Regulatory News item
REG-Noble Investments Preliminary Results
Released: 05/11/2009
Released: 05/11/2009
com:20091105:RnsE9876B
.
RNS Number : 9876B
Noble Investments (UK) PLC
05 November 2009
Noble Investments (UK) PLC ("Noble", the "Company" or the "Group")
Preliminary results for the year ending 31 August 2009
Noble Investments (UK) PLC, the AIM listed coin and stamp dealer, is pleased to
announce its preliminary results for the year ended 31 August 2009.
Financial highlights:
- Operating profit of £1,952,000 up 16% (2008 £1,684,000);
- EBITDA up 19% to £2,081,000 (2008: £1,745,000);
- Total dividend recommended of 3.0p up 20% (2008: 2.5p);
- Basic earnings per share of 9.59p up 11% (2008 8.65p);
- Diluted earnings per share of 9.45p up 14% (2008 8.32p);
- Strong ungeared balance sheet with Net Asset value of
£13.8m (£13.7m); and
- Cash balance of £2.7m after expenditure on buyback and
cancellation of 10% of equity.
Year ended31 August 2009 Year ended31 August 2008
£'000 £'000
Revenue 12,097 10,141
Operating profit 1,952 1,684
Profit before tax 2,006 1,918
Cash 2,732 3,871
Collectibles inventory 8,608 8,189
Basic earnings per share Pence9.59 Pence8.65
Diluted earnings per share 9.45 8.32
Operational highlights:
- Strong retail sales led by demand for high quality rarities;
- Numismatic auction department revenue steady with auctions
conducted in London, Hong Kong and New York during the period
under review;
- Apex Philatelics Ltd ("Apex") revenues and profits strong
with 4 postal and 3 public auctions during the period; and
- Significant growth in website traffic over the period. The
combined three websites of Noble, A H Baldwin and Apex
attracted over 11 million hits during the year and an average
of over 11,000 visits per month.
Ian Goldbart, Managing Director of Noble commented: "I am delighted to report
that Noble has continued to make significant progress over the last 12 months.
Collectibles trading continued to be resilient throughout the year in very
difficult economic conditions. The demand for high quality and rare items was
especially robust throughout the year".
Enquiries:
Ian GoldbartNoble Investments (UK) PLC+44 (0)7785 114 987
Adrian Hadden/ Stewart Wallace
Collins Stewart Europe Limited
+44(0)20 7523 8350
David Haggie/Henrietta Breakwell
Haggie Financial
+44(0)20 7417 8989
For further information: www.nobleinvestmentsplc.com www.baldwin.co.uk
www.apexstamps.com
Chairman's Statement
I am delighted to be making my first Chairman's statement since stepping up from
Deputy Chairman last year.
Financial overview
The financial results for the year to 31 August 2009 show an increase over the
equivalent period last year of approximately 19% in revenue. Operating profit
increased by 16% and profit before tax by 5%, which reflects a considerable
reduction in interest income on our cash balances during the year. Underlying
these results is robust improvement in trading of rare coins along with
satisfactory results from the auction division and a maiden full year
contribution from Apex Philatelics Limited ("Apex") which was acquired at the
very end of last year. We are very pleased with the performance of Apex and the
business and individuals have integrated well with the team at AH Baldwin & Sons
Limited ("A H Baldwin").
We believe that the business has been managed on a conservative and prudent
basis on behalf of the shareholders during the period, particularly in view of
the prevailing economic conditions.
Economic conditions
Towards the start of the year, financial markets were in freefall, reeling from
the collapse of Lehman Brothers and the considerable and essential infusion of
liquidity into the banking system by governments worldwide. Throughout this
turmoil the businesses of A H Baldwin and Apex continued trading very
satisfactorily.
The trading businesses of Noble were well positioned in the event being debt
free and with very comfortable cash reserves and comprehensive inventories. It
is our enviable stock of numismatic, philatelic and other collectibles which
differentiates us from many of our peers both in the United Kingdom and overseas
as it constantly attracts collectors to our London premises and to our stands at
international coin fairs.
Dividend
We intend to recommend a final dividend of 2.00p, making a total of 3.00p for
the year (2008: 2.50p). This represents a 20% increase on last year's total
dividend. The full year dividend is more than three times covered by earnings
per share.
The final dividend will be paid, subject to shareholders approval, on 8 January
2010 to shareholders on the register on 11 December 2009.
We intend to maintain a progressive dividend policy as conditions permit.
