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The Stanley Gibbons Group Limited

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Increased international demand for both stamps and autographs as alternative investment ... Autographs and historical documents now being appreciated by investors and ... – PowerPoint PPT presentation

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Title: The Stanley Gibbons Group Limited


1
The Stanley Gibbons Group Limited
  • Investor Presentation
  • 15 August 2007

2
Overview
  • Summary Financial Information
  • Highlights/Outlook
  • Investment services
  • Grading and authentication
  • Internet
  • Stockholding
  • Auctions
  • Management Team
  • Shareholder Returns
  • Appendix I Sales by department
  • Appendix II Profit by department

3
Summary Financial Information
4
Investment Services
  • Increased international demand for both stamps
    and autographs as alternative investment
  • Rare stamps have never gone down in price over
    any period during the past 50 years
  • Average compound returns from rare stamps of over
    10 per annum over past 50 years
  • Bill Gross auction in June - 2.5m investment in
    2000 realised 10.5m (4 times profit)
  • Autographs and historical documents now being
    appreciated by investors and expected re-rating
    as new investment asset class
  • Database building and highly effective direct
    marketing approach through investment newsletters
  • Active management investment portfolios as
    alternative to guaranteed minimum return
    investment contracts

5
Grading and Authentication
  • Huge impact to prices and market liquidity on
    introduction in the US
  • Stanley Gibbons to lead the way in the UK and
    become the industry standard
  • Collectors and investors obtain comfort on
    authenticity, condition and transparency of
    pricing
  • Price gap between grades at the higher level now
    much greater
  • Added competitive edge within market
  • Access to greater pool of expertise and pricing
    knowledge

6
Internet
  • Website visitors increased by 36 to over 4
    million per annum
  • 12 of revenue derived from customers recruited
    online
  • Development of specialised information in our
    subscription based online catalogue and stamp
    album, My Collection by year end
  • Translation of web pages into other languages
    including emerging markets (China, Russia and
    India)
  • Ability to offer wider range of third party
    products online with lower stock holding and
    order processing costs

7
Stockholding
  • 1.2m increased investment in stockholding since
    year end
  • Buying more top pieces and turning them round
    quickly
  • Progress made in developing increased supply
    chain worldwide to secure higher grade items
  • Sale of Einstein letters for 175,000
  • Development of partnerships to acquire worldwide
    rarities

8
Auctions
  • Lower sales from auction activities due to
    exceptional additional auction in prior period
  • Organic growth opportunities in second half
  • Improvements to online auctions and success of
    live online bidding for public auctions
  • Potential strategic acquisitions or recruitment
    of key players within industry

9
Management Team
  • Management team strengthened during period
  • Appointment of Mark Henley as Finance Director
    improves corporate governance and enables Chief
    Executive to focus solely on the strategic
    development of the business
  • Appointment of Steve Sjuggerud as Executive
    Director based in the US
  • Paul Fraser steps aside as Chairman but continues
    as consultant to the Company until at least April
    2008
  • Bob Henkhuzens, non-executive director appointed
    as Interim Chairman until a new Chairman is
    appointed

10
Shareholder Returns
  • Interim dividend for 2007 of 1.75p net per share
    (increased by 17) to be paid on 17 September
    2007 to shareholders on the register at 17 August
    2007
  • Seymour Pierce market forecast dividend for 2007
    of 4.5p net per share and 5p for 2008
  • Seymour Pierce market forecast 70 increase in
    earnings per share over next two years
  • Benefit to earnings per share from lower tax
    charge on move to 0 corporation tax in Guernsey
    from 2008

11
Appendix I - Sales by department
12
Appendix II - Profit by department
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