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The Stanley Gibbons Group

Final ResultsInvestors Presentation

March 2012

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Contents

Pages1. Financial Highlights 3-52. Operating Highlights 6

a) Philatelic 7b) Publishing

8c) Other Collectibles 9d) Internet 10

3. Outlook & Strategic Focus 11-124. Management Team 13

Appendix I Income Statement 14Appendix II Balance Sheet 15Appendix III Cashflows 16-17Appendix IV Contact Details 18

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Financial Highlights

2011 2010 Variance %

Revenue £35.7m £26.4m + 35%

Profit before tax £5.1m £4.3m + 19%

EBITDA* £5.7m £4.7m + 20%

Earnings per share 18.5p 15.2p + 22%

Dividend per share (net) 6.00p 5.50p + 9%

Dividend cover (times) 3.09 2.77 + 12%

Net assets per share 94p 83p + 13%

Cash balances £3.2m £1.8m + 78%

Inventories (at historic cost) £16.8m £14.8m + 14%

*Excludes exceptional operating costs, interest, tax, depreciation and amortisation and IFRS share option charges.

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Financial Highlights

• Sales up 35% with key growth areas being online trading, philatelic dealing and investment services

• Online sales of £4.3m (2010: £2.5m) up 72%

• The Benham Group acquisition, completed in September 2010, contributed sales of £2.6m. Like-for-like sales, excluding Benham, were up 28%

• Gross margin% down from 43.8% to 38.7% reflecting substantial change in sales mix with an increase in the sale of high value rarities at lower trading spreads

• Profit before tax of £5.1m (2010: £4.3m) up 19%

• Proposed final dividend of 3.5p (2010: 3.25p), giving a total dividend for the year of 6p (2010: 5.5p), up 9%

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Financial Highlights

• Cash generated from operating activities of £4.1m (2010: £2.2m) after reinvestment of cash in stockholding of £2m (2010: £4.1m)

• Cash funds at 31 December 2011 of £3.2m (2010: £1.8m) after payment of dividends in year of £1.4m (2010: £1.3m)

• Stock levels at 31 December 2011 stated at historic cost of £16.8m (2010: £14.8m), representing 280 days stock held (2010: 363 days)

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Operating Highlights – Segmental Overview

2011 2011 2011 2010 2010 2010%

change%

change

Sales Profit Profit Sales Profit Profit Sales Profit

£000 £000 % £000 £000 % % %

Philatelic trading and retail operations 27,727 5,943 21% 19,422 4,621 24% 43% 29%

Publishing and philatelic accessories 2,980 677 23% 3,146 672 21% -5% 1%

Dealing in other collectibles 4,955 835 17% 3,820 1,082 28% 30% -23%

35,662 7,455 21% 26,388 6,375 24% 35% 17%

Internet development 42 (127) - 41 (24) - - -

Corporate overheads - (2,108) - - (1,914) - - 10%

Net interest - (3) - - 17 - - -118%

Before exceptional costs 35,704 5,217 15% 26,429 4,454 17% 35% 17%

Exceptional operating costs - (112) - - (150) - - -

Group total sales and profit before tax 35,704 5,105 14% 26,429 4,304 16% 35% 19%

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Philatelic• Increase in sales to investors and high net

worth individuals seeking diversification into collectibles market

• Sales to Channel Islands residents of £4.9m (2010: £2m) benefiting from opening of larger investment offices in Jersey in August

• Hong Kong office opened at the end of September, generating sales of £0.5m in the last quarter of the year

• Continued development into the Chinese rare stamp market generated sales of £1.1m (2010: £1m)

• Retail sales from 399 Strand up 15%

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Publishing• Broadly flat full year performance. Prior year

benefited from additional sales from London 2010 Stamp Exhibition

• Exceptional costs incurred of £0.1m from rationalisation programme completed in April 2011

• Profit contribution up 8% in the second half of 2011 benefiting from improvements to production efficiencies and negotiation of lower print costs

• Improved online distribution of our catalogue titles through own website, eBay.com and Amazon.com

• Substantial progress made in year in evolving traditional print business to e-publishing

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Other Collectibles• Sales up 30%, profit down 23% due to

substantial change in the mix of sales to lower margin products

• The Benham Group contributed sales of £2.6m and profits of £0.6m, (including £0.3m of sales into Chinese market)

• Successful diversification of product offering to include rare coins and military medals generating sales of £0.8m in seven months and profits of £0.1m

• Fall in sales and profits of autographs and historical documents due to lower sales of high value rarities to investors

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Internet• www.frasersautographs.com re-launched

in February 2011. Online revenues of autographs were up 57% in the year

• www.stanleygibbons.com re-launched at end of May 2011. Online revenues for the second half were up 67%

• New high net worth client leads sourced from the website generated sales of £3.4m (2010: £1.8m), up 89%

