("Avarae" or the "Company")
Half year trading update
The Directors of Avarae plc (AIM: AVR.L), the UK's only
publicly traded company dedicated to purchasing, holding and
selling rare and high quality coins, are pleased to announce
a trading update for the six months ended 30 September
2012.
The Company expects to report revenues for the six months
ended 30 September 2012 of not less than £0.45 million (2011:
£1.58 million) and a gross profit margin on coins sold of not
less than 15% (2011: 44%). Administrative expenses for the
period are expected to be broadly in line with prior years.
"As we've previously stated, our investing and divesting activities are largely dependent on our consignments in the major auctions throughout the world. Whilst the Company did not benefit this year from the strong performance of our coins in the Hong Kong auction of August last year, a 15% gross profit margin still represents a significant uplift from the carrying value of coins as of 31 March 2012.
The highest quality coins continue to attract strong prices around the world, as evidenced by the
recent £780,000 (including buyer's premium) paid for one of Australia's rarest coins, a George V
1920 Sydney mint gold sovereign, which was sold for more than three times the price paid the last time such a coin was available for sale in 2006.
The Company continues to purchase only the highest quality coins to add to its significant portfolio, such as a Charles II Two Guinea acquired during the period. The Directors look forward to updating shareholders with the half-year results in due course."
-Ends- For further information on Avarae Global Coins plc, please contact: Avarae Global Coins plcDiane Clarke/Matt Wood +44 (0)16 2461 5614
Westhouse Securities LimitedTom Griffiths/Paul Gillam +44 (0)20 7601 6100
GTH Media Relations
Toby Hall/Suzanne Johnson Walsh +44 (0) 20 3103 3903
Notes to editors:
Avarae Global Coins plc ("Avarae") provides access
for institutions and individuals wanting to diversify their
investment portfolios away from the traditional asset classes
such as equities, property and bonds without the need to be
an expert in the coin-collecting sector.
The Company's investment policy is to invest in rare, high
quality antique coins and coin collections from across the
world. It continues to build up an impressive portfolio of
extremely high quality, rare coins which it intends to hold
both for the long-term (i.e. 3 to 5 years), in order to
achieve long-term capital growth for our shareholders, and
also the short-term, in order to take advantage of short-term
trading opportunities, as the market for rare coins continues
to grow.
A principal objective of the Company is to achieve long-term
capital growth through the appreciation in the value of the
coins acquired. Since 31 March 2007, being the date of the
Company's first audited accounts, the Company's audited NAV
has increased by 50% per cent.
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