Hardy Amies Share Discussion Threads

[bungler] 28/1/2008 14:47

Well it looks like the market agrees with your downbeat assessments clocktower and ladybird1. Thanks for giving us your views and on one thing we certainly agree - there's certainly no hurry to buy now.

[ladybird1] 28/1/2008 12:33

I think you hit the nail on the head, clocktower. They will have to raise more money (as thay have frankly said) to finance their expansion programme & to repay the loan in due course. If the share price stays low, they will not get a rights issue away without significant dilution. Further debt is not an option without good progress being evident, which of course would lift the share price anyway.

The couture business looks well set and the far eastern ventures may very likely do well. But the focus in the short term will be on the UK retail, in that this is where they have made their greatest commitment. You will recall they were not just talking of those stores already opened but more in 2008 and that all costs money. If Uk is not showing progress by half year, then they are likely to have a problem and your scenarios takes centre stage.

We don't yet have any analysis of the figures, of course, but HN has several months back in house and the new stores were there for the Xmas trade. The figures don't look as if they've generated much and certainly the statement was conspicous by its absence of any words like 'encouraging start' or indeed any direct reference to their performance.

In fairness, the company warned the UK retail would take time to develop. Finals should give more idea. But in the meantime I can only agree with your concluding word.

[clocktower] 28/1/2008 11:43

If money is raised to pay-off the loans and provide further investment funds to grow the business, how much of a dilution will occur?

I guess at that time they will be trading at a fraction of 1p and then I guess get consolidated that in turn could squezze out small minority holders.

BEWARE imo.

[ladybird1] 28/1/2008 09:14

Fair enough, bungler. We must just await the finals, when of course they will have to give a fuller explanation & update.

On a perversely positive note, in the meantime, I suspect there will be the inevitable sellers and few buyers, so you may well be able to top up at a materially lower price level! I shall not compete with you.

[bungler] 28/1/2008 09:07

You could be right ladybird - on the other hand the new stores were only trading for a month or so and maybe the company feels it's better to keep the news back and hit the market with a fuller picture down the line. After all, however well they're doing, in this market no-one is going to take much notice of one month's trading I wouldn't have thought. As we know (!) they haven't been worried about the share price while they sort out the business; it suits me because it means I can continue building my holding at these prices.

[ladybird1] 28/1/2008 08:39

Indeed, we must wait & see and it is true they said in the interim statement the new shops would take time to establish themselves. That said, total turnover in the second half £916k compared with £728k in the first half. The mix unknown as yet, of course, but on the face of it the three new shops, plus the HN venture now fully running, would seem not to have taken in very much at all in the key season.

Going back to original impression, tho', when things are going well, companies say so; when not, say as little as possible. This rings of the latter.

[seizetheday] 28/1/2008 08:29

In addition couture sales from 14 Savile
Row were strong showing a 60% increase over the previous year.


60% VERY HAPPY WITH THIS, LETS B PATIENT AND TOP UP!

[ladybird1] 28/1/2008 08:19

Oh dear! Its reticence does not inspire confidence. A couple of words on how the new stores fared over Xmas conspicuosly lacking. A very subdued tone in sharp contrast to the positive note of the intereim statement.

The shares will 'ease' sharply over the next months, I think.

[bungler] 28/1/2008 08:05

Well there it is - only one day late in the end: it all looks much as expected - steady as she goes and investing to grow. Unfortunate mistake referring to year ending 31st December 2006!

Trading Statement




RNS Number:5994M
Hardy Amies PLC
28 January 2008

28th January 2008



Hardy Amies plc



Trading update



Hardy Amies plc announces that its revenues for the year to 31 December 2006
were £1,644,544 (2006:£1,217,996), representing an increase of 35% on the
previous year. As well as the company's first men's ready to wear store which
opened in October in Edinburgh, the Company opened another men's store in
Chester on 15 November and a women's ready to wear store in South Kensington
which opened at the end of November. In addition couture sales from 14 Savile
Row were strong showing a 60% increase over the previous year.





As mentioned previously in the interim statement, despite the encouraging growth
in sales the company remains loss making as the business continues to invest in
the future development and growth of the brand. The business is not anticipated
to become profitable until after 2008.





