China fresh stamping ground for Gibbons

Published on Friday 26 March 2010 20:51

STAMPS and autographs dealer Stanley Gibbons is planning a major expansion drive into China as it continues to benefit from interest in alternative investments.

The collectibles company, which earlier this year auctioned Robert Burns' Bible for 25,000, reported pre-tax profits of 4.1 million in the year to 31 December, up from 3.7m in the previous 12 months.

Growing interest from investors looking for higher returns than savings rates helped lift turnover by 20 per cent to 23.4m. Auction activities saw a particularly strong performance with a 49 per cent jump in profits.

A key focus for the company this year is to exploit opportunities in China, which is already the largest market for stamp collecting in the world.

Edinburgh-born chief executive Michael Hall said the potential demand in China was huge.

"It is still quite a new hobby in China but there are already an estimated 20 million collectors and a lot of newly wealthy people looking for investment opportunities," Hall told The Scotsman.

The company is planning to develop a Mandarin version of its website and actively looking to form strategic alliances with existing Chinese philately businesses.

"We would need the on-the-ground knowledge and understanding of the Chinese culture and stamp market to succeed there," stressed Hall, who qualified as a chartered accountant in Edinburgh before joining Coopers & Lybrand in Jersey.

Stanley Gibbons is also planning to launch a rare stamp investment fund later this year, partly aimed at investors who have no knowledge of the stamp market.

The firm also expects to benefit from the refurbishment of its flagship store on the Strand in London, which is due to be completed in time for May's international Festival of Stamps held in the UK capital.

Stanley Gibbons was founded in 1856 by Edward Stanley Gibbons after he bought rare stamps from two sailors who had returned from South Africa.