Final Results

1
The Stanley Gibbons Group

• Final Results
• Investors Presentation
• 27 June 2014

2
Contents

• Pages
• Financial Highlights 3
• Operating Review 4
• Operating Highlights
• Philatelic Dealing 5
• Auctions 6
• Publishing 7
• Other Collectibles 8
• Internet 9
• Online Marketplace 10-11
• Outlook Strategic Focus 12
• 6. The Board 13

3
Financial Highlights
4
Operating Review
5
Philatelic Dealing

• 2 profit growth, primarily supported by sales of
  philatelic rarities to high net worth collectors
  and investors
• Hong Kong office contributed total sales of 3.3m
  (2012 2.6m) and profits of 0.7m (2012 0.6m)
• New office in Singapore opened in April 2013
  contributed sales of 0.2m in year, with a net
  loss of 0.1m
• Two seven-figure exceptional and prestigious
  stamps collections secured, providing strong
  platform to deliver growth in core dealing
  activities in current financial year

6
Auctions

• Auction revenues for the year ended 31 December
  2013 broadly in line with prior year
• Philatelic auctions business strengthened by
  acquisitions of Murray Payne Limited and Apex
  Philatelics (part of Noble Group)
• Stanley Gibbons February 2014 public auction was
  one of our strongest in recent years
• Secured strong consignments in the quarter ended
  31 March 2014 providing a degree of visibility to
  future earnings
• Sale of British Guiana 1c Magenta by Sothebys,
  New York in June for 9.5m, representing a world
  record

7
Publishing

• 12 fall in profits as a result of retirement and
  closure of our major wholesale distributor in the
  second half of the year
• Progress being made in recruiting new trade
  clients previously handled by this distributor
• New catalogue database developed as integral part
  of our internet project substantially improves
  publishing efficiencies and printing options
• Online catalogue data will be an integral element
  of online marketplace

8
Other Collectibles

• 68 profit growth benefiting from Noble
  acquisition at end of November last year
• Substantial success in cross selling rare coins
  from Baldwins stockholding to SG high net worth
  clients
• Autograph division integrated and relocated to
  Bloomsbury Auction premises at Maddox Street in
  first quarter of 2014, showing immediate benefits
• Benham First Day Covers business delivered
  acceptable return in year despite absence of any
  significant commemorative events
• Dreweatts auctions performing well and embracing
  cross selling opportunities

9
Internet

• Development costs incurred in year of 1.6m
  (2012 0.4m) in line with plan and financed by
  the fundraising of 6m in November 2012
• Total online revenues of 3.5m, in line with
  prior year
• Bid start acquisition contributed online
  commission income of 0.2m in year
• Beta version of Stanley Gibbons branded online
  marketplace is currently undergoing rigorous
  testing by both our own internal specialists and
  a taskforce of external users

10
Online Marketplace

• Key technical projects delivered in the fifteen
  months ended 31 March 2014
• Digital Catalogue Data Management System (Oreo)
• Imported Stamps of the World (6 volumes,
  500,000 stamps) into digital catalogue
• Imported 5 million 3rd party stamp listings into
  marketplace
• Linked stamp listings to our digital catalogue
• Search and browse facility using digital
  catalogue data
• Enhanced product listings
• Developed and launched the foundation (in Beta)
  of the Stanley Gibbons Marketplace
• Investment has been focussed on technical
  development work rather than driving increased
  sales through online marketing

11
Online Marketplace

• Technical milestones over next 12 months
• Complete migration to open source platforms
• Launch seller features
• Stanley Gibbons payment system
• Store features
• First of social features (My Collection, Groups)
• Buyer/seller auctioning and live auctions
• Social sharing tools recommendations, social
  dashboard
• Coin features tools
• Stamp image recognition software
• Supported by commercial team with sales and
  marketing plan to deliver growth in GMV later in
  year

12
Outlook Strategic Focus

• Strong balance sheet position in terms of cash
  resources and quality stockholding which is
  expected to generate growth in the current
  financial year from core dealing activities
• Most important milestone for the current
  financial year is the forthcoming launch of the
  Stanley Gibbons branded online marketplace
• Delivery of further integration cost savings
  following the acquisition of Noble in November
  2013, including the move of the Baldwins team
  from Adelphi Terrace to the Strand later this
  year
• Plans to sell Adelphi Terrace freehold property
  with a book value of 3m
• Delivery of continued cross selling benefits from
  being able to provide a first class service in a
  wide range of collectibles to our combined client
  base
• Focus on securing further top quality collections
  for our auction division benefiting from the
  enlarged Groups combined expertise

