Premier Direct Share Discussion Threads

[morwood] 08/5/2008 18:12

Hi Angel of the North

Don't hold any shares but keep an active eye on things. I did like the company a while back but the current management just don't seem to know what they are up to!

[morwood] 08/5/2008 18:10

Hmmm, didn't expect it to happen that quick!

I think that it is likely that the directors will buy this out of recievership? Its just not worth putting any more money in with debts like that.

any thoughts?

[angel of the north] 08/5/2008 12:26

Callum - please note that the ex I.T. manager here (left in August 2007) because of the rapid loss of all old staff following Barry Moat's decision to leave had nothing to do with this. Staff confidence and morale was very low. - 'jobs for the boys' had a LOT to do with it IMHO. The I.T. system has less to do with this than the person put in charge!
Morwood - I am surprised you are still here, as I was also a great fan of this company under Barry Moat.
I thought the company was heading for MBO but it seems things are really critical here now?

[callumross] 08/5/2008 08:58

it sounds basically like managerial incompetence, what with the change to 4 week sales cycle in November proving unsuccessful, resulting in the higher stock levels that has eventually brought them down. Don't forget the incompetent execution of the new IT system that couldn't even tell them how many distributors they had!

[topvest] 08/5/2008 08:45

Oh dear..got this one wrong. It's difficult to understand why this has happened really given the company is profitable. Either something has gone very wrong or the banks have simply cut-off their facility. This looks to me to be a credit crunch casualty. The directors will end up losing heavily as well unless they can buy the business out of receivership, given they invested heavily only a matter of weeks ago at 20p.

[8trader] 08/5/2008 07:48

Morwood.

Great call although that is really scary how quickly they can
suddenly do this.
Certainly shows that buying companies with lots of debt is very
risky in this market.
At least nobody had the chance to get trapped in on the bounce
had they left it till next week.

[cyberpost] 08/5/2008 07:32

Statement re. Suspension




RNS Number:9385T
Premier Direct Group PLC
08 May 2008


8 May 2008


Premier Direct Group plc (the "Company")

The Company has today requested that the trading of its ordinary shares be
suspended with immediate effect pending clarification of its financial position.
The Directors yesterday finished a review of its short to medium term cash flow
projections and have concluded that additional financial support is required for
the business to continue trading. The Company is initiating urgent discussions
with its lenders but shareholders should note that there can be no guarantee
that the results of these discussions will lead to a favourable outcome for the
Company.

A further announcement will be made as soon as possible.

[topvest] 07/5/2008 20:29

Hmm. Distressed seller if you ask me. Last trading announcement was very positive. They have costs well under control and debt is manageable.

[morwood] 07/5/2008 20:21

Hi 8Trader,

Have you seen the accounts! The amount of debt is extremely high. The will have trouble refinacing at decent rates. We also have a economic slow down on the way with people more likely to be cutting back on this type of discretionary spending. Add them all together and I think they are in for a very rough 12-18 months.

I expect a rights issue at best and if things go very badly, they wont survive.

[8trader] 07/5/2008 18:59

Bit extreme there !

What's so suddenly gone bad to make you say that.

I reckon distressed seller so mm finding a support level to clear
the stock.

[morwood] 07/5/2008 18:51

Very worried about these now. Must be touch and go whether they will survive?

[fillipe] 07/5/2008 15:10

Dropping today on very small volume. Does anyone know how they're doing, for real?

[callumross] 07/5/2008 15:00

looks like you were right, morwood

[morwood] 04/4/2008 08:49

Debt will be a problem for them especially in the current environment.

[topvest] 02/4/2008 22:20

I agree. It will bounce back strongly on the trading front, sooner or later...hopefully sooner!

[baner] 02/4/2008 16:47

These shares now trade at a PER of approx. 4 - for a cash generative business that must be exceptionally low and no doubt tempt the management to pursue an MBO. the balance sheet is a bit too geared for the launching of a dividend but in a couple of year´s time no doubt they should be able to pay out at least 2p/share. this looks VERY cheap, albeit a bit risky.

[fillipe] 09/2/2008 19:09

Thanks top. It's still on my "watch list", but I've a bit lost faith in the market for some of these small caps and these have dropped 40% since my previous post! Interims should be out around Mar 28th and the whole job lot is now only valued at £5m - only 25% of sales. Instis and dirs have 70%ish.

f

[topvest] 09/2/2008 18:35

It was a disappointing announcement, but I think this is still a good company and will recover strongly when conditions improve. The fact the directors are putting in so much is encouraging.

[fillipe] 30/1/2008 10:14

I notice that both the board and the senior management team are participating in the new 20p placing. Quite chunky amounts......

But it's a bit amazing to read that yet again they got the (pre-Christmas) stock wrong, this time to the tune of £1.5m. All the more incredible when the business is small enough to be able to keep a handle on pretty much every paperclip.

However perhaps they are gradually getting a grip on this niche trade? I think I'm correct in saying that over the past years the Dirs have subscribed to quite a lot of shares and must be well out of pocket on all their buys. Either they have plenty of confidence or silver spoon bottomless pockets.

Anyone on the ground who knows just how it really is at PDR and whether or not the incumbents are any good or not?

f

[topvest] 13/12/2007 21:57

AGM announcement ok. Share price drops-typical in todays market!

[callumross] 07/12/2007 11:23

agm next tuesday - wonder if we will get a trading update?

[callumross] 26/10/2007 12:18

tipped in investors chronicle

[topvest] 17/10/2007 21:27

Nice to see some others jump in. Looks set to perform well over the next two years and pays a dividend already. Could be back to £1.80 or so by then. Does anyone know whether they still have the original product supply deal - sounds like they may be buying stock from elsewhere now as well?

[callumross] 17/10/2007 12:32

agreed topvest - I've just topped up with 15k at 41p (although funnily enough, advfn is showing it as a sell) - someone bought 50k at 42p earlier too.

[topvest] 15/10/2007 21:24

Results today were very encouraging. Has everyone gone to ground? 1p dividend is also nice. Tempted to top-up at these levels.