Prospects
Looking to the future we hope for continuing organic growth of the existing
businesses both at home and internationally. We are very much attuned to the
prospect of making further acquisitions of businesses which are in areas that
complement our existing strengths and bring additional specialists with them. We
remain as a business, extremely well capitalised with a very strong balance
sheet and we are determined to increase shareholder returns through prudent
expansion.
I am sure that shareholders will wish to join with me in commending Ian and his
team in their efforts on the Group's behalf during such a difficult economic
climate.
Jasper Allen
Non-Executive Chairman
5 November 2009
Managing Director's Review
I am pleased to be able to report that further progress has been made since the
Group's interim results.
Financial results
Revenue up 19% to £12,097,000 (2008: £10,141,000);
Operating profit up 16% to £1,952,000 (2008: £1,684,000);
EBITDA up 19% to £2,081,000 (2008: £1,745,000);
Basic earnings per share up 11% to 9.59p (2008: 8.65p);
Diluted earnings per share of 9.45p up 14% (2008 8.32p);
Total dividend up 20% to 3p (2008: 2.5p); and
Strong ungeared balance sheet of £13.8m (2008: £13.7m) despite £1.8m expenditure
on buyback and cancellation of 10% of equity, dividends and Apex deferred
consideration.
Financial overview
The results for the year showed an increase in revenue of 19% to £12,097,000
(2008: £10,141,000). This was mainly due to the acquisition of Apex at the very
end of the last financial year. Operating profit was up 16% to £1,952,000 (2008:
£1,684,000). It is pleasing, especially in this time of global instability and
turmoil to be able to report that EBITDA rose 19% to £2,081,000 (2008:
£1,745,000) during the period.
Profit before tax rose slightly to £2,006,000 from £1,918,000 in 2008. This was
a creditable performance especially when factoring in the substantial drop in
bank interest income to £54,000 from £234,000 in 2008. The reduction was mainly
due to the significant fall in deposit rates but also due to a reduced cash
balance reduced following the buy back of £1.1m of Noble shares, the payment of
dividends and the first payment of deferred consideration for Apex. The cash
balance was still a very healthy £2,732,000 as at year end. It is therefore
pleasing to show that the income derived from the acquisition of Apex more than
offset the drop in bank interest.
Basic earnings per share were up 11% to 9.59p (2008: 8.65p). The increased
earnings allow us to continue to raise the dividend, as mentioned at the time of
the interim report. To this end, we propose a 20% increase for the year to 3p
(2008: 2.5p). As the dividend is more than three times covered, we feel
comfortable with this increase.
Operational overview
Retail:
The numismatic retail division had its best year ever primarily driven by demand
for top quality rarities. A H Baldwin holds one of the most diversified and
largest stock of coins in the world and we are constantly acquiring additional
varieties. Coin fairs attended during the year included those in London, York,
Harrogate, New York, Hong Kong, Paris, Munich, Berlin, Los Angeles and Tokyo.
The retail division also produced Winter 2008 and Summer 2009 fixed price lists.
Both were well received by our regular customers and we aim to continue
producing two lists each year.
Auction:
The A H Baldwin auction department again had a very busy year although it
produced slightly lower revenues from the previous record year. During this
period, the department produced 17 catalogues for auctions held in London, New
York and Hong Kong.
Apex:
Apex has just completed its first full year under the Noble umbrella. During the
year under review, revenues reached a record level in their 15 year history, up
15% on the previous year. Consignments for the next six months are already in
place. We hope to see the benefits of the Apex part of the Group continue in the
future and for the brand to continue to grow. To this end, we are actively
pursuing additional philatelic specialists to expand this area. Our combined
databases of over 10,000 clients should give us potential for offering new
products in the future.
Website:
We are in the current process of totally renovating and upgrading our website
and standardising brands across the group. We continue to see more traffic
through the websites and believe that additional funds directed at this medium
will bear fruit in the long term. During the period, the Noble, A H Baldwin and
Apex websites attracted over 11 million hits and averaged over 11,000 visits per
month. We are hoping that the website will incorporate noticeable changes and
advanced capabilities during the current financial year.
Overheads:
We continue to keep a close control on overheads whilst attempting to reward our
employees for their continued hard work and dedication. Overheads for the year
grew 44% however this was primarily due to the acquisition of Apex Philatelic.
With that acquisition and a number of additions at A H Baldwin, average employee
numbers grew from 14 to 21 during the year. We intend to continue to monitor
overheads closely.
Employee Benefit Trust
On 29 September 2009 the Noble Investments (UK) PLC Employee Benefit Trust was
approved and adopted. The Trust will be used to enable the incentivisation and
reward of directors and employees through the issue of share options over the
Company's shares held by the Trust.
