The Stanley Gibbons Group
Investors Presentation
March 2011
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Contents
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Pages
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Who we are
The Vision
What we sell
How we sell
The Market
Key opportunities
Investing in collectibles
Management team
Summary – key strengths
Appendix I
Appendix II
Appendix III
Appendix IV
Financial history
The Board
Major shareholders
Contact Details
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Who we are
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Biggest, and perhaps, the only brand name in our market
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154 year trading history and experience – holder of Royal Warrant since 1914
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Retained competitive advantage through an offering based on expertise, integrity
and long term value to both collectors and investors
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Our main office is at 399 Strand (across from Savoy), with offices in Hampshire,
Folkestone, Guernsey and Jersey
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Fraser’s autographs – biggest autograph dealer in Europe
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Benham Group – largest dealer of first day covers in the UK
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The Vision
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Our vision is simple:
“To create a business of a size and profitability which matches the size of the
Stanley Gibbons brand name”.
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Stanley Gibbons currently possesses less than a 1% share of the global stamp
market yet is the most well known brand in that market
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In simple terms, we intend to increase our return from our primary asset – the brand
– to create a much larger business
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We aim to become the biggest brand in not just stamps but in the collectibles
market as a whole
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We believe we have the right strategy and quality management team to achieve our
goals
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What we sell
Rare stamps
General stamps
Publishing, albums & accessories
Fine used penny black:
£300
The unique 96c olive-bistre
block, recognised as the “crown
jewel” of Hong Kong: £750,000
Historical documents
First day covers
Celebrity autographs &
memorabilia
Edward IV – 1467 Peace Treaty with France.
Earliest Royal signature: £175,000
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How we sell
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Biggest stamp shop in the world at 399 Strand – approx. 3 million stamps and
60,000 signatures available for viewing
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Most visited stamp website in the world at www.stanleygibbons.com
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Dealing – personal client relationships (over 10,000 high net worth clients)
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Auction – public, online and postal
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Mail order and telesales
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E-mail marketing (database of over 150,000 unique e-mail addresses)
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PR & Advertising
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How we sell
Retail, 5%
PR & Advertising, 19%
Online, 14%
E-mail, 13%
Dealing, 27%
Mail Order & Telesales, 16%
Auctions, 6%
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The Market
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Stamps are the most collected items in the world
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Universal Postal Union Survey (UPU) states stamp market worth $10 billion per
annum
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Estimated 60 million stamp collectors in the world (20 million of those in China
alone)
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Very fragmented market – SG command a mere 0.4% market share
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Ageing population – baby boomer generation
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Emerging markets – Russia, India, and China
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Autograph and memorabilia market estimated worth of $5 billion per annum
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The Market
Clubs/Societies, 1%
Online, 6%
Exhibitions/Shows, 1%
Postal Authorities, 30%
Stamp dealers, 60%
Auctions, 2%
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Key opportunities
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Online - to bring together the $10 billion per annum stamp market to one place online at
www.stanleygibbons.com through creation of online trading platform, similar to the Amazon
and eBay models together with social networking facilities
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New geographical markets – building a presence and trading channels in the two biggest
collectible markets in the world (China & US)
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Investment services - to become the worldwide recognised provider of investment services
into collectibles as an asset class, including the creation of satellite investment offices around
the world and the launch of structured investment funds in collectibles
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Diversification into other collectibles – those possessing similar qualities to rare stamps
such as coins, medals and first edition books hinged of the respect our brand name carries
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Development of auctions - with the aim of becoming the “Number 1” UK stamp auction
house within the next three years
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Acquisitions - in both rare stamps and other collectibles where we believe they would
strengthen and compliment our overall brand offering, consolidating the fragmented
marketplace
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Investing in collectibles