Enquiries



Hardy Amies
Nigel Brunning
Tel: [phone]

[ladybird1] 25/1/2008 12:56

Fair enough, bungler. I'm sure he meant it, but these things can drag on before everybody's happy. So long as we don't get an update today after the bell, I shouldn't worry too much at this stage.

[bungler] 25/1/2008 12:45

No, no mistake ladybird - he definitely said it would be out by the end of this week. However, I think you're right and that it is probably best to leave it. Another weekend of chewed nails then!

[ladybird1] 25/1/2008 12:13

bosco

Yes,having reread bungler's post he did say that. He may of course have mistaken/conflated the 'getting started' bit with publishing the final article. We'll find out in due course.

I recall a long time ago somebody pointing out they were late in filing the annual return. Mr. Brunning commented they had brought secretarial in house to save cash. No doubt stuck on some poor soul with little focus on the job.

Nonetheless, you are right to highlight it IS a small scale outfit and with all the activity I imagine management are stretched. I suppose we are all rather on tenterhooks for comments on the new retailing performance/prospects, but we'll hear when we hear.

[boscolane] 25/1/2008 11:19

Yes, but from what I understand, bungler said the update was definitely coming this week. The assumption being that they were happy with the time frame. Also i was slightly alarmed to read their small paragraphs on the leading staff of Hardy Amies and AREV on the web site. Of the 6 featured there are conflicting ages given for 4 of them.
V careless im afraid, but it doesnt change my view that HRD is heading firmly in the right direction.

[ladybird1] 25/1/2008 09:29

Mr.Brunning's original draft will presumably have had to be circulated to advisers and the Board, comments awaited, redrafted, etc. Takes time. If he hadn't started it 7 days ago when you spoke, probably unreasonable to expect it quite so quickly.

Suggest we shall - not unreasonably - just have to sweat. Perhaps just let them get on with job?

[bungler] 25/1/2008 08:00

Very surprised not to see the update - may call later to try to find out what's happened.

[boscolane] 22/1/2008 08:25

Probably best the update wasn't issued today !! more blood on the screen !
Later this week will be more stable I reckon.

[seizetheday] 21/1/2008 12:06

bungler. great, thnx

[boscolane] 21/1/2008 11:07

There's blood everywhere bungler, dont take it personally !!
Today looks particularly nasty too.
I say again though that none of this means that HRD aren't doing well. They have licences abroad where economies are boyant and people are still buying quality goods here.
Think I might get up at 0700 tomorrow !

[bungler] 21/1/2008 10:56

Who knows bosco but put it this way I thought the fall from 3p a good opportunity to top up. If you looked at the bloodbath that is much of the rest of my portfolio however you would never follow my lead !

[boscolane] 21/1/2008 10:46

Excellent, so things going well bungler ??

[bungler] 21/1/2008 10:38

SEIZETHEDAY - I rang HA on Friday to see if there was going to be an update and was surprised (and delighted) to be called back by Nigel Brunning who said he was preparing the update either that evening or early this week. Obviously he couldn't say anything sensitive ahead of the announcement but he did confirm that the update would be out this week.

bosco - I have indeed called Chester and a friend of mine and fellow-investor phoned Edinburgh - hence this morning's gamble.

[boscolane] 21/1/2008 10:27

Nice one Bungler. Im sure your faith will be rewarded. I think I'll do a quick ring around the stores to see how trading is going, unless anyone else has done this already ?

[seizetheday] 21/1/2008 10:12

who told you?

[bungler] 21/1/2008 10:00

Who's that idiot that just bought 75,000? Oh it was me! And I seem to have moved the price. Yes boscolane I am told there will definitely be a trading update this week - possibly as early as tomorrow.

[boscolane] 20/1/2008 15:23

This week for the update then everyone ?
I hope people dont expect profits to be announced as im sure they are ploughing money back into expanding the business. I doubt they are stopping at just the three outlets outside Saville row.
I am pretty certain HRD is in a great deal better shape now than it was a couple of years ago when the price was 6p. Also the shares are tightly held so any demand for them will cause a steep rise.
I remain confident although I would like to know if they plan to raise more money and how they intend doing it.