Swallowfield Share Discussion Threads

[topvest] 10/1/2012 17:31

Good news on the Chairman aoppointment I think.

[threewheels] 10/1/2012 12:54

'Interesting' news today - looks like the non-concert party of PG and WSE have finally got their own way and got their man as Chair of SWL.
I wonder if the resignation of Roger McDowell is designed to create a vacancy for one of the WSE wunderkind to add their wisdom, knowledge and expertise? But four NEDs for a £13m market cap company was a bit OTT anyway.

[markt] 05/1/2012 14:54

RNS that Mr Hagen has bought some more shares.

a) hopefully that indicates that sales for the Xmas period was Ok or good
(at least not bad)

b) Mr Beale (WSE) and Mr PG would of course like that SWL directors buy shares in SWL...to align their interests with those of shareholders....and to give them more incentive to work hard to get SWL to perform...

while at WSE...Mr Beale does not own 1 WSE share !!

interesting imho

[markt] 05/1/2012 12:43

The value of brands

hair product company ....16M of turnover is worth 26M. (ie. sale value is higher than turnover.

Compare with SWL, 58M turnover and only worth 10-15M.....no brands. ("with same ratio" SWL would be worth around 100M if owned brands)

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"PZ Cussons Plc

ACQUISITION OF FUDGE HAIR CARE BRAND

PZ Cussons Plc, a leading consumer products group in Europe, Asia and Africa, announces the exchange of contracts for the acquisition through its beauty division of the Fudge hair care brand from Australian-based Sabre Group.

The brand and associated inventory are being acquired for a consideration of GBP25.5m in cash with completion expected by the end of January following the satisfaction of certain regulatory obligations.

Established in 1991, Fudge is a leading premium hair care brand, sold predominantly through salon distribution in the UK, Australia and New Zealand. It is best known for its styling range including the iconic 'Hair Shaper' product.

Fudge will join the portfolio of brands within PZ Cussons Beauty, the group's recently formed beauty division, which currently comprises St Tropez, Sanctuary and Charles Worthington.

Revenue for the year ended 30 June 2011 was GBP15.7m. Approximately 50% of Fudge sales are currently in the UK and Europe and 50% in Australia and New Zealand.

Alex Kanellis, Chief Executive of PZ Cussons Plc, said:

"The acquisition of Fudge further strengthens our newly formed beauty division and broadens its category participation. The geographic and distribution footprint of Fudge is a perfect fit with the current brand portfolio and we see further opportunity to develop the brand's international potential.

Following this acquisition our balance sheet remains strong giving us flexibility for further investment opportunities as they arise."

Michelle Feeney, Chief Executive of PZ Cussons Beauty, said:

"We are delighted to be acquiring such a young, vibrant brand and I am very excited about its prospects and untapped potential. Fudge is a natural fit for our portfolio as we continue to bring well-loved brands back to the forefront and make beauty accessible to all."

[markt] 14/11/2011 15:59

farmingrgp
in case you are interested....my digging at LFI/WSE continues....
some new posts over the LFI board....including basic errors in the recent LFI accounts...and that LFI and WSE NAVs show a loss compared with inflation over 20 years.

LFI 1993 NAV = 37p. 1994 NAV = 34p. Average price 1990-1994 (5 years) = 29p
NAV now, 35p (28p if exclude property )

.....so investing activities have a lower NAV now than approx. 20 years ago !

CEO/MD David Marshall....with a son as a director (and Mr E.B.) of operating subsidiary for at least 10 years...salary 75k/year

If compare with a fund that invests in small companies, eg. BRSC, Morningstar, etc. They have multiplied in value by approx 4 since 1993. ie. LFI has a dismal record over last 20 years.
At most investing companies the inv. mgr. would be replaced if produced such bad performance over such a long period....but D.Marshall appears to vote for 40-44% of the votes...so he stays...(he gets around 107k via dir. pay at cos. where WSE/LFI invests..and son has been on 75K/year, any other sons/family ?)

