Acquisition boosts coin trader
Article Date: Nov 01 2006Noble Investments, dealer and investor in rare coins, has lifted pre-tax profits elevenfold and is evaluating new acquisitions.
Manchester-based Noble increased profits from £100,000 to £1.1 million pre-tax in the year to August on turnover up from £1.8 million to £7.4 million. The growth was entirely due to last November's £4.45 million takeover of London-based coin auctioneer AH Baldwin, funded by a £5 million (pre-expenses) placing at 58p.
Without that acquisition, AIM-quoted Noble would have shown a £30,000 loss on turnover down by £400,000 to £1.4 million. With Baldwin, which realised £1.2 million at one three-day auction in May, the Noble group now offers a range of coins from below £20 to more than £200,000 apiece and employs specialists in coins, tokens and medals, as well as consultant Douglas Savill, an ex-Spink director hired to develop a numismatic rare books and publications department.
At the end of August, Noble says it had £3.1 million in cash and an un-geared balance sheet of £7.4 million, including the company's freehold property. Managing director Ian Goldbart says 'we continue to evaluate a number of bolt-on acquisitions'.
Noble shares, floated in 2001 at 23p, now stand at 132.5p, valuing the company at £19.9 million. That is nearly twice the 73.5p at which Growth Company Investor recommended them a year ago.
Partial profit-taking might be prudent. But it is worth holding on to a chunk for continued potential growth.
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