Henderson European Share Discussion Threads

[jtcod] 09/6/2006 13:44

Done it GT.

Well spotted.

THOSE INVESTORS LOOKING FOR 'HET', Please follow new Choices UK link CHUK:

[edmundshaw] 09/6/2006 08:51

Yup. CHoices UK

[zooshare] 09/6/2006 08:47

CHUK is not recognised...is this the new ticker?

[goonertone] 09/6/2006 08:39

JTCOD

Looks like HET has been switched this morning to CHUK I think we should put a redirection on this thread as the last post and just copy your opening to a new thread.

Thats of course if you have time.

GT

PS Looks like one of the mm's got lost on the way to the new ticker

PPS Whats your thoughts as to the change in year end

[jtcod] 09/6/2006 07:54

Hi Fordtin
Price just been dragged down by the market imo.

I wonder how easy it would be to buy 50,000 shares though. Probably same as usual. i.e. They will quote something like 80-82p

[jtcod] 08/6/2006 08:36

Cheers Sporticus
The £3-4m down doesn't worry me. The management will throw everything but the kitchen sink into costs for this year just to draw a line under it ready for next year. I expected that.

I'd like to know exactly when Sainsbury's contract ceased if you know. i.e. Sainsbury's could make a decision today for instance but there's a 1mth or 3 mth run-off.

tia
JT

[sporticus] 07/6/2006 19:39

JTCOD and GT
Does ICT = Information and Computer Technology? Yes. A marketing director and some web people who were supporting the web / marketing function have gone as has one of Musprats sons from the TV fiasco. Theyve had problems getting the new website up and when Sainsburys dumped them for THE I think, its been all hands to the pumps. I dont know how they will manage without these people. The web stuff is still miles away. They recently dumped ten or more perms from the warehouse on redundancy then contacted the agencies to bring in temps a couple of weeks later. ?? alegedly £3-4m down looks like a loss to me rather than a profit, not sure about exceptionals but remember its only a rumour.

[jtcod] 07/6/2006 09:02

3-4m down sounds like it could be net profit after exceptionals to me. The first half was £3.131m loss after exceptionals.

Sporticus
Can you explain please?

Does ICT = Information and Computer Technology?

[jtcod] 07/6/2006 08:48

GT
I use the term cash cow when something is used to just throw out money rather than eat investment. They milk it of cash. It may not be massive but they are going to milk it.;)

Regarding the Andromeda purchase. Do you have the split of T/O for the company? I haven't been able to dig anything up. I thought £40m was cautious in order to allow for the unknown.

[goonertone] 06/6/2006 23:07

JTC

I agree with most of what you say but I think you may be overcooking the Andromeda turnover as we only took over part of the business and I dont think you can really describe mosaic as a cash cow more a gradually reducing cashflow asset that on a discounted cashflow model is probably worth a couple of hundred k at most.

Sporticus

More of your insider inf!! Can you please elaborate as to:

Is your 3 to 4m down turnover or profit?

What is ict?

What do you term as "lots"?

Not condescending as your info is usually quite accurate. just trying to understand your post fully

GT

[sporticus] 06/6/2006 19:52

I was hopeing for a good divi at the end of this year abd it might be bad info but the rumour mill inside says the picture is big time scarlet. 3 to 4m down and lots of lay offs in ict.

[jtcod] 06/6/2006 14:58

Apart from the fact that trading for the second half to the 8th May 2006 was still 'encouraging' with only 6 weeks left to the financial year end, the next financial year will benefit from significant cost savings, plus Andromeda with it's potential £40m+ turnover (imo) and Mosaic which will require pretty much zero capex going forward as it will be run using existing rights as a cash cow.

I believe 6/2007 EPS could be nearer 20p per share, leaving the management the comfortable option of paying say an 8p dividend (10 %) of current price. If they do this, I can still see the share price through 150p certainly by this time next year (regardless of current market concerns).

The management are doing all the right things imo.

As ever all IMHO and DYOR
JT

[jtcod] 06/6/2006 14:45

Thought I'd just remind any shareholders who may be worried about the drop from 90p, of the last operating update.


Press Release
IMMEDIATE, Monday, 8 May 2006

Home Entertainment Corporation PLC- Strategic Update

Since the company announced interim results on 24 January 2006, Home
Entertainment Corporation has traded in line with market expectations, in a
challenging business environment.

