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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Stanley Gibbons Group Plc | LSE:SGI | London | Ordinary Share | GB0009628438 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.60 | 1.50 | 1.70 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMSGI
RNS Number : 5899A
Stanley Gibbons Group PLC
29 December 2017
THE STANLEY GIBBONS GROUP PLC
(the "Company")
Interim Results for the six months ended 30 September 2017
The Stanley Gibbons Group plc today announces its interim results for the six months ended 30 September 2017, the full text of which is set out below.
Enquiries:
Hot Features
Premium
The Stanley Gibbons Group plc
Harry Wilson +44 (0)207 836
Andrew Cook 8444
finnCap Ltd (Nomad and Broker)
Stuart Andrews / Christopher Raggett +44 (0)20 7220
/ Anthony Adams (corporate finance) 0500
Yellow Jersey PR (Financial PR) +44 (0)7747 788
Charles Goodwin 221
stanleygibbons@yellowjerseypr.com
Chairman's Statement
Introduction
This report relates to the interim unaudited results for the six month period ended 30 September 2017.
As set out in the full year results released on the 1 October, the end of the period to which this interim statement relates, 2017 has been another difficult year for the Group. Throughout management has maintained a critical focus upon the restructuring programme, initiated in 2016, whilst seeking to stabilise our continuing core trading activities - stamps & coins.
Operating Review
6 months 6 months 6 months 6 months 12 months 12 months
to 30 Sep to 30 to 30 to 30 to 31 to 31
2017 Sep Sep Sep Mar Mar
Sales 2017 2016 2016 2017 2017
Profit Sales Profit Sales Profit
restated restated
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Investments 6,810 390 6,732 789 18,778 989
Philatelic 3,562 (399) 3,184 (391) 7,881 (419)
Publishing 988 (52) 1,078 (24) 2,043 122
Coins & medals 2,068 380 2,631 574 4,975 955
Interiors 3,188 (942) 3,382 (2,056) 8,650 (5,174)
Other & corporate
overheads - (2,585) 312 (2,489) 136 (5,528)
Finance charges - (311) - (286) - (318)
----------------- ------------ --------------- ---------------- -------------- ----------------- ---------------
Trading sales
and losses 16,616 (3,519) 17,319 (3.883) 42,464 (9,373)
Pension service
and share option
charges - (150) - (150) - (623)
Exceptional cost
of sales - - - - - (1,144)
Exceptional
operating
income/(charges) - 579 - (2,327) - (19,017)
----------------- ------------ --------------- ---------------- -------------- ----------------- ---------------
Group total sales
and loss before
tax 16,616 (3,090) 17,319 (6,360) 42,464 (30,157)
----------------- ------------ --------------- ---------------- -------------- ----------------- ---------------
Overview
The performance in the first half of the current year is slightly improved from that seen in the comparative period last year.
-- turnover for the six months ended 30 September 2017 down 4% at GBP16.6m (restated 2016: GBP17.3m).
-- trading losses before exceptional items and before pensions related finance charges, as detailed in the operating review, were GBP3.5m for the six months ended 30 September 2017 (restated 2016: loss of GBP3.9m):
-- gross margin at 40.1% (restated 2016: 46.5%) was lower due to the impact of continuing to run the business for cash generation;
-- the adjusted loss before tax was GBP3.1m, after exceptional income of GBP0.6m, (restated 2016 loss: GBP6.4m);
Investments
For the six months to 30 September 2017, the investments division which included SG Guernsey, made total sales of GBP6.8 million (2016: GBP6.7million) and a divisional profit, before exceptional costs, of GBP0.4 million (2016: GBP0.8million), across this period, the net cash outflows from the investments division were GBP2.0 million due to payments made under the investment plan buy-back obligations.
Further to an application made by the Board of Stanley Gibbons (Guernsey) Limited ("SG Guernsey"), to which the Group's bank (also the largest creditor of SG Guernsey) did not object, on 21 November an Administration Order was granted in respect of SG Guernsey pursuant to Part XXI of the Companies (Guernsey) Law 2008, as amended. PricewaterhouseCoopers LLP were appointed as administrators of SG Guernsey and their primary responsibility is to establish the liabilities of SG Guernsey and to realise its assets in order to make a distribution to its creditors.
SG Guernsey's assets primarily consisted of GBP12.6 million of philatelic stock held in Guernsey. It is likely that the administrators will seek to realise the value of this stock in order to make a distribution to the creditors of SG Guernsey.
