Stanley Gibbons (AIM:SGI) –thank goodness for an equity raise, but what a mess!
The latest update from the philatelic and collectibles group was, as anticipated, fairly awful but at least we have the realisation that a good old fashioned equity raise is needed rather some convoluted financial engineering, as management (and others) seem to have been considering.
Management is now “confident that an equity raise is the most expedient and efficient method by which to raise the capital necessary.” Accordingly, the Group is in the process of raising approximately £10.0m of new equity with existing holders being given first dibs.
We are staggered how a business of this small size (revenue last year was £57m and admin expenses £26m) has also suddenly identified cost savings of at least £5.0m, equivalent…
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