Stanley Gibbons reports narrowing loss but ‘still work to do’
The troubled stamp and coin specialist posted a pre-tax loss of £2.4 million compared with £2.9 million a year earlier.
Stanley Gibbons reported a narrow loss on lower costs after restructuring but conceded the group still has a lot of work to do.
The troubled stamp and coin specialist said in the last two years the company has been “fixing things and plugging holes” after it restructured and refinanced into a much smaller group having sold the brands and businesses within its interiors division and cut staff.
The firm has been stung by a slowdown in the stamps and collectables market and hampered by a string of failed historic acquisitions.
Chairman Harry Wilson said the company has a lot to do to reach profitability.
Our plan is to make our business more attractive through the investment and initiatives which we have instigated Harry Wilson, chairman
“It would be nice to say that our problems are behind us but as the results show we still have a lot of work to do to achieve sustainable profitability,” he said.
“However, the more rewarding rebuilding phase has commenced, and some exciting work-streams have been initiated which it is hoped will unlock the full potential of our business.
“Our plan is to make our business more attractive to both existing and new clients through the investment and initiatives which we have instigated.
“We recognise that this will take time to show through to the bottom line.”
Chief executive Graham Shircore warned that the group remains in a “challenging position and will continue to be so for some time” but that its brands have potential to grow.
For the six months ended September 30, Stanley Gibbons posted a pre-tax loss of £2.4 million compared with £2.9 million in the same period a year earlier as on-off costs fell to £118,000 from £474,000.
Revenue declined 30% to £5 million from £7.1 million.
The company previously said it is in default in its loans, but creditor Phoenix SG has not requested payment and recently provided Stanley Gibbons with a further loan of up to £5 million.
As of the end of September, the company had £1.8 million in cash and a loan of £10.3 million repayable in March 2023.