sales were broadly in line with the prior period.
Internet development
Sales reported within this department relate to online subscription revenue only. Online sales represented 7% of total revenue compared to 9% in the prior period, when excluding investment sales. The website generated investment sales totalling £621,000 in the period demonstrating the growing importance of this medium of communicating our services to the world.
Recent improvements to our homepage made in July have already made an immediate impact on our web sales and the planned improvements to our online shopping functionality scheduled for later in the year are expected to have a further positive impact on sales conversions from online visitors.
Website traffic from major search engines for the six months ended 30 June 2009 shows a 5% increase on traffic for the previous six months (July to December 2008). The increase in registrations for bidding in online auctions rose by 18% on the equivalent period last year.
Corporate overheads
Corporate overheads were £25,000 (4%) higher than the same period last year. IT costs increased by £20,000 as a result of higher depreciation charges on capitalised IT hardware and software and increased costs associated with improvements to our network communication links between sites which has substantially improved speed and performance levels across the Group.
Cashflow
Cash generated from operating activities of £1,353,000 (2008: cash used of £695,000) included the benefit of a reduction of £389,000 (3%) in the cost of our inventories from the year end. Cash generated from operating activities in the period was used to finance tax payments of £638,000 and dividend payments to shareholders of £692,000.
Strategic focus and opportunities
The Group is in a strong position to grow profits in the second half of the year and beyond. Our key areas of focus in the second half include:
Development of our websites and implementation of a Database Asset Management system to support the launch of online trading community
Development of online publishing opportunities and e-marketing functions
Preparation and fund raising for the planned launch of rare stamp investment fund in the first quarter of 2010
Implement refurbishment programme of our retail premises at 399 Strand, London in preparation for "London 2010 Festival of Stamps" in May 2010
Opening of our Jersey investment office in October with associated marketing campaign to develop sales potential similar to that achieved in the Guernsey office
Although our short term activities provide opportunities to grow sales and profits from current levels, our success against our strategy provides the potential to escalate profits to a new level. Ultimately, our success in this respect will create a business of a size and profitability matching the size of our brand.
Michael HallChief Executive
6 August 2009
Condensed statement of comprehensive income
|
6 months to |
6 months to |
Year ended |
||
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
(unaudited) |
(unaudited) |
(audited) |
||
|
(restated) |
||||
|
Notes |
£'000 |
£'000 |
£'000 |
|
|
Revenue |
3,8 |
9,643 |
8,201 |
19,394 |
|
Cost of sales |
(5,459) |
(4,212) |
(10,135) |
|
|
Gross Profit |
4,184 |
3,989 |
9,259 |
|
|
Administrative expenses |
(843) |
(848) |
(1,734) |
|
|
Distribution costs |
(1,901) |
(1,860) |
(3,827) |
|
|
Exceptional operating costs |
- |
(88) |
(88) |
|
|
Operating Profit |
8 |
1,440 |
1,193 |
3,610 |
|
Finance income |
1 |
69 |
103 |
|
|
Finance costs |
(16) |
- |
(12) |
|
|
Profit before tax |
1,425 |
1,262 |
3,701 |
|
|
Taxation |
4 |
(143) |
(216) |
(378) |
|
Profit for the period |
1,282 |
1,046 |
3,323 |
|
|
Other comprehensive income: |
||||
|
Actuarial gains recognised in the pension scheme |
- |
- |
160 |
|
|
Tax on actuarial gains recognised in the pension scheme |
- |
- |
(62) |
|
|
Other comprehensive income for the period, net of tax |
- |
- |
98 |
|
|
Total comprehensive income for the period |
1,282 |
1,046 |
3,421 |
|
|
Earnings per Ordinary Share |
5 |
5.09p |
4.16p |
13.22p |
|
Diluted earnings per Ordinary Share |
5 |
5.09p |
4.15p |
13.19p |
All profit and total comprehensive income is attributable to the owners of the parent, there are no non-controlling interests.