SG Guernsey's potential liabilities primarily consisted of around GBP54 million contingent liabilities relating to the buy-back guarantees (or "investment products") that were offered by SG Guernsey (under previous management) prior to August 2016 and a further approximate GBP11 million of liabilities included on its balance sheet;
The outstanding indebtedness currently owed to the Group by SG Guernsey amounts to approximately GBP6.5 million and the Group will rank as an unsecured creditor in respect of that amount alongside other unsecured creditors of SG Guernsey.
Whilst the Board of the Company is disappointed that it was not possible to avoid the administration of SG Guernsey, it remains convinced that the Administration Order serves the wider interests of the Group and its shareholders, given that the effect was to ring-fence the Group's exposure to SG Guernsey's liabilities.
The Board believe that there is still a market for non-collectors to purchase stamps and coins as heritage investments even though all forms of guarantees ended in 2016.
Philatelic
Despite sales increasing slightly the overall loss from this division increased. In part this reflects the lower margins achieved as highlighted above and also that the cost cutting and restructuring of this division was completed after these results. This culminated with the appointment of the new Managing Director of Philately in November.
Publishing
The period on period results of the division were largely consistent but the Board believes that the increase of the on-line presence of this area, coupled with the digitalisation of some of its publications will improve returns from this division. The relaunch of the My Collection product is the first step of this change, however further cash investment and time will be required to progress.
Coins & Medals
Baldwins' was restructured in 2016 and has remained profitable across the period. The auction joint venture, Baldwins' of St James's was launched in January 2017 so the comparisons with the previous years' figures are not like for like.
Interiors
Following the sale of the majority of the businesses and brands within this division, the Group will effectively cease to trade in this area from January 2018. At that time all associated costs will also end.
Corporate Overheads
The Board has already far exceeded its original target of achieving GBP10m of annualised operating cost reductions, with monthly employment costs falling by some 75% since the inception of the restructuring programme in January 2016, alongside generating cash of over GBP6m from the sale of non-core businesses and assets: enabling total bank debt to remain unchanged whilst management implemented the dramatic changes deemed necessary. The corporate overheads include some costs associated with the restructuring plan and resolution of legacy issues.
Exceptional Operating Charges and Cost of Sales
Exceptional operating charges/(income) and cost of sales, can be further analysed as follows:
6 months 12 months
to 30 Sep to 31 Mar
6 months to 30 Sep 2017 2016 restated 2017
GBP000 GBP000 GBP000
Impairment of intangible
assets 150 - 11,980
Stock provisions 244 - 3,440
Marketplace net costs and
intangible assets write off - 1,955 2,096
Profit on disposal of investment (1,394) - -
Impairment of receivables - - 650
Reorganisation & restructuring
costs 50 672 589
Professional fees for corporate
activity 221 - 587
Profit on disposal of tangible
fixed assets - (300) (325)
Loss on disposal of subsidiary 150 - -
(579) 2,327 19,017
------------------------------------------------------------------- -------------- ----------------- -------------
Losses on realising inventory
within interiors division - - 1,144
------------------------------------------------------------------- -------------- ----------------- -------------
Funding & Cash Flow
As disclosed in the annual report published on 1 October 2017, the Group is currently in default on its bank facilities due to the qualified audit report on the accounts for the year ended 31 March 2017, the Group net assets being below GBP20m and the Group stock held in the UK being below the required multiple of the total facility. The Group is therefore dependent upon the bank's ongoing support, particularly in the event of material adverse short-term cash movements and as during periods of default the facilities are repayable on demand, which has not been requested. The bank has continued to demonstrate this support to the Group in recent months and remains in constructive dialogue around future financing.
Cash outflows from operations for the six months ended 30 September 2017 were GBP3.3m (2016; GBP11.1m), of this total GBP2.0m related to the investment division largely as a result of the investment plan buy-back obligations.
As at the balance sheet date the Group had a revolving credit facility of GBP10.0m (2016: GBP10.0m) and an additional loan facility of GBP7.6m (2016: GBP8.3m), totalling GBP17.6m (2016: GBP18.3m). At the same date the utilised amounts were GBP9.6m and GBP7.6m respectively totalling GBP17.2m (2016: GBP18.9m).
Total bank debt stood at approximately GBP16.8m as at 27 December 2017.
