Woes mount at stamps specialist Stanley Gibbons
The group has been stung by a slowdown in the stamps and collectables market.
Losses at Stanley Gibbons widened last year as the stamp and coin specialist’s financial situation deteriorates.
The company posted an £8.8 million trading loss in the year to March, up from £3.9 million in 2016. On a pre-tax basis, losses rose from £27.9 million to £30.2 million.
Revenue also slumped, from £59.1 million to £42.5 million as Stanley Gibbons confirmed that it was in default on its loans and is “dependent on the bank’s ongoing support”.
The group has been stung by a slowdown in the stamps and collectables market and hankered by a string of failed historic acquisitions.
It is now trying to dump non-core assets in an effort to raise cash.
Chairman Harry Wilson said: “There can be no guarantee that the bank will provide facilities beyond 31 May 2018 and the company is likely to require access to further liquidity in the intervening period.
“The company remains in constructive discussions with the bank, regarding its short-term liquidity requirements, and the terms of such funding in such form as it may become available.”
However, he added that the board has “reasonable grounds” to believe that alternative finance will be available via further asset disposals or from an “alternative finance provider” should lenders pull the plug.
Earlier this year, Stanley Gibbons put itself up for sale as part of a review being led by finnCap, with private equity firm Disruptive Capital thought to be interested.