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STANLEY GIBBONSRare Stamps & Autographs

Interim Results - 2011

Investors Presentation

August 2011

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Contents

Pages

1. Financial Highlights 3-4

2. Operating Highlights 5-7

3. Outlook & Strategic Focus 8

4. Internet Development Update 9

5. Management Team 10

Appendix I Income Statement 11

Appendix II Balance Sheet 12

Appendix III Cashflows 13-14

Appendix IV Contact Details 15

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Financial Highlights 6 months to

30 June 2011 6 months to

30 June 2010

Variance %

Revenue £15.0m £11.9m + 25%

Adjusted profit before tax* £1.8m £1.6m + 12%

Adjusted earnings per share 6.18p 5.58p + 11%

Dividend per share (net) 2.50p 2.25p + 11%

Dividend cover (times) 2.47 2.48 0%

Net assets per share 86p 75p + 15%

Cash £1.3m £1.8m - 28%

Inventories (at cost) £15.6m £10.6m + 48%

* before exceptional charges

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Financial Highlights

• Sales up 25% with particularly strong performance from philatelic trading and retail operations

• Strong performance from the Benham Group (acquired in September 2010 for £1.5m), contributing profits of £0.3m in the first half

• Gross margin % down from 40.6% to 37.9%, impacted by higher level of trade sales in period and change in sales mix. Gross margins expected to improve in second half of year

• Adjusted profit before tax, excluding exceptional charges, of £1.8m (2010: £1.6m), up 12%

• Interim dividend increased by 11% to 2.50p

• £0.9m of cash generated from operations (2010: £0.8m) despite an increased investment in stockholding of £0.9m since beginning of the year

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Philatelic• Strong trade sales in period through

building of mutually beneficial trading relationships

• Development into Chinese rare stamp market generated £0.7m sales in period

• Sales of £0.2m “fine used” penny blacks to the Chinese market

• Retail sales from 399 Strand up 21%, benefiting from the refurbishment completed in April last year

• Increased demand from investors seeking a means of diversifying, protecting and growing their wealth in a tangible asset

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Publishing• Poor performance from Publishing

division in period with a £0.03m (13%) drop in profit contribution, although compares to a strong prior period, which benefited from the London 2010 Stamp Exhibition

• Exceptional costs incurred of £0.1m from rationalisation of Publishing division in first quarter, although generating future annual cost savings of £0.15m

• Stronger publishing schedule for second half with key annual titles on course for publication ahead of schedule

• Restructured team better focussed to deliver improved performance from implementation of strategic opportunities

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Other Collectibles• Acquired specialist expertise to extend

product offering into rare coins, commemorative medallions and military medals, with £0.4m sales of rare coins in the month of June

• The Benham Group contributed sales of £1.4m (including £0.3m product sales into the Chinese market) and profits of £0.3m

• Royal Wedding commemorative collectible sales lower than initially anticipated. Longer term benefits from recruitment of new clients for continuity programmes

• Reduction in autograph sales to investors during period due to shift in marketing focus, together with a lack of suitable material coming onto the market

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Outlook & Strategic Focus

• Online trading platform scheduled for launch in late 2011

• Opening a new office in Hong Kong in September 2011

• Moving to larger premises in Jersey in August 2011 providing increased retail gallery space

• Meetings scheduled with potential trading partners in the US in September

• Continue to diversify our quality product offering into other collectibles including rare coins, commemorative medallions and military medals

• Potential launch of rare stamp investment fund remains on agenda, although as a lower priority

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Internet Development Update

• New Fraser’s Autographs website, www.frasersautographs.com launched in February 2011 resulting in 13% increase in online sales compared to prior period

• Principal components of primary website, www.stanleygibbons.com launched on 31 May with growth in sales and visitor numbers encouraging to date. Sales in the period under review were down 14% as a result of disruption to services during the web development process

