Alba Share Discussion Threads

[m.t.glass] 19/6/2006 16:24

LONDON (AFX) - Alba PLC's chief executive said the troubled consumer
electronic group will lay off about 10 pct of its UK workforce as part of a
drive to improve the company's performance.
In an interview with AFX News Daniel Harris said he planned to cut about 100 full-time Alba jobs in the UK within a year from a total UK workforce of between 800 and 850.
"We have had a very difficult year but we have made a lot of effort to
restructure the company," Alba chief executive Daniel Harris said in a telephone interview with AFX News. "This is day one, year zero (for Alba)."
Harris said its staff needed to be more familiar with growing consumer
demand for digital technologies, such as portable music players -- MP3s and
iPods -- and digital television and personal video recorders.
"Part of the problem is that we have too many staff who are too analogue and not digital enough," Harris said. "We need people with Internet (technology)
experience."
Harris was speaking after Alba reported a near 90 pct fall in full-year
profit, blaming a difficult trading environment.
The company changed its structure and management in an effort to improve its
performance.
Falling prices for consumer electrical goods such as flat-screen televisions
have lowered profit margins, while consumers are deserting the high street in
favour out-of-town centres and the Internet, Alba said.
Alba saw double digit growth in sales of flat-screen TVs in April and May as
customers bought new TVs to watch the football world cup on Harris said.
However, the sales boost will have a negligible impact on full-year results,
Harris said.

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That interview provides even more evidence that the management have only just woken up to the 21st century, several years late!

..."This is day one, year zero (for Alba)."
Harris said its staff needed to be more familiar with growing consumer
demand for digital technologies, such as portable music players -- MP3s and
iPods -- and digital television and personal video recorders.
"Part of the problem is that we have too many staff who are too analogue and not digital enough," Harris said. "We need people with Internet (technology)
experience."
Harris was speaking after Alba reported a near 90 pct fall in full-year
profit, blaming a difficult trading environment.



The existence of all this newfangled technology, and that internet thingy, seems to have caught Alba bosses unawares. Where have they been living??
It seems barely credible that they could have been so out of touch all this time.

[6085544] 19/6/2006 16:07

Problem is all the big boys have established their ranges of HD ready and Plasma TVs. Alba will almost be a new player in this field.
If they are only now starting to look at what people are actually buying how long will it take to design and manufacture a viable product at a competitive price.

[m.t.glass] 19/6/2006 08:10

"....We recognise that our markets are changing and have begun the process of
implementing the necessary strategic programmes to revive Consumer Electronics
profitability. This will take time...."


So - they finally noticed what everyone else in the market already noticed long ago, and have decided to react.

"..we have begun the process.. This will take time.."
Jeez!!

[6085544] 25/5/2006 12:15

Little worrying for this company ,the whole world has gone HD Plasma mad and this is supposed to be a company that makes it`s money mainly from TV sales yet it does not have a single product on offer for this market. They briefly tried to sell a 42" Plasma screen that was pulled very quickly I assume it was no good. They need to be in this market especially in the next year or so.

[elsworth] 12/5/2006 23:58

Back down below £2!!!.......has been nothing more then a buying trap, the last few days!

[6085544] 09/5/2006 15:33

Probably worth keeping an out on these at the moment could go either way I suppose.

[pegster2] 09/5/2006 13:18

The shares doubled after the first profits warning. They dropped quickly to £3, on the second, but then have really drifted hard back to nearly £2. It was that last drift that I meant in terms of no news (since the warning in February). I think you'll be surprised how flexible they can be with their orders and their product range. It's not going to be immediate, but they don't have a factory to close and hundreds of employees to lay off. The value of the brands is in at around the £2 level, so you get the business for free. That's why it was oversold in my view. If they're able to keep the dividend, the banks must be happy too.

[6085544] 09/5/2006 09:48

Punmmeled on no news! sorry correct me if I am wrong but hasn`t the company issued two profit warnings in the last few months with a statement that they cannot see things improving in the near future but should be okay in 2007.
Also they have contracts in place with their munufacturers that commit them as Alba supply the design and spec.So they are in effect a manufacturer.as to renege on the contracts would cost them a fortune.And lets not forget the huge debt 100 million I think.
I am actually a fan of this company and have followed it for years but I am really fed up with the lack of management in the last few years they seem to have lost their way in what has been one of the fastest growing sectors they have stuck their heads in the sand hoping for the best. Dixons are pulling right out of non flat screen TVs Alba are still making them.
They have not produced a good plasma which is what every one wants nowdays and prices on these are spiraling downwards. You can now buy a Philips 42" Plasma for £850 and a HD ready one for £1250. Hitachi and LG are even cheaper. 32" LCD HD ready tvs are now 700/800 quid and non HD ones are half that. A branded dvd player can now be had for 40 quid. Ridiculous really. I do not know how anybody can make a sensible profit at these prices.Also Alba had the chance to be at the forefront of DAB radios but sadly got overtaken by smaller companies who now dominate the market. Hopefully the management read our comments and take heed as this is still a good viable company. I will definately reinvest if I hear some good news from the boards own mouths.

