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The Stanley Gibbons Group

Interim Results - 2012Investors Presentation

August 2012

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Contents

Pages1. Financial Highlights 3-42. Operating Highlights 5

a) Philatelic 6b) Publishing

7c) Other Collectibles 8d) Internet 9

3. Outlook & Strategic Focus 104. Management Team 11

Appendix I Income Statement 12Appendix II Balance Sheet 13Appendix III Cashflows 14-15Appendix IV Contact Details 16

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Financial Highlights

6 months to 30/6/12

6 months to 30/6/11

Variance %

Revenue £14.7m £15.0m - 2%

Profit before tax £1.8m £1.7m + 8%

Earnings per share 6.53p 5.88p + 11%

Dividend per share (net) 2.75p 2.50p + 10%

Dividend cover (times) 2.37 2.35 + 1%

Net assets per share 98p 86p + 14%

Cash balances (£1.8m) £1.3m

Inventories (at historic cost) £24.5m £15.6m + 57%

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Financial Highlights

• Sales broadly in line with prior period, reflecting a shift in sales mix to higher margin business

• Online sales up 90% benefiting from the redevelopment of our core websites completed in the first half last year

• Gross margin% up from 37.9% to 44.5% as a result of change in sales mix and acquisition of top quality stamp collections in period at substantial discounts to market value

• Earnings per share up 11% to 6.53p

• Interim dividend increased by 10% to 2.75p

• Cash used in operating activities of £3.6m (2011: cash generated of £0.9m) reflecting short term investment in stockholding of £7.7m (2011: £0.9m)

• Stock levels at 30 June 2012 stated at historic cost of £24.5m (30 June 2011: £15.6m), representing a short term working capital commitment in preparation for the expected launch of rare stamp fund

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Operating Highlights – Segmental Overview

2012 2012 2012 2011 2011 2011%

change%

change

Sales Profit Profit Sales Profit Profit Sales Profit

£000 £000 % £000 £000 % % %

Philatelic trading and retail operations 10,302 2,552 25% 11,193 2,130 19% -8% 20%

Publishing and philatelic accessories 1,416 305 22% 1,265 202 16% 12% 51%

Dealing in other collectibles 2,967 464 16% 2,472 476 19% 20% -3%

14,685 3,321 23% 14,930 2,808 19% -2% 18%

Internet development 27 (134) - 21 (40) - 29% -

Corporate overheads - (1,297) - - (1,019) - - 27%

Net interest - 7 - - 6 - - 17%

Before exceptional costs 14,712 1,897 13% 14,951 1,755 12% -2% 8%

Exceptional operating costs - (110) - - (105) - - -

Group total sales and profit before tax 14,712 1,787 12% 14,951 1,650 11% -2% 8%

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Philatelic• Change in sales mix in period with

reduction of 17% in sales of investment products

• Acquisition of top quality stamp collections and key philatelic rarities at substantial discounts to market value

• New office in Hong Kong, opened in September last year, contributed sales of £1.3m and profits of £0.3m in first half

• Prevailing strong demand for rare stamps from China with sales double that of the prior period at £1.4m

• Auctions benefited from sale of “Arnhold Collection” with total realisation of £0.9m (129% of pre-sale estimate)

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Publishing• Improved profitability and focus following

completion of restructuring and rationalisation exercise last year

• Stronger publishing schedule in period and negotiation of lower print costs on key catalogue titles

• Increase in online sales of catalogues, albums and accessory products of 132%, representing 33% of total sales (2011: 19%)

• Evolving traditional print business to e-publishing including launch of mobile applications in period

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Other Collectibles• The Benham Group has contributed profits

of £1m since we acquired the business in September 2010 for £1.5m (21 months)

• Strong demand being experienced for commemorative products issued around the Queen’s Diamond Jubilee and the London Olympics 2012, particularly in China

• Sales of rare coins and military medals doubled to £0.8m as we developed further internal expertise in these areas

• Strategic review underway to improve profitability and return on capital from our quality stockholding of autographs and historical documents

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Internet• Successful launch of smart phone

applications providing collectors worldwide with easier and greater access to our key services and inventory

• Online sales up 90% benefiting from the redevelopment of our core websites completed in the first half last year

• Project to digitalise and make available online our comprehensive catalogue data on schedule for completion by the end of the year

• Strategic review of internet development plans completed in the period resulting in an increased investment in web development and support team to accelerate and maximise returns from online trading platform

