1

The Stanley Gibbons Group

Final ResultsInvestors Presentation

22 March 2013

2

ContentsPages

1. Financial Highlights 3-52. Operating Highlights 6

a) Philatelic 7b) Publishing

8c) Other Collectibles 9d) Internet 10

3. Internet Strategy 11-124. Outlook & Strategic Focus 135. The Board 146. Management Team 15

Appendix I Income Statement 17Appendix II Balance Sheet 18Appendix III Cashflows 19-20Appendix IV Contact Details 21

3

Financial Highlights 2012 2011

restated Variance %

Revenue £35.6m £35.7m -

Profit before tax £5.3m £4.9m + 7%

EBITDA* £6.5m £5.8m + 12%

Adjusted earnings per share**

21.44p 19.40p + 10%

Dividend per share (net) 6.50p 6.00p + 8%

Dividend cover (times) 3.3 3.2 + 2%

Net assets per share 111.5p 88.7p + 26%

Net cash*** £6.8m £3.2m + 113%

Inventories (at historic cost) £20.7m £16.8m + 23%

*Excludes exceptional operating costs, interest, tax, depreciation and amortisation and actuarial accounting adjustments. ** Excludes exceptional operating costs and actuarial accounting adjustments. *** Includes proceeds of fundraising in November 2012.

4

Financial Highlights

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

• Internet sales from core website, www.stanleygibbons.com, were up 55% in the year (2011: up 27%)

• Now more than 50% of revenues generated from overseas (25% in 2009)

• Gross margin% up from 38.7% to 43.7% reflecting buying opportunities of major collections taken in the year at substantial discounts to market value

• Adjusted earnings per share up 10% to 21.44p

• Proposed final dividend of 3.75p (2011: 3.50p), giving a total dividend for the year of 6.5p (2011: 6.0p), up 8%

5

Financial Highlights

• Cash funds at 31 December 2012 of £6.8m (2011: £3.2m) reflecting the net proceeds of £5.8m from the placing and fundraising in November 2012

• Stock levels at 31 December 2012 stated at historic cost of £20.7m (2011: £16.8m) providing asset base to deliver future organic growth from core trading activities

6

Operating Review

2012 2011Restated

Prior year profit before tax 4.9 4.2

Philatelic trading and retail operations 1.2 1.3Publishing and philatelic accessories 0.1 -Dealing in other collectibles 0.3 (0.2)Corporate overheads (0.7) (0.2)

Trading profits 5.8 5.1

Internet development (0.2) (0.1)Actuarial accounting adjustments (0.1) (0.1)Exceptional costs (0.2) -

End of year profit before tax 5.3 4.9

7

Philatelic• 19% profit growth achieved through

increase in gross margin and lower marketing spend with focus on nurturing existing client relationships

• Sale of largest block of mint penny blacks in existence for £1m

• Hong Kong office contributed sales of £2.6m and profits of £0.7m

• Prevailing strong demand for Chinese rare stamps with sales up 83% to £2.1m

• Auction commissions were up 60% benefiting from the strong realisation of the sale of the prestigious “Arnhold Collection”, achieving £1.6m

8

Publishing• 16% profit growth following completion

of restructuring and rationalisation exercise last year

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

• Sales of catalogues, albums and accessories up 17% with online sales up 76%

• Decline in sales of our printed monthly magazines and associated advertising revenues, as expected

• Online subscription services and mobile application download revenues expected to compensate for decline in printed publication sales in the future

9

Other Collectibles• 34% profit growth from increased sales of

rare coins and Benham first day covers

• Profits from The Benham Group up 26% to £0.7m, benefiting from sales of commemorative collectibles related to the London 2012 Olympics and the Queen’s Diamond Jubilee, including £0.6m sales into Chinese market

• Sales of rare coins and military medals were up 31% to £1m, with profit contribution of £0.2m, up 80%

• Autograph division profits up by 18%, including sale of Edward IV manuscript for £0.14m

10

Internet• Development costs incurred in year of

£0.4m (2011: £0.2m) representing investment in future online opportunities

• Acquisition of bidStart, a US-based online collectibles trading platform for a consideration of $1m in November 2012

• Successful placing and fundraising of £6m providing finance to accelerate and enhance the development of the global online collectibles trading platform

• Total member numbers on bidStart showed a 44% increase in the 90 days since acquisition

• Significant advances made in building appropriate quality of team necessary to deliver online strategy

11

Internet: Where we are now

• BidStart– 71K Active Sellers

– 6.9M Listings (including 3.5M stamps)

