Stanley Gibbons Share Discussion Threads

[fillipe] 14/3/2016 09:57

Pretty much near zero interest in SGI shrs today.....similar to the general lack of interest in their main product, I regret to admit.

f

[tsmith2] 14/3/2016 08:21

How many PI will hold when they receive placing shares...massive potential overhang?

[orange1] 14/3/2016 08:14

Was this known?:

"Of more concern is the performance of the Group's interiors division, in which sales and profitability have declined markedly through the course of 2015/16 particularly in the last four months. Following its acquisition of Mallett plc in October 2014, the Company learned that government regulators in the United States were investigating transactions that had occurred since 1 January 2010 involving a former client of Mallett Inc., Mallett's New York-based subsidiary. The former client is not a related person or affiliate of the Group. Further details of this matter are disclosed in Part 3 of the Circular."

[clocktower] 14/3/2016 07:59

£12.3m net - £700k that is a very hansom fee. They are used to doing poor deals it seems.

[goldenshare888] 14/3/2016 07:47

Maybe they paid £450 - £475k?

One to avoid in my view, as previously stated at much higher share price.

10p could still be too much!

[battlebus2] 13/3/2016 17:09

Stanley Gibbons owned the stamp, they bought it in 2012 for an unknown sum but stated then its value could have been £550k.

[pugugly] 13/3/2016 16:36

RV- Very good point.

[rickyvader] 13/3/2016 16:35

It does not state if Stanley gibbons owned the stamp or just brokered the deal

[pugugly] 13/3/2016 16:35

BB2 - Good post I am however repeating the last sentence below:

Well worth repeating the last sentence above ("collectors say that prices for mid-range stamps have fallen, hit by a general decline in philately as a hobby.") as I suspect that one of the reasons why the placing was at such a low price is that as I said above the institutions have valued th estock far more realistically as though for a fire sale.


Could it be that the original shareholders have a case against against the auditors who signed off the valuations ??

[battlebus2] 13/3/2016 14:05

We need a few more of these....

An incredibly rare Penny Red has become the UK’s second most valuable stamp after being sold to to an unnamed British collector for £495,000.

The sale was arranged by London-based dealers Stanley Gibbons, which said the Plate 77 Penny Red is one of only five used examples known to the world of philately - another of which is held in the British Museum.

Plate 77 Penny Reds, which date from 1863, are viewed by collectors and investors as the holy grail of philately because Plate 77 stamps were not meant to exist. The stamps were created but never sold by post offices after they were not considered to be of good enough quality.



The Plate 77 Penny Red that has sold for £495,000. Photograph: Stanley Gibbons

The original printing plate was destroyed, but a tiny handful made their way into circulation. As a result they are highly prized by collectors - far more so than the fabled Penny Black beloved of school children.

Keith Heddle, managing director of investments at Stanley Gibbons, said: “This is one of the most desirable and iconic of British stamps for collectors worldwide, highly sought after for more than 100 years. It is testament to the strength of the market for rare stamps that we have managed to sell not just one, but two Plate 77 Penny Reds in the last four years. With the last one having been sold to a client in Australia, I’m delighted this one has found a home in Britain.”

Heddle said this latest stamp has been bought by an anonymous British buyer, who he said was both a collector and someone who expected an investment return on the item.

The previous Plate 77 Penny Red sold in 2012 for £550,000, making it the UK’s most expensive stamp. Heddle said its higher price reflected the fact that it was in significantly better condition.

As an investment, Heddle said, the Penny Red still had some way to go before it troubles the world’s most expensive stamp. This remains the British Guiana 1c Black on Magenta, which was sold in 2014 in New York for $9.48m (£6.7m).

The 1856 stamp is thought to be the only one in the world. It was one of three created by a local postmaster whose expected delivery of stamps had been delayed by storms, forcing him to ask local printers to produce an emergency issue.

Stanley Gibbons said despite the huge volatility seen in financial markets since the turn of the year, the market for rare stamps and coins remained resilient. Last month, the dealer sold one of Britain’s rarest coins, an Edward VI “boy king” gold sovereign of 30 shillings, for £250,000 to an investor in Asia. However, collectors say that prices for mid-range stamps have fallen, hit by a general decline in philately as a hobby.

[castleford tiger] 12/3/2016 16:34

wigwammer..........with that I agree 100% !!
Tiger

[wigwammer] 12/3/2016 15:23

Thanks CT, will have another look.It's like the corporate equivalent of brewsters millions... They couldn't have blown up this perfectly good business a lot faster if they tried.

[castleford tiger] 12/3/2016 13:26

wigwammer

a word on debt. your figure of 4 million is wrong.

