Mbl Share Discussion Threads

[timesmoney] 09/10/2011 10:52

CurvedAir

Are you saying the VAT fiddle can be replicated from a different base?
If so I do not think it will be so easy. The Channel Islands are unique in many respects. Geography, currency, language, Complicit postal service. The trick with the current scam is that the customer believes he is buying UK products from a trusted UK name.

[curvedair] 08/10/2011 23:33

Timesmoney.

The Chancellor announced to the House of Commons last month that the draft Finance Bill for 2012 and various tax consultations/responses to consultations are due for publication on 6 December " This will be D Day for LVCR one way or the other.... the end in my opinion. Instead of cheap products coming from the Channel Island this whole industry will just up sticks and move elsewhere. Its happening already.

[timesmoney] 07/10/2011 11:42

LVCR almost certainly history, only question is how long a notice period the Chancellor gives. A number of companies using Jersey etc have relocated and the biggest and most public acknowledgment that the party is over is the sale of Play.com for £25m this for a company with sales of £500m.
The Hut pulled their float arguably for the same reason, they are market leaders in white label Jersey cd/dvd distribution for the supermarkets, a model TA followed with Sainsbury's just in time to see it end. Short term a number of product categories will see price increases including music, memory cards, health supplements, beauty products and others. However long term UK mainland companies will do better, employ more people, pay proper VAT and with a fair wind pay corporation tax on their profits.

[davidosh] 07/10/2011 11:04

As we know Bee.com is not making money so I doubt the VAT issue is going to make a difference there...in some ways a change would probably boost the shops over the next few months as they would see impulse purchases especially if it is not incredibly cheaper to source online.

I may be wrong but Windsong and for a very limited period the shops are the only profitable areas of business IMO. They may of course make money buying in cheap stock and doing the trading that TA is famed for but that should all be done in a private company IMO. I think there will be a lot still to happen here and I will tough it out and wait for an offer as I do not think this company will remain listed in 2012.

Too many things have been done in the past that one would associate with a totally private company and the AGM was a very awkward meeting in many respects.

[effortless cool] 07/10/2011 10:53

It is hard to imagine circumstances where selling MBL could be a drastic error.

[alunmorris] 07/10/2011 10:42

Another subsidiary seems to be having problems - outnow. This was bought from the receivers in Feb. It also trades as Lidl Movies.

Complaints of taking payments after cancelling, multiple debits, poor customer service, all since April:




I sold most of my holding on Monday when I read that the Govt will close the Channel Islands VAT exemption ( Low Value Consignment Relief). This will hit bee.com (as well as many of their competitors of course) and make buying in a shop more competitive. Mind you, the story was in The Daily Mail so may be nonsense. There was a strong buyer in the market and I got above mid price, so I may have made a drastic error!

[miamisteve] 03/10/2011 17:32

and the remuneration committee is Cowgill and Allan.

[alunmorris] 02/10/2011 19:35

The executive directors' salaries has been cut pro-tem but bonuses are now entirely at the discretion on the remuneration c'tee ie no set hurdles.

[jonc] 01/10/2011 12:42

The 2006 Companies Act made Directors responsibilities more onerous and the Directors more accountable to shareholders.

However it is difficult for the PI to utilise the relevant provisions due to the costs and risks associated with bringing legal actions.

An organisation such as Sefton probably has the funds and clout to pursue the Directors through the Courts.

I do hope so as the Act has not been tested a great deal in the Courts and it would be good to see some precedent set.

[kimboy2] 01/10/2011 11:51

Is the salary a reduction to their entitlement or just what they are drawing ?

I think the Sefton potential litigation is interesting. They are taking advice on a number of 'governance issues' which couyld mean anything and everything.

I seem to remember that they invested around the top of the market at 180pish. They will have coughed up the thick end of £3.5m, and it is now worth £200k.

If, hypothetically speaking, they did due diligence before their investment and they asked the company directors certain questions which subsequently turned out to be a load of porkies, then who is repsonsible ?

Is it the company, the directors personally or the directors insurance company ?

[timesmoney] 01/10/2011 11:29

The salary news is the first slight positive in recent memory, hopefuly this is not only true but formaly noted with no clever bonus structures to make up the shortfall.
On the more serious matter of survival. Retail stores for music and media products. Hillarious, a clever blend of two dying sectors. Some margin to be made however at the right time of year [particularly when you use stock that has been written down in value amongst last years disaster.] Long term there is no news that gives any real hope and the only answer is a bid by TA or a sale of remaining parts and return of cash to shareholders. Anything short of this will be a long,long lingering sparing match between shareholders and directors which will achieve little.
The legal action if there is one by Sefton Group or others is an interesting sideshow and I would be uncomfortable if I were TA and PC however this will not butter any shareholders parsnips.
Give it up guys!