Strategy
The business has, over the last six years since admission to AIM, grown steadily
in revenues, profits, dividends and asset value. It has been suggested that we
have been too cautious over the years, however we do not see it that way. Whilst
we are a small company in stock market terms, we believe there are many
opportunities available in the field of collectibles for a well capitalised
ungeared company such as Noble. We consider many opportunities in the course of
any given year and there have been several during the period under review.
We continue to source specialists to join our team and to look for suitable
acquisitions in order to expand the products offered to our client base.
Employees
Once again, it is appropriate to thank the enlarged team from A H Baldwin and
Apex for their tireless efforts over the past year. With so many auctions and
fairs being held abroad or over weekends, it takes a strong commitment and
dedication to keep the business running smoothly and maintain high standards.
Prospects
At the interim stage, I mentioned the economic uncertainty and our conservative
approach. I believe this approach has benefitted the Group. However, we now feel
that we are seeing opportunities to expand and we are actively seeking this
expansion both organically and through exploring acquisitions. We are only two
months in to the current year but have already completed two London auctions in
September that included coins, banknotes, military decorations and commemorative
medals, an Apex philatelic postal auction and in October an Islamic coin
auction, also held in London. We are now preparing for our January 2010 New York
auction and a February 2010 Hong Kong auction.
We continue to be very mindful that there is a great deal of uncertainty in the
world at present and this is likely to continue in to 2010 and probably beyond.
We do, however, believe our strong ungeared balance sheet gives us the necessary
firepower to grow by selective acquisition.
Ian Goldbart
Managing Director
5 November 2009
Consolidated Income Statement
For the year ended 31 August 2009
2009 2008
Note £000 £000
Revenue 12,097 10,141
Cost of sales (7,862) (6,873)
------------ -------------
Gross Profit 4,235 3,268
Administrative expenses (2,283) (1,584)
------------ -------------
Operating profit 1,952 1,684
Investment income 54 234
------------ -------------
Profit before taxation 2,006 1,918
Taxation (473) (427)
------------ -------------
Profit for the financial year 1,533 1,491
======== =========
Earnings per share - basic 2 9.59p 8.65p
Earnings per share - diluted 2 9.45p 8.32p
All the Group's revenue and operating profit in the year relate to continuing
operations.
Consolidated Balance Sheet
as at 31 August 2009
2009 2008
Note £'000 £'000
Non-current assets
Goodwill 590 590
Other intangible assets 400 445
Property, plant and equipment 1,991 1,988
Available for sale financial assets 440 265
Deferred taxation 181 155
----------- ----------
3,602 3,443
----------- ----------
Current assets
Inventories 8,608 8,189
Trade and other receivables 1,718 2,173
Cash and cash equivalents 2,732 3,871
----------- ----------
13,058 14,233
----------- ----------
Current liabilities
Trade and other payables (1,505) (2,188)
Deferred consideration (50) (217)
Current taxation (314) (383)
--------- ---------
(1,869) (2,788)
---------- ---------
Net current assets 11,189 11,445
----------- ----------
Non-current liabilities
Deferred consideration (225) (275)
Deferred taxation (761) (894)
--------- ---------
(986) (1,169)
--------- ---------
Net assets 13,805 13,719
======== ========
Equity
Called up equity share capital 4 158 173
Share premium account 6,907 8,001
Capital redemption reserve 50 50
Retained earnings 6,690 5,495
---------- ----------
Shareholders' equity 13,805 13,719
======== ========
Consolidated Statement of Changes in Shareholders' Equity
for the year ended 31 August 2009
Share capital Share premium account Capital redemption reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000
Balance at 1 September 2007 171 7,848 50 4,339 12,408
Net profit for the period attributable to equity shareholders
and total recognised income and expenses for the period - - - 1,491 1,491
171 7,848 50 5,830 13,899
Dividends paid - - - (362) (362)
Issue of ordinary shares 2 174 - - 176
Ordinary shares cancelled - (21) - - (21)
Recognition of share based payment expense - - - 27 27
Balance at 31 August 2008 173 8,001 50 5,495 13,719
Net profit for the period attributable to equity shareholders - - -
1,533 1,533
-available-for-sale assets revaluation - - - 7 7
Total recognised income and expense - - - 1,540 1,540
173 8,001 50 7,035 15,259
Dividends paid - - - (417) (417)
Issue of ordinary shares 1 31 - - 32
Ordinary shares cancelled (16) (1,125) - - (1,141)
Tax on items taken directly to equity - - - 50 50
Recognition of share based payment expense - - - 22 22
Balance at 31 August 2009 158 6,907 50 6,690 13,805
Consolidated Cash Flow Statement
for the year ended 31 August 2009
2009 2008
£'000 £'000
Note
Operating activities
Cash generated by operations 1,456 224
5
Income taxes paid (651) (419)
--------- --------
Net cash inflow/(outflow) from operating activities 805 (195)
--------- --------
Investing activities
Interest received 54 234
Purchases of property, plant and equipment (87) (277)
Purchase of available for sale financial assets (168) (66)
Acquisition of subsidiary undertaking (net of cash acquired) (217) (798)
--------- --------
Net cash used in investing activities (418) (907)
--------- --------
Financing activities
Dividends paid (417) (362)
3
Repayment of bank loans - (25)
Proceeds from issue of shares 32 101
Share buy back (1,141) (21)
--------- --------
Net cash used in financing activities (1,526) (307)
--------- --------
Net decrease in cash and cash equivalents (1,139) (1,409)
Cash and cash equivalents at start of period 3,871 5,280
--------- --------
Cash and cash equivalents at end of period 2,732 3,871
===== ====
Notes
1. Results
The financial information set out in these preliminary results does not
constitute the company's statutory accounts for the years ended 31 August 2009
or 31 August 2008.
