Proactive Investors - Run By Investors For Investors

Stanley Gibbons still stamped with worry despite disposals, progress in trading update

The AIM-listed group said a "significant debtor" has said it "may wish" to pursue a counterclaim against one of the firm's subsidiaries
Rare Indian stamps
The revelation came as Stanley Gibbons said it has agreed to sell the majority of its Interiors divisions for £2.4mln

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.

READ: What went wrong with Stanley Gibbons?

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.

View full SGI profile View Profile

Stanley Gibbons Timeline

October 03 2016

Related Articles

Flying Brands
March 07 2018
Flying Brands has signed a deal for the sale and distribution of its StoneChecker software in South Korea
H&T Pawnbrokers store
November 15 2017
“We have delivered a strong trading performance during the second half in the key segments of Pawnbroking, Retail and Personal Loans”

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use