Airsprung Share Discussion Threads

[tommyjnewton] 19/11/2010 23:55

Visited the Airsprung factory shop in Trowbridge last Sunday morning and got a super £80 bed for our 2 year old. This is the base and mattress included. The 7 Oct comment is completely uninformed. The Factory shop is open Friday to Sunday and good quality goods are available,

[dnfa1975] 16/11/2010 22:16

peeps will forgo apg beds and go shop at ikea

ikea already bigggggggg bed seller in uk and gerrin bigger

[dnfa1975] 16/11/2010 22:16

peeps will forgo apg beds and go shop at ikea

ikea already bigggggggg bed seller in uk and gerrin bigger

[cockneyrebel] 16/11/2010 22:13

LoL - it will be the results in Dec that move it, if anything des, not you being here Liz.

CR

[cockneyrebel] 07/11/2010 19:22

Hmmm, funny how you can suddly turn bullish like that Liz :-)

What holding the shares has done for you :-)

CR

[lady liz] 07/11/2010 18:59

There will be a rush to buy in the sales before an increase in VAT. Expect boom time for beds.

[dnfa1975] 07/10/2010 20:19

Astonishingly, Mintel estimates that one in ten babies born in Europe today has been conceived in a bed bought from Ikea. The store has benefited from the low prices it charges, with sofas avail able for just over £100.


Read more:


£100 from IkEA or £800 from Airbung

[cockneyrebel] 18/9/2010 14:46

Read the AGM Statement again and bear in mind the Assets, Cash and the divi that goes XD on the close Tues:

'In my statement at the end of June, I reported that many of our retail
customers were experiencing a slowdown in trading activity. A snowbound January
period was followed by overstocking in the retail sector and weak economic
activity during the general election campaign.
Since the election, it has become apparent that the proposed increases in direct
and indirect taxation, and reductions in various benefits and allowances, are
creating pressure on disposable incomes among our consumer franchise. The effect
has been felt by us in the last quarter, particularly in our mass-market
Airsprung Beds business, where sales are slightly lower than last year.
Despite this difficult background, we are able to report positive news on market
development. We have agreed improved terms to our licensing agreement in the USA
which will bring extra profits into the Group. Similarly, in the UK, we have
granted a licensing agreement for the use of the Airsprung brand on pillows,
duvets and other bedding products, which will create a further new earnings
stream. Our plans to develop the mid-market bed sector are also making steady
progress and new tranches of business have been secured. Our management teams
have continued to find scope for further savings both in purchasing and
internally.
Taking all these factors together, we expect the first half year will produce a
reasonable level of profits, though a little short of last year. We currently
expect a steady profit performance during the second half year, leading to a
satisfactory outturn for the full year.'

What would be satisfactory? Meeting current forecasts? And a lot more profit coming from royalties which are 100% margin, so increased margins?

3.1p eps forecast this year, 4.5p the coming year. PE 6.7 falling to 4.6 and a near 3% yield the total of which goes XD on Tues close - a 20% increase.

CR

CR

[dnfa1975] 18/9/2010 14:44

old article about fire at wiltshire bed factory
i guess beds are highly flammable which poses an investment risk

[cockneyrebel] 18/9/2010 14:37

The truth about retail sales:



"How much should we read into the duff shopping data for August? Not too much.
For a start, the retailers themselves are having a rather good time. The first half numbers from John Lewis, B&Q owner Kingfisher and its former relation the electronics firm Kesa are pretty good.
In the case of Kingfisher, analysts look to be reasonably up-beat that it can produce high single digit growth in earnings and dividends despite the coming headwinds.
Duff data: Don't read too much into the dour shopping date for August. For a start, retailers like John Lewis and B&Q owner Kingfisher have posted pretty good first half results.

There looks to be a determination among our high street kings to talk down prospects because of fears of the impact of George Osborne's cuts.

It is possible to read recent data differently and come up with a brighter prospect for the third quarter and beyond."

CR

[dnfa1975] 18/9/2010 13:12

its the fixed cost base that worries me
a 10% drop in sale is magnificed into probably a 30% drop in profits

[ls lowry] 18/9/2010 13:11

Yes and retail spend is set to get worse. The problem with anythig retail is thigs can turn very bad quickly and thats what the market thinks hence the share price stayed low while the market was picking up. Cash can be wiped out quickly when consumers stop spending and with the autum spending review coming these are not the stocks to hold at them moment.