Litigation
The Group continues to cooperate fully with the U.S. Securities and Exchange Commission (the "SEC") and the Department of Justice ("DOJ"), following the conclusion of the DOJ's criminal prosecution against a former client, (arising in part out of his dealings with Mallett Inc.) and a New York based former director of Mallett plc. No criminal or civil charges have been filed against Mallett Inc. or any Mallett group company to date. The Group continues to retain the services of US legal counsel to advise it in these matters. Given the former director's admitted criminal conduct, the Company is actively considering civil action against the former director and/or others in respect of losses it has incurred as a result of these matters, and anticipates that any claims would be brought in the coming months.
At present the Board's best estimate of the costs in assisting the US authorities with their investigations, as at 30 September 2017 total GBP0.7m. This amount is the total accrual at the year end.
On 9 May 2017 the Board announced the sale of a major part of the Interiors division to Millicent Holdings Limited ("Millicent"), which transaction subsequently failed to complete as reported on 4 August 2017. The Company is seeking recovery, by enforcing certain collateral, of a termination fee payable to the Company by Millicent, under the terms of the relevant agreement.
Dividend
As a result of the trading performance of the Group in the first half, the Board has not declared an interim dividend for the six months ended 30 September 2017.
Management Appointment
In November we were pleased to secure the services of Guy Croton as Managing Director of Philately. Guy is well respected following a 22 year career in the industry, the last 15 years at Spink, latterly as Head of The Philatelic Division.
Prior Year Adjustment
These financial statements reflect prior year adjustments in respect of the previously highlighted issues regarding the treatment of revenue for some investment products. The adjustment was necessary following further analysis of the legacy information used to quantify the adjustments booked in the September 2016 Report and Accounts. The figures for September 2016 have therefore been restated in these report and accounts,
Outlook
At the heart of the Group are two market leading brands and a core stamp and coin dealing business consisting of a team with invaluable industry expertise. In January 2017, Baldwins launched a joint-venture with St James' for its numismatic auction activities, and continues to trade profitably with a favourable outlook. The philatelic business has been affected by the ongoing restructuring, the build-up of excess inventory from the buy-backs and the continuing working capital constraints.
The administration of SG Guernsey has fundamentally limited the exposure of the Group to the buy-back liabilities and removed the cash-flow burden associated therewith.
Going forwards profitability is likely to remain constrained, notwithstanding having reached a stabilised operating cost platform, whilst working capital remains constricted.
Whilst the bank remains supportive of the ongoing efforts to stabilise the core business, the Board believes that it needs to refinance the existing facility prior to its expiry in May 2018, in order to take advantage of the significant restructuring that it has achieved. In addition to the refinancing of the debt, the Board believes that the Company requires further investment of approximately GBP5m in order to enable the growth of the core business and to normalise working capital. Whilst discussions with the bank remain constructive there is a risk that the quantum of debt which needs to be refinanced, together with the investment and working capital requirement cannot be obtained within the current capital structure. Whilst the Board has received offers of finance from both existing and new investors including an offer of equity conditional on the restructuring of the existing debt, the bank has requested that the Board explore improved financing options in the New Year in light of the administration of Guernsey and the significant reduction in contingent liabilities. As part of these discussions the Board will consider raising further equity or asset sales, however the Board is of the view that whilst alternative finance will be available it is likely to require restructuring of the current indebtedness as part of the solution.
Finally I would like to thank all staff and stakeholders for their commitment, contribution and patience in showing their continuing support for our Group.
