Stanley Gibbons Share Discussion Threads

[bookworm1] 14/3/2008 13:56

The more I think about it the more it makes sense. They have only recently introduced the investment portfolio with guranteed minimum returns that run from 4 to 20 years. So each year a profit will be earnt from managing client investments but the money is all tied up in the investment (which is not shown in the accounts because it belongs to the customer). However at the end of the contract period SGI get their payment when the customers investment is cashed in or sold. There is no risk because SGI are managing the investment on behalf of the client (retaining the assets in their custody).

So this is not a bad debt that is taking forever to recover it is an asset that will grow year on year whilst generating profits.

[bookworm1] 14/3/2008 13:36

Wilmdav produces an interesting ratio on his website which measures the free cash flow / ebitda. The last five year average has fallen from 47% to 37.3% and is now standing at 21.3%. Again it is the increase in working capital that is dragging this figure down.

Something has changed in the business model. Could it be that the increase in debtors that have been classified as non current is due to the increase in investment business as that is the only thing I can come up with that would explain such a treatement. Note "Sales to investment clients increased by 36%" So maybe they are recording the revenue but the payment gets deferred over the life of the investment which is why it is classed as a non current asset.

[jtcod] 14/3/2008 13:11

Exactly my questions this morning BW. I am still waiting for an answer.

[bookworm1] 14/3/2008 10:55

35% of annual sales is now tied up in debt. At the year end position the debtor balance had increased to £7,094k. The debtor balance has almost doubled from the last year figure of £3,864 being an increase of £3,230. At the interim results the debt figure had increased by 56% and the accounts contained a note that said "the high levels of trade experienced during the month of June, including the public auction, resulted in higher trade debtor balances at the period end" Yet there has been no mention in the final accounts about this further increase in the debtor balance nor why £2,846 of this debt has now been classified as a Non-current asset.

[jtcod] 14/3/2008 10:03

Analyst presentation taking place as we speak.

There should be a new investor presentation posted fairly soon.

[weemonkey] 14/3/2008 09:14

have added.

results seem great.

run with great financial shrewdness.

first time I have ever been pleased to see inventories going up. rarities are obviously outperforming other asset classes. maintaining good stock levels will be essential to this business.

[wilmdav] 14/3/2008 09:13

OK now



One of the most reassuring numbers is not in the results at all. The SGI Index rose 5.0% in 2007. More importantly, it rose 5.2% between July 2007 and Feb 2008, i.e. from when the credit crunch began.

Here's a direct link to the performance bar charts

[nephie] 14/3/2008 08:15

who you calling a oxymoron?

[wilmdav] 14/3/2008 08:11

Yes, LS. You are right. I'm not a morning person.
Actually it's nearly there.

[liarspoker] 14/3/2008 07:56

I will get the web site, linked in the header, updated right away. It might take a couple of hours.

That sounds like an oxymoron Wilmdav. ;o)

[wilmdav] 14/3/2008 07:45

Adj eps 13.83p against Seymour Pierce f'cast of 13.8p. All other expectations fully met. Very confident outlook. Significant increase in working capital, which I seem to recall was predicted.Can't see any problems when market opens.

I will get the web site, linked in the header, updated right away. It might take a couple of hours.

[liarspoker] 14/3/2008 07:42

It's another segment of the market that has consolidated and so will be out of reach for SGI. Smythe has quite a good name in the US and I have purchased from them numerous times. Quite a good buy for Spinks imo depending on price paid for them.

Results in line with expectations btw although I was secretly hoping for a little bit more. :O)

[bookworm1] 13/3/2008 22:32

So how does it affect SGI? In your opinion?

[liarspoker] 13/3/2008 20:39

Now why have you posted this on the eve of SGI's results?

Because I just received it in my inbox.

[bookworm1] 13/3/2008 20:18

Interesting find. Now why have you posted this on the eve of SGI's results? Ex christie owned company now in private ownership. Would make a good acquisition target for the right buyer. Do they want to play? or are you suggesting that there is now a competitor for SGI? What sales can they command? Looking forward to SGI hitting £20m tomorrow.