• Online trading platform scheduled for launch in late 2011

• Focus now on:– Ensuring we have appropriate e-infrastructure in place to react to the changing

marketplace– Building our dedicated in-house e-commerce team to ensure we are adequately

resourced to capitalise on recent technical developments– Developing relationships with clients of our e-commerce software providers

and established e-commerce industry experts

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Management Team

• Key new managerial appointments in period:

– Managing Director of Benham Group appointed as Business Development Director focussing, in the short term, on development of opportunities in China and the Far East

– Head of Auctions

– Publisher

– Retail Manager, 399 Strand

• Key appointments planned for the second half of 2011:

– Head of E-commerce

– Local manager for Hong Kong office

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Appendix I - Income Statement6 months to 6 months to

30-Jun-11 30-Jun-10

£'000 £'000

Revenue 14,951 11,915

Cost of sales (9,282) (7,079)

Gross profit 5,669 4,836

Gross profit % 37.9% 40.6%

Administrative expenses (1,273) (1,082)

Selling and distribution expenses (2,647) (2,202)

Exceptional operating costs (105) -

Operating profit 1,644 1,552

Finance income 28 18

Finance costs (22) -

Profit before tax 1,650 1,570

Taxation (170) (166)

Profit after tax 1,480 1,404

Effective tax rate 10.3% 10.6%

Earnings per share

Basic 5.88p 5.58p

Adjusted (excluding exceptional charges) 6.18p 5.58p

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Appendix II – Balance SheetAt 30 Jun 11

£000At 30 Jun 10

£000

Intangible assets 1,087 461

Property, plant and equipment 1,872 1,784

Deferred tax asset 32 124

Non-current assets 2,991 2,369

Inventories 15,629 10,574

Trade and other receivables 7,993 9,663

Cash and cash equivalents 1,271 1,776

Current assets 24,893 22,013

Trade and other payables (4,585) (3,898)

Borrowings (250) -

Current tax payable (204) (176)

Current liabilities (5,039) (4,074)

Retirement benefit obligations (75) (442)

Borrowings (312) -

Other provisions for liabilities (706) (1,006)

Non-current liabilities (1,093) (1,448)

Net assets 21,752 18,860

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Appendix III - Cashflows6 months to

30 Jun 116 months to

30 Jun 10

£'000 £'000

Cash generated from operations (page 14) 891 779

Interest paid (22) -

Taxes paid (315) (275)

Net cash generated from operations 554 504

Purchase of property, plant and equipment (126) (747)

Purchase of intangible assets (101) (288)

Interest received 1 -

Net cash used in investing activities (226) (1,035)

Dividends paid to company shareholders (818) (755)

Repayment of borrowings (125) -

Share options exercised 48 -

Net cash used in financing activities (895) (755)

Net decrease in cash and cash equivalents (567) (1,286)

Cash and cash equivalents at start of period 1,838 3,062

Cash and cash equivalents at end of period 1,271 1,776

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Appendix III - Cashflows

6 months to30 Jun 11

6 months to30 Jun 10

£'000 £'000

Operating profit 1,644 1,552

Depreciation 116 66

Amortisation 29 13

(Decrease)/increase in provisions (4) 192

Cost of share options 54 54

Increase in inventories (856) (1,285)

Decrease in trade and other receivables 873 303

Decrease in trade and other payables (965) (116)

Cash generated from operations 891 779

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Appendix IV - Contact details

The Stanley Gibbons Group plc

• Stanley Gibbons (Jersey) Limited

18 Hill Street

St. Helier, Jersey, JE2 4UA

Tel: +44(0)1534 766711

Email: investment@stanleygibbons.com

• Stanley Gibbons (Guernsey) Limited

18 Le BordageSt. Peter Port, Guernsey, GY1 1DE

Tel: +44(0)1481 708270

Email: investment@stanleygibbons.com

• Stanley Gibbons Limited

399 StrandLondon, WC2R 0LXTel: +44(0)20 78368444

Email: info@stanleygibbons.com

7 Parkside, Christchurch RoadRingwood, Hampshire, BH24 3SH

Tel: +44(0)1425 472363

Email: info@stanleygibbons.com

www.stanleygibbons.com