Trading Update

RNS Number : 9731C

Scholium Group PLC

23 October 2020

 

23 October 2020   

Scholium Group plc

 ('Scholium') or ('Group')

Trading update

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

The Directors of Scholium Group plc (the "Group") provide an update on trading for the six months ended 30 September 2020.

As previously announced, the Group's trading was severely curtailed by the onset of Covid-19 from March 2020, which affected the whole of this six month period, but the Group responded by successfully increasing online sales activity and cutting costs.

The Group overall incurred a modest loss in the first six months compared to the profit of £64,000 in the six months to 30 September 2019.  Significantly higher online activity helped Shapero Rare Books to achieve a better level of sales than expected at the start of the lockdown and it made a small profit for the period. The cancellation of all the book and other trade fairs helped to reduce costs, but resulted in there being no sales in Scholium Trading in the first six months. Mayfair Philatelics had to postpone its September auction to November, and therefore posted a small loss for the first half of this year.

In October, t he Group relocated its premises to a first floor bookshop at 106 New Bond Street, and a separate new gallery for modern prints nearby at 43 Maddox Street. These moves will contribute to an immediate reduction in the Group's cost base.

The Group has maintained its positive cash balances with c.£300,000 at 30 September 2020 and over £8 million of stock. The Group's application for a £250,000 Covid business interruption loan was approved during the period but the loan has yet to be drawn down.  The Group's £0.5 million overdraft facility also remains available.

The adverse impact of the restrictions imposed by governments due to Covid-19 and in particular the cancellation of all of this financial year's UK and international trade fairs has stimulated a significant increase in online auctions and activity in both rare books and works of art. This has created both buying and selling opportunities for the Group. Nevertheless, given the unpredictability of trading in the context of Covid-19, the Group is currently expected to be loss making in the second half of this financial year.

The Directors expect to release the results for the six months ended 30 September 2020 by the end of November 2020.

Jasper Allen, Chairman of Scholium, noted:

"We are pleased that Shapero Rare Books has traded profitably and that therefore the Group has performed at a better level than the Board's expectations in the first half of this financial year. We remain focussed on maximising sales through the channels still available to us and reducing costs where possible.

We very much look forward to welcoming any shareholders looking to visit our new premises."

For further information please visit www.scholiumgroup.com or contact:

Scholium Group plc Jasper Allen, Chairman  Peter Floyd, Finance Director	[phone]
WH Ireland Ltd - Nominated Adviser Chris Fielding  Lydia Zychowska	[phone]

 

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