Ashley (laura) Share Discussion Threads

[irnbru2] 02/7/2015 08:32

Camkids.
The trainer one.
The place is littered with these scams.

[bobby.ifa] 02/7/2015 08:17

Like HSBC or Standard Chartered?

[irnbru2] 02/7/2015 08:12

It's not the cost.

It is that has been done for no good reason.

It complicates the picture considerably, as most companies that are listed in London but run out of the far east are scams.

[clocktower] 01/7/2015 08:13

There will also be considerable fit out costs before moving in, if that is what they intend doing.

[phowdo] 30/6/2015 21:32

The instructions to DTZ for the evaluation were given on 16 February.
They promoted Joyce Sit Meng Poh to exec director back in January. She is President of Laura Ashley(Asia) Singapore.
So its been in the planning stage for a good while.

The big question is: Why did they buy and not lease?

It doesn't make sense unless...

[barnesian] 30/6/2015 20:46

What is the extra cost? Indirect overheads (mainly head office related) are currently £18m.
What will the Singapore regional office cost in extra overheads?
Or do they intend to slim down the London office.
They don't pay much per employee (3,700 employees cost £53m)but perhaps the London site is worth
more, or costs more, than the Singapore one? I doubt it from the photos.
I suspect the impact on the P&L will be much more than £0.5m interest charge.
Last year's profit was £23.5m.

What is the potential benefit? How much extra revenue at say 10% margin over what time period?
Is it from stores (big set up and fixed cost) or from franchising (£27.8m worldwide revenue
last year) or licencing (£3.4m worldwide last year).

Lots of questions that the RNS doesn't attempt to address. Perhaps there are some good answers.
Perhaps they don't want to disclose their strategy and expectations yet.
Some on here see this as a good strategy move to expand in Asia. I really hope it is.
But it might be a bumpy road.

I'll keep watching. The dividend yield continues to be of interest if it can be maintained.

[eezymunny] 30/6/2015 19:34

London head office



A little more humble!

[thorpematt] 30/6/2015 19:20

Impacts on balance sheet minimal since previously was a cash balance.
Imp[act on earnings at present SIBOR rate = 2.7% on loan thus circa £0.5m ongoing.

EV rises as consequence of debt and thus my fair valuation takes a hit of a few %. Current share price remains too low for forward earnings and growth projections.

Questions I have related to potential restructuring costs. Location looks good and future expansion insinuation further into asia seems logical.

Building can be viewed as per links below.

[clocktower] 30/6/2015 13:36

Risk outweighs reward it seems, as they have failed to show the logic of this purchase, so better short until a solid support level is reached imo.

[phowdo] 30/6/2015 13:30

Had a few - big plans afoot by the looks of it.
Does increase uncertainty though so I can see both povs.

[investorneil1] 30/6/2015 13:28

Looks like a smart business move to me so not sure why the panic. The Asian market is sophisticated and affluent; exactly the demographic and target market for ALY. I want the company to expand and progress like this rather than just chug along doing well but not exponentially like they can. Good on them for taking a strategic well planned move to grow!

[nigelmoat] 30/6/2015 13:24

Like the move - could be the start of a sea change with some more courageous business moves to follow. They won't have overpaid - these guys are shrewd.

[badtime] 30/6/2015 12:40

Out at 32p for now

[bobby.ifa] 30/6/2015 12:16

They could let some of the floors to help service the loan?

[eezymunny] 30/6/2015 12:13

Seems a lot to pay for an office building. Slightly bizarre but who knows how big they can make the brand in Asia? One could look at this two ways!

[bobby.ifa] 30/6/2015 11:57

Not forgetting the AGM was held in Malaysia, quite telling where the Company s heading, just want it to be the right price before it's taken private.

[barnesian] 30/6/2015 11:44

I'm unimpressed by this. The benefits given are unconvincing. Not only is there a significant capital cost but I assume this 8 storey building will be staffed as a regional headquarters thereby increasing overhead costs before it contributes in some unexplained way to regional growth.

I've just sold at marginally more than I paid a couple of weeks ago. I've an uncomfortable feeling about this. Buying and staffing a regional HQ is a risk I did not anticipate.

[investorneil1] 30/6/2015 10:58

Even after paying c£15m for the aquisition, they still have about another £15m in cash!

[bobby.ifa] 30/6/2015 10:51

Blimey, a lot of selling taking place!

[bobby.ifa] 30/6/2015 10:49

Looks like the divi might be under threat?

[investorneil1] 30/6/2015 10:39

Great to see them putting the cash pile to some use and expansion in growing markets. Super positive news!

[bobby.ifa] 30/6/2015 10:33

Another step away from her English roots, the hot money is now in the richer emerging markets not spent up Britain.

[clocktower] 30/6/2015 10:31

The RNS only states it is an office building, no retail space, do they need office space or the reasons for purchase seem weak imo.

[speedsgh] 30/6/2015 10:22

Acquisition of Property in Singapore -

[ben12358] 23/6/2015 13:40

There is a theory Laura Ashley will benefit from the new pension freedoms as new retirees make over their homes.