Watermark Share Discussion Threads

[run rabbit] 31/8/2007 17:04

The charts are now looking much better



Hopefully the recovery will continue next week.

[run rabbit] 31/8/2007 15:58

Buys going through on the PLUS market at present.I don't think that there are too many shares available for purchase.

[run rabbit] 31/8/2007 15:13

Someone lit the touch paper.

[run rabbit] 31/8/2007 14:07

Highlighted this one just in time by the looks of it.Great recovery play.

[run rabbit] 31/8/2007 12:42

Well with only 44.5m shares in issue it sure moves quickly.LSE price moving higher to match that on PLUS.

[run rabbit] 31/8/2007 10:22

Up to 17/20 on PLUS now +6.3%

[run rabbit] 30/8/2007 21:50

Also listed on PLUS where it rose over 10% today

[run rabbit] 30/8/2007 17:24

RNS Number:2745Z
Watermark Group PLC
29 June 2007


FINAL embargoed until Friday 29th June 2007 at 07:00 BST.



WATERMARK GROUP PLC

AGM Statement


Watermark Group Plc, a leading provider of in-flight products, catering and
cabin management services to the airline and travel industry, announces that at
the Annual General Meeting to be held at noon today, Stephen Yapp, Executive
Chairman will make the following statement.


New management team and structure

Following shareholder approval for the issue of #8 million Convertible Bonds on
4 June, I joined the Board as Executive Chairman. The refinancing has provided a
necessary degree of stability to the business and we can now focus on restoring
value for shareholders. Under my direction, the group's range of in-flight
products and services will be managed through two discrete trading divisions,
each led by a Managing Director. The clear structure will significantly improve
accountability within the group and enable us to implement more effective
performance management processes. Over time, I believe this will improve the
operational efficiency of the organisation.


Nick Scott, previously the group's Commercial Director, was appointed MD
Services on 8 May and the Board is actively seeking to fill the position of MD
Products. The Board's other executive director is Peter Fitzwilliam, who was
appointed as Chief Financial Officer on 8 May.


Alongside the executive directors, we have two non-executive directors. Danny
Bernstein, who has extensive experience in the airline industry, is Senior
Independent Non-Executive Director, and Graham Bird is representative of SVG
Investment Managers, the group's largest shareholder. To further strengthen the
Board, we intend to make an additional non-executive appointment and are
currently undertaking a search for an individual with complementary skills and
experience.


Key tasks

The past year has seen change in senior management, a decline in profitability,
a significant increase in debt and, recently, the resultant focus on refinancing
the group. After this difficult period, the initial task for the new management
team is to stabilise the business by establishing clear organisational
structures, setting short-term objectives and providing support for
customer-facing and operational staff.


Looking beyond this initial period, the Board will focus on the following key
objectives for the business:


*restoring underlying profitability
*resuming growth
*focusing on cash management



Profitability

Restoring profitability will be achieved through a number of steps. First, by
improving the organisational structure and accountability, we will be able to
improve performance through better monitoring and management using key
performance indicators. Secondly, by giving ownership of processes to key
operational staff, we will benefit from the motivation and entrepreneurialism of
our staff. Thirdly, by focusing on specific bottlenecks in our processes and on
areas of high spend, we will be able to improve the way we operate.


Initial areas of opportunity for improvements in profitability have been
identified in both divisions. Within Services, these are through improved
operational efficiency at our Heston facility close to Heathrow; within
Products, they are in improved international logistics and purchasing. Reviews
have begun in both areas to establish the scale and timing of the opportunities
available. The Board will provide an update of progress at the time of our
interim results.


Growth

Whilst the immediate focus for the management team will be on stabilising the
business and restoring underlying profitability, the Board believes that
excellent long-term growth prospects exist in both Divisions. By way of example,
the changes brought about by the open skies agreements will create new
opportunities which we believe will be positive for Watermark. The Encompass
contract with Air Canada has also established a platform which should provide
further options for the group in future. Over the coming six months, the Board
will examine these prospects and report its findings at the full year results.


Cash management

The recent refinancing has established a stronger financial base for the group.
Long term financing has been obtained through the issue of Convertible Bonds and
the group's bank debt has been reduced to a more comfortable level. The Board
will remain focused on improving the cash-generation characteristics of the
group so as to strengthen the balance sheet and provide the financial base to
fund the group's profit improvement and expansion ambitions over the coming
months and years.


