Stanley Gibbons posts annual profits rise as online sales jump

Stamp collection company Stanley Gibbons Group saw an increase in 2012 pre-tax profit as online sales soared.

Stamp collection company Stanley Gibbons Group saw an increase in 2012 pre-tax profit as online sales soared.

Adjusted profit before tax of £6.0m grew by 11% on the previous year's £5.4m. Earnings before interest, tax, depreciation and amortisation (EBITDA) came to £6.5m, up 12% from £5.8m.

Results were driven by internet sales, which rose 55% during the year, and revenues outside the UK. However, total sales dropped slightly to £35.6m from £35.7m.

The acquisition of bidStart, a US-based online collectibles trading platform in November 2012 for a $1.0m, helped strengthen the company's results.

The group also expanded its global reach, opening an office in Hong Kong in September which contributed sales of £2.6m and profits of £0.7m.

"The continued growth in the profitability of the group in 2012 was achieved at the same time as substantial investment was made and corresponding progress in the implementation of our broader online strategy, which is expected to deliver material growth in future years," said Chairman Martin Bralsford.

"Specifically, the bidStart acquisition brings us the technology required to develop the global online collectibles trading platform."

He said the market for rare collectibles showed resilience as the benchmark GB250 Stamp Price Index grew 11% over the past year.

The company proposed a final dividend of 3.75p per share, compared to 3.50p the prior year.

In the year ahead, the firm expects profits to be impacted by its increased investment in its online strategy. It is, however, expected that the costs of the investment this year will be more than compensated for by growth opportunities in other parts of the business.

RD

Recommended

Aviva: a share for income investors to tuck away
Share tips

Aviva: a share for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
18 May 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
18 May 2022
Three fast-growing, undervalued UK mid-cap stocks to buy now
Share tips

Three fast-growing, undervalued UK mid-cap stocks to buy now

Professional investor Katen Patel of the JPMorgan Mid Cap Investment Trust picks three fast-growing UK mid-cap stocks to buy now.
18 May 2022
Should you buy Vodafone shares, or steer clear?
Share tips

Should you buy Vodafone shares, or steer clear?

Vodafone grew revenue by 4% and profit by 11% last year, and offers investors a 6.4% dividend yield. So should you buy Vodafone shares? Rupert Hargrea…
17 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022
Value is starting to emerge in the markets
Investment strategy

Value is starting to emerge in the markets

If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy tra…
16 May 2022