Dobbies Garden Centres Share Discussion Threads

[spaceparallax] 02/2/2006 11:48

Hect,

Good to see your input. Whilst I'm no fan of theme parks, I'm happy with the idea of a low cost distraction for the kids during a visit that can be a little 'dry' for them. I can see merit in the concept, but feel that at the moment, with uncertain prospects, the share price is significantly overbought.

[hectorp] 01/2/2006 19:27

I went to the Stirling 'Garden Centre' and got a shock. Its a theme park all right.
I'll continue to support the more traditional Garden Centres in my area, as I've done so for years.
I'm not really intererested in the shares.

[spaceparallax] 27/1/2006 17:39

Sper,

I'm not sure whether DGC would be interested in the disposal sites, the retained ones sound more suited to the DGC theme park style.

Am watching this share carefully, hoping for updated RNS and the subsequent reaction. Can't help feeling that it's overvalued presently, given the uncertainty following the last results. Trying to come up with a fair target figure and am struggling to go much higher than late 400s - might be being a little stingey, but time will tell.

[sper] 26/1/2006 14:14

Very interesting news from WGC, might provide limited opportunity to DGC


Disposal of non core sites

RNS Number:4610X
Wyevale Garden Centres plc
26 January 2006

26th January 2006


Wyevale Gardens plc ("Wyevale" or "the Company")

Wyevale Announces Intention to sell 31 sites


Wyevale Garden Centres plc confirms its intention to sell 31 of their non core
sites. The decision has been taken to focus the business on larger sites
selling a wider range of goods and product.


The majority of the sites are in the south of England, with a number in the West
Midlands, and stretching to Halifax in the north.


Hammond Phillips specialist Garden Centre division has been instructed to handle
the sale of the 31 businesses.


Sixteen garden centres are freehold, with the remainder being leasehold. Full
details of all the garden centres are available on Hammond Phillips' webpage at
www.hammondphillips.co.uk.


Gary Favell, CEO of Wyevale commented:


"Refocusing the group on bigger sites will help us to better position Wyevale
for the future. Quite simply these 31 sites do not fit in with our future
strategy. Larger sites will offer a better return for our shareholders and allow
us to implement our strategy to build a stronger business and a better retail
proposition."


Mike Gilbert, Director at Hammond Phillips, added:


"Wyevale's strategy of concentrating on larger sites is in line with the policy
of other major garden centre groups. Whilst these garden centres do not fit
Wyevale's new strategy, they are good centres and many will be of interest to
independent garden centre operators and the smaller garden centre groups. We
anticipate a great deal of interest".


- Ends -

[sper] 24/1/2006 11:09

up 5p on virtually no volume

[siskinbird] 10/1/2006 22:57

sper
I'd say this is a mediocre performance - not disastrous by any means and not a surprise (hence hardly any movement in the sp). I'm somewhat disappointed and will sell tomorrow - I'm in reasonable profit (I bought at about 350 in summer '03 I think) and I don't see this taking off soon. I don't think many companies in the retail sector will deliver exciting gains this year, so I'm out.
Good luck to all who hold.

[sper] 10/1/2006 10:38

RNS Number:6811W
Dobbies Garden Centres PLC
10 January 2006




DOBBIES GARDEN CENTRES PLC

TRADING UPDATE



Dobbies Garden Centres plc ('Dobbies') today reports on trading over the
Christmas period.

In market conditions which continue to be challenging, total sales for the 9
week period to 1 January 2006 increased by 10.7%. On a like-for-like basis,
excluding all new and refurbished stores, sales fell by 2.2%.

The Company's Preliminary Results for the year ended 31 October 2005 will be
announced on 7 February 2006.

- ends -

SP drops 10p. Right to be worried that like for like sales have fallen however, much retail has suffered this year and if you add to that DGC's vulnerability to the weather, which hasnt been great, you can understand the dip. Xmas sales are also the smaller proportion of their seasonally driven t/o. 10% growth on sales means new sites are adding to the pot and with two more in the pipeline that should increase further next year. Long term weather forecasts are predicting a good summer, it would seem to be up to DGC to get the like for like sales up to scratch throughout the summer and keep their costs down (which is a slight concern I have had in the past). IMHO DYOR I think this is still a good one to hold for the long term but I'm interested in any conflicting views - Cheers

[sper] 08/12/2005 14:49

Director selling 10000, previously sold 25000 in November. Why not do it all at once?

[sper] 03/8/2005 11:34

But not as much as I would like but that's greed for you!

WGC not having any impact on BBR though

[siskinbird] 27/7/2005 13:04

It looks as if the fun & games at Wyevale (WGC) are having an impact here.

[sper] 29/6/2005 11:52

Thanks to Gateside who posted this on the BBR site from the Independent


Dobbies to grow into something big

Dobbies Garden Centres has been trying to make a trip to the garden centre a day out for all the family, installing restaurants, mazes and water gardens to pull in the crowds.

