Collectables post $261,500 half yearly operations

November 29, 2005

Mowbray Collectables post $261,500 half yearly operations profit

Listed stamp dealer Mowbray Collectables today reported a half yearly $261,500 profit from operations, up $223,200 on last year’s corresponding period.

The company posted a $43,100 net profit, an improvement of $129,400 on last year’s $86,300 net loss to September 30.

Amortisation totalled $218,400 including goodwill on investments in Peter Webb Galleries and Bonhams & Goodman.

Directors declared an interim dividend of 1.5 cents to be paid on December 16.

Chairman Murray Radford said the Mowbray group of companies continue to trade to expectations, including Stanley Gibbons, which performed stronger.

``The purchase of the Stirling stock in Christchurch was fortuitous and promises to deliver positive returns in coming years.

``To date over 10 tonnes of stamps have been sorted and identified. They are being shipped to the Otaki headquarters for future sales.’’

Auckland’s Peter Webb Galleries, in which Mowbray has a 49 percent holding, continues to shine as a leader in its field, despite the international art market reaching a peak.

The development of the fine wine department and regular wine auctions highlights further opportunities for their expansion.

Immediate returns from Mowbray’s 20 percent share in Sydney-based Bonhams & Goodman were also affected by the softening of the art market.

The purchase by Bonhams of a 50 percent shareholding in established Adelaide auction house Theodore Bruce, now trading as Bonhams & Bruce, is an indication of another opening in the Australian market.

Since September 30, Mowbray’s annual international stamp auction achieved budget expectations.

Mr Radford said despite the growth of online auctions, it appears those interested in fine art and collectables still favour the traditional auction process.

``Auctions have an advantage of buyers being able to inspect lots closely before bidding and to take advantage of the security, reputation, knowledge and advice available from established auction houses.’’

The success of the second half of the year hinges on a number of auctions yet to be held in New Zealand and Australia.

He said it was gratifying to see an overseas based mutual fund equity investor come on board as a shareholder at an early stage in the company’s growth.

ENDS

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