Equity jitters not impacting on stamps

Media release – August 15, 2007

Global equity jitters not impacting on stamp collecting, Mowbray tells annual meeting

Listed stamp dealer Mowbray Collectables would not be affected by the current uncertainty in the world equity market, managing director John Mowbray told shareholders at the annual meeting in Wellington today.

Mowbray said the jitters in the global sharemarket would not impact on stamp collecting.

``This is based on our previous experience of market downturns over the past 40 years. Collectors traditionally spend more on their hobbies (stamp collecting) when they take a pause from the markets."

``Our operating revenue in the last financial year was a record for the company, reflecting the growing interest in collectables worldwide. The global philatelic market continues to be very robust with high prices being realised for rare stamps,'' Mowbray said.

``Some significant sales worldwide include the Bill Gross auction of Great Britain stamps, which realised $14 million in New York in June. Our sales within New Zealand are up 30 percent for the first quarter of this year.''

Mowbrays plan to launch Mowbrays Australia in February next year. Sir Ron Brierley is a member of the advisory board on their Australian operations.

After six years trading as a listed company it was intriguing to note that despite diversification philatelic trading was still their core activity, giving sound returns, Mowbray said.

The major event for Mowbrays to March this year was their purchase of the Ray Walkham stamp collection in Ashburton.

This was a substantial purchase of 900 volumes catalogued at $7 million and would underwrite Mowbray's profits for some years to come.

It was the largest collection of stamps ever offered in New Zealand and has caused storage problems at their headquarters in Otaki, especially after the Stirling purchase (Christchurch) in 2005. The Otaki offices have been expanded by 50 percent as a result.

Mowbrays' investment companies Webbs (Auckland) and Bonhams & Goodman (Australia) continue to be strong in their respective markets. Bonhams & Goodman (20 percent owned by Mowbrays) launched their show rooms in Melbourne with two spectacular sales exceeding $10 million this year. Bonhams & Goodman are now the second largest collectables auction house in Australia, closing fast on Sotheby’s.

Mowbrays adopted the new International Financial Reporting Standards from April 1 this year, which could add up to $560,000 to their profits each year.

Looking ahead, Mowbray said their international auction in Wellington in October has offerings estimated at $1.6 million.

ENDS

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