Turnover for the year to December 31 is expected to be around 20% up on 2008 and slightly ahead of market expectations, the group says in its pre-close update.

Stanley Gibbons says that during the year it shifted away from sales of investment products offering future guarantees to lower initial margin products without the risk of any associated guarantee.

The group believes this change of focus 'is in the best long-term interests of the company's performance'.

It also points to the failure of deferred sales from 2008 to crystallise in 2009, 'validating that the board was correct in exercising prudence in not booking those sales last year'.

The company says it continued to invest in high-quality management and in the latter part of the year substantially restructured its internet development team.

Increased marketing expenditure resulted in the recruitment of new high-net worth clients.

Launch of a rare stamp investment fund, originally scheduled for 2009, was now planned for 2010.

Operating cash generation during the year was strong, with cash at the year-end of about £3m versus the previous £0.5m.

Trading in early 2010 remained strong and the company was 'optimistic that several opportunities to grow the business will come to fruition'.

Chairman Martin Bralsford said, 'I am very pleased with the company's progress and performance during 2009. Not only have we substantially grown revenues and profits in a difficult economic climate, but have converted profits into a strong cash flow and a healthy financial position at the year end.

'More importantly, we have achieved this at the same time as investing in our longer term strategy and repositioning the businesses attitude to risk by moving away from investment products offering future guarantees.'

Final results will be released in March.

Story provided by Business Financial Newswire