13
The Board

• The executive team was augmented in the year with
  the appointment of the Chief Executive of Noble,
  Ian Goldbart to the Board as Managing Director of
  Dealing Auctions based in London
• Donal Duff appointed as Chief Finance Officer
  (previously Finance Director and Chief Operating
  Officer) reflecting the substantial increase in
  responsibility in respect of managing the Finance
  function of the enlarged Group following recent
  acquisitions
• The board of independent non executive directors
  was strengthened in the year with the appointment
  of Simon Perree (co-founder of Play.com) and
  Clive Jones (previously Chairman of the Jersey
  Financial Services Commission)
• The Board now consists of four executive
  directors and four independent non-executive
  directors, representing a well balanced Board
  composition and in accordance with accepted best
  corporate governance practice

14
Appendices

• Pages
• Appendix I Income Statement 15
• Appendix II Balance Sheet 16
• Appendix III Cashflows 17-18
• Appendix IV Contact Details 19

15
Appendix I - Income Statement
15 months ended Year ended
31-Mar-14 31-Dec-12 (restated)
'000 '000
Revenue 51,772 35,599
Cost of sales (28,937) (20,031)
Gross profit 22,835 15,568
Gross profit 44.1 43.7
Administrative expenses (7,779) (3,332)
Selling and distribution expenses (10,621) (6,524)
Exceptional operating costs (2,081) (349)
Operating profit 2,354 5,363
Finance income 32 3
Finance costs (173) (211)
Profit before tax 2,213 5,155
Taxation (78) (389)
Profit after tax 2,135 4,766
Effective tax rate 8.2 6.8
Earnings per share
Basic 6.32p 18.48p
Adjusted 13.30p 20.98p


16
Appendix II Balance Sheet
At 31 Mar 14 000 At 31 Dec 12 000
Intangible assets 32,571 1,723
Property, plant and equipment 6,294 2,145
Deferred tax asset 1,016 735
Available for sale financial assets 1,473 -
Trade and other receivables - 229
Non-current assets 41,354 4,832
Inventories 42,118 20,728
Trade and other receivables 14,144 11,668
Current tax receivable 135 -
Cash and cash equivalents 9,499 6,766
Current assets 65,896 39,162
Trade and other payables (15,928) (8,179)
Deferred consideration (2,153) -
Borrowings (276) (188)
Current tax payable - (169)
Current liabilities (18,357) (8,536)
Retirement benefit obligations (3,285) (3,161)
Borrowings (528) -
Other provisions for liabilities (1,135) (593)
Non-current liabilities (4,948) (3,754)
Net assets 83,945 31,704
17
Appendix III - Cashflows
15 months ended 31-Mar-14 Year ended 31-Dec-12
'000 '000
Cash (consumed)/generated from operations (3,904) 1,007
Interest paid (4) (41)
Taxes paid (433) (552)
Net cash (consumed)/generated from operations (4,341) 414
Purchase of property, plant and equipment (536) (368)
Purchase of intangible assets (1,528) (138)
Acquisition of business assets (net of cash acquired) (29,036) (382)
Interest received 36 3
Net cash used in investing activities (31,064) (885)
Dividends paid to company shareholders (1,940) (1,581)
Net borrowings 588 (250)
Net proceeds from issue of ordinary share capital 39,490 5,838
Net cash generated from financing activities 38,138 4,007

Net increase in cash and cash equivalents 2,733 3,536
Cash and cash equivalents at start of year 6,766 3,230
Cash and cash equivalents at end of year 9,499 6,766
18
Appendix III - Cashflows
15 months ended 31-Mar-14 Year ended 31-Dec-12
'000 '000
Operating profit 2,354 5,363
Depreciation 475 255
Amortisation 507 184
Write off of intangibles 139 -
Increase/(decrease) in provisions 139 (216)
Cost of share options 188 108
Increase in inventories (10,280) (3,927)
Decrease/(increase) in trade and other receivables 5,774 (2,299)
(Decrease)/increase in trade and other payables (3,200) 1,539

Cash (consumed)/generated from operations (3,904) 1,007
19
Appendix IV - Contact details

• The Stanley Gibbons Group plc, Registered Office
• Martin Bralsford, Chairman
• Mike Hall, Chief Executive
• Donal Duff, Chief Finance Officer
• 2nd Floor, Minden House, Minden Place
• St. Helier, Jersey, JE2 4WQ
• Channel Islands
• Tel [phone]
• Email mhall_at_stanleygibbons.com
• Email dduff_at_stanleygibbons.com

• Stanley Gibbons Limited
• Richard Purkis, Company Secretary
• 399 StrandLondon, WC2R 0LXTel 020 78368444
• Email rpurkis_at_stanleygibbons.com