Harry Wilson
Chairman
29 December 2017
Condensed statement of comprehensive income
for the 6 months ended 30 September 2017
6 months 6 months 12 months
to 30 Sep to 30 Sep to 31 Mar
2017 2016 2017
(unaudited) (unaudited) (audited)
(restated)
---------------------------------------- ----------- ----------- ---------
Notes GBP'000 GBP'000 GBP'000
---------------------------------------- ----------- ----------- ---------
Revenue 3 16,616 17,319 42,464
Cost of sales (9,832) (9,259) (29,060)
--------------------------------------- ----------- ----------- ---------
Gross Profit 6,784 8,060 13,404
Administrative expenses
before defined benefit pension
service costs and exceptional
operating costs (2,401) (1,925) (6,048)
Defined benefit pension
service cost - - (188)
Exceptional operating income/(charges) 579 (2,327) (19,017)
--------------------------------------- ----------- ----------- ---------
Total administrative expenses (1,822) (4,252) (25,253)
Selling and distribution
expenses (7,741) (9,882) (17,852)
--------------------------------------- ----------- ----------- ---------
Operating Loss (2,779) (6,074) (29,701)
Finance income - - 170
Finance costs (311) (286) (626)
--------------------------------------- ----------- ----------- ---------
Loss before tax (3,090) (6,360) (30,157)
Taxation 4 - 529 1,357
--------------------------------------- ----------- ----------- ---------
Loss for the period/year (3,090) (5,831) (28,800)
Other comprehensive (loss)/income:
Exchange differences on
translation of
foreign operations 18 (379) 319
Actuarial losses recognised
in
the pension scheme - - (1,064)
Tax on actuarial gains/(losses)
recognised in the pension
scheme - - 166
Revaluation of reference
collection - - 70
Other comprehensive income/(loss)
for the period/year, net
of tax 18 (379) (509) --------------------------------------- ----------- ----------- --------- Total comprehensive loss for the period/year (3,072) (6,210) (29,309) --------------------------------------- ----------- ----------- --------- Basic earnings per Ordinary Share 5 (1.73)p (3.26)p (16.10)p Diluted earnings per Ordinary Share 5 (1.73)p (3.26)p (16.10)p --------------------------------------- ----------- ----------- ---------
All profit and total comprehensive income is attributable to the owners of the parent; there are no non-controlling interests.
Condensed statement of financial position
as at 30 September 2017
30 Sep 31 Mar
2017 2017 (audited)
30 Sep 2016
(unaudited)
(unaudited) (restated)
GBP'000 GBP'000 GBP'000
------------------------------- ------------ ------------- ------------------------
Non-current assets
Intangible assets 6,906 19,460 7,772
Property, plant and
equipment 3,318 4,783 4,332
Deferred tax asset 1,344 1,923 1,344
------------------------------- ------------ ------------- ------------------------
11,568 26,166 13,454
------------------------------- ------------ ------------- ------------------------
Current assets
Inventories 52,011 64,542 55,225
Trade and other receivables 4,221 13,703 4,044
Assets held for sale 951 - -
Cash and cash equivalents 1,081 2,389 2,349
------------------------------- ------------ ------------- ------------------------
58,264 80,634 61,618
------------------------------- ------------ ------------- ------------------------
Total assets 69,832 106,800 75,072
------------------------------- ------------ ------------- ------------------------
Current liabilities
Trade and other payables 27,846 24,555 29,260
Borrowings 17,369 18,878 16,501
Current tax payable - 282 -
------------------------------- ------------ ------------- ------------------------
45,215 43,715 45,761
------------------------------- ------------ ------------- ------------------------
Non-current liabilities
Trade and other payables 2,904 15,205 4,676
Retirement benefit obligations 6,086 5,222 6,086
Deferred tax liabilities 554 1,852 554
------------------------------- ------------ ------------- ------------------------
9,544 22,279 11,316
------------------------------- ------------ ------------- ------------------------
Total liabilities 54,759 65,994 57,077
------------------------------- ------------ ------------- ------------------------
Net assets 15,073 40,806 17,995
------------------------------- ------------ ------------- ------------------------
Equity
Called up share capital 1,789 1,789 1,789
Share premium account 74,847 74,847 74,847
Share compensation reserve 2,033 1,595 1,883
Capital redemption reserve 38 38 38
Revaluation reserve 346 276 346
Retained earnings (63,980) (37,739) (60,908)
------------------------------- ------------ ------------- ------------------------
Equity shareholders'
funds 15,073 40,806 17,995
------------------------------- ------------ ------------- ------------------------
Condensed statement of changes in equity
for the 6 months ended 30 September 2017
Called Share Share compensation Capital
up share premium reserve Revaluation redemption Retained
capital account GBP'000 reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At April
2017 1,789 74,847 1,883 346 38 (60,908) 17,995
(Loss)/profit
for the financial
year - - - - - (3,090) (3,090)
Exchange
differences
on translation
of foreign
operations - - - - - 18 18
---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
Total Comprehensive
income/(loss) - - - - - (3,072) (3,072)
