The group previously issued a series of profit warnings and cleared out its management board over the summer.
Under new chairman Harry Wilson, the firm published their full year results today and, after restating its accounts for the previous year, revealed the value of its assets had reduced by 43%.
Accountancy firm BDO raised concerns and said it had “significant doubt about the group’s ability to continue as a going concern”. BDO replace former auditor Smith & Williamson after they resigned earlier this year.
Wilson, who joined the board in May, said “things had gone badly adrift and urgent action was required to recover the situation.”
What Went Wrong?
The financial results detail the raft of problems that have plagued the firm in a detailed report titled ‘What went wrong?’. This includes the failure to integrate Noble – owner of Dreweatts & Bloomsbury – after they were bought in 2013, and the way the investment division previously offered buy-backs of assets to investors.
Wilson explained the restatement was due to “fundamental errors in the accounting treatment” that had been used previously.
The firm has written down £24m for one-off charges, including the write off of online business The Marketplace.
Wilson added: “The restructuring of Stanley Gibbons has been unsettling for all concerned.”
However he sounded an upbeat tone with regards to the outlook for the market and said: “The market for rare collectables and fine art remains buoyant.”
Shares in AIM-listed Stanley Gibbons fell 10% today.