Stanley Gibbons (AIM:SGI) reassures with trading update (sort of) although there are clearly issues
The collectibles and philatelic specialists have issued an update in support of their rapidly declining share price. Clearly all is not as bleak as anticipated but there are concerns nevertheless. As we commented in our previous Blog, we aren’t convinced the business in its current form, with heaps of cash tied up in long term inventory and the potential for lumpy high value transactions, makes for a happy stock market animal. The web site revamp has also taken far too long for what is essentially a fairly simple offering.
The Group’s auction calendar for this year is more heavily weighted towards the second half than last year and the Group is therefore budgeted to deliver materially higher revenues and profits in the second half of its financial year – a change in seasonal trend is rarely a good sign. The lumpy sales issue rears its head again with news of “a number of high value sales with potential new clients, the completion of which would have a material impact on trading and would represent a key element of the Group’s performance for the first half of the year.” It’s…