Cost of share
options - - 150 - - 150
---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
At 30 September
2017 1,789 74,847 2,033 346 38 (63,980) 15,073
---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
At April
2016 471 63,682 1,448 276 38 (27,523) 38,932
Prior year
adjustment (4,006) (4,006)
---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
At 1 April
2016 (restated) 471 63,682 1,448 276 38 (31,529) 33,508
Profit for
the period - - - - - (5,831) (5,831)
Exchange
differences
on translation
of foreign
operations - - - - - (379) (379)
---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
Total Comprehensive
income/(loss) - - - - - (6,210) (6,210)
Issue of
new shares 1,318 11,162 - - - - 12,480
Cost of share
options - - 150 - - - 150
---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
At 30 September
2016 1,789 78,844 1,598 276 38 (37,739) 40,334
---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
At April
2016 (restated) 471 63,682 1,448 276 38 (31,529) 34,386
(Loss)/profit
for the financial
year - - - - - (28,800) (28,800)
Amounts which
may be subsequently
reclassified
to profit
& loss
Exchange
differences
on translation
of foreign
operations - - - - - 319 319
Amounts which
will not
be subsequently
reclassified
to profit
& loss
Revaluation
of reference
collection - - - 70 - - 70
Remeasurement
of pension
scheme net
of deferred
tax - - - - - (898) (898)
---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
Total comprehensive
income/(loss) - - - 70 - (29,379) (29,309)
Share issue 1,318 11,165 - - - - 12,483
Cost of share
options - - 435 - - - 435
---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
At 31 March
2017 1,789 74,847 1,883 346 38 (60,908) 17,995 ---------------------- ---------- --------- ------------------- ------------- ------------ ---------- ---------
Condensed statement of cash flows
for the 6 months ended 30 September 2017
6 months 6 months 12 months
to 30 Sep to 30 Sep to 31 Mar
2017 2016 2017
(unaudited) (unaudited) (unaudited)
(restated) ------------- ------------- -----------
------------- ------------- -----------
------------- ------------ ------------------------------------------- -------------------------------------------
Notes GBP'000 GBP'000 GBP'000
------------- ------------ ------------------------------------------- -------------------------------------------
Cash outflow
from
operating
activities 6 (3,295) (11,086) (8,248)
Interest
paid (311) (286) (626)
Taxes paid - 500 493
------------ ------------ ------------------------------------------- -------------------------------------------
Net cash
outflows
from
operating
activities (3,606) (10,872) (8,381)
------------ ------------ ------------------------------------------- -------------------------------------------
Investing
activities
Purchase of
property,
plant
and
equipment (6) (92) (301)
Purchase of
intangible
assets (24) - (118)
Sale of
freehold
property - 2,500 2,500
Sale of
financial
asset 1,400 - -
Disposal of
subsidiary 100 - -
Interest
received - - 170
------------ ------------ ------------------------------------------- -------------------------------------------
Net cash
generated
from/(used
in)
investing
activities 1,470 2,408 2,251
------------ ------------ ------------------------------------------- -------------------------------------------
Financing
activities
Net proceeds
from issue
of ordinary
share
capital - 12,380 12,383
Net
borrowings (700) (823) (823)
------------ ------------ ------------------------------------------- -------------------------------------------
Net cash
generated
from/(used
in)
financing
activities (700) 11,557 11,560
------------ ------------ ------------------------------------------- -------------------------------------------
Net decrease
in cash and
cash
equivalents (2,836) 3,093 5,430
------------ ------------ ------------------------------------------- -------------------------------------------
Cash and
cash
equivalents
at start of
period (5,852) (11,282) (11,282)
------------ ------------ ------------------------------------------- -------------------------------------------
Cash and
cash
equivalents
at end of
period (8,688) (8,189) (5,852)
------------ ------------ ------------------------------------------- -------------------------------------------
Notes to the Condensed Financial Statements
for the 6 months ended 30 September 2017
1 Basis of preparation
The interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the European Union and applicable as at 31 March 2018.
The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Operating Review above. The Group's forecasts shows that it will remain within current banking facility limits for the foreseeable future, until the existing facilities have expired in May 2018. However as highlighted above, the Group is currently in default on its banking facilities, due to the qualified audit report in March 2017 financial statements, the breach of the net asset covenant, as the Group's net assets are currently below GBP20m and the value of the stock in the UK being below the required multiple of the total borrowings. In the event that either trading deteriorates or the Group is unable to renegotiate a new banking facility with the existing lender, the Group would require access to additional liquidity.