[effortless cool] 30/9/2011 21:06

David,

I'm pleased to hear that salaries have been rescaled. Although given their manifold talents, aren't you afraid that these new lower salaries leave them vulnerable to being poached?

Also how about they pretend that the £1.14m of bonuses that they collected between them in 2010 was paid as shares, and refund the amount in excess of waht those shares are worth now? That should give sahreholders another £1m plus.

[davidosh] 30/9/2011 20:20

Bee.com shops...I think they said four are now open and the target was 25 at least whilst there is a very low entry cost into good locations due to so many empty shops and short leases available.

EC...my notes from the Agm state that TA will be on a salary of £150k this year and LC has dropped down to £90k and presumably PC remains at £30k. Apparently in the first three months of this calendar year TA did not take any pay whatsoever !

Kimboy2...We did not get a chance in our car to cut across further north and inland to Blackburn. Not sure if either of the other two cars, one from the north went anywhere near.

Judgement...Rather an appropriate name. The legal action was not discussed at all except that it was referred to by one of the shareholders as being in the Sefton AR.

[judgement] 30/9/2011 19:04

Did the board clarify if the defence against the action taken by the large shareholder is being funded by MBL shareholders?

[kimboy2] 30/9/2011 17:31

Can anyone report on the state of the warehouse ?

[effortless cool] 30/9/2011 16:09

Since the directors have so skillfully managed MBL down to the microcap level, will their salaries and bonus arrangements be adjusted accordingly?

I presume this was discussed at the AGM?

[microscope] 30/9/2011 16:00

And said without a hint of sarcasm or irony......

'The fly in the ointment is the Retail Division (bee.com)' ;)

Sorry to read of the ongoing mess here. Some of you were worried over a year ago on this board and hopefully managed to escape in time.

[alunmorris] 30/9/2011 15:33

Nice pic of PC in Lanacashire Evening Post 7 Sept:

[deswalker] 30/9/2011 11:32

Obviously I totally agree it's a complete mess due to all the corporate governance and legal issues.

However one needs to remember that at 31 March 2011 we have a company with an NTAV of 72.5p and Current Assets minus All Liabilities of 60p and these numbers are already after significant write-downs. Now no-doubt at all that there will be further significant write-downs but that's a lot of headroom IMO.

Also, if one excludes the Digital & eCommerce Division (GMV and U-Xplore) as worthless one is still left with a reasonable array of businesses. It's hard to see how the Wholesale Division (MBL Direct and Windsong) isn't worth the current market cap after making an Operating Profit of over £500k last year. Likewise the remnants of the Distribution Division (Music Box Leisure). The fly in the ointment is the Retail Division (bee.com) but they say they are doing it very cautiously with short low-priced leases to fund.

Anyway, that's the bull case but I hastily caveat the whole thing by reference to my first paragraph.

[kimboy2] 30/9/2011 11:09

Does anyone know any other companies that have gone from an internet offering to opening a chain of shops ?

[curvedair] 30/9/2011 10:58

How dare the board request that we refrain from using these boards in fear of damaging the reputation of the business. They are more fearful of their own reputations surely. I agree with Kimboy2 its all about competence or lack of it. I also hear reports from the AGM that they were quick to blame others (ex employees) for the demise and mishandling of certain trading activity at MBL which is just simply not true. These guys have/are pulling the wool over our eyes hoping one day that it will all go away. My belief is the future of the business hangs on the final settlement with Morrisons.

Davidosh. I wish I could remain as positive as you but I just don't see how TA can take this business forward. The new business strategy is floored, just copying others that are more able and out of date. There is too much competition in Bee.com's space and they just cannot compete on price with the big boys. Their B and M retail strategy of selling secondhand Games/DVD is too well covered by Music Magpie, Game and Amazon. Even if MBL went back to their trading grass routes there is little left for them here as well. TA needs to take a good look and see whether he still has the support of those working around him. If he doesn't then he should consider his options wisely.

MBL completely need to reinvent themselves with some fresh blood at the top or just call it a day.

The best thing that could happen for shareholders is for TA to make an offer to buy them all out particularly if he believes there is a future in the business or perhaps he doesn't which is why he is holding back to see how it all plays out and grab whatever he can. While Sefton are turning the screws it is unlikely that TA will make any decision to take the business on himself. I wouldn't...would any of you?

What a mess!

[fft] 30/9/2011 08:51

Thanks Des.

[alunmorris] 30/9/2011 08:49

Turns out I have shares in the company looked at here:

[deswalker] 30/9/2011 07:39

fft - At the AGM I heard two shops (Manc Arndale & Chester) with four more opening in October (Preston, Birkenhead, Blackpool(?), Blackburn(?)). Further expansion in the north-west then possibly Yorkshire ...

[harrogate] 30/9/2011 07:38

Davidosh ..Off topic but I could do with knowing what sharesoc does and how it might help with a proposed delisting that one of my holdings has announced. If you can help I am on [e-mail]. Thanks