Collectibles merchant says its strong pipeline of valuable stock puts it on
track for strong growth this year

The sale of a rare Edward VIII 1937 gold sovereign for a record £533,000 by
Stanley Gibbons helped the UK-listed antiques dealer to strong growth last
year.

The purveyor of precious rarities – from stamps and coins to jewellery and
memorabilia – reported good sales growth in the 12 months to March, with
revenues up 10pc to £56.9m.

The rare Edward VIII 1937 gold sovereign

Adjusted pre-tax profits surged 42pc to £3.15m, as the group benefited from a
wave of earlier acquisitions and much stronger margins.

But it also enjoyed strong
demand for collectibles, includings military medals, coins, books and
autographs.

There were some notable high-profile sales, including rare Beatles and NASA
photographs, significant pieces of 20th century signed jewellery and antique
clocks.

In November, Stanley Gibbons sold a turquoise and white enamel ‘Serpenti’
watch by Bulgari for £84,320, well above the estimated price tag of £25,000
to £35,000.

Coming up for sale in July is an emerald and diamond ring, expected to sell
for £30,000 to £50,000.

The auction business also performed well, enjoying strong returns from estate
sales in the year.

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Auction sales transacted exclusively online grew by a third to more than £8m,
while the value of goods bought online across the group rose by more than
one-fifth to £13.9m.

However, trading in Stanely Gibbon’s core philatelic dealing division (rare
stamps), was dampened slightly, as a number of key high-value sales failed
to complete before the end of the financial year.

Divisional profits fell from £4.9m in the first-half to £1.8m in the second.
That meant that the group failed to deliver the level of earnings per share
growth expected by the markets.

Stanley Gibbons, the world’s longest established rare stamp merchant,
was launched in 1856

Still, chairman Martin Bralsford said the group’s “significant”
stockholding of rare collectibles reflected unrealised profits, which puts
it on a firm footing to deliver good earnings growth this year.

He said: “One of the high value sales, which failed to complete by the
year end, was completed in April 2015. This, along with a strong auction
pipeline, provides some impetus for the first half performance this year.”

Stanley Gibbons’ stamp shop at 399 The Strand, in London

Stanley Gibbons has spent the past two years snapping up several smaller peers
and large rivals.

It bought listed antiques dealer Mallett in October and acquired
its biggest rival, Noble Investments , back in 2013.

The acquisitions offer a number of lucrative cross-selling opportunities to a
much larger international client base of high net-worth individuals.

The group has also been busy restructuring the business as it moves operations
online to tap into growing global demand for collectibles
from wealthy individuals looking to diversify their investments .

May’s launch of the Stanley
Gibbons Online Marketplace was a milestone for the company, as it allows
anyone from around the world to browse through the group’s vast catalogue of
data and purchase items at the click of the mouse.

Mr Bralsford added: “The board remains confident that, given the
continuing strength of the market, twinned with the expected return from the
sound execution of our strategy, material profit growth is achievable in the
current financial year and beyond.”