Avarae update is less than sterling

Avarae Global Coins, the AIM-listed company dealing in rare and high quality coins, has produced a less than sterling trading update.

Revenues for the six months ended September 30th 2012 are expected to be "not less than £0.45m", compared with £1.58m for the same period in 2011. Margins have dropped from 44% to "not less than 15%".

Diane Clarke, a director of Avarae, said: "Whilst the company did not benefit this year from the strong performance of our coins in the Hong Kong auction of August last year, a 15 per cent gross profit margin still represents a significant uplift from the carrying value of coins as of March 31st 2012.

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"The highest quality coins continue to attract strong prices around the world, as evidenced by the recent £780,000 (including buyer's premium) paid for one of Australia's rarest coins, a George V 1920 Sydney mint gold sovereign, which was sold for more than three times the price paid the last time such a coin was available for sale in 2006."

CM