In addition, the proceeds of the Fundraising will be used to repay approximately GBP6.0 million that has been made available to the Group by way of an additional overdraft facility repayable by 31 March 2016 and which is expected to be substantially drawn before completion of the Fundraising. The Group's total gross indebtedness at 31 January 2016 was GBP22.6 million and it is expected that following completion of the Fundraising, the total bank facilities available to the Group will amount to GBP19.5 million. These facilities will not be due for review until 31 May 2017.

OK SO THE POSITION END JANUARY WAS 22.6 debt
of this 6.00 was an extension, so DEBT will fall to 16.6 and cash (assuming ) 12 net is raised will be ..........6 million.

The worry for me is that at the end of September debt was
-- Net debt 17.0m at 30 September 2015 (30 September 2014: GBP3.3m)
So they used 5.6 million in 4 months =1.4 million loss per month.
Therefore the true debt figure at the end of MARCH may have been 22.6 plus 2.8 =25.4.
IF so the net cash would only be 3.2 million and they would have 3 million of headroom in the facility ( up to 19.5 million from 16.6 ).

That gives them 4 months to stem the losses or they run out of cash ( which I think they still will ) as there will be some serious costs in cutting the workforce and closing offices etc. Some may not be hard cash but they are not out of the woods.

very best tiger

[wigwammer] 12/3/2016 11:49

The capital raise will give them market cap of around £40m, with an equity position around double that.Net debt should fall to around £4m.Questions: did they need to retire this much debt in one go? Have they really got themselves in a situation where none of the £40m+ tangible equity can be realised to reduce the dilution? Is the cash flow situation so bad they have no alternative but to raise cash immediately, without recourse to realising asset sales?If the answer to the above questions is yes, then this management team should be booted clear out of the atmosphere. They haven't meandered into this cul de sac, they marched down it by buying a load of tosh, leveraging the balance sheet, and endangering the survival of a great business.As stated, if this bunch have been allowed to pick up large quantities of cheap shares at 10p, then shareholders should be all over it.Fwiw - post dilution, current valuation around tangible book looks ok, with little debt... but what a crock of sh1t for long term holders.

[carbon man] 12/3/2016 11:11

I remember going down the Strand and into Stanley Gibbons in the 40's and 50's also going into Duncannon Street and William 1V St. and gazing at the 'Stamps' Those were the days when we collected everything as boys.
For the first time, I bought the shares yesterday, probably not a classic investment, more a spur of the moment thing. However, as a former broker I would love to have a go at their client list - This may be an impulse purchase, but who knows with Hendersons and Mr. Griffiths in the background.

[castleford tiger] 12/3/2016 08:39

Funding and Trading Update

On 13 January 2016, the Group announced that it was considering a number of fundraising alternatives to reinforce the Group's working capital position prior to 31 March 2016. At that time the Board believed that an equity raise might be comparatively unattractive as the Group's market capitalisation was less than its Net Asset Value. However, having considered the various alternatives, the Board is now confident that an equity raise is the most expedient and efficient method by which to raise the capital necessary. Accordingly, the Group is in the process of raising approximately GBP10.0 million of new equity (the "Fundraising"). The Board intends that the Fundraising will be executed in a manner that recognises the pre-emption rights of existing shareholders insofar as is possible and will make a further announcement regarding the Fundraising next week.


YOU HAVE TO LAUGH OTHERWISE YOU MIGHT CRY

Tiger

[castleford tiger] 12/3/2016 08:37

Its pretty simple the big boys called the shots and have finished up with 70% plus of the company.
PLUS the share holding they had.
Its averaged down for them and wiped out the PI .
I got the price to 18p.

Anyway going forward. Will it be enough? I don't think so.
probably 12 million of which at least 6 was a short term loan so debt about 14 million post fund raising.

I certainly would want changes if involved but I am unsure the business is that good.
Not for me now.
Tiger

[keya5000] 11/3/2016 21:11

wskill, you really are clueless, there have been no 'bucket shops' involved in this that I am certain of.

If you took the time to make decent connections or have the service of a decent broker you would not now be making comments that are a million miles for the actual reality.

[wskill] 11/3/2016 21:06

Pat come on what sane investor would give this bunch of nit wits more cash to invest in a business which is failed with management who are not capable of fixing the problem.And have no idea how to do so this is why they have had to resort to the bucket shop to source the funds required to keep trading.

[battlebus2] 11/3/2016 20:33

Seems a very low ball placing to me, I did expect a big discount but 10p is beyond anything I'd imagined. For me it only makes sense to take up any offer we are entitled to.

[panic investor] 11/3/2016 19:34

Wigwamner - spot on!

[elmfield] 11/3/2016 19:32

You would not throw good money after bad without a change of management, IMv.

[wigwammer] 11/3/2016 19:31

If management take up a substantial number of shares at 10p, it will be very clear what has happened here.