Mbl Share Discussion Threads

[charliebrown2000] 15/3/2011 12:30

The distribution business is now worthless without Morrisons. Other distribution contracts are likely to have been viable only by piggy backing on the Morr terms. GMV is only of value to Sainsbury's, who will pull out the bits it wants for a bargain price. The residue will have no value to anyone. UExplore was always a pointless waste of money. Who in their right mind could see any potential in a business model which relies on money from the public sector education budgets? If TA and PC recognised the risk and impact on the business by the potential loss of the Morr contracts, why were they pulling out such extraordinary payments? Bailing out before it was too late?

[typo56] 15/3/2011 12:05

New warehouse? What was that property that someone said was up for sale?

[timesmoney] 15/3/2011 11:02

So its over. There is nothing to salvage here.
The investments in the 'other' opperations will now be seen for what they are. The on line buisness (which was doomed anyway with the budget change in LVCR)will not be able to supply at effective prices as the volumes just dissapeared with Morrisons. The true costs of these opperations will now not be supported by staff who were funded by the norrisons business.
U Explore, worthless. (this one will now be under the spotlight and questions may be assked about the value)
The export business will have no supply at economic prices.
Ther remaining distribution business only worked because of the buying power which is now gone.
Note also the 'negotiations' re morrisons and the stock and see my previous posts. MBL will be lucky to get cost, so paying the bills is not a given.
There is nothing to buy and there will be no MBO.
Take your 10p if you can and run.

[jockblue] 15/3/2011 11:00

fft - 15 Mar'11 - 08:32 - 3677 of 3682
Maybe Walsh-Hill didnt want to be a yes man and disagreed with many of the actions of management over the last year or so. Perhaps he refused to stay in his box and actually spoke the truth.

Or maybe he refused to sign a contract until the future viability of the business was secured. You cant really blame him can you?

[ibrahim1962] 15/3/2011 10:38

Comment on the Guernsey disaster

[fmcalorum] 15/3/2011 10:13

Unfortunately it won`t include Allen! Could he be looking at a cheap MBO?

[miamisteve] 15/3/2011 10:05

I think considerably higher margin, but again the wording of the rns seems to paint the worse possible picture and sounds like TA back to trying to downplay the company.

-------
The announcement will necessitate a significant downsizing of our operations and with regret the resultant loss of employment for many of our employees. We are commencing discussions with Morrisons and the new service provider regarding those employees who will be in scope for TUPE (Transfer of Undertakings (Protection of Employment) Regulations) at the end of the agreements.

Hopefully Allen and Cowgill will be included in the TUPE

[fmcalorum] 15/3/2011 09:58

If Morrisons was 78% of the turnover then how profitable is the remaining 22%plus the new ventures?

[fft] 15/3/2011 09:43

If all the morrisons stock is written down to zero, what would be value of MBL to a buyer ?

Is the new warehouse and new distribution system and new software all in place ? If so, it may interest a larger distribution player. It is finished isnt it....

Global Vault ? A few million ?
U-explore - 50k ?
existing contracts ? a few million ?

It would seem to come down to how much it will cost to resize the business and how much TA thinks he should be paid....

[fft] 15/3/2011 08:32

Maybe Walsh-Hill didnt want to be a yes man and disagreed with many of the actions of management over the last year or so. Perhaps he refused to stay in his box and actually spoke the truth.

[tiswas] 15/3/2011 08:27

ok, so who said 30p when we were all guessing the mbo price?

[masurenguy] 15/3/2011 08:11

What an absolute shambles !

I thought that they previously announced that Morrisons were committed to purchase this stock in the event of a contract termination ! What's to negotiate ? Will there now be a write down ?

Negotiations are also continuing regarding the stock balances which MBL has purchased in support of the existing agreements and which represent a high proportion of the total stock balances of the Group. The Board will update investors as soon as the financial commitment has been agreed with Morrisons.

So how long ago did the directors suspect that this could be the final outcome? I thought that KPMG had been appointed to undertake a strategic review last October !

The Board is also announcing that KPMG Corporate Finance is to be appointed to seek a suitable purchaser for the Group. As such this may or may not result in an offer for the entire issued share capital of MBL, though there can be no certainty that any offer will be forthcoming. The Board will update shareholders in respect of this process as soon as it is appropriate to do so.

The new FD didn't last long then - roughly 6 weeks it seems ! Aren't terms normally agreed prior to an appointment rather than after it has been made ?

Further to the announcement made on 31 January 2011, the Board would like to confirm that Steven Walsh-Hill will be leaving the business by mutual agreement with immediate effect. This is due to being unable to reach agreement on the terms of Mr Walsh-Hill's appointment.

So relieved that I stayed out of this stock and sincere commiserations to those invested here.

[miamisteve] 15/3/2011 07:44

It is a mess. Makes TA and PC bonuses all the more shameful and certainly wouldn't have helped the tender process.

[jonc] 15/3/2011 07:32

What a mess.

[mudbath] 14/3/2011 20:43

Looks like Adams Island to me then,although its the 2.40 not the 2.30.

[hugepants] 14/3/2011 19:07

The next racing at haydock isn't until the wednesday the 23rd.

[timesmoney] 14/3/2011 18:13

Stick a pin in the paper, its a better bet. In most cases the jockey will be wanting to win for you! you cant say that about the MBL jockeys.

[hugepants] 14/3/2011 15:48

2.30pm Haydock on Tuesday? Who do you recommend.

[timesmoney] 14/3/2011 15:28

HugePants
Put your money on the 2.30 at Haydock, or a charity of your choice.

[hugepants] 14/3/2011 14:36

Is this a buy now?

£5.3M market cap
£12.9M net working capital

Also £2.1M investment in UExplore on the books.

Recent statements imply cash collection will improve, presumably as the revenues drop.

£0.5M profit in H1. Profit warnings announced but H2 is usually much strong (3 times greater last year) so its not clear what H2 will look like. Any guesses?

[mudbath] 11/3/2011 21:05

What name does Gravy go under these days ?

[ldmachin] 11/3/2011 20:46

What an ugly chart, reminds me of that dog RCG. You do pick'em davidosh. Please tell me Cliffy bailed out of this dog a long time ago? Hate to think that hes had to suffer anymore following that broad daylight theft of his wealth at LNG?

Anyone know where 'revolving door Creedy' ended up after LNG, which company is he going to play his part in bankrupting next i wonder? BetOnSports, LNG, ...

[tiswas] 11/3/2011 08:34

What is the market cap now, £5m?