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Rare stamps have delivered average
annual compound returns of over 10% per
annum over past 50 years
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Collectibles market not correlated with
traditional asset classes – GB30 Rarities
Index showed growth of 39% in 2008
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Collectibles have performed best
historically in times of high inflation –
between 1975 to 1980, rare stamps
increased by over 600%
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Means of diversification into a tangible
asset with a value embedded in history
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Internationally traded commodity
providing protection against exchange rate
risks
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Management Team
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Main Board comprises four executive directors and four independent non-executive
directors, including an independent non-executive Chairman, providing
shareholders with appropriate corporate governance
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Executive committee members comprise:
– Mike Hall, Chief Executive
– Donal Duff, Chief Operating Officer
– Keith Heddle, Sales & Marketing Director
– Mark Henley, Finance Director
– Richard Purkis, Corporate Services Director
– Tony Grodecki, Business Development Director
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Management team with the breadth of skills and experience together with the
determination to drive and implement the strategy successfully
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Summary – key strengths
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The BRAND name – recognised as one of the most respected brands in the world
that has stood the test of time
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Expertise – the philatelic community relies on our expertise, particularly in stamp
listings and pricing information
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No major competitors in market – fragmented marketplace in need of consolidation
and a huge market share to play for
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The value held within our intellectual property and website cannot be replicated
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The market for rare stamps and signatures remains strong and has recently
weathered one of the fiercest financial storms in history
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Appendix I – Financial history
30.0
25.0
20.0
15.0
£million
Sales
Profit before tax (adjusted)
10.0
5.0
0.0
-5.0
2000
2001
2002
2003
2004
2005
2006
Financial Year
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2007
2008
2009
2010
Appendix I – Financial history
16.0
14.0
12.0
10.0
8.0
Pence
6.0
Earnings per share
Dividend per share
4.0
2.0
0.0
-2.0
-4.0
2000
2001
2002
2003
2004
2005
2006
Financial Year
15
2007
2008
2009
2010
Appendix II – The Board
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David Martin Bralsford MSc, FCA, FCT, Non-Executive Chairman
Date of Birth: 1 January 1948, date of appointment as Director: 1 November 2007
Martin qualified as a Chartered Accountant in 1970, before obtaining a Masters degree in Economics at the London Business
School in 1974.
He is Chairman of Channel Islands based wealth management business, Collins Stewart (CI) Ltd. He was formerly Chief
Executive of C.I. Traders Ltd, a conglomerate being the largest corporate employer in the Channel Islands, which was AIM
quoted prior to its take-over by a private equity consortium in July 2007.
Martin has also served as President of the Jersey Chamber of Commerce and as Chairman of the Training and Employment
Partnership in Jersey. He is on the Board of three other listed or private companies. He chairs the Nomination Committee.
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Michael Robert Montague Hall BAcc CA, Chief Executive
Date of birth: 9 August 1970, date of appointment as Director: 7 August 2000
In 1995 Michael qualified as a Chartered Accountant in Scotland and joined Coopers and Lybrand (now
PricewaterhouseCoopers) in Jersey. As a manager, Michael worked on both audit and corporate finance assignments for a
variety of listed companies including Flying Flowers. Michael joined Flying Flowers as financial controller of the
Collectibles division in July 1999. He was appointed Finance Director of Stanley Gibbons in August 2000 and Chief
Executive of The Stanley Gibbons Group plc from 1 July 2003. He is a member of the Nomination Committee.
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Appendix II – The Board
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Donal Peter James Duff, BAAF, FCA, AMCT
Date of Birth: 11 November 1967, date of appointment as Director: 7 August 2009
Donal qualified as a Chartered Accountant with Coopers & Lybrand in Ireland in 1991 and subsequently transferred to its
Jersey office in 1993 to work on a wide range of audit and corporate finance assignments. In 1996, he joined Le Riche Group
Limited, a listed company, as Group Financial Controller and was Director of Finance when it was acquired by C.I. Traders
Limited, an AIM listed company, in 2002. Donal was Director of Finance and Company Secretary of this company, the
largest private sector employer in the Channel Islands, until its acquisition by a private equity consortium in 2007 and he
continued to work with the new owners until 2008.
Donal was appointed Chief Operating Officer of The Stanley Gibbons Group plc on 17 March 2009. He is also a NonExecutive Director of Jersey Post Limited.
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Mark David Henley FCA, Finance Director
Date of birth: 15 January 1971, date of appointment as Director: 1 August 2007
Mark Henley qualified as a Chartered Accountant and was admitted to membership of ICAEW in 1995. He worked in the
audit profession until 1996, when he moved to the commercial sector. He has experience across a range of specialities
including media distribution and direct marketing.
Mark joined Stanley Gibbons in February 2007 as Finance Director of the Company’s UK operations and was appointed
Finance Director of The Stanley Gibbons Group plc on 1 August 2007.