Condensed statement of changes in equity
|
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 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 2008 |
251 |
5,148 |
44 |
182 |
38 |
7,849 |
13,512 |
|
Total comprehensive income for the period (restated) |
- |
- |
- |
- |
- |
1,046 |
1,046 |
|
Dividends |
- |
- |
- |
- |
- |
(691) |
(691) |
|
Cost of share options |
- |
- |
24 |
- |
- |
- |
24 |
|
At 30 June 2008 |
251 |
5,148 |
68 |
182 |
38 |
8,204 |
13,891 |
|
At 1 January 2008 |
251 |
5,148 |
44 |
182 |
38 |
7,849 |
13,512 |
|
Total comprehensive income for the year |
- |
- |
- |
- |
- |
3,421 |
3,421 |
|
Dividends |
- |
- |
- |
- |
- |
(1,194) |
(1,194) |
|
Cost of share options |
- |
- |
48 |
- |
- |
- |
48 |
|
Share options exercised |
1 |
47 |
- |
- |
- |
- |
48 |
|
At 31 December 2008 |
252 |
5,195 |
92 |
182 |
38 |
10,076 |
15,835 |
Condensed statement of financial position
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
(unaudited) |
(unaudited) |
(audited) |
||
|
(restated) |
||||
|
£'000 |
£'000 |
£'000 |
||
|
Non-current assets |
||||
|
Intangible assets |
134 |
27 |
64 |
|
|
Property, plant and equipment |
957 |
953 |
901 |
|
|
Deferred tax asset |
23 |
71 |
21 |
|
|
Trade and other receivables |
1,855 |
3,251 |
2,801 |
|
|
2,969 |
4,302 |
3,787 |
||
|
Current Assets |
||||
|
Inventories |
11,356 |
10,787 |
11,745 |
|
|
Trade and other receivables |
4,980 |
3,534 |
3,988 |
|
|
Cash and cash equivalents |
394 |
1,094 |
535 |
|
|
16,730 |
15,415 |
16,268 |
||
|
Total assets |
19,699 |
19,717 |
20,055 |
|
|
Current liabilities |
||||
|
Trade and other payables |
2,156 |
4,366 |
2,828 |
|
|
Current tax payable |
163 |
597 |
656 |
|
|
2,319 |
4,963 |
3,484 |
||
|
Non-current liabilities |
||||
|
Retirement benefit obligations |
86 |
252 |
75 |
|
|
Deferred tax liabilities |
150 |
152 |
144 |
|
|
Provisions |
695 |
459 |
517 |
|
|
931 |
863 |
736 |
||
|
Total liabilities |
3,250 |
5,826 |
4,220 |
|
|
Net assets |
16,449 |
13,891 |
15,835 |
|
|
Equity |
||||
|
Called up share capital |
252 |
251 |
252 |
|
|
Share premium account |
5,195 |
5,148 |
5,195 |
|
|
Share compensation reserve |
116 |
68 |
92 |
|
|
Capital redemption reserve |
38 |
38 |
38 |
|
|
Revaluation reserve |
182 |
182 |
182 |
|
|
Retained earnings |
10,666 |
8,204 |
10,076 |
|
|
Equity shareholders' funds |
16,449 |
13,891 |
15,835 |
Condensed statement of cash flows
|
6 months to |
6 months to |
Year ended |
||
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
(unaudited) |
(unaudited) |
(audited) |
||
|
Notes |
£'000 |
£'000 |
£'000 |
|
|
Cash generated from / (used in) operations |
6 |
1,353 |
(695) |
(601) |
|
Interest paid |
(3) |
- |
(12) |
|
|
Taxes paid |
(638) |
(525) |
(647) |
|
|
Net cash generated from / (used in) operating activities |
712 |
(1,220) |
(1,260) |
|
|
Investing activities |
||||
|
Purchase of property, plant and equipment |
(110) |
(48) |
(69) |
|
|
Purchase of other intangible assets |
(52) |
(4) |
(53) |
|
|
Interest received |
1 |
44 |
50 |
|
|
Net cash used in investing activities |
(161) |
(8) |
(72) |
|
|
Financing activities |
||||
|
Dividends paid to company shareholders |
7 |
(692) |
(691) |
(1,194) |
|
Net proceeds from issue of ordinary share capital |
- |
- |
48 |
|
|
Net cash used in financing activities |
(692) |
(691) |
(1,146) |
|
|
Net decrease in cash and cash equivalents |
(141) |
(1,919) |
(2,478) |
|
|
Cash and cash equivalents at start of period |
535 |
3,013 |
3,013 |
|
|
Cash and cash equivalents at end of period |
394 |
1,094 |
535 |
|
Notes to the condensed financial statements
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). For the period ended 30 June 2008 comparatives have been restated, details of which are disclosed in note 8.
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 2008. The presentation of this condensed interim report is not the same as the Annual Report for the year ended 31 December 2008 as IAS 1 (revised) has been applied. No actuarial valuation of the pension scheme had been undertaken at 30 June 2009 or at 30 June 2008.
3. Segmental reporting
As disclosed 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. When previously reporting under IAS 14 it was considered that there was only one business segment and all these activities were combined in the segmental reporting disclosure. IFRS 8 superseded IAS 14 and under this standard it has been decided to disclose the four segments separately. It remains impractical to allocate group assets and liabilities between these activities.