Shame an unseasonally cold Scotland, where it generates two-thirds of its sales, kept families indoors this winter. The company said yesterday that like-for-like sales were up only 1.5 per cent over the six months to the end of April and had slowed even further since then.

Dobbies is still a seedling of a company, however, with only 18 sites. Opening two new stores in Stirling and in Ponteland, Northumberland, caused a 9 per cent drop in its interim pre-tax profits to £1.7m, but the expense is paying off and the stores are now trading above expectations.

These new stores are only the beginnings of a much bigger expansion plan. Four further sites are on the way, with the company planning to achieve £100m of turnover by 2008. All its sites are freehold property, which gives it a solid asset base from which to expand further.

Readers who followed our advice have earned themselves a 40 per cent profit over the past year as the company has delivered on earnings promises. The shares are currently a racy 16 times earnings, particularly for the retail sector, which is experiencing tough times.

But the garden centre sector is likely to blossom over the longer term. Keep buying while the company shoots up.

[sper] 29/6/2005 08:17

Still holding too. This is a good long termer IMHO. That said, they need to get a handle on their costs. EPOS cost a lot to implement, I wonder what they are not doing with it that sees it not having a beneficial impact upon the business to date but that is what the retail director will hopefully sort out.

I also agree with improving the infrastructure if it needs it. Growing a business without the right infrastructure leads to poor decisions and poor implementation (EPOS perhaps?) which do more damage than a drop in profits arising from higher spends to set it up.

All that said, they have no excuses for next year. They must plan to cope with consumer weakness and changeable weather and the better infrastructure and EPOS now need to deliver enhanced value to prove the investment was worthwhile.

[ed 123] 28/6/2005 10:12

The shareprice should be supported by the value of the sites. There is a lot of potential here. An interim stumble can be corrected but if the full year doesn't show better business performance some bigger fish may take a look. I should think that the supermarkets and diy retailers could buy at better prices, produce greater sales per square foot and achieve better margins. Size matters.

Performance will improve one day, either the current management will do it or someone else will. Still holding.

[bigbertie] 28/6/2005 09:47

Yes the cost rises are worrying - there will be opening costs for new centres of course, but building infrasture is a dangerous thing. I just hope this new retail director is good, because they need to raise like-for-like sales from existing sites to generate the cash flow for expansion. Fast growth needs tight management. However I still think the strategy is good and I'm definitely staying in too.

[siskinbird] 28/6/2005 09:03

Unspectacular indeed, if not a little disappointing. In my opinion there's too much talk of sales growth and not enough attention paid to the bottom line. They say they've had to spend on staff infrastructure, EPOS etc to grow the business amd to achieve economies in the future, which all has a slightly depressing familiar ring to it - time will tell.
Having said all that it makes sense to try to expand into England, and I retain confidence in the sector as a whole, so I'm still in for the long term.

[thamestrader] 28/6/2005 07:14

Unspectacular, wouldn't you say?


DOBBIES GARDEN CENTRES plc
Interim Results for the Six Months ended 30 April 2005

Interim Results
•Total Sales £27.3 million Up 16.7%
•Like for like sales Up 1.5%
•Operating Profit £2.7 million Up 0.8%
•Profit before tax £1.7 million Down 8.8%
•Earnings per share 12.3p Down 9.6%
•Interim dividend 3.2p Up 10.0%

Current Trading and Developments
•Like for like sales for the 34 weeks to 26 June 2005 Up 0.8%
•New 55,000 sq.ft. store opened in Stirling trading above expectations
•50,000 sq.ft. redeveloped store opened in Ponteland, Newcastle
•4 new sites for development acquired: near Sheffield, Cirencester, Belfast and
Milton Keynes

[sper] 27/6/2005 16:28

strimmer cord chafes, they must sell something better suited to keeping the kids in doors while you enjoy the wine cheese and olives.

[shirishg] 27/6/2005 15:52

Post removed by ADVFN

[siskinbird] 27/6/2005 15:51

Go easy on the strimmer cord - everything in moderation.....

[bigbertie] 27/6/2005 15:25

Have confidence - I'm sure they will be. I shall probably be visiting them tomorrow to buy some wine, cheese, olives and strimmer chord - all the necessities of life.

[siskinbird] 27/6/2005 13:04

Well I guess this is an all-time high in the lead-up to the results tomorrow. Let's hope they live up to expectations!

[bigbertie] 23/6/2005 13:01

thanks - that's better. and this sunny weather could have everyone rushing to the garden centre......wonderful.

[glennborthwick] 22/6/2005 21:19

no problem

[bigbertie] 22/6/2005 09:55

More talk about congestion charges in cities - it must make out of town shopping centres like DGC more attractive?

Glenborthwick - are you still around? Woould it be possible to take those out-of-date results off the header?