Inflation in the UK hit a 30-year high of 7% this month.
In a trading statement to the Stock Exchange, the stamps and coins dealership and auction group noted that there is “some evidence to suggest that both coins and stamps do well during periods of heightened inflation but we are by no means taking this for granted”.
The comment was part of its latest trading update for the year to March 31, 2022. It said the second half of its financial year continued to improve across all areas of the business and it expects revenue for the year to be approximately £12m. This would be an improvement on its sales for the year to March 2021 of £10m, but slightly down on the 2020 figure of £13m.
Graham Shircore, group CEO, said: “We are encouraged by elements of progress we have made in each of the operating businesses. However, it is clear that in order to really make the most of our wonderful brands and the rebuilding work of the past few years, we are going to have to work harder, faster and more aggressively. Our ambitions go far beyond delivering continued incremental improvement.”
The group has been undergoing a restructure in recent years which included its split from a joint venture with St James’s Auctions.
Its coins division - Baldwin’s Auctions - relaunched in 2021 and is based at the group’s refurbished headquarters, shop and saleroom at 399 Strand.
SGG has also been involved in the sale of the sole surviving example of the British Guiana One Cent Magenta which it bought at Sotheby’s New York at $7m (£4.97m) in June 2021. Investors have been able to buy shares in the rare stamp via a new platform called Showpiece.