|
|
Philatelic trading
|
Publishing and philatelic accessories
|
Autographs, records and memorabilia
|
Internet development
|
Group
|
|
Segmental income statement
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
|
|
|
|
|
|
|
6 months to 30 June 2009
|
|
|
|
|
|
|
Revenue
|
7,215
|
1,312
|
1,096
|
20
|
9,643
|
|
Segment operating profit / (loss)
|
1,549
|
222
|
424
|
(61)
|
2,134
|
|
Unallocated expenses
|
|
|
|
|
(694)
|
|
Operating profit
|
|
|
|
|
1,440
|
|
Net finance costs
|
|
|
|
|
(15)
|
|
Profit before tax
|
|
|
|
|
1,425
|
|
Tax
|
|
|
|
|
(143)
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
1,282
|
|
|
|
|
|
|
|
|
6 months to 30 June 2008 (restated)
|
|
|
|
|
|
|
Revenue
|
5,718
|
1,309
|
1,155
|
19
|
8,201
|
|
Segment operating profit / (loss)
|
1,197
|
318
|
501
|
(66)
|
1,950
|
|
Unallocated expenses
|
|
|
|
|
(757)
|
|
Operating profit
|
|
|
|
|
1,193
|
|
Finance income
|
|
|
|
|
69
|
|
Profit before tax
|
|
|
|
|
1,262
|
|
Tax
|
|
|
|
|
(216)
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
1,046
|
|
|
|
|
|
|
|
|
Year ended 31 December 2008
|
|
|
|
|
|
|
Revenue
|
13,801
|
2,899
|
2,655
|
39
|
19,394
|
|
Segment operating profit / (loss)
|
3,251
|
785
|
1,179
|
(140)
|
5,075
|
|
Unallocated expenses
|
|
|
|
|
(1,465)
|
|
Operating profit
|
|
|
|
|
3,610
|
|
Finance income
|
|
|
|
|
91
|
|
Profit before tax
|
|
|
|
|
3,701
|
|
Tax
|
|
|
|
|
(378)
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
3,323
|
|
|
|
|
|
|
|
Geographical information
Analysis of revenue by origin and destination
|
Period ended 30 June 2009 Sales by destination |
Period ended 30 June 2009 Sales by origin |
Period ended 30 June 2008 Sales by destination |
Period ended 30 June 2008 Sales by origin |
|
|
(restated) |
(restated) |
|||
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Channel Islands |
286 |
4,645 |
313 |
3,560 |
|
United Kingdom |
6,939 |
4,998 |
5,060 |
4,641 |
|
Europe |
368 |
- |
795 |
- |
|
North America |
512 |
- |
1,050 |
- |
|
Rest of the World |
1,538 |
- |
983 |
- |
|
9,643 |
9,643 |
8,201 |
8,201 |
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. 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 period. Also in existence were 420,702 options issued under the Company's 2007 Long-Term Incentive Plan (LTIP). These options were not dilutive at 30 June 2009.
|
6 months to |
6 months to |
Year ended |
|
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
(restated) |
|||
|
Weighted average number of ordinary shares in issue |
25,177,443 |
25,137,443 |
25,145,312 |
|
Dilutive potential ordinary shares: Employee share options |
2,143 |
64,276 |
39,496 |
|
Profit after tax (£) |
1,282,000 |
1,046,000 |
3,323,000 |
|
Exceptional operating cost (net of tax) |
- |
88,000 |
88,000 |
|
Adjusted profit after tax (£) |
1,282,000 |
1,134,000 |
3,411,000 |
|
Basic earnings per share - pence per share (p) |
5.09p |
4.16p |
13.22p |
|
Diluted earnings per share - pence per share (p) |
5.09p |
4.15p |
13.19p |
|
Adjusted earnings per share - pence per share (p) |
5.09p |
4.51p |
13.57p |
6. Cash generated from / (used in) operations
|
6 months to |
6 months to |
Year ended |
|
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
(restated) |
|||
|
£'000 |
£'000 |
£'000 |
|
|
Operating profit |
1,440 |
1,193 |
3,610 |
|
Depreciation |
55 |
73 |
146 |
|
Amortisation |
12 |
14 |
26 |
|
Increase in provisions |
181 |
122 |
190 |
|
Cost of share options |
24 |
24 |
48 |
|
Decrease / (increase) in inventories |
389 |
(3,678) |
(4,636) |
|
(Increase) / decrease in trade and other receivables |
(37) |
309 |
305 |
|
(Decrease) / increase in trade and other payables |
(711) |
1,248 |
(290) |
|
Cash generated from / (used in) operations |
1,353 |
(695) |
(601) |
7. Dividends
|
|
|
6 months to 30 June 2009
|
6 months to 30 June 2008
|
Year ended 31 December 2008
|
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
|
|
£’000
|
£’000
|
£’000
|
|
|
|
|
|
|
|
Amounts recognised as distribution to equity holders in period:
|
|
|
|
|
|
Dividend paid
|
|
692
|
691
|
1,194
|
|
|
|
|
|
|
|
Dividend paid per share
|
|
2.75p
|
2.75p
|
4.75p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend proposed but not paid
|
|
504
|
503
|
691
|
|
|
|
|
|
|
|
Dividend proposed per share
|
|
2.0p
|
2.0p
|
2.75p
|
8. Prior period adjustment
We have restated the prior period results to exclude sales transactions which were entered into on extended credit terms incorporating buyback guarantees in line with our accounting treatment in the financial statements for the year ended 31 December 2008. The restatement of the prior period result was necessary to enable a like-for-like comparison of trading and to report the interim results in line with the accounting treatment of those transactions for the full year.
The effect of excluding these transactions from the June 2008 statement of comprehensive income is to reduce revenue by £1,646,000, cost of sales by £1,101,000 and gross margin and operating profit by £545,000. The effect on the statement of financial position as at 30 June 2008 is to decrease trade and other receivables by £1,646,000, to increase inventories by £1,101,000 and reduce retained earnings by £545,000.
9. 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, Pirouet House, Union Street, St Helier, Jersey, JE2 3FF.
Related Shares:
SGI.L