Will the next 20 years be as bad for LFI and WSE shareholders ?

---

... WSE which owns approx. 15% of SWL...it is a similar story of bad performance of NAV and share price. The increase in value of the WSE stake in SWL has mostly been eaten up by the yearly running costs of WSE.

[markt] 08/11/2011 16:30

Ah ...another poster !

Did you go to the AGM ?

BTW...you happen to know which resolutions Western were especially interested in and what they may have voted for or against ?

...and maybe you'd like to join/visit the Western message board.....needs some posters !

[russman] 08/11/2011 16:27

& Western Selection "today announces that in view of the unusually low turnout at the Swallowfield Annual General Meeting held on 3 November 2011, and the fact that at least 3 proxy forms were apparently not valid and were therefore not included in the count, it has requested that an independent report is prepared on each of the polls at that meeting, pursuant to s342 of Companies Act 2006."

[markt] 08/11/2011 13:34

...goodness me....up 25% since June !...if partly due to the boardroom shaking up ...good stuff ! the new people on the board will be keen to show their appointments were not a waste of time imo, so they'll be keen to analyse the company's possibilities and try to make useful suggestions for the future

UK production, Czech Republic Production and activity with China......be interesting to see how this mix develops after new directors and chairman take a look at it...

..and imo to see if anything can be done over time to increase the low % profit margin...
----

....imo nice to see shareholder participation in the voting at the AGM and that 3 resolutions were rejected.....the resolution to not have to issue new shares pro rata to existing shareholders, personally I'm glad to see that resolution rejected...(the other 2 resolutions rejected, I haven't read)
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Can anyone that went to the AGM post about anything that was said ?

[markt] 01/11/2011 18:59

Ah...I see it will be the AGM on Thursday I think....

[markt] 01/11/2011 18:57

HI farmingrgp
...interesting info !!

so there is no IHT on AIM shares as long as the giver survives 2 years after the gift ?

what is the amount free of IHT nowadays ?

[farmingrgp] 05/10/2011 15:48

We now have a third newly appointed Director buying shares in the company. These share purchases have been substantial and represent a serious vote of confidence in the Company and its executive Directors. SWL shares yield approx 5.5% after tax and make a superb investment for those portfolios that need to avoid IH Tax. If the holder survives two years after purchasing SWL shares (AIM listed) their estate saves 40% tax. This is a company that is holding its own in a very difficult economic climate.

[farmingrgp] 13/9/2011 17:42

Yes. That is two of the four newly appointed directors showing cofidence in the company.

[roccoco] 12/9/2011 17:36

Another Director buy?

[roccoco] 11/9/2011 20:11

farmingrgp. Yes it was one of the Directors buying. My reading is that there are 3 more directors who should have a stake in the company, I also take the point about IHT planning...very valuable for some people. does anybody know if the Directors bonus/ incentive structure kicks in on these recent figures?

[topvest] 08/9/2011 21:40

Yes, headline results were encouraging. Need to read more closely.

[farmingrgp] 08/9/2011 21:12

Large buy today, hopefully one of our new Non exec Directors. Hopefully all of them will show their passion for the company and buy shares from their very generous remuneration. Does anybody know another good AIM company yielding 5.5% after tax? Shares like these on AIM should be a premium because they are great for IHT planning. SWL shares held for two years drop out of an estate and therefore save 40% tax.

[farmingrgp] 07/9/2011 18:45

Yesterday, Mcbride figures came out showing a 75% drop in adjusted EPS. SWL came in today with EPS up 17% and these would have been considerably higher if £100,000 had not been wasted on an EGM. It was not only all the direct costs attached to the EGM, it was also the distraction of management from driving the company forward that was bad news. I hope that when our two largest shareholders see what is happening to SWL competitors they will realise what a difficult world it is trying to make a profit with rising input costs and retailers squeezing prices. Perhaps WSE can recognise these pressures at Finsbury foods. It is pleasing to see that PG, now that he has his man on the Board, is going to be supportive of the management team and let them drive the company forward without distraction. Thank you Sheena for doing a good job on behalf of all shareholders.

