Stamps and collectibles are increasingly popular for high net worth investors as well as traditional hobbyists, which is playing into Stanley Gibbons' hands. The oldest name in stamps produced record earnings last year, pushing the shares up to a 12-month high, and with a number of growth initiatives on the go, and solid asset backing, the momentum has further to run.
These results also beat analysts' expectations, reflecting the ongoing demand from Gibbons' core markets, the company's strategy of expanding into new regional markets, new collectible categories and a significant investment in its internet presence. Online revenues rose by 72 per cent over the year and now account for one-eighth of total sales, with new high net worth client sales rising by 89 per cent to £3.4m. The company will launch a trading platform and online auctions during 2012 as it seeks to effectively become a 'market maker' in rare collectibles.
New investment offices also contributed with a new Hong Kong office opening in September, and trading profitably in its first quarter, and sales to Channel Islands residents rocketed from £2m to £4.9m. New offices are being considered in Singapore and Brazil.
Peel Hunt expects pre-tax profits to rise from £5.1m to £5.5m, giving EPS of 18.9p.
STANLEY GIBBONS GROUP (SGI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 206p | MARKET VALUE: | £52m | |
| TOUCH: | 202-210p | 12-MONTH HIGH: | 206p | LOW: 153p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 94p* | NET CASH: | £2.8m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 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 |
| 2011 | 35.7 | 5.10 | 18.5 | 6.00 |
| % change | +35 | +19 | +22 | +9 |
Ex-div: 4 Apr Payment: 21 May | ||||
