Interim report October – December 2019

The interim report comprises the period 2019-10-01—2019-12-31.

About Numisbing

Numisbing works in numismatics. Numisbing is a leading numismatics business in the Middle East Region with a market share close to 75%. Numisbing is seeking admission to Nasdaq First North to raise the Company's public profile. Currently, there are few quoted companies specializing in the niche business of trading and investing in rare and antique coins or other rare collectibles. Investment interest in such coins has increased over recent years, and stock market investors are seeking more diverse investment portfolios.

Numisbing has its parent company in Stockholm, Sweden, while the operating subsidiary operates in Dubai, UAE. The company owns shares in a “collectible fund” located on the Cayman Islands. Numisbing intends to be listed on Nasdaq First North, Stockholm before end of Q1 2020.

The period October 1 – December 31, 2019 in brief (FY18):

• Net sales amounted to 6,8 MSEK
• Operating profit in the fourth quarter was 2,1 MSEK including change in fair value on investment in numismatic assets, +2,7 MSEK.
• Earnings per share in the fourth quarter amounted to 0,15 SEK based on the weighted average of shares during the period.
• Cash flow from operating activities amounted to SEK 3,6 MSEK
• Bank balances amounted to 0,9 MSEK at the end of the period.
• Change in fair value in investment valued over other comprehensive income was +2,0 MSEK.

The period January 1 – December 31, 2019 in brief (FY18):

Due to a new organizational structure the figures for comparison, within the parentheses, comprise the whole financial year of 2018. 

• Net sales amounted to 25,2 MSEK (SEK 35,32 MSEK)
• Operating profit was 7,2 MSEK (4.3 MSEK) including change in fair value on investment in numismatic assets, +5,0 MSEK.
• Earnings per share in the financial year 2019 amounted to 0,2 SEK (0,12 SEK) based on the weighted average of shares during the period.
• Cash flow from operating activities amounted to 3,0 MSEK (0,61 MSEK).
• Bank balances amounted to 0,87 MSEK (0,48 MSEK) at the end of the period.
• Change in fair value in investment valued over other comprehensive income was +2,7 MSEK.

Significant events during the fourth quarter of 2019

We could able to close few high value deals in this quarter which had a higher profit margin as well. The efforts as Advisor of the Collectibles fund, gave significant improvement in the profits earned by the fund, which in turn increased the value of Investments held by Numisbing in the Collectibles Fund. Numisbing managed to invest additional USD 300,000 into the Fund in Q4-2019.

CEO Comments

Dear shareholders,

The fourth quarters of 2019 have been characterized by good sales and thus also profits. We had an increase of Sales by 74% with a significant increase in profits compared to Q4 2018. The response from new collectors who have arrived is very positive.

The whole year 2019 Sales was less by 31%, but the same compared to profits had an increase of 103%. This is mainly due to more concentration on high end items which gave higher profits, compared to work for low profit margin items. We plan continue the same strategy in the year 2020 as well.

The collectible fund in which Numisbing owns shares and serves as an investment advisor has been developed as expected during the period. In the year 2018, the fund showed strong growth of 28 percent and the year 2019 the fund has developed at the same rate and had 27.65 percent growth. The fund consists of three different segments A, B and C and has had approximately equal good development in all three segments. The profits of the Collectibles fund had an increase of 99% compared to 2018.

Half of the company's customers come from the Middle East region and 20 percent of the customers are from India. The remaining 30 percent of customers are scattered around the world.

Well positioned for the future

Great efforts have been made by the management of the company as well as consultants during the quarters to prepare the company for a listing on the Swedish marketplace. Today, the company has a strong and well-reputed board of directors in the Swedish parent company.

We thank you for your confidence and continue our work for growth in 2020 and onwards.

 
Stockholm February 18, 2020

 
Lars Wolf
CEO

Other information

Audit

This report has not been subject to review by the Group auditors.

Contact information

Lars Wolf
VD
lars.wolf@numisbing.com
+46 70 588 42 69

Financial calendar

First quarter 2020               12 of May 2020
Second quarter 2020           11 of August 2020
Third quarter 2020               10 of November 2020
Fourth quarter 2020             22 of February 2021

Assurance

The Board of Directors and CEO hereby confirm that this Interim Report October - December 2019 provides a true and fair overview of the performance of the Parent Company’s and the Group’s operations, financial position and earnings, and that it describes the significant risks and factors of uncertainty to which the Parent Company and the companies included in the Group are exposed.

Stockholm 18 of February 2020

Ramkumar Sarangapani
Chairman of the Board

Agneta Berliner
Member of the Board

Anthony Godinho
Member of the Board

Lars Wolf
CEO

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