[markt] 07/9/2011 13:35

well, complete lack of any posts discussing the SWL results.....

----

Results and development look pretty good from what I can see after a quick read....EPS up and turnover up especially good % increase outside the UK.....and new products etc....while the market has not been easy...so looks good to me......and to be able to compete with other companies based in low cost production areas such as Eastern Europe, Spain and China/Asia and grow turnover and EPS shows good performance/ability I think...

and perhaps worth noting that the chairman for the generation of the results has been Shena Winning (only being replaced in last part of the year)......so I guess she will take some pleasure/self-justification in the results...although most credit being due to the CEO....

I agree with the views on future economic climate/risks.....and the approach of having different irons in the fire looks like a benefit in the current poor economic climate (UK, China, Eastern Europe...and other sales offices)

some negative factors such as the small bottom line profit margin....but that seems to come with the business/sector....medium/long term I see that as the area for hope...(own brands is my view/hope....ref. Mr ex-l'Oriel)

[markt] 22/8/2011 10:46

farmingrgp

....is the first SWL sun tan cream/lotion formula taking the Cornish beaches by storm this summer ?!
it is available now or ?
have you managed to try it ?

[markt] 28/7/2011 17:30

...imho...some very valid points ....including the following...



Cautious Investor
"The challenge in devising targets is to make them both stretching and achievable. Stretching so that you get value for money, and achievable so that directors remain motivated to try to achieve them. IMHO the bottom end of Swallowfield targets are too stretching to be motivational. There is also a risk with a pure earnings target that the company gears up to generate growth - so earnings targets ought to be accompanied by gearing caps. Gearing has been increasing over the last two years..."

(and there was me hoping that the top target would be reached ! ;-)

....perhaps the targets could/should be reviewed by the remuneration cmittee...and the whole subject of incentives/targets ..to check that it is up to date and motivational....

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PS. I personally am happy that no WSE/LFI staff member will directly input to any review of the subject of options at SWL....based on the numerous shareholder complaints about options at FIF and CRE where WSE/LFI are present/active on the company boards and in at least one of the remuneration committees. All visible on the message boards from numerous shareholders. Imho the competency of the option policy writers at CRE and FIF is in doubt, see the reasons given by many shareholders on the FIF/CRE message boards. And more background info on WSE msg board. (and I am a large shareholder in WSE !)
To be open and honest, imho the competency and integrity of the WSE/LFI teams is in doubt, as you will see from my posts on WSE/LFI msg boards....ie. my general position/opinion on WSE/LFI is already known/visible.

(imho the options issued at FIF and CRE do not comply with the existing advice for issuing options......at CRE , 1/2M pounds worth recently exercised at 0p per share while CRE shareholders have lost money if include inflation by being invested in Creston since it started in 2000.....so the CEO gets rich while the shareholders make nothing.....
not an SWL problem but I dont want the same to happen at SWL.....I am 100% sure that it wont, since WSE/LFI do not control the board or the new chairman and since the new chairman has years of experience in company regulation environment and the solid shareholder group at SWL would imho stop any option scheme that was not reasonable )

but noting that personally I would be in favour of more incentives at SWL.....since current number is very small imho..(and achievable as C.I. has previously pointed out so act as incentive)...and also some options for non-execs. including for the ex-L'Oriel chap.....(since I am hoping that his input could help drive SWL's future...bit of lateral thinking and not difficult to imagine why).

(incentives can take many forms....share options is not the only possibility)

[farmingrgp] 25/7/2011 13:36

Hi Edward.
It appears that peace has broken out (Hopefully) and the share price is returning to the 143p??? price that you paid last autumn. Hopefully the management can now focus on growing the company without previous distractions. Are our NED's any good, have we too many and are we paying them too much?