[liarspoker] 13/3/2008 19:20

Spink acquires Smythe:

Dear Clients and Friends,

We are pleased to announce that two of the most established auction houses on both sides of the Atlantic are joining forces for the benefit of all collectors. Spink, the world's leading auctioneers of coins, stamps, medals and banknotes, based in London and established 1666, has agreed to acquire Smythe, based in New York with over 30 employees and established in 1880. Both Spink and Smythe are known throughout the world for their illustrious histories, impeccable reputations and unparalleled expertise. The merging of these two companies will create a truly unique brand in the world of collectables.



The Acquisition
Spink has agreed to acquire the Smythe name as well as assets of the company. John Herzog, owner of Smythe since 1967 along with other family members, will become a shareholder in the company and act as Chairman Emeritus of Spink USA, participating in the development of the combined entity. Mr. Herzog stated, "I could not think of a better company to acquire Smythe. My wife, Diana, and I have been at Smythe's helm for 40 years, and have tremendously enjoyed building the business and working with clients and collectors. I look ahead with great excitement to the opportunities presented by this joining of forces." Smythe will operate, in the USA, under the name Spink Smythe beginning in March 2008. This means Spink in the USA will operate as follows:



Spink Shreves Spink Smythe

Stamps Banknotes
Bonds & Share Certificates
Coins
Autographs


Creating a global market leader
To Spink this deal brings an even stronger presence in the American market following the recent acquisition of Shreves Philatelic Galleries. Smythe will benefit from the incomparable expertise, global reach and capital of Spink. Chairman and CEO of Spink, Olivier Stocker, and John Herzog, Chairman Emeritus of Spink USA share the same values for integrity, reputation and tradition in a modern entity striving for excellence. Spink Smythe will retain the heritage firm's trademark "boutique" approach. In 2007 Spink was already number one globally for stamp auctions and Smythe has led the U S markets in Confederate and Obsolete currency for a decade, and has grown its Federal Currency and Coin areas significantly in recent years.

Mr. Stocker stated "This acquisition is really a wonderful match. It instantly creates a leadership position for Spink in Banknotes, Bonds and Shares and World Coins. We believe it is the perfect strategic move to better service our clients. I am looking forward to creating, with John and Charles, this new dominant player based on a model that has been so successful for us in stamps."

How you benefit
There will be more specialists with hundreds of years of expertise available for consultation. For the first time in the industry you, as a collector or consignor, will have a truly global experience when buying or selling with Spink Smythe. You will also benefit from Spink's unparalleled full colour catalogues which are distributed throughout the world for all sales held around the globe.

You will also benefit from new developments at Spink such as Spink Live®, the online bidding platform which allows our clients to watch the auction in real time and bid from anywhere in the world. And as we have well over 50 auctions planned in 2008 it might be difficult to attend them all!

Should you require any further details on the acquisition and the benefits it brings to you, please feel free to contact us and we will be delighted to assist you.

Sincerely,

Olivier D. Stocker John Herzog Charles Shreve
Chairman & CEO, Spink Chairman Emeritus, Spink USA Inc. President, Spink USA Inc.

[wilmdav] 07/3/2008 09:24

Just pulling back to thread on assumption it is most recent posters' wishes.

No negative comments on the 14th SGI please!

[battlebus] 05/3/2008 08:28

nice movement before results

[beaufort1] 04/3/2008 16:11

results 14 March

[robsy2] 28/2/2008 17:21

SHES BEGINNING TO TICK UP AGAIN !!

[gatehill] 21/2/2008 17:12

Up 7.5p today.....

[sven2006] 20/2/2008 15:37

Riskblue - 20 Feb'08 - 15:34 - 89 of 89

very true matey, collections and also art !

sVendo

[riskblue] 20/2/2008 15:34

I was dealing with this business a few months back, and at the time they were claiming to be rushed off their feet. If people are pulling cash out of the markets I'm confident more than usual will have headed for alternative investments - I know some of mine has. I expect the results to be strong. Looking to top up in the next few days.

[nuttynige] 20/2/2008 14:04

I see. Thanks.