But prospects are encouraging as Stanley Gibbons goes international. Last September, the company opened an office in Hong Kong and sales of rare Chinese stamps contributed £700,000 to interim turnover. The Chinese also bought £200,000 worth of Penny Blacks and £300,000 of other collectibles, including gold sovereigns. There was also strong demand for Indian colonial stamps and management is keen to tie-up a distribution deal in the US.
The somewhat lacklustre trading performance at home reflects, in part, modest price increases for many pre-1952 stamps. That situation may change following some spectacular stamp prices realised at Spink's Chartwell Collection auction in June.
Broker Peel Hunt forecasts 12 months' sales up from £26.4m to £29.7m, pre-tax profits of £700,000 higher at £5m and EPS of 17.4p (from 15.7p in 2010).
|STANLEY GIBBONS (SGI)|
|ORD PRICE:||176p||MARKET VALUE:||£44.3m|
|TOUCH:||171-180p||12-MONTH HIGH:||201p||LOW: 128.5p|
|DIVIDEND YIELD:||3.3%||PE RATIO:||11|
|NET ASSET VALUE:||86p*||NET CASH:||£709,000|
|Half-year to 30 June||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
Aim: General retailers
*Includes intangible assets of £1.09m, or 4p a share.
If rare stamp prices are on the move again, Stanley Gibbons' large purchase of stock in 2010 will be of great benefit to future results. Trading on a prospective PE ratio of 10, the shares continue to rate good value.
Last IC view: Good value, 154p, 28 March 2011