So far, in the second half of the current financial year, which includes the
Christmas and Easter periods, the company sales levels have been encouraging,
reflecting the restructuring of the company's product range and re-branding of
ChoicesUK stores, as well as continuing progress in the convenience store sector
and fulfilment activities.

In addition management has acted decisively to eliminate loss-making activities,
reduce costs and improve cashflow through streamlining the organisation.

The latest phase of its central overhead reduction programme has resulted in
annualised savings of approximately £2 million. In addition, the company is in
the process of disposing of the leases of a number of unopened non-trading
stores, expecting, in due course, to achieve a further annualised saving of
approximately £600,000.

ChoicesUK TV, the company's teleshopping business launched in August 2005, has
been closed following a poor sales performance. The Channel is currently being
operated in association with a third party and all related costs will cease by
the end of July 2006. The total losses incurred will be no more than £1.35
million, of which £833,000 was provided in the first half of the year.

The decision has been taken to exploit the existing film rights of Mosaic
Entertainment and cease further programme acquisitions. It now operates as part
of the ChoicesUK Local business which supports convenience stores and other
retailers.

On 13 April 2006, the company acquired the stock and certain tangible assets
from the receiver of Andromeda Entertainment PLC. As a result, the company has
significantly strengthened its position in computer games, particularly in the
fulfilment market with mail order companies.

................................................

[jtcod] 29/5/2006 18:20

Cheers GT for your spin on the idea. I was thinking along the lines of pure distribution synergies. Like you, I don't see any special sales benefits.

I think if traditional lines to market are going to retain a sizeable place in the overall long term future of the industry, distribution costs will need to be screwed down tight and thats where volume counts.

[goonertone] 28/5/2006 22:00

JT

AMU & HET sorry for the delay.

Tough one.

Some parts of each have synergies but the high street part of choices stands out like a sore thumb. Would I want the unpredictable nature of the high street stores to impinge on the steady solid distribution business of AMU.

I supppose it depends on your view of the benefits of the benefits from the the cross selling of the locals business of HET with the distribution business of AMU. They would appear from first glance to be fairly seperate client bases but with similar size profiles.

You could possibly put a small sales area in each high street store as long as you didn't try to make it into a CD emporium. More of a rent a romantic film buy a cd of lovesongs for afterwards type of thing.

If nothing else was done either HET sells mosaic to AMU or AMU sells maximum ent to HET as I think each of them on their own are to marginal to the main business to make it worthwile. Could well be a case of sum of the parts etc.

I wouldn't want to see it until we know where the high street side of HET is going. If that has stabilised then their might just be some mileage in the idea.

GT

[goonertone] 28/5/2006 21:47

A few things to mull over, some maybe good some maybe bad you can decide.

Change of name to be ratified on 6th June. i think this is a positive move.

Developments with Lovefilm.
s far as I know the company is still running the fulfilment services for Lovefilm as they are still based at Choices warehouse.

Lovefilm recently merged with Video island to give a co with a combined userbase of 435,000+ compared to the 50000+ when it bought out moviechoices from HET. They are about to embark upon a £15 million advertising campaign.

Lovefilm are also starting downloads, this includes hosting downloads for AOL, the initial trial consists of 35 films form universal. You can download one from the site direct to your computer and one for transfer to a portable player. They will also send you a hard disk as well. So this is the advent of movies on demand. Depending on your view of the potential for the Download on demand market this is either a disaster or proof that mass downloads are miles away.

Finally its been raining for weeks now, isnt that meant to be good for DVD rentals, OK I'm running out of info now as you can see.

GT

[jtcod] 26/5/2006 16:16

There's only one crystal ball in existence fordtin and I doubt HB would sell it.

[horneblower] 26/5/2006 12:18

fordtin,

"TA magic stuff for absolute beginners"

Should I write the book? It's a good title.

[jtcod] 24/5/2006 16:23

Topped up 10,000 at 78.25p today

[horneblower] 24/5/2006 07:58

fordtin,
I've been away all week...will reply later when I'm organised.

[jtcod] 23/5/2006 18:42

Agreed GT

At least it ties them in for a few years.