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The Stanley Gibbons Group

Final ResultsInvestors Presentation

27 June 2014

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Contents

Pages1. Financial Highlights

32. Operating Review 43. Operating Highlights

a) Philatelic Dealing 5b) Auctions 6c) Publishing

7d) Other Collectibles 8e) Internet 9

4. Online Marketplace 10-115. Outlook & Strategic Focus 126. The Board

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Financial Highlights Year ended

31 Dec 2013 Year ended 31 Dec 2012

(adjusted)

Variance %

Revenue £41.6m £35.6m + 16%

Trading profits* £6.9m £6.3m + 9%

Adjusted profit before tax** £5.6m £6.0m - 8%

Adjusted earnings per share**

16.77p 20.98p - 20%

Dividend per share 7.00p 6.50p + 8%

Dividend cover (times) 2.4 3.2

At 31 March 2014

At 31 Dec 2012

Variance %

Net assets per share (p) 180.1 111.5 + 62%

Cash balances £9.5m £6.8m + 40%

Inventories – at historic cost £42.1m £20.7m + 103%

* Excludes investment on internet development, exceptional operating charges and actuarial accounting adjustments. ** Excludes exceptional operating charges and actuarial accounting adjustments

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Operating Review

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Philatelic Dealing• 2% profit growth, primarily supported by

sales of philatelic rarities to high net worth collectors and investors

• Hong Kong office contributed total sales of £3.3m (2012: £2.6m) and profits of £0.7m (2012: £0.6m)

• New office in Singapore opened in April 2013 contributed sales of £0.2m in year, with a net loss of £0.1m

• Two “seven-figure” exceptional and prestigious stamps collections secured, providing strong platform to deliver growth in core dealing activities in current financial year

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Auctions• Auction revenues for the year ended 31

December 2013 broadly in line with prior year

• Philatelic auctions business strengthened by acquisitions of Murray Payne Limited and Apex Philatelics (part of Noble Group)

• Stanley Gibbons February 2014 public auction was one of our strongest in recent years

• Secured strong consignments in the quarter ended 31 March 2014 providing a degree of visibility to future earnings

• Sale of British Guiana 1c Magenta by Sotheby’s, New York in June for $9.5m, representing a world record

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Publishing• 12% fall in profits as a result of retirement

and closure of our major wholesale distributor in the second half of the year

• Progress being made in recruiting new trade clients previously handled by this distributor

• New catalogue database developed as integral part of our internet project substantially improves publishing efficiencies and printing options

• Online catalogue data will be an integral element of online marketplace

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Other Collectibles• 68% profit growth benefiting from Noble

acquisition at end of November last year

• Substantial success in cross selling rare coins from Baldwin’s stockholding to SG high net worth clients

• Autograph division integrated and relocated to Bloomsbury Auction premises at Maddox Street in first quarter of 2014, showing immediate benefits

• Benham First Day Covers business delivered acceptable return in year despite absence of any significant commemorative events

• Dreweatts auctions performing well and embracing cross selling opportunities

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Internet• Development costs incurred in year of

£1.6m (2012: £0.4m) in line with plan and financed by the fundraising of £6m in November 2012

• Total online revenues of £3.5m, in line with prior year

• Bid start acquisition contributed online commission income of £0.2m in year

• Beta version of Stanley Gibbons branded online marketplace is currently undergoing rigorous testing by both our own internal specialists and a taskforce of external users

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Online Marketplace• Key technical projects delivered in the

fifteen months ended 31 March 2014:

– Digital Catalogue Data Management System (“Oreo”)

– Imported “Stamps of the World” (6 volumes, 500,000+ stamps) into digital catalogue

– Imported 5 million 3rd party stamp listings into marketplace

– Linked stamp listings to our digital catalogue

– Search and browse facility using digital catalogue data

– Enhanced product listings– Developed and launched the

foundation (in Beta) of the Stanley Gibbons Marketplace

• Investment has been focussed on technical development work rather than driving increased sales through online marketing

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Online Marketplace• Technical milestones over next 12 months:

– Complete migration to “open source platforms”

– Launch seller features– Stanley Gibbons payment system– Store features– First of social features (My

Collection, Groups)– Buyer/seller auctioning and live

auctions– Social sharing tools &

recommendations, social dashboard– Coin features & tools– Stamp image recognition software

• Supported by commercial team with sales and marketing plan to deliver growth in GMV later in year

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Outlook & Strategic Focus

• Strong balance sheet position in terms of cash resources and quality stockholding which is expected to generate growth in the current financial year from core dealing activities

• Most important milestone for the current financial year is the forthcoming launch of the Stanley Gibbons branded online marketplace

• Delivery of further integration cost savings following the acquisition of Noble in November 2013, including the move of the Baldwin’s team from Adelphi Terrace to the Strand later this year

