2019 Annual Report

This report covers the audited results for the year ended 31 March 2019 of The Stanley Gibbons Group plc (“the Group” or “the Company”).

I am pleased to report that we are starting to see the results of the financial restructuring and new strategy implemented in 2018 following the deal with Phoenix UK Fund Ltd (“Phoenix”). The large one-off cleanup costs are mostly behind us and with the continued support of Phoenix S. G. Limited we now have the financial headroom to focus on improving the trading performance of the business. As the financial results show, we still have a lot of work to do to achieve sustainable profitability but for the first time in a number of years we now have the tools to achieve this.

While things are improving the results reflect the transition period we are going through, in particular the focus on rebuilding margins and the ongoing reorganisation, Group turnover was £11.7m for the year (2018: £13.4m) while gross margin increased to 51.0% (2018; 40.0%) reflecting the renewed focus on profitable trading rather than cash generation and reduction of inventory. The trading loss from continuing operations over the period before adjustments and exceptional items was reduced to £3.3m (2018; £5.4m) primarily due to the improved margins and reduced cost base following the Group reorganisation. The loss before tax from continuing operations over the period was £4.3m (2018; £8.0m) resulting in a reduction of net assets to £7.3m (2018; £12.2m). Cash at the year end was £2.2m (2018; £4.6m) and borrowings increased to £11.5m (2018; £10.0m).

The Group has achieved a…