Stanley Gibbons Group PLC (LON:SGI) saw its share drop today after the embattled stamp and coin collecting specialists accompanied news of the disposal of some auction businesses and a trading update showing some progress with the revelation of a possible lawsuit.
The AIM-listed group said a "significant debtor" has said it "may wish" to pursue a counterclaim against one of the firm's subsidiaries. Stanley Gibbons added that it would "vigorously contest" any such move, but said it could not guarantee the outcome of any dispute.
The revelation came as the firm said it has agreed to sell the majority of its Interiors divisions, which includes auction houses Drewatts and Mallet, for £2.4mln in order to refocus the business and raise funds to pay down debt.
Stanley Gibbons said it will retain the Mallett inventory, the rental income from the former Mallett New York premises, the Bloomsbury auction and retail business, and its interests in Masterpiece London Ltd
In its trading update, the group said: “Whilst the current Board believes that the strategic decisions of the previous Board caused undeniable damage to the Company, the demonstrable strengths of the underlying businesses, and the people within them, are becoming ever more clear.”
Stanley Gibbons said, that since its last update with interim results in December, its Baldwin's business has performed particularly well under new operational management, while the Baldwin's of St James's joint venture established last December is "progressing well".
In midday trading, Stanley Gibbons shares were down 5.6%, or 0.5p to 8.38p having lost over 32% in value over the year-to-date and nearly halved in one year.