• Plans to sell Adelphi Terrace freehold property with a book value of £3m

• Delivery of continued cross selling benefits from being able to provide a first class service in a wide range of collectibles to our combined client base

• Focus on securing further top quality collections for our auction division benefiting from the enlarged Group’s combined expertise

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The Board

• The executive team was augmented in the year with the appointment of the Chief Executive of Noble, Ian Goldbart to the Board as Managing Director of Dealing & Auctions based in London

• Donal Duff appointed as Chief Finance Officer (previously Finance Director and Chief Operating Officer) reflecting the substantial increase in responsibility in respect of managing the Finance function of the enlarged Group following recent acquisitions

• The board of independent non executive directors was strengthened in the year with the appointment of Simon Perree (co-founder of Play.com) and Clive Jones (previously Chairman of the Jersey Financial Services Commission)

• The Board now consists of four executive directors and four independent non-executive directors, representing a well balanced Board composition and in accordance with accepted best corporate governance practice

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Appendices

PagesAppendix I Income Statement 15Appendix II Balance Sheet 16Appendix III Cashflows 17-18Appendix IV Contact Details 19

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Appendix I - Income Statement15 months ended Year ended

31-Mar-14 31-Dec-12 (restated)

£'000 £'000

Revenue 51,772 35,599

Cost of sales (28,937) (20,031)

Gross profit 22,835 15,568

Gross profit % 44.1% 43.7%

Administrative expenses (7,779) (3,332)

Selling and distribution expenses (10,621) (6,524)

Exceptional operating costs (2,081) (349)

Operating profit 2,354 5,363

Finance income 32 3

Finance costs (173) (211)

Profit before tax 2,213 5,155

Taxation (78) (389)

Profit after tax 2,135 4,766

Effective tax rate 8.2% 6.8%

Earnings per share

Basic 6.32p 18.48p

Adjusted 13.30p 20.98p

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Appendix II – Balance SheetAt 31 Mar 14 £000 At 31 Dec 12 £000

Intangible assets 32,571 1,723

Property, plant and equipment 6,294 2,145

Deferred tax asset 1,016 735

Available for sale financial assets 1,473 -

Trade and other receivables - 229

Non-current assets 41,354 4,832

Inventories 42,118 20,728

Trade and other receivables 14,144 11,668

Current tax receivable 135 -

Cash and cash equivalents 9,499 6,766

Current assets 65,896 39,162

Trade and other payables (15,928) (8,179)

Deferred consideration (2,153) -

Borrowings (276) (188)

Current tax payable - (169)

Current liabilities (18,357) (8,536)

Retirement benefit obligations (3,285) (3,161)

Borrowings (528) -

Other provisions for liabilities (1,135) (593)

Non-current liabilities (4,948) (3,754)

Net assets 83,945 31,704

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Appendix III - Cashflows15 months ended 31-Mar-

14 Year ended 31-Dec-12

£'000 £'000

Cash (consumed)/generated from operations (3,904) 1,007

Interest paid (4) (41)

Taxes paid (433) (552)

Net cash (consumed)/generated from operations (4,341) 414

Purchase of property, plant and equipment (536) (368)

Purchase of intangible assets (1,528) (138)

Acquisition of business assets (net of cash acquired) (29,036) (382)

Interest received 36 3

Net cash used in investing activities (31,064) (885)

Dividends paid to company shareholders (1,940) (1,581)

Net borrowings 588 (250)

Net proceeds from issue of ordinary share capital 39,490 5,838

Net cash generated from financing activities 38,138 4,007

Net increase in cash and cash equivalents 2,733 3,536

Cash and cash equivalents at start of year 6,766 3,230

Cash and cash equivalents at end of year 9,499 6,766

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Appendix III - Cashflows

15 months ended 31-Mar-14 Year ended 31-Dec-12

£'000 £'000

Operating profit 2,354 5,363

Depreciation 475 255

Amortisation 507 184

Write off of intangibles 139 -

Increase/(decrease) in provisions 139 (216)

Cost of share options 188 108

Increase in inventories (10,280) (3,927)

Decrease/(increase) in trade and other receivables 5,774 (2,299)

(Decrease)/increase in trade and other payables (3,200) 1,539

Cash (consumed)/generated from operations (3,904) 1,007

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Appendix IV - Contact details

• The Stanley Gibbons Group plc, Registered Office

Martin Bralsford, Chairman

Mike Hall, Chief ExecutiveDonal Duff, Chief Finance Officer2nd Floor, Minden House, Minden PlaceSt. Helier, Jersey, JE2 4WQ

Channel IslandsTel: 01534 766711Email: mhall@stanleygibbons.comEmail: dduff@stanleygibbons.com

• Stanley Gibbons Limited

Richard Purkis, Company Secretary399 StrandLondon, WC2R 0LXTel: 020 78368444Email: rpurkis@stanleygibbons.com