Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Value-focused fund manager throws rare coins-to-stamps retailer a lifeline

Bombed-out stamps-to-rare coins dealer Stanley Gibbons (SGI:AIM) saw its share price rally on news (23 Feb) that fund manager Phoenix will invest up to £19.45m for a controlling 58.09% stake.

The lifeline should help Stanley Gibbons emerge from a challenging period, to quote Phoenix founder Gary Channon, ‘bought on by questionable acquisitions and poor management decisions’ under previous leadership.

The proposed deal will see Phoenix become Stanley Gibbons’ primary creditor, dramatically reduce the AIM company’s debt and boosting its cash resources.

Over the past two years, struggling Stanley Gibbons has been restructured, a new management team hiving off or closing businesses, cutting costs and re-focusing the British heritage brand on serving the global philatelic and numismatic collectibles market.

Funds injected by Phoenix, also the controlling shareholder in troubled toy-to-hobby products business Hornby (HRN:AIM), will be used to invest in new stamp and coin stock and digitise Stanley Gibbons’ intellectual property.

Channon says Stanley Gibbons incorporates ‘some of the strongest brands in the fields of philately and numismatics’.

He adds: ‘We look forward to helping the company rebuild and fulfil its potential as a truly great business and will do so with a long-term approach, consistent with how we have always invested.’ (JC)

‹ Previous2018-03-01Next ›