Stamp collecting is benefiting from the recent stock market turmoil, as investors look for different places to put their cash, stamp group Stanley Gibbons said yesterday.

Chief executive and chairman, former West entrepreneur Paul Fraser, said there was a "renewed consideration" of stamps as an alternative investment in the wake of the stock market's poor performance, together with the current low interest rates.

"We are certainly getting a lot more interest now, " he said.

"Although people (often do not) buy stamps with investment in mind, when it gets to the point when money in a building society is only earning three to four per cent, it changes."

Mr Fraser, who started his business empire with a sweet stall in Bristol and now lives in Jersey, made the comments as he unveiled a threefold increase in profits at the group.

For the six months to June 30, pre-tax profits rose to £203,000, up from £67,000 for the same period last year, though turnover fell four per cent to £4million.

Stanley Gibbons, which has a stamp shop on London's Strand, said the profits rise over the last half year had been helped by improved margins and reduced salary costs.

During the half year the group - with a publishing arm in Ringwood in Hampshire and an Internet operation in Nailsea, North Somerset - cut staff numbers by 10 to 118. No more cuts are planned.

The group has been turning itself around since being spun out of mail order group Flying Flowers two years ago.

Flying Flowers, now known as Flying Brands, split off the stamp collection business after a disastrous integration attempt.

On the demerger, the new company was called Communitie. com, reflecting its strong Internet base, but was renamed earlier this year as Stanley Gibbons.

Mr Fraser said the group had reduced overhead costs, improved stock management, while debt was under control and it had stronger margins.