Situation worsens for Stanley Gibbons
COLLECTING: Losses at Stanley Gibbons widened last year as the stamp and coin specialist’s financial situation continued to deteriorate.
The company posted an £8.8m trading loss in the year to March, more than double the £3.9m in 2016.
Revenue also slumped, from £59.1m to £42.5m.
LOSSES AT Stanley Gibbons widened last year as the stamp and coin specialist’s financial situation deteriorated.
The company posted an £8.8m trading loss in the year to March, more than double the £3.9m in 2016. On a pre-tax basis, losses rose from £27.9m to £30.2m.
Revenue also slumped, from £59.1m to £42.5m as Stanley Gibbons confirmed that it was in default on its loans.
The firm said it is now “dependent on the bank’s ongoing support”.
The group has been stung by a slowdown in the stamps and collectables market, particularly in its rare coins business AH Baldwin, and hampered by a string of failed historic acquisitions.
It is now trying to offload noncore assets in an effort to raise cash.
Chairman Harry Wilson said: “There can be no guarantee that the bank will provide facilities beyond May 31, 2018 and the company is likely to require access to further liquidity in the intervening period.”
He added: “The company remains in constructive discussions with the bank, regarding its short-term liquidity requirements, and the terms of such funding in such form as it may become available.”
However, he said that the board has “reasonable grounds” to believe that alternative finance will be available via further asset disposals or from an “alternative finance provider” should the company’s lenders decide to pull the plug.
Earlier this year, Stanley Gibbons put itself up for sale as part of a review being led by FinnCap.
Private equity firm Disruptive Capital was thought to be interested in buying the company, but has since denied this.