Mbl Share Discussion Threads

[fft] 18/10/2010 10:50

shouldnt we have had an rns for the agm by now ?

added on edit : No, as there is no trading statement attached. We should get one after the agm is finished saying that the resolutions have been approved and that DD has been taken away to the MUBL cells :-)

[fft] 18/10/2010 03:51

dd,

think you were robbed today !

I would just like the links between TA and his son cleared up, esp wrt to the company mentioned by cr and others above where it is alleged it closed down then re-opened under another name, despite MBL paying cash up front for all orders. I reproduce post 2662 from typo below.


"I too am a bit perplexed about the related party transactions with Sales Media Solutions Ltd and subsequently Media Sales Direct Ltd. James Allan is the only director of these companies (apart from what appears to be a nominal company sec). The companies are registered at the same Cheltenham office.

Sales Media Solutions Ltd was incorporated in May 2007. In the y/e 31 March 2009 MBL purchased over £7m through Sales Media Solutions although, as CR points out, there doesn't appear to be any mention of this in the 2009 Annual Report.

According to the 2010 Annual Report, the purchases were made on normal commercial terms. These terms seem to be on the basis that MBL pay upfront for stock. As at 31 March 2009 the upfront payment to Sales Media Solutions amounted to over £1.1m. Sales Media Solutions only filed limited accounts, so no turnover stated. However, at 30 June 2009 their cash at bank coincidentally stood at just over £1.1m. Creditors stood at almost £1.7m. The balance sheet had net liabilities of £138k and the company was declared insolvent.

Media Sales Direct Ltd was incorporated in June 2009, presumably due to the insolvency of Sales Media Solutions (this is only my assumption and I'd be happy to be corrected on this). In the y/e 31 March 2010 MBL purchased a total of over £8m through Sales Media Solutions and Media Sales Solutions.

Why were Sales Media Solutions and Media Sales Direct Ltd setup? Apart from MBL, what customers do these companies have? What did these companies provide that MBL couldn't handle for themselves?"



I know there are 3 accountants in the company (although 1 only joined recently), but Enron, Polly Peck and others also had numerous accountants. It may not be illegal, so nothing for an employee to complain about, but at the moment it does leave a question mark over the judgement of senior management. The only way forward is for greater disclosure.

[meict] 16/10/2010 19:40

Mark,

Many thanks for your kind offer.

Unfortunately, I am tied up Sunday afternoon and evening.

No doubt DD will be able to tell me and other mublites the fun and games in darkest Lancashire on Monday evening.



David,

We spoke of the football matches at The George some weeks ago. I hope you and your lads enjoy tomorrow's offering. You may be lucky but if Blackpool loses they'll still be tenth.

I was thinking of asking Trevor two questions.

Firstly, what does Trevor mean?

And secondly one about the 'new' contract we spoke about at The George. Didn't somebody (the man in the moon) tell you (or me) that they were recruiting for it?

Meic

[shanklin] 16/10/2010 15:29

MiamiSteve

At the moment, given the facts available to us, I think it is quite reasonable for us to be somewhat cynical. To allay our warranted concerns, we definitely need to see much better investor relations for an extended period, giving us a much improved understanding of all MUBL's business streams.

In terms of non-Execs I would be happy for somebody else to join the board who has solid reasonably senior PLC experience and a good reputation. It would be a bonus, but not essential IMHO, for them to have something business-specific to add at MUBL.

Cheers, Martin

[marben100] 16/10/2010 14:45

A very fair question, Des. ;0)

[miamisteve] 16/10/2010 14:44

David - The issue of getting more independent directors. I didn't like TA's explanation that they couldn't find anyone that added anything to the company.

I'm more suspecting that the main issue is finding someone partisan to ok the annual doubling of TA's wages.

The renumeration committee is PC and TA in turn gives him his bonus.

There must have been plenty of talent looking for work after EUK went belly up.

I recall in a write up of the london investor presentation that PC mentioned a strategy of removing the companies dependence on TA. How is that progressing? I don't for one second believe TA is some sort of Maradona of distribution. I'm quite sure that if he was replaced by some unknown the share price would jump up.