Whilst the bank remains supportive of the ongoing efforts to stabilise the core business, the Board believes that it needs to refinance the existing facility prior to its expiry in May 2018 in order to take advantage of the significant restructuring that it has achieved. In addition to the refinancing of the debt, the Board believes that the Company requires further investment of approximately GBP5m in order to enable the growth of the core business and to normalise working capital. Whilst discussions with the bank remain constructive there is a risk that the quantum of debt which needs to be refinanced, together with the investment and working capital requirement cannot be obtained within the current capital structure. Whilst the Board has received offers of finance from both existing and new investors including an offer of equity conditional on the restructuring of the existing debt, the bank has requested that the Board explore improved financing options in the New Year in light of the administration of Guernsey and the significant reduction in contingent liabilities.
The Directors acknowledge that the above risks may be considered material uncertainties which could cast significant doubt on the Group's ability to continue as a going concern. They recognise that the bank has remained supportive across the recent period and have additionally anticipated a number of mitigating courses of action. As part of these discussions the Board will consider raising further equity or asset sales, however the Board is of the view that whilst alternative finance will be available it is likely to require restructuring of the current indebtedness as part of the solution.
As such, having regard to the matters above, and after making reasonable enquiries and taking account of uncertainties discussed above, the Directors have a reasonable expectation that the Company and the Group have access to adequate resources to continue operations and to meet its liabilities, as and when they fall due, for the foreseeable future. For that reason, they continue to adopt the going concern basis in the preparation of the accounts.
2 Significant accounting policies
The accounting policies applied by the Group in this interim report are the same as those applied by the Group in the consolidated financial statements for the year ended 31 March 2017.
Income tax
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
3 Segmental analysis
As outlined in the Operating Review the company has five main business segments, as shown below. This is based upon the Group's internal organisation and management structure and is the primary way in which the Board of Directors is provided with financial information.
Segmental income statement
Coins
Investments Philatelic Publishing & Medals Interiors Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ----------- ------------------- ---------- ------------ -------- --------------- --------
6 months to
30 September
2017
Revenue 6,810 3,562 988 2,068 3,188 - 16,616
Operating
costs (6,420) (3,961) (1,040) (1,688) (4,130) (2,735) (19,974)
Exceptional
costs (40) (209) - (72) 1,394 (494) 579
Net finance
costs - - - (1) (73) (237) (311)
--------------------- ----------- ------------------- ---------- ------------ -------- --------------- -------- Profit/(loss) before tax 350 (608) (52) 307 379 (3,466) (3,090) Tax - - - - - - - --------------------- ----------- ------------------- ---------- ------------ -------- --------------- -------- Profit/(loss) for the period 350 (608) (52) 307 379 (3,466) (3,090) --------------------- ----------- ------------------- ---------- ------------ -------- --------------- -------- 6 months to 30 September 2016 (restated) Revenue 6,732 3,184 1,078 2,631 3,382 312 17,319 Operating costs (5,943) (3,575) (1,102) (2,057) (5,438) (2,951) (21,066) Exceptional costs - - - - 112 (2,439) (2,327) Net finance costs - - - - (166) (120) (286) --------------------- ----------- ------------------- ---------- ------------ -------- --------------- -------- Profit/(loss) before tax 789 (391) (24) 574 (2,110) (5,198) (6,360) Tax - - - 529 - - 529 --------------------- ----------- ------------------- ---------- ------------ -------- --------------- -------- Profit/(loss) for the period 789 (391) (24) 1,103 (2,110) (5,198) (5,831) --------------------- ----------- ------------------- ---------- ------------ -------- --------------- -------- 12 months to 31 March 2017 Revenue 18,779 7,881 2,043 4,975 8,650 136 42,464 Operating costs (17,790) (8,300) (1,921) (4,020) (13,824) (7,293) (53,148) Exceptional costs (1,199) (1,358) - (506) (1,290) (14,664) (19,017) Net finance costs - (140) - (5) (354) 43 (456) --------------------- ----------- ------------------- ---------- ------------ -------- --------------- -------- Profit/(loss) before tax (210) (1,917) 122 444 (6,818) (21,778) (30,157) Tax - 186 - 965 (1) 207 1,357 --------------------- ----------- ------------------- ---------- ------------ -------- --------------- -------- Profit/(loss) for the period (210) (1,731) 122 1,409 (6,819) (21,571) (28,800) --------------------- ----------- ------------------- ---------- ------------ -------- --------------- --------
Geographical Information
Analysis of revenue by origin and destination
6 months 6 months 6 months 6 months 12 months 12 months
to 30 to 30 Sep to 30 to 30 to 31 to 31
Sep 2017 2017 Sales Sep 2016 Sep 2016 Mar 2017 Mar 2017
Sales by origin Sales Sales Sales Sales
by destination by destination by origin by destination by origin
(restated) (restated)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------------- ----------- ---------------- ------------ ---------------- -----------
Channel
Islands 391 6,811 7,139 6,732 654 19,145
United Kingdom 9,486 9,230 7,210 10,498 31,235 21,888
Hong Kong 840 - 178 78 725 2,645
Europe 812 - 1,150 - 1,934 37
North America 3,650 575 539 - 4,838 1,394
Singapore 293 - 161 11 463 -
Asia 304 - 258 - 662 -
Rest of
the World 840 - 684 - 1,953 -
--------------- --------------- ----------- ---------------- ------------ ---------------- -----------
16,616 16,616 17,319 17,319 42,464 42,464
--------------- --------------- ----------- ---------------- ------------ ---------------- -----------
Destination is defined as the location of the customer. Origin is defined as the country of domicile of the Group company making the sale. All of the sales relate to external customers.