– $2.5M GMV

– $300K Revenue

• Stanley Gibbons– Simple web operation with complex systems

12

Internet: 2013 Goals & Milestones

• BidStart– Recruit team – Q2/Q3

– Invest in operations – Q2/Q3

– Drive seller and listing growth – Q3/Q4

– Accelerate GMV growth with marketing – now

• Stanley Gibbons– Rationalise existing sites and systems – Q2

– Continued evaluation and development of team – now

– Migrate to open source platforms – Q2/Q3

13

Outlook & Strategic Focus

• Consolidation of collectibles market through a combination of developing key services online and by appropriate acquisition of top quality businesses in rare stamps and other areas of collectibles to strengthen expertise

• Online strategy is supported by international expansion programme and planned development and growth of auction services

• Macro-economic factors in favour of tangible assets providing expectation of future appreciation of collectibles as an asset class and corresponding increased interest globally for collectibles as a diversification tool within a well balanced investment strategy

• Discussions ongoing with potential business partners in the US and other key overseas markets in respect of the planned growth of our auction services internationally

• Profits in 2013 will be affected by the intended increased investment in our online strategy. It is expected that the costs of this investment will be more than compensated by growth opportunities in other parts of the business.

14

The Board

• 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 2012

• Martin Magee appointed in his place as non-executive and Chairman of the audit committee in August 2012

• Richard Purkis, Corporate Services Director and Company Secretary stepped down from his role as a Director of the Group on 31 January 2013 and is working a 12 month notice period ensuring a smooth handover of his duties

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

15

Management Team

• High level appointments to internet team to support and accelerate implementation of online strategy included:

– Mark Rosenberg as Chief Digital Officer in November 2012, founder and former owner of bidStart based in the US

– Paul Zimmerman as Director of E-Commerce Operations in February 2013, formerly of Amazon.com, Firebox.com and Play.com, based in Jersey, CI

• Restructuring and rationalisation of IT and internet team based in Ringwood, Hampshire completed in February 2013

• Promotion of Anthony Gee (formally Group Financial Controller) to Director of UK Operations in March 2013

• Currently recruiting new Group Financial Controller to be based in Jersey, CI

• Promotion of Tony Grodecki (formally Managing Director of The Benham Group) to the position of Group Commercial Director

16

Appendices

PagesAppendix I Income Statement 17Appendix II Balance Sheet 18Appendix III Cashflows 19-20Appendix IV Contact Details 21

17

Appendix I - Income StatementYear ended Year ended

31-Dec-12 31-Dec-11 (restated)

£'000 £'000

Revenue 35,599 35,704

Cost of sales (20,031) (21,872)

Gross profit 15,568 13,832

Gross profit % 43.7% 38.7%

Administrative expenses (3,332) (2,793)

Selling and distribution expenses (6,524) (5,882)

Exceptional operating costs (349) (112)

Operating profit 5,363 5,045

Finance income 3 1

Finance costs (94) (100)

Profit before tax 5,272 4,946

Taxation (389) (415)

Profit after tax 4,883 4,531

Effective tax rate 7.4% 8.4%

Earnings per share

Basic 18.94p 17.97p

Adjusted 21.44p 19.40p

18

Appendix II – Balance SheetAt 31 Dec 12 £000 At 31 Dec 11 £000 (restated)

Intangible assets 1,723 1,133

Property, plant and equipment 2,145 2,032

Deferred tax asset 735 732

Trade and other receivables 229 420

Non-current assets 4,832 4,317

Inventories 20,728 16,801

Trade and other receivables 11,668 9,178

Cash and cash equivalents 6,766 3,230

Current assets 39,162 29,209

Trade and other payables (8,178) (6,641)

Borrowings (188) (250)

Current tax payable (170) (370)

Current liabilities (8,536) (7,261)

Retirement benefit obligations (3,161) (2,761)

Borrowings - (188)

Other provisions for liabilities (593) (898)

Non-current liabilities (3,754) (3,847)

Net assets 31,704 22,418

19

Appendix III - CashflowsAt 31 Dec 12 At 31 Dec 11

£'000 £'000

Cash generated from operations 1,007 4,051

Interest paid (41) (56)

Taxes paid (552) (420)

Net cash generated from operations 414 3,575

Purchase of property, plant and equipment (368) (344)

Purchase of intangible assets (138) (231)

Acquisition of business (382) -

Interest received 3 1

Net cash used in investing activities (885) (574)

Dividends paid to company shareholders (1,581) (1,449)

Repayments of borrowings (250) (251)

Net proceeds from issue of ordinary share capital 5,838 91

Net cash generated/(used in) financing activities 4,007 (1,609)

Net increase in cash and cash equivalents 3,536 1,392

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

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

20

Appendix III - Cashflows

At 31 Dec 12 At 31 Dec 11 (restated)

£'000 £'000

Operating profit 5,363 5,045

Depreciation 255 239

Amortisation 184 112

(Decrease)/increase in provisions (216) 215

Cost of share options 108 108

Increase in inventories (3,927) (2,027)

Increase in trade and other receivables (2,299) (732)

Increase in trade and other payables 1,539 1,091

Cash generated from operations 1,007 4,051

21

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