As the best known dealer in rare stamps and other collectables, Stanley Gibbons has benefited from the low interest environment, as wealthy clients seek to maximise the return on their investments.
And the company has been busy following much the same principle by using some of the £6.3m of cash generated last year to increase stock levels by 59 per cent to £14.8m. It looks a smart move given that underlying pre-tax profits rose 8 per cent to £4.5m last year despite being affected by the partial closure of the Strand outlet for refurbishment. Much of the loss in retail sales was made up by the year-end, and sales to specialist collectors actually rose by 20 per cent.
Perhaps the most important developments have been the re-launch of its website and an online trading platform scheduled to open in the second quarter. Stanley Gibbons is also working to exploit its brand name to generate more business in new areas. For instance, having only opened its investment office in Jersey in 2009 this unit is generating annual sales of £1.8m and there are plans to open offices in Switzerland and Hong Kong.
Subject to revision, Seymour Pierce is forecasting 2011 pre-tax profits of £5.3m and EPS of 18.4p (2011: £4.5m and 15.7p).
| STANLEY GIBBONS (SGI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 154p | MARKET VALUE: | £39m | |
| TOUCH: | 153-155p | 12-MONTH HIGH: | 190p | LOW: 118p |
| DIVIDEND YIELD: | 3.6% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 83p | NET CASH: | £1.15m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 16.7 | 3.75 | 11.1 | 4.00 |
| 2007 | 20.2 | 4.51 | 13.5 | 4.50 |
| 2008 | 19.4 | 3.70 | 13.2 | 4.75 |
| 2009 | 23.4 | 4.11 | 14.7 | 5.00 |
| 2010 | 26.4 | 4.30 | 15.2 | 5.50 |
| % change | +13 | +5 | +3 | +10 |
Ex-div: 6 Apr Payment: 16 May | ||||