Statutory accounts for the year ended 31 August 2008 have been filed with the
Registrar of Companies and those for the year ended 31 August 2009 will be
delivered to the Registrar in due course; both have been reported on by the
Independent Auditors. The independent auditors' report on the Annual Report and
accounts for the year ended 31 August 2008 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a statement
under 237(2) or 237(3) of the Companies Act 1985. The independent auditors'
report on the Annual Report and accounts for the year ended 31 August 2009 was
unqualified, did not draw attention to any matters by way of emphasis, and did
not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
The financial information in these preliminary results has been prepared using
the recognition and measurement principles of International Accounting
Standards, International Financial Reporting Standards and Interpretations
adopted for use in the European Union (collectively Adopted IFRSs). The
principal accounting policies have been consistently applied to all the years
presented and are consistent with the policies used in the preparation of the
statutory accounts for the years ended 31 August 2009.
2. Earnings per share
The calculation of basic earnings per share for the year ended 31 August 2009 is
based on the profit attributable to ordinary shareholders of £1,533,000 (2008:
£1,491,000) divided by the weighted average number of shares in issue as
detailed in the table below:
Year ended Year ended
31 August 2009 31 August 2008
Number of shares Weighted average Number of shares Weighted average
Basic - shares in issue 15,765,894 15,979,740 17,324,293 17,230,404
Share options 977,202 241,635 1,119,817 689,780
Diluted number of shares 16,221,375 17,920,184
3. Dividends
Amounts recognised as distributions to equity shareholders in the year:
2009 2008
£000 £000
Final dividend paid in respect of the year ended 31 260 215
August 2008 of 1.65p per share (2007: 1.25p)
Interim dividend paid in respect of the year ended 31 157 147
August 2009 of 1.00p per share (2008: 0.85p)
------- ------
417 362
=== ===
A final dividend of 2.00p per share (2008: 1.65p per share) amounting to
£315,000 (2008: £260,000) in respect of the year ended 31 August 2009 is
proposed. If approved at the AGM, it will be paid on 8 January 2010 to those
shareholders on the register at 11 December 2009.
4. Share capital
Allotted, called up and fully paid
2009 2008
Number £000 Number £000
Ordinary shares of 1p each 15,765,894 158 17,324,293 173
Allotted, called up and fully paid
2009 2008
£000 £000
At 1 September 173 171
Share option exercises 1 2
Shares cancelled (16) -
------- ------
At 31 August 158 173
==== ====
Details of the allotted called up and fully paid share capital at 5 November
2009 were
Allotted, called up and fully paid
Number £000
Ordinary shares of 1p each 15,765,894 158
============== ====
5. Reconciliation of profit before taxation to net cash inflow from operating
activities
2009 2008
£000 £000
Profit before taxation 2,006 1,918
Depreciation 84 60
Amortisation 45 1
Share option charge 22 27
Investment income (54) (234)
Change in the market value of available for sale financial - 51
assets
Increase in inventories (419) (1,618)
Decrease/(increase) in receivables 455 (574)
(Decrease)/increase in payables (683) 593
------- ---------
Net cash inflow from operating activities 1,456 224
======= ======
6. Report and Accounts
The Report and Accounts of the Group for the year ended 31 August 2009 will be
sent to shareholders and will be available from the Company Secretary at the
registered office; 11 Adelphi Terrace , London WC2N 6BJ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BRBDBCBGGGCS