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Outlook & Strategic Focus

• Actively pursuing opportunities to accelerate and maximise the returns from our online strategy

• Investment office in Singapore scheduled for opening later in the year

• Development of investment sales opportunities in Brazil through newly appointed SG agent in Rio De Janeiro

• In discussions with potential business partners in the US in respect of our online and auction developments

• Fund raising for rare stamp fund with proposed launch in October

• Improving sales and return on capital from our quality stockholding of autographs and historical documents

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Management Team

• Board changes:

– John Byfield appointed as Corporate Development Director in February 2012 (previously a non-executive director since April 2010)

– Bob Henkhuzens (non executive and Chairman of audit committee), retired on completion of term at AGM in May

– Martin Magee appointed in his place as non executive and Chairman of audit committee in August

• Key managerial appointments in period:

– Appointment of Anthony Gee as Group Financial Controller

– Promotion of Tony Grodecki to Group Commercial Director

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Appendix I - Income Statement6 months to 6 months to

30-Jun-12 30-Jun-11

£'000 £'000

Revenue 14,712 14,951

Cost of sales (8,161) (9,282)

Gross profit 6,551 5,669

Gross profit % 44.5% 37.9%

Administrative expenses (1,671) (1,273)

Selling and distribution expenses (2,990) (2,647)

Exceptional operating costs (110) (105)

Operating profit 1,780 1,644

Finance income 19 28

Finance costs (12) (22)

Profit before tax 1,787 1,650

Taxation (138) (170)

Profit after tax 1,649 1,480

Effective tax rate 7.7% 10.3%

Earnings per share

Basic 6.53p 5.88p

Adjusted (excluding exceptional charges) 6.85p 6.18p

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Appendix II – Balance SheetAt 30 Jun 12 £000 At 30 Jun 11 £000

Intangible assets 1,117 1,087

Property, plant and equipment 2,074 1,872

Deferred tax asset 224 32

Trade and other receivables 862 -

Non-current assets 4,277 2,991

Inventories 24,463 15,629

Trade and other receivables 8,298 7,993

Cash and cash equivalents - 1,271

Current assets 32,761 24,893

Trade and other payables (6,867) (4,585)

Bank overdraft (1,808) -

Borrowings (250) (250)

Current tax payable (287) (204)

Current liabilities (9,212) (5,039)

Trade and other payables (1,628) -

Retirement benefit obligations (809) (75)

Borrowings (63) (312)

Other provisions for liabilities (656) (706)

Non-current liabilities (3,156) (1,093)

Net assets 24,670 21,752

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Appendix III - Cashflows6 months to

30 Jun 126 months to

30 Jun 11

£'000 £'000

Cash (used in)/generated from operations (3,556) 891

Interest paid (12) (22)

Taxes paid (234) (315)

Net cash (used in)/generated from operations (3,802) 554

Purchase of property, plant and equipment (176) (126)

Purchase of intangible assets (74) (101)

Interest received 1 1

Net cash used in investing activities (249) (226)

Dividends paid to company shareholders (884) (818)

Repayments of borrowings (125) (125)

Net proceeds from issue of ordinary share capital 22 48

Net cash used in financing activities (987) (895)

Net decrease in cash and cash equivalents (5,038) (567)

Cash and cash equivalents at start of period 3,230 1,838

Cash and cash equivalents at end of period (1,808) 1,271

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Appendix III - Cashflows

6 months to30 Jun 12

6 months to30 Jun 11

£'000 £'000

Operating profit 1,780 1,644

Depreciation 134 116

Amortisation 90 29

Decrease in provisions (244) (4)

Cost of share options 54 54

Increase in inventories (7,662) (856)

Decrease in trade and other receivables 438 873

Increase/(decrease) in trade and other payables 1,854 (965)

Cash (used in)/generated from operations (3,556) 891

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Appendix IV - Contact details

• The Stanley Gibbons Group plc, Registered Office

Martin Bralsford, Chairman

Mike Hall, Chief ExecutiveDonal Duff, Chief Operating Officer & Finance Director18 Hill StreetSt. Helier, Jersey, JE2 4UATel: 01534 766711Email: mhall@stanleygibbons.comEmail: dduff@stanleygibbons.com

• Stanley Gibbons Limited

Richard Purkis, Corporate Services Director399 StrandLondon, WC2R 0LXTel: 020 78368444Email: rpurkis@stanleygibbons.com