Think these promises of meetings, investor relations and non -execs are just a window dressing exercise to get the mbo over the finishing line.

[deswalker] 16/10/2010 13:46

marben,

I don't see how the answer to your question can be "yes". Clearly the massive directors' salaries are NOT in the interests of the many but solely in the interests the few.

Fair enough, can't disagree with that. However, your answer shows my question is working because it is already identifying conflicts of interest. I'll rephrase ...

Excluding the issue of Director remuneration have all management decisions made by the current Board at least tried to be in the interests of all shareholders equally and not just the interests of the Board themselves ?

How does that sound ?

Des

[shanklin] 16/10/2010 11:27

marben 100

Do you post as "shanklin100" on TMF?

Yes.

Cheers, Martin

[kimboy2] 16/10/2010 11:22

Hi David
Many thanks for all your efforts a couple of question areas I would be interested in;

1. The new building. How much is it costing. Are the other buildings under onerous leases. How much will it save pa and how much will it increase potential capacity ?

The FD did say that all expenses for the move were in the 2010 accounts. Does that mean that all expenses accounted for and there won't be any in this years P+L.

2. U-Explore.
This is a mystery to me at least but;
What are MBL selling
Through what mediums
To how many people
At what expected price and margin
How much of this expected profit goes to MBL and how much to U-Ex

I don't suppose they are going to say anything on numbers. The AR said that there would be a trading statement but I presume this has been overtaken by events.

It might be useful to get a number or a range to the word 'material' from the previous TS. There was some chat about in the CC about it being a defined term IIRC but no one put a figure to it. I have assumed 10% but may be wrong.

[marben100] 16/10/2010 11:19

Hi Des,

I don't see how the answer to your question can be "yes". Clearly the massive directors' salaries are NOT in the interests of the many but solely in the interests the few.

meict,

I will be driving up from Luton, Sunday afternoon (staying overnight), if that's of any use to you?

Shanklin,

Do you post as "shanklin100" on TMF? (if so, I'll e-mail you for more on the "related party" matters).

Mark

[davidosh] 16/10/2010 01:18

Meict....I am already up here and with two of my boys. We travelled on the train in just 2 hours 8m from Euston and we have footy matches today and the big one tomorrow as in Pool v City. I will be travelling across for the Agm first thing Monday then back down by train for Mello in the evening.

Maxcashflow & DesW...thanks for those and will add to mine. I spotted that TA had his remuneration reduced down and wondered why myself.

[deswalker] 15/10/2010 22:34

David,

It's good to see some people asking technical questions and I'm sure they're all worthwhile and warrant answers. However my question to Trevor Allan is rather simple ...

To your knowledge have all management decisions made by the current Board at least tried to be in the interests of all shareholders equally and not just the interests of a few ?

That would be the face-to-face question I would ask and I would pay close attention to the body language during the reply.

Whilst the technical stuff is important it matters not a jot if this question cannot be answered truthfully in the affirmative.

Hope Monday proves fruitful and please let us know how it goes.

Many thanks for all your efforts with this share.

Des

[maxcashflow] 15/10/2010 21:04

David,

Unfortunately I need to do a bit of work on Monday so can't come. I do have a couple of questions though besides the ones I expect will already be asked. I expect it will be busy and you will run out of time, but if you are short of questions here are a couple it would be nice to have answered:

(1) In the 2009 AR, Trevor's remuneration was stated as £1.4m (page 36). However, in the 2010 AR, his 2009 remuneration was stated at £1.1m (page 44). Why was it restated 300k lower?
- Note: I assume that this is just an accounting difference, but it would be nice if it were clarified.

(2) Will the new facility have automation that could handle direct-to-consumer mailings? If not, what would it take to support this?
- Note: this might give us an idea whether they could handle dispatch for best buy online.

(3) What will capex be for the new facility, and will this mostly fall in 2010, 2011 or 2012 accounts?

(4) What will total operating lease expenses be going forward, as the 2010 accounts did not show any increase to reflect the new facility? How long is MUBL tied into leases on the old facility?
- Note: The 2010 accounts shows a new operating lease liability of £9m over 15 years, so I assume there will be an £600k charge to P&L each year and assume that no charge has been applied to P&L for this in 2010.

