13 November 2015 – interim results
The group probably best known for selling stamps has released its interim results for the six months to 30 September and these have disappointed the market. Although reported sales for the period were £27.0m (2014: £27.1m), on a like for like basis, excluding the Mallett acquisition they were 21% lower at £21.6m. Adjusting for exceptional items, the group made a pre-tax loss of £1.2m (2014: profit of £4.8m) and the company has scrapped the interim dividend. Last year’s results did benefit from some significant high margin sales from exceptional major collections and so the comparatives are tough but these figures are still disappointing. Over the last two years the company has made a number of strategic investments including Mallett (in October 2014) although these have yet to really bear fruit. Nevertheless, the group is expanding away from just selling stamps to selling other collectibles such as coins and medals and it is hoped that this expanded offering will prove beneficial in due course. The acquisitions have now been integrated with cost savings expected going forward. Despite the disappointing figures we maintain our recommendation of BUY.