Noble Investments

Driven by demand from high-net-worth individuals from emerging markets, coin dealer Noble Investments (NBL) has reported a 37% rise in pre-tax profits.

The AIM-quoted venture declared pre-tax profits of £3m for the year to August. Revenues fell from £14.1m to £12.65m, but excluding the £1.75m made from an Islamic coin auction last year, turnover rose from £12.38m to £12.66m. Net assets of £14.95m (2010: £13.5m) were reported. The total dividend increased from 3.5p to 4.3p.

In an interview with Growth Company Investor, managing director Ian Goldbart enthused that Noble was benefiting from 'the turmoil in the stock market as people look for alternatives to traditional assets that can provide a hedge against inflation'.

He remarked that growth was coming from high-net-worth individuals from China, India, Russia and the Middle East, noting in particular that the coin market had recently seen 'an enormous number of Chinese buyers'. He added that there are also a number of 'extremely wealthy' Middle Eastern clients who are 'small in number yet possess huge [buying] power' in the coin sector.

Looking ahead, he opined that growth would come from clients from emerging markets, noting that this January Noble will be carrying out an auction in New York of rare ancient Greek coins entitled 'The Prospero Collection', something he enthused would represent a 'landmark catalogue' of coins.

Analysts at WH Ireland are forecasting pre-tax profits of £3.3m (EPS: 17.2p) on sales of £13.2m for the year to August 2012. In 2013, profits of £3.5m are expected. A dividend of 4.7p and 5p is on the cards for 2012 and 2013 respectively.

Growth Company Investor last recommended shares in Noble this September at 175p. The group has powered ahead amid increasing demand for alternative investments, with hefty assets, a growing dividend (offering 2.6% on 2012's forecast) and exposure to wealthy overseas clients, at a time when even wealthy British investors are under considerable pressure. Buy.