[davidosh] 15/10/2010 20:09

Just to say that I am still heading north for the AGM on Monday morning as I have a number of questions still to ask and I prefer to see all the directors in person to clarify some of the points raised yesterday as well.

Are any more of you coming along ?

If there are specific questions that you still feel need to be answered after yesterday conf call then do add them on this thread and I will try to ask.

Those attending so far..

Marben100
davidosh
myrtle1000 (TMF)
OliG (TMF) (attended last year)
meict
Hillsybilly (attended last year)

[typo56] 15/10/2010 11:51

Actually the connection was closer than stated in the 2010 Annual Report. Up until 20 August 2009 Trevor Allan was himself also a director of Media Sales Direct Ltd.

Edit: Media Sales Direct Ltd was only setup in June 2009 (possibly due to the insolvency of Sales Media Solutions). It's possible Trevor Allan departed on 20 August 2009 prior to them commencing trading with MBL.

[goonertone] 15/10/2010 09:58

Typo 56

"The Group secures product supply through discretionary uninsured trading limits, substantial advance payments on account and use of a sales finance facility. Close management of working capital is key to the success of the Group." Directors report 2010

You can do anything with numbers. If your biggest supplier is willing to work on an uninsured limit or has managed to obtain some insurance cover then the average will be skewed. I have no idea of the make up of the creditors list but just using an average means nothing.

Rather than just spread rumours why don't you ask the company.

GT

[typo56] 15/10/2010 09:38

2656 goonertone..."As for forward payments and your mock outrage at unusual if not downright underhand practices. The use of forward payments to suppliers has been well flagged in the last couple of annual reports and has become necessary as the the credit insurance market withdrew from the sector after the EUK demise."

Whilst there was a brief mention of the credit insurance market in the 2010 Annual Report doesn't the 'Creditor Payment Terms' statement mean that they normally pay in arrears, on average settling in 32 days?

"The Group's policy is to agree payment terms with each supplier as part of the terms of the transaction and then settle the sum due to creditors in accordance with the terms agreed. At 31 March 2010, the Group had an average of 32 days (2009: 40 days) purchases outstanding with suppliers."

Also, the trade and other payables stood at £18.5m but the trade and other receivables were only £9.8m. I think that suggests they purchase on credit from suppliers, although for some reason not from Sales Media Solutions Ltd or Media Sales Direct Ltd.

[topinfo] 14/10/2010 23:11

Ooooh awful looking chart 8T!

[jonc] 14/10/2010 23:04

Ask them about DVS.

[typo56] 14/10/2010 21:55

I too am a bit perplexed about the related party transactions with Sales Media Solutions Ltd and subsequently Media Sales Direct Ltd. James Allan is the only director of these companies (apart from what appears to be a nominal company sec). The companies are registered at the same Cheltenham office.

Sales Media Solutions Ltd was incorporated in May 2007. In the y/e 31 March 2009 MBL purchased over £7m through Sales Media Solutions although, as CR points out, there doesn't appear to be any mention of this in the 2009 Annual Report.

According to the 2010 Annual Report, the purchases were made on normal commercial terms. These terms seem to be on the basis that MBL pay upfront for stock. As at 31 March 2009 the upfront payment to Sales Media Solutions amounted to over £1.1m. Sales Media Solutions only filed limited accounts, so no turnover stated. However, at 30 June 2009 their cash at bank coincidentally stood at just over £1.1m. Creditors stood at almost £1.7m. The balance sheet had net liabilities of £138k and the company was declared insolvent.

Media Sales Direct Ltd was incorporated in June 2009, presumably due to the insolvency of Sales Media Solutions (this is only my assumption and I'd be happy to be corrected on this). In the y/e 31 March 2010 MBL purchased a total of over £8m through Sales Media Solutions and Media Sales Direct.

Why were Sales Media Solutions and Media Sales Direct Ltd setup? Apart from MBL, what customers do these companies have? What did these companies provide that MBL couldn't handle for themselves?