Mowbray Collectables post $315,000 profit

November 23, 2006

Mowbray Collectables post $315,000 half yearly operations net profit

Listed stamp dealer Mowbray Collectables today reported a half yearly $315,000 net profit from operations, up 20.4 percent on last year’s corresponding period.

Amortisation, once again, was a significant and additional cost and totalled $284,400 (last year $218,400) including goodwill on investments in Peter Webb Galleries and Bonhams & Goodman.

After this amortisation the company posted a $30,500 overall net surplus, a small decline on last year’s $43,000 surplus to September 30.

The impact of amortisation is to write down the carrying value of goodwill. This is not a cash cost to the business. The new international financial reporting standards will take effect from next April and will almost certainly require a revision of amortisation.

Directors declared a fully imputed interim dividend of 1.5 cents to be paid on December 15.

Chairman Murray Radford said the Mowbray group of companies continue to trade to expectations and had strong cash flows in the period.

He added that philatelic trading was very good in the six months and this has continued since with some excellent auction results in both NZ and Australia.

``These include the annual Mowbray International auction, and Australian auctions by both Stanley Gibbons and Bonhams & Goodman, all exceeding $1 million hammer sales in October.’’

Auckland’s Peter Webb Galleries, in which Mowbray has a 49 percent holding, continues to shine as the leader in its field, and Bonhams & Goodman in Australia traded better than last year following restructuring. Bonhams & Goodman is about to open a major auction showroom in Melbourne.

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

ENDS

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