The company\’s interim results announcement on 6th August 2010 advised of the substantial one-off costs incurred during the year associated with the development of its websites, database asset management system and international marketing campaigns promoting rare stamps and historical documents as an alternative investment asset class. Despite this expenditure in creation of future growth strategy, Stanly Gibbons said it continues to grow current operating profits.
Operating cash generation for the year to end-December was strong, providing the ability to fund acquisitions together with capital investment in the refurbishment of the retail premises at 399 Strand and investment in websites and IT systems to facilitate future growth opportunities, all done from internal cash resources.
The new websites are scheduled for a phased launch in the first quarter of 2011.
The company said substantial additional profits and clients were generated through its new investment office in Jersey.
The have been developments of trading relationships in China and the related expertise in its rare stamps in order to gain access to this biggest stamp market in the world, (an estimated 30 million collectors). Stanly Gibbons completed of two bolt-on acquisitions during the year – the businesses of M & N Haworth and the Benham Group, both of which are expected to further strengthen the overall brand offering and provide additional predictable revenue and profit streams in future years.
Trading in the first quarter of 2011 is expected to benefit from a strong order book from investment clients following the success of various marketing efforts in December.
The launch of our new websites in the first quarter will build substantial new profit streams for the business over time through cost effective online trading channels, particularly appropriate for lower value stock items, the company said.
The recent acquisition of the Benham Group business has proved timely following the announcement of the Royal Wedding to take place in April 2011. This business stands to benefit from sales of associated first day covers and other commemorative collectible products marking the most exciting Royal event in recent years.
The Board is satisfied with the way management is implementing its strategy and believes there are substantial opportunities to continue to grow sales and profits in 2011 and beyond.
Martin Bralsford, Non-Executive Chairman commented: \’The result for the year is good, particularly having regard to the additional burden on management of longer term development projects whilst still meeting current profit growth objectives.
\’Future growth in revenues and profits are anticipated from the valuable groundwork laid in 2010.
\’Overall, the Group\’s businesses are developing in line with strategy and are in a stronger position to deliver continued growth to Shareholders in the future than at any time in recent years.\’