Scholium : Annual Report & Financial Statements 2021

Summary Information

Scholium is engaged in the business of rare books, modern prints, art and collectibles.  Its primary operating subsidiary is Shapero Rare Books, one of the leading UK dealers trading internationally in rare and antiquarian books and works on paper, which also trades as Shapero Modern, a leading UK dealer in the growing marketplace of modern and contemporary prints. 

The Group also trades alongside other third party dealers in the broader arts and collectibles business as Scholium Trading, and deals in and sells by auction stamps and philatelic items as Mayfair Philatelics.

Operating Highlights

• A significant and encouraging increase in online sales across Shapero Rare Books, Modern Prints and Mayfair Philatelics
• The Group's three trading entities achieved breakeven trading for the year to 31 March 2021
• The Group's loss before tax was £437k, including £125k exceptional costs of moving premises and £314k of central costs
• Group is now trading profitably in the first four months of the current year
• Group net cash of £183k after deducting Covid bank loan of £250k as at 25 August 2021

Financial Highlights

Contents

Company Information

Officers of the Company

Registration Number

Registered in England and Wales with Number 08833975

Chairman's Statement

The Group's revenues for the year ended 31 March 2021 decreased by 17% to £6.0 million (2020: £7.3 million) as a result of the adverse impact of the Covid restrictions imposed by governments around the world from March 2020 onwards, including the closure of the shop, the cessation of trade fairs and the absence of overseas customers visiting London.

The Group responded to these difficulties by successfully migrating much of the business online, and both Shapero Rare Books, Shapero Modern's prints business and Mayfair Philatelics are better placed going forward as a result. Scholium Trading has not been able to transfer its activities online to the same extent, but nevertheless retains an interest in some paintings with good potential. Shapero Rare Books continues to be one of the world's leading rare book dealers and will ultimately benefit from the move to lower cost premises in the years ahead. The Group also relocated its business to lower cost premises during the year.

In a further response to Covid and its impact on the Group's business, the Board has implemented a cost reduction programme which is focused on returning the Group to profitability. Both staff and premises costs are expected to be lower by an aggregate of £300,000 on an annualised basis going forward.

Excluding the costs of moving premises in October 2020, the Group incurred a loss of £154,000 in the second half of the financial year. The overall loss of £437,000 (2020: £252,000) for the Group included the central plc costs of £314,000 and the costs of moving premises of £125,000. Thus the Group's trading entities, Shapero Rare Books, Shapero Modern, Scholium Trading and Mayfair Philatelics traded at breakeven, which is a creditable result in these difficult trading circumstances.

The Board is continuing to search for further acquisitions in related areas and has identified a small number of companies with which it had preliminary discussions during the year.

The Group remains well capitalised with £9.0 million of stock, with only £248,000 of net bank borrowings. The Group also has an undrawn overdraft facility of £500,000 available to it.

Results

Group revenue for the year of £6.0 million (2020: £7.3 million) generated a loss before tax of £437,000

(2020: profit of £25,000). The Group no longer recognizes deferred tax assets and therefore the loss

after tax for the year to 31 March 2021 was also £437,0000 (2020: loss £252,000).

Staff

The Group's operations, particularly over these difficult times, continue to rely on the hard work and dedication of our small number of employees and I would like to take this opportunity of thanking them again for their contribution and effort, particularly when working from home, during the year.

Current Trading and Prospects

Trading conditions have inevitably been difficult since 31 March 2021, and the Group's retail premises remained closed until mid-April. Since re-opening, online sales have been maintained but footfall has been significantly lower than in the previous year. Trading for the first four months of the current year has been profitable, which is encouraging, and net cash is now positive. The further cost reductions will benefit the second half of the year.

Chairman

Jasper Allen

25 August 2021