Scholium Group plc
(“Scholium”
or, together with its subsidiaries, the “Group”)
Trading Update
The Directors of Scholium are pleased to provide an update on trading in the first half of the Group’s financial year. In the six months ended 30 September 2015 they expect that Scholium will show a substantial increase in turnover and have returned to profit before tax and share based charges.
Shapero Rare Books continues to reposition its stock and trade into areas which are attractive to the contemporary collector but less susceptible to political and market turmoil. Whilst trading can be variable, the Group is starting to see the fruits of this strategy. For example, the Modern and Contemporary prints department is developing momentum and providing a valuable revenue stream for the Group, particularly from North American customers.
Scholium Trading has entered into a number of transactions with other dealers, primarily in the rare book market. The return on capital employed has been very encouraging and the management team continues to seek to expand this area of the business.
As a result of the above, the Directors anticipate that the Group will report a substantial increase in turnover relative to the 6 months ended 30 September 2014, albeit at a lower margin following the action taken to alter the profile of stock. This is expected to result, following carefully controlled costs, in a return to profit before share based payments and tax.
The Group’s balance sheet remains strong with net cash of more than £1.5 million, supporting a net asset value of the Group in excess of £10 million (equivalent to 73.5p per ordinary share).
The Directors expect to release the interim results for the six months ended 30 September 2015 in early December 2015.
Jasper Allen, Chairman of Scholium, said “The political instability of the last twelve months created a challenge for the management team, but we are delighted that they have responded admirably and managed to increase revenue and gross profits, reduce the cost base and deliver a profitable business. The performance of the business over the first six months and into October is encouraging and we look forward to the prospects of the second half of the year.”
For further information, please contact:
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Scholium Group plc Jasper Allen, Chairman Simon Southwood, Chief Financial Officer |
+44 (0)20 7493 0876 |
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WH Ireland Ltd – Nominated Adviser Chris Fielding/Mark Leonard |
+44 (020) 7220 1666 |
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Whitman Howard Ltd – Broker Ranald McGregor-Smith/Niall Devins |
+44 (020) 7659 1234 |