Stanley Gibbons sells 25% interest in Masterpiece for £1.4m

Stamp and coin specialist Stanley Gibbons has sold its 25% interest in Masterpiece, the operator of the annual Masterpiece London art and antiques fair, to Masterpiece for a total consideration of £1.4 million payable in cash.

Proceeds from the sale, which was carried out by Gibbons' subsidiary Mallett & Son, will be used to further reduce bank debt, support the ongoing rationalisation programme and to provide additional working capital for the group.

In the year to 31 March 2017, a dividend of £40,000 was received from Masterpiece and the 25% interest was held on the group's balance sheet at £6,000.

Following the sale, the group will retain the Mallett inventory, the rental income from the former Mallett New York premises, the Bloomsbury auction and retail business and other associated companies, which will allow the company to derive additional value from the Interiors division in the coming months.

"Today's transaction is further demonstrable evidence of how the restructuring programme has, over the last 18 months, transformed the group, which now has a clear focus and achievable corporate goals," Stanley Gibbons said.

"Following the sale, the core activities of the group will continue to be conducted via Baldwin's, Stanley Gibbons, Murray Payne and Apex, which share similar characteristics alongside the competitive advantages associated with being market leaders in the numismatic and philatelic markets respectively."

At 0908 BST, the shares were up 4.8% to 11p.