• Improved SEO & web offers increasing site traffic and doubling of conversion rates over past 6 months

• Extensive stockholding of lower value stamps made available to purchase online

• Online price catalogue and stamp album management functionality developed

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Outlook & Strategic Focus

• Reviewing strategic options before progressing to the next stage of planned online developments with an aim of accelerating and maximising returns from launch of an online trading platform and auctions

• Further online developments scheduled for 2012 include:

– Enhanced online stamp catalogue to comprise specialised philatelic information

– Launch of foreign language versions of website to support international developments

– Provision of mobile applications for our primary online content

• Potential new offices being explored in Brazil, Switzerland, Singapore, Monaco, Gibraltar and Edinburgh to replicate success of investment offices in Guernsey and Jersey. New offices support future online and auction growth objectives

• Progression of identified opportunities to develop the brand and sales into the US market

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Outlook & Strategic Focus

• Stronger team in place to develop auction business. Recently secured a major collection, with an auction estimate in excess of £1m. The sale will be held over two auctions in May and September

• Continued development of in-house expertise in rare coins and military medals with additional collectible categories under consideration

• Opportunities to benefit from commemorative collectibles produced for Queen’s Diamond Jubilee and the London Olympics 2012

• Working towards launch of £10m rare stamp investment fund in 2012

• Reviewing strategic opportunities in both stamps and other collectibles to compliment and strengthen our overall brand offering

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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)– Mark Henley, resigned as Finance Director in November 2011– Donal Duff, Chief Operating Officer, assumed the Finance Director responsibilities in

November 2011– Bob Henkhuzens (non executive and Chairman of audit committee), announcement of

completion of term and retirement at forthcoming AGM in May– Process to identify suitable successor for Chairman of audit committee in progress

• Key managerial appointments in year:– Managing Director of Benham Group appointed as Business Development Director– Head of Auctions (recently promoted to Managing Director, London) to ensure a broader

responsibility for the philatelic operation– Publisher– Retail Manager, 399 Strand

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Appendix I - Income StatementYear ended Year ended

31-Dec-11 31-Dec-10

£'000 £'000

Revenue 35,704 26,429

Cost of sales (21,872) (14,859)

Gross profit 13,832 11,570

Gross profit % 38.7% 43.8%

Administrative expenses (2,730) (2,269)

Selling and distribution expenses (5,882) (4,864)

Exceptional operating costs (112) (150)

Operating profit 5,108 4,287

Finance income 53 36

Finance costs (56) (19)

Profit before tax 5,105 4,304

Taxation (430) (473)

Profit after tax 4,675 3,831

Effective tax rate 8.4% 11.0%

Earnings per share

Basic 18.54p 15.22p

Adjusted (excluding exceptional charges) 18.87p 15.69p

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Appendix II – Balance SheetAt 31 Dec 11 £000 At 31 Dec 10 £000

Intangible assets 1,133 1,014

Property, plant and equipment 2,032 1,862

Deferred tax asset 224 32

Trade and other receivables 420 -

Non-current assets 3,809 2,908

Inventories 16,801 14,774

Trade and other receivables 9,178 8,866

Cash and cash equivalents 3,230 1,838

Current assets 29,209 25,478

Trade and other payables (6,641) (5,550)

Borrowings (250) (252)

Current tax payable (370) (349)

Current liabilities (7,261) (6,151)

Retirement benefit obligations (842) (114)

Borrowings (188) (435)

Other provisions for liabilities (898) (698)

Non-current liabilities (1,928) (1,247)

Net assets 23,829 20,988

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Appendix III - CashflowsYear ended 31 Dec 11

Year ended31 Dec 10

£'000 £'000

Cash generated from operations 4,051 2,211

Interest paid (56) (19)

Taxes paid (420) (408)

Net cash generated from operations 3,575 1,784

Purchase of property, plant and equipment (344) (871)

Purchase of intangible assets (231) (604)

Acquisition of business - (900)

Interest received 1 2

Net cash used in investing activities (574) (2,373)

Dividends paid to company shareholders (1,449) (1,322)

Proceeds from borrowings - 750

Repayments of borrowings (251) (63)

Net proceeds from issue of ordinary share capital 91 -

Net cash used in financing activities (1,609) (635)

Net increase/(decrease) in cash and cash equivalents 1,392 (1,224)

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

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

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Appendix III - Cashflows

Year ended31 Dec 11

Year ended31 Dec 10

£'000 £'000

Operating profit 5,108 4,287

Depreciation 239 170

Amortisation 112 32

Increase/(decrease) in provisions 152 (95)

Cost of share options 108 81

Increase in inventories (2,027) (4,081)

(Increase)/decrease in trade and other receivables (732) 1,181

Increase in trade and other payables 1,091 636

Cash generated from operations 4,051 2,211

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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: dduff@stanleygibbons.com

• Stanley Gibbons Limited

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