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) |
|---|---|---|---|---|
| 2010 | 11.9 | 1.57 | 5.58 | 2.25 |
| 2011 | 15.0 | 1.65 | 5.88 | 2.50 |
| % change | +26 | +5 | +5 | +11 |
|
Ex-div:17 Aug Payment:26 Sep Aim: General retailers *Includes intangible assets of £1.09m, or 4p a share. |
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More analysis of company results
IC VIEW
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
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