4 Taxation
The charge for taxation is based on the results for the period and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred tax is recognised on a full provision basis in respect of all temporary differences which have originated, but not reversed at the balance sheet date.
5 Earnings per ordinary share
The calculation of basic earnings per ordinary share is based on the weighted average number of shares in issue during the period. For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group has only one category of dilutive ordinary shares: those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the period.
6 months to 30 6 months to 12 months
Sep 2016 30 Sep 2016 to 31 Mar
(unaudited) (unaudited) 2017 (audited)
(restated)
----------------------------------------------------------------- ---------------------------- ---------------------
Weighted average number
of ordinary shares
in issue (No.) Dilutive
potential ordinary
shares: Employee share
options (No.) 178,916,643 178,916,643 178,916,643
323,959 1,898,559 323,959
------------------------- -------------------------------------- ---------------------------- ---------------------
(Loss)/profit after
tax (GBP) (3,090,000) (5,831,000) (28,800,000)
Pension service costs
(net of tax) 150,000 190,000 150,000
Cost of share options
(net of tax) 150,000 150,000 435,000
Amortisation of customer
lists Exceptional
operating (income)/costs
(net of tax) 180,000 180,000 423,000
(579,000) 2,122,000 18,276,000
------------------------- -------------------------------------- ---------------------------- ---------------------
Adjusted (loss)/profit
after tax (GBP) (3,189,000) (3,189,000) (9,516,000)
------------------------- -------------------------------------- ---------------------------- ---------------------
Basic earnings per (1.73)p (3.26)p (16.10)p
share - (1.73)p (3.26)p (16.10)p
pence per share (p) (1.78)p (1.78)p (5.32)p
Diluted earnings per (1.78)p (1.78)p (5.32)p
share -
pence per share (p)
Adjusted earnings
per share -
pence per share (p)
Adjusted diluted
earnings
per share -
pence per share (p)
------------------------- -------------------------------------- ---------------------------- ---------------------
6. Cash outflows from operating
activities
6 months
to
6 months
30 Sep 2017 to
30 Sep 2016 12 months
(unaudited) to 31 Mar
(unaudited) (restated) 2017 (audited)
GBP'000 GBP'000 GBP'000
-------------------------------- ---------------------- ------------- ----------------------
Operating (loss)/profit (2,779) (6,074) (29,701)
Profit on sale of property - (300) (325)
Profit on disposal of
investment (1,394) - -
Impairment of tangible - - -
assets
Depreciation 201 225 619
Amortisation 340 171 684
Impairment of intangibles 150 - 11,980
Increase/(decrease) in
provisions - - (200)
Net exchange differences 18 (379) (37)
Cost of share options 150 150 435
Decrease in inventories 3,214 1,379 10,696
Increase/(decrease) in
trade and
other receivables (177) 82 9,742
Decrease in trade and
other payables (3,018) (6,340) (12,141)
-------------------------------- ---------------------- ------------- ----------------------
Cash outflows from operating
activities (3,295) (11,086) (8,248)
-------------------------------- ---------------------- ------------- ----------------------
7 Post Balance Sheet Events
Sale of certain assets and liabilities of the Interiors division
On 1 October the Group sold certain assets and liabilities of Dreweatts and the intellectual property rights and goodwill in respect of the Bloomsbury brands, part of the Group's Interiors division.