Trading outlook

Watermark operates with a high level of contracted turnover, and this provides a
stable base from which to effect the proposed improvements. We have a base of
high quality customers, who have been supportive throughout our refinancing and
we look forward to working with them and offering continual improvements in the
services we offer.


Under the new management, a comprehensive review of the group's financial
performance and position is currently being undertaken and the Board anticipates
being able to provide guidance for the year when the company announces its
interim results in September.

[run rabbit] 30/8/2007 17:23

Summary

The board recognises that both the reported loss before tax for the year of
#1.83 million and the pre-exceptional profit before tax of #1.99 million are
disappointing considering the level of Group sales and gross margins achieved.
However, the board believes that the actions taken during 2006, and early 2007,
have created a sustainable platform for the company's future growth and
profitability.

The board remains positive for the future of this business, given that the Group
operates with a high level of contracted business with relatively consistent
underlying gross margin percentages. It is the control of overheads which the
board believes holds the key to improving the Group's performance. Accordingly,
the board continues to address the structure and overheads of the business to
ensure that better returns are achieved from this contracted business.

[run rabbit] 30/8/2007 15:03

Someone has bought quite a substantial amount today.The trade reported equates to over 1% of the companies issued shares.

[electric sheep] 30/8/2007 14:50

afternoon clive, tick up?

[run rabbit] 30/8/2007 14:47

The Encompass programme is the embodiment of a vision shared by a group of companies in response to the increasing challenge from airlines to reduce cost whilst maintaining, and indeed improving, quality and service. In order to achieve this, we have had to not only work harder, but smarter. We knew that we could not diminish product or service quality but rather, had to focus on streamlining processes and becoming more efficient. We reviewed all the products and services required by airlines "above the wing" and in doing so, we realised we could not excel in each area. Instead, we chose to partner with the "best of breed" the industry can offer and to work together as a team to deliver excellent service.

More importantly, our Encompass team can orchestrate the different activities to minimise the work for airlines who are already over-burdened with administrative and coordinating functions. This coordinated approach has achieved significant improvements for customers and we welcome the opportunity to show you around The Encompass Centre in Heathrow where you can see the advantages for yourselves.

Company website -

Shares in issue = 44.57M
Current market capitalisation = £7.69M
Turnover 2006 = £94M

Presently Watermark is very undervalued as can bee seen by the above analysis.

Price when thread created 17/17.5p

PLUS TRADES

[run rabbit] 30/8/2007 14:12

Have just purchased a few for my SIPP as the recovery potential seems to be excellent for this stock.Global air travel is on the increase and it's sitting at all time lows however bouncing today.

[ideal420] 17/8/2007 21:44

Well, I'm in at 16.3, longterm, you never know.

[made1686] 16/8/2007 11:31

i do not like to harp on about it but i did say sell at one pound forty i am mr right here the point is how would you lads be if i bought mon as i see value here . here pip pip todaloo

[made1686] 16/8/2007 11:31

i do not like to harp on about it but i did say sell at one pound forty i am mr right here the point is how would you lads be if i bought mon as i see value here . here pip pip todaloo

[made1686] 16/8/2007 11:30

i do not like to harp on about it but i did say sell at one pound forty i am mr right here the point is how would you lads be if i bought mon as i see value here . here pip pip todaloo

[hmt] 15/8/2007 21:24

few small sales and this plummets...any views/news chaps?.......are we ever going to see 30p+ ???

[made1686] 24/7/2007 02:00

no not me too sold at 140 p nome at M I

[churchtower] 10/7/2007 08:17

I got out in April 2004 and although I continually look at developments, there is nothing as yet which would persuade me to return.

[vmjmurphy] 09/7/2007 15:18

That's my postion too, omalaha. This could even be worth someone buying to de-list. On my watch list and keeping a close eye ...

[omalaha] 09/7/2007 15:07

agree, there's some serious upside here but matters need to become a whole lot clearer first..i think when evrything is in the open bid rumours will be constant. not holding but worth watching.

[vmjmurphy] 09/7/2007 13:29

This could well be a decent recovery play hmt, the fundamentals are now making WMK start to look cheap. The difficulty IMHO is that confidence is gone and the share price is a falling knife. When confidence returns and there is evidence that the trend has reversed I'd consider buying in. You miss the absolute bottom but the risks are far less. 20p seems to be holding as support, but if that goes its hard to predict a bottom, so too risky for me at the moment.

[clinkers] 09/7/2007 11:32

New management, refinance in place - its a gamble. You can only await the full year results, presumably late September. They have their thinking caps on at HO. We can only hope that they have something positive to say. In short, don't ask me!