23 March 2012 – final results

Final results for 2011 have been released and as anticipated these made for good reading. Sales were £35.7m (2010: £26.4m), an increase of 35%. Interestingly online sales were £4.3m (2010: £2.5m), up 72% year-on-year. There was a 19% increase in profit before tax to £5.1m (2010: £4.3m) and adjusted profit before tax, before exceptional charges, was £5.2m (2010: £4.5m) which translated into adjusted earnings per share of 18.9p (2010: 15.7p).  A final dividend of 3.5p per share (2010: 3.25p per share) was declared, taking the total dividend for the year to 6p (2010: 5.5p).

Stanley Gibbons has a strong reputation and is clearly determined to move with the times, noting that the internet and other electronic communication will become the primary sales channel. Cash generated from operating activities last year was £4.1m (2010: £2.2m), which meant that cash funds at 31 December 2011 increased to £3.2m (2010: £1.8m). This leaves the business very well placed to maximise the opportunities available to it and there could be exciting growth ahead. We rate the shares as a BUY.