The sale was for a consideration of GBP1.25m million in cash payable on completion, plus a maximum additional consideration of GBP0.4m, payable over the next 24 months, alongside the assumption of other liabilities currently associated with the Interiors division.
On 8 December the Group sold the intellectual property rights and goodwill in respect of the Mallett brand, part of the Group's Interior division.
The sale was for a consideration of GBP100,000 in cash payable on completion.
Appointment of Administrators to Stanley Gibbons (Guernsey) Limited
On 21 November, following consultation with the Company and its bank, Stanley Gibbons (Guernsey) Limited ("SG Guernsey") made an application to the Royal Court of Guernsey for an administration order ("Administration Order") in respect of SG Guernsey and the Administration Order was granted in accordance with the laws of Guernsey.
The effect of the Administration Order was to place the operations of SG Guernsey, which comprises the investment division of the group, in the hands of the appointed joint administrators whose responsibility will now be to establish the liabilities of SG Guernsey (including its indebtedness to the Company) and realise the assets of that company in order to make a distribution to its creditors.
SG Guernsey's current assets principally comprise approximately GBP12.6 million of philatelic stock. This stock figure excludes approximately GBP14 million of stock owned by third parties. SG Guernsey's potential liabilities primarily consist of around GBP54 million contingent liabilities relating to the buy-back guarantees (or "investment products") that were offered by SG Guernsey (under previous management) prior to August 2016 and a further approximate GBP11 million of liabilities included on its balance sheet. SG Guernsey's liabilities also include outstanding indebtedness owed to the Company, amounting to approximately GBP6.5 million, which will rank alongside other unsecured creditors, mainly consisting of bank debt and payments due to holders of investment products.
For the six months to 30 September 2017, the investments division which included SG Guernsey, made total sales of GBP6.8 million and a divisional profit, before exceptional costs, of GBP0.35 million, across this period, the net cash outflows from the investments division were GBP2.0 million due to payments made under the investment plan buy-back obligations.
The following pro forma balance sheet shows what the estimated theoretical impact of the above events on the Group balance sheet would have been, if they had occurred on 30 September 2017.
Interim Interiors Guernsey Pro forma
GBP'000 GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 6,906 - - 6,906
Property, plant and
equipment 3,318 - - 3,318
Deferred tax asset 1,344 - - 1,344
11,568 0 - 11,568
--------- -------------- --------- ----------
Current Assets
Inventories 52,011 (46) (26,459) 25,506
Trade and other receivables 3,957 (44) (953) 2,960
Assets held for sale 951 (951) - -
Cash and cash equivalents 1,081 740 (313) 1,508
--------- -------------- --------- ----------
58,264 (301) (27,725) 30,238
--------- -------------- --------- ----------
Total assets 69,832 (301) (27,725) 41,806
--------- -------------- --------- ----------
Current liabilities
Trade and other payables 27,846 (653) (17,746) 9,447
Borrowings 17,369 - - 17,369
45,215 (653) (17,746) 28,816
--------- -------------- --------- ----------
Non-current liabilities
Other payables 2,904 - (2,904) -
Retirement benefit
obligations 6,086 - - 6,086
Deferred tax liabilities 554 - - 554
--------- -------------- --------- ----------
9,544 - (2,904) 6,640
--------- -------------- --------- ----------
Total liabilities 54,759 653 (20,650) 33,456
--------- -------------- --------- ----------
Net assets 15,073 352 (7,075) 8,350
--------- -------------- --------- ----------
Equity
Called up share capital 1,789 - - 1,789
Share premium account 74,847 - - 74,847
Share compensation
reserve 2,033 - - 2,033
Capital redemption
reserve 38 - - 38
Revaluation reserve 346 - - 346
Retained earnings (63,980) 352 (7,075) (70,703)
--------- -------------- --------- ----------
Equity shareholders'
funds 15,073 352 (7,075) 8,350
--------- -------------- --------- ----------
8 Further copies of this statement
Copies of this statement are being sent to shareholders and can be viewed on the Company's website at www.stanleygibbons.com. Further copies are available on request from: The Company Secretary, The Stanley Gibbons Group plc, 18 Hill Street, St Helier, Jersey JE2 4UA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFILFSLAFID
(END) Dow Jones Newswires
December 29, 2017 06:07 ET (11:07 GMT)
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