[cautious investor] 25/7/2011 13:10

The challenge in devising targets is to make them both stretching and achievable. Stretching so that you get value for money, and achievable so that directors remain motivated to try to achieve them. IMHO the bottom end of Swallowfield targets are too stretching to be motivational. There is also a risk with a pure earnings target that the company gears up to generate growth - so earnings targets ought to be accompanied by gearing caps. Gearing has been increasing over the last two years...

The question that arises whenever new directors or chairmen are appointed is whether their previous experience is relevant for the role. It is very rare for companies to provide an answer to that question and Swallowfield is no exception. Looking at Martin Hagen, he may have worked (as an advisor probably, not in an executive role) at board level with many listed, large national and multinational companies, but how relevant is this to his role in Swallowfield? Similarly, quasi judicial experience with the FSA and Takeover Panel does not appear relevant. His experience with failed AIM company Oxonica is ignored, when this might be the most relevant experience for his current role. I would have thought that the characteristics that a Swallowfield chairman should have include experience of the industry, manufacturing and/or retailing. The published information on Martin Hagen does not indicate that he has any of this experience. IMHO, based on published information, there are three better qualified NEDs for chairman, so is he a compromise candidate as a result of a board split in support of some of the other NEDs? I am sure that Gordon Brown's CV is just as good looking CV, but would you want him as chairman of an AIM company?

I agree that future results look promising, however the target 7.5% return on sales for 2011/12 still looks stretching, if not unachievable. How long until this is withdrawn?

[markt] 25/7/2011 10:37

Todays RNS
In case anyone is interested.....I've copied and pasted the info about the newly appointed chairman...from the last interim report.

(from what I can see the new chairman has had, and has, a range of important positions....and years of experience.....so, from what I can see (never having met the person !!) a small cap. like SWL looks fortunate to have a new chairman with such experience/positions....


"Mr Hagen is the immediate past President of the Institute of Chartered Accountants of England and Wales and has worked at board level with many listed, large national and multinational companies in a variety of roles. Mr Hagen is Deputy Chairman of the Financial Services Authority's Regulatory Decisions Committee and until recently was a member of the Takeover Panel administering the City Code on takeovers and mergers. He is also a Non-executive director of South West Water, a member of the Audit Committee of the London School of Economics and a governor of the University of the West of England".

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After reading the interims just now...
should be heading for a year end turnover much increased on last year. Nice to see that SWL products can compete and that can be sold in other parts of the world.....reported % growth in rest of world sales is high...(from roughly the same overhead cost base)

[markt] 19/7/2011 15:08

(my mix up between 2 Mr Boyds...sorted/removed)

farmingrgp
since you are I think in contact with the board/directors.....

perhaps you can suggest that consider to alter the font used for the annual report so that it is a bit more legible for reading via the internet....

the pdf version available via the co. website ...eg- page 36....the letters are partly dissappearing when viewed from this PC (is it the same from other PCs ??)

of course have to get a balance between the PDF file being legible and using 2cm high bold letters !

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looking at the share option details on page 37...
nice to see that the directors have stated publicly what the performance targets that must be met in order that option shares can be exercised......
(shame that WSE does not do the same !!)

to get 60% of the award ...have to achieve RPI + 20% per annum.
Wow !
(and below RPI +15% would mean nil award !)
testing targets....shareholders will be pleased if manage to achieve some of these targets...
===

BTW
the CEO holds shares to the value of approx. 50-64% of 1 years CEO income.
...reasonable imho

For non-execs. perhaps ask them if want to buy some shares....and if not...perhaps they would consider to take part of their salary/pay as SWL shares.....so show some alignment with shareholders.....say 15-20 % ?...just an idea
If act as a non-exec for 5 years then will equal 1 years non-exec pay.....

(PS. but noting that not fair to make any obligation imo on a non-exec. 'after' any contract for a non-exec. has been agreed)