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Appendix II – The Board
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Richard Kenneth Purkis, Corporate Services Director
Date of birth: 16 May 1955, date of appointment as Director: 1 January 2003
Richard first joined Stanley Gibbons Limited in 1977. He was appointed a Director of Stanley Gibbons Limited, the main
trading subsidiary in October 1996 and became Company Secretary of Stanley Gibbons in May 1999. He was appointed
Operations Director of The Stanley Gibbons Group Limited with effect from 1 January 2003 and appointed Corporate
Services Director on 17 March 2009.
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Robert Henry Henkhuzens BA, FCA, Non-Executive Director
Date of Birth: 21 February 1952, date of appointment as Director: 3 March 2006
Bob Henkhuzens was a partner with Coopers & Lybrand (‘C&L’) in Jersey for ten years. There he headed the commercial
sector department providing audit, tax and accounting services to both local and international businesses. During this time he
was also responsible for the firm’s corporate finance and management consulting services. Since leaving C&L in 1998, Bob
has worked as an independent consultant and advisor and is a director of various private companies. He is a former president
of the Jersey Chamber of Commerce and vice-president of the Jersey Society of Chartered and Certified Accountants and
remains a committee member of both.
He is Chairman of the Audit Committee and a member of the Remuneration and Nomination Committees. He served as
Interim Chairman of the Company from 3 August 2007 to 1 November 2007.
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Appendix II – The Board
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General Sir Michael Wilkes KCB, CBE, Non-Executive Director
Date of birth: 11 June 1940, date of appointment as Director: 15 January 2008
Sir Michael Wilkes served in the British Army for 35 years, reaching the rank of Full General and has seen active service in
Special Forces across the world. On leaving the Army in 1995 he was appointed Lieutenant Governor and Commander in
Chief of Jersey, where he served until retiring in 2000. Sir Michael was appointed a Non-Executive Director of Le Riche
Group Ltd in 2001 and subsequently Chairman. After overseeing its merger he became Deputy Chairman of C.I. Traders Ltd,
the largest employer in the Channel Islands, until its recent take-over. Sir Michael holds other non-executive directorships
across a range of activities and his outside interests include acting as a Trustee of the Nuffield Trust for the Services. He is
Chairman of the Remuneration Committee and a member of the Audit Committee.
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John Byfield, Non-Executive Director
Date of Birth: 7 November 1951, date of appointment as Director: 28 April 2010
John Byfield qualified as a Solicitor in 1978 and was senior partner of a substantial law practice for some 20 years. During
that time he specialised in company and commercial law and advised many boards of both private and public companies.
John acted as executive Chairman of Essentially Group, formerly AIM listed, from 2002 until the company was sold in
October 2009. Jersey resident, he holds a variety of directorships including one with a Jersey Financial Services Commission
regulated trust company.
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Appendix III – Major shareholders
2010
2009
Black Rock Investment Management (UK) Limited
11.56%
14.64%
Artemis Investment Management Limited
9.93%
9.93%
Black Rock UK Smaller Companies Fund
5.86%
6.36%
Montanaro Group
3.71%
4.49%
Barclays plc
5.14%
5.14%
Black Rock, Inc
4.20%
4.20%
Ignis Investment Services Limited
3.09%
3.09%
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Appendix IV – Contact Details
The Stanley Gibbons Group plc,
Registered Office
Stanley Gibbons Limited
Martin Bralsford, Chairman
Donal Duff, Chief Operating Officer
6 Vine Street
St. Helier, Jersey, JE2 4WB
Tel: 01534 766711
Email: info@stanleygibbons.co.uk
Richard Purkis, Corporate Services Director
399 Strand
London, WC2R 0LX
Tel: 020 78368444
Email: info@stanleygibbons.co.uk
Stanley Gibbons (Guernsey) Limited
Stanley Gibbons Limited
Mike Hall, Chief Executive
18 Le Bordage
St. Peter Port, Guernsey, GY1 1DE
Tel: 01481 708270
Email: investment@stanleygibbons.co.uk
Mark Henley, Finance Director
7 Parkside, Christchurch Road
Ringwood, Hampshire, BH24 3SH
Tel: 01425 472363
Email: info@stanleygibbons.co.uk
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“…stamps’ day as an alternative asset class has come – and longterm returns can be first class.”
David Stevenson, Financial Times 28 May 2010
Questions?
Contact Details:
Mike Hall, Chief Executive
Tel: +44 (0)1481 708273
Mobile: +44 (0)7781134404
Email: mhall@stanleygibbons.com
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