[elsworth] 08/5/2006 20:43

Spot on 6085544.............when the House Broker says buy, YOU ACTUALLY SELL!!
If not, then they sell into the rise and leave you in negative territory!!

......£1/£1.50 fair value until hard evidence

[6085544] 08/5/2006 15:52

Oh right then lets all pile in on the say so of the house broker as they are never wrong!
Until I see hard evidence for example a statement from the company stating sales have improved or a general rise in the sector I am staying away.
I have seen this stock go from 4 to 6 quid and back down to 3 quid overnight on too many occasions to feel comfortable.

[sat69] 08/5/2006 15:20

Thx Peg...hopefully rise more tomorrow!...Where did you get your info from please?

[pegster2] 08/5/2006 14:44

Investec house broker has said oversold and issued a buy note. Said the market for their products was stable.

[sat69] 08/5/2006 10:01

Anybody heard any whispers?

[6085544] 04/5/2006 10:48

Half price? The retailer will insist on a profit otherwise why bother. I doubt it will leave anything for the manufacturer apart from some money coming back in.
On my reckoning even if they have negotiated a terrific deal with their bankers they would need something in the region of £120,000 a week to cover interest on the outstanding debt so any cash coming in is a bonus.

[leetholdings] 03/5/2006 16:04

JCB lawnmowers half price in Focus Diy stores.......flying out over the bank holiday weekend. Only 50 allocated per store!

[6085544] 02/5/2006 17:06

Worrying thought, got the Argos freebie catalogue promotong their mega sale in the weekend papers,Alba and Bush did not appear as much as you would expect, they were pushing the bigger names and a few I have never heard of, the few Alba products featured were very heavily discounted leaving no room for any profit.

Argos are the main supplier for this company.

[elsworth] 24/4/2006 19:25

Could easily see this well below £1 soon!!!
Profitability is a key factor in driving/sustaining a stock price...and at the moment, they certainly need to hire some "Top Apprentices" or even some Alan Sugar rejects to get the ball rolling!!

.....i'm gonna be waiting for the knife to hit the deck for now....patience could easily see an entry point of around 70p/£1

[leetholdings] 24/4/2006 16:55

Price might be held down by mm's to fulfill a buy. I would be very surprised if the controlling family don't take this private, maybe they are just waiting for the price to fall so they will have less to pay for full control!!

[6085544] 24/4/2006 16:10

Blimey this stock is simply dripping away 5p at a time. Will be below £2 this week at this rate.

[6085544] 20/4/2006 10:12

Problem is we do not know if they are definately buys. The price certainly has not gone up in fact it has drifted lower.

Argos are the main suppliers for Bush and Alba always have been but they are now having their own stuff made so I imagine that they will be pushing that and undercutting on price.
Also they do not buy the goods they take them on consignment only paying for what they sell.

Things do not look to good for ABA at the moment summer is not traditionally a good TV shopping time as people spend more time outside.

[sat69] 19/4/2006 13:10

At last! Two good buys. 44k and 50K @ 227 pence. Buys so far today are 227K and sells are only 10K. Someone agreeing with me that these are oversold. Hopefully a Director!

[sat69] 19/4/2006 12:58

How much lower will the share price keep dropping? Surely someone has their slide rule out at these levels (226 pence)

I was in Argos over the bank holiday, and was pleased to see Alba products on display and throughout their catalogue. With Summer approaching, I hope the shoppers come out in force!

[leetholdings] 12/4/2006 23:56

6085544

Re your last post, I can only say I have to agree with you completely the retailers are cutting out the middlemen and Alba is going to have to address some serious issues and concentrate on profitable sectors maybe or should I say hopefully the board are trying to do this. The other positive aspect of Alba is that it does, as I'm sure you're aware, have a significant portfolio of brands under it's belt. I still think a mbo is a strong possibility.

Any views on Imagination Technology?