[dnfa1975] 18/9/2010 12:59

pension deficit at the moment is £3.6m.

[liarspoker] 18/9/2010 12:34

Compare APG to ESR.

ESR has about GBP 350K of net working capital plus depreciated property assets worth about GBP 3.5m. The market cap basically equals net working cap plus the property assets. The company generates cash and has also made a return to dividend. More importantly it also has a large pension deficit which is about GBP 3.1m plus there are about a million pounds of borrowings too.

Basically the same situation as APG ( with obvious differences ) but it's trading at full value of property and net working cap value. If APG were trading on such a valuation then the market cap would be over GBP 8m. It just shows how undervalued APG is.

[cockneyrebel] 18/9/2010 10:07

Hordean Eagle - yep they have a pension deficit that has risen lately - it was plummeting but short term a lot of co's pension deficits have risen where their investmentsd have fallen - going forward this is likely to reverse somewhat.

But the pension deficit at the moment is £3.6m. APG has net cash of £2.4m and no debt. The property is on the books @ £8.6m and hasn't been revalued in 14 years - it has to be worth over £12m imo. They have also got planning on 7 acres of land that will have increased that value too. So with something like £14-£15m of property and cash how is that pension deficit a problem? It reduced from £7m to under £2m in the 3 years running up to the 2007 crash, getting it down to zero when the markets recover over the coming years won't be out of the question but my point is they could just sell and lease back a small part of their property assets and pay that deficit off and still be trading at well below half tangible assets.

CR

[le frog] 17/9/2010 08:11

Thought they closed 0.5p down not 2p? Or have i missed something?

[ls lowry] 17/9/2010 06:14

Bad press



retailer suffers austerity hit
Buzz up! 0 Print
Companies:Airsprung Group PLC Topics:Personal & Household Goods Related Quotes
Symbol Price Change
APG.L 19.90 -1.10


{"s" : "APG.L","k" : "c10,l10,p20,t10","o" : "","j" : ""} Jamie Dunkley, 6:39, Friday 17 September 2010
Airsprung Furniture (LSE: APG.L - news) has warned that the Coalition Government's austerity measures are likely to hits its profits during the first half of the year.

Shares in bed and sofa retailer, closed down 2p or 9.5pc at 19p after it admitted that profits were likely to fall "a little short" of the £473,000 posted during the first six months of 2009.

Stuart Lyons, the company's chairman, said proposed increases in direct and indirect taxation and reductions in benefits and allowances were likely to hit disposable incomes among its core "consumer franchise".

Speaking at Airsprung's annual meeting yesterday, he added: "The effect has been felt by us in the last quarter, particularly in our mass-market Airsprung Beds business, where sales are slightly lower than last year."

Despite this, the company said it expected a "steady profit performance" during the second half, leading to a "satisfactory outturn for the full year". The company has also been granted approval to use the Airsprung brand on pillows, duvets and other bedding products and agreed to

[liarspoker] 16/9/2010 18:11

Yes, but emphasis on 'can' but that doesn't mean it will. They could sell any number of assets and contribute to minimising or deleting the PD. At the moment this company is valued like it's losing money and going bust which is wrong. It's profitable and pays a divi. A close comparison would be TON but judging by their property and valuations APG is much cheaper.

[ls lowry] 16/9/2010 17:55

Profit warning and the pension deficit gets worse every year. In the meantime EKT results out today growing at 50% and beating all the indices.

[horndean eagle] 16/9/2010 17:48

CR doesn't bother with the pension deficit but that is a cancer which can cripple a company. Every year it gets worse and takes a huge chunk out of any profits reported.

[liarspoker] 16/9/2010 16:25

I'm not sure if the property is worth 3 X book value but I see it as follows:

Short term assets less all liabilities = GBP 1.6m

Depreciated book value of property = GBP 6.5m with just under GBP 5m of that valued last in April 1997 so should be worth a bit more.

So GBP 1.6m + GBP 6.5m ( conservatively ) = GBP 8.1m

Market cap today ? Work it out. :O)

Should a bid occur then they'd have to pay well over GBP 8.1m imo if you factor in intangibles and full property valuations.

The dark horse is the pension deficit but apart from that this company is just being ignored because there's no super growth in the share price.