Swallowfield Share Discussion Threads

[exdivvy] 01/5/2006 22:49

Arthur,
with respect the potential dangers of direct sourcing (to elaborate) water purity issues, inacuracies of product stability testing and reluctance of some the established (independant) european perfume and cosmetic development houses to work with FE suppliers have been largely overcome some time ago and the momentum behind direct sourcing has gathered pace tremendously over the last year.

bearing in mind that product development lead-times are iro: 18 months (body shop, boots, hair & body care brand owners etc) down to 6 months for M&S and the other more gift orientated high streeters it does take a few sets of results for this 'disengagement' to filter through.

You are right about the inherant value contained within the UK sites, however for SF to remain competative in the current market place would (alledegly) mean mass redundancies at these sites and still leave a question mark over what added value was gleaned through their business model / indirect route to the FE factories where any cost benefit of UK manufacture can be seamlessly bypassed through air freighting into the uk from the FE or by land from eastern europe.

neither of the above are areas where SF have established manufacturing or can presently offer added value, but then that's why the chart above is looking increasingly limp..

dyor etc etc

[arthur_lame_stocks] 01/5/2006 18:35

exdivvy

I don´t know about hybrasil, but I think they´re interesting as a restructuring play with significant property assets.

The enterprise value of the stock is now nearing the book value of the freehold properties (which haven´t been revalued in years).

I guess the dangers are as you have highlighted, large retailers going straight to suppliers in the far east and cutting out Swallowfiled altogether.

But perhaps there is enough of a business here to allow a restructuring to shift production to the far east whilst realising the substantial property assets in the UK as cash?

I´m not a holder, but think they´re worth keeping an eye on.

[exdivvy] 01/5/2006 17:26

hybrasil, why excactly ???

had a conversation this weekend that suggested they are currently (moderated) "in some trouble" due to increasing pressure from (retailer's) direct FE sourcing. Their shanghai start up office is also becoming problematic to staff, alledegly.

couple this with the M+S contract (lost) and aggresive FE direct sourcing strats of many of the other high street guys (increasingly with direct sourcing offices in hk and china) and SF's insistance to avoid open (broken down) costings due to having to support UK site within FE costings and you *could* have a potential dead duck.

check out PB beauty, Cosi etc figures in the UK for where you should have put your cash if you MUST buy into this sector although why anyone would at this present time is beyond me.

[hybrasil] 22/4/2006 13:10

I decided to step in and I bought some more at 36p

[jaykaytee] 04/4/2006 16:44

I've been watching these for years ever since they were tipped in Shares magazine (around 2001), which is normally the kiss of death! Share price is at it's lowest I've ever seen (understandably so). Still not tempted to buy though

[arthur_lame_stocks] 04/4/2006 16:01

So Peter gyllenhammar has been supporting these. Can´t say as i´m that surprised.



I think I have this board all to myself.

[arthur_lame_stocks] 03/4/2006 12:12

Looks like cosmetics is even deeper in it than before. They´ve lost the M&S contract which contributed 2m of turnover. Although only 7% of the groups turnover it´s nearer to 20% of cosmetic´s turnover. Time to take a good look at that division I reckon and think about releasing some cash from their assets.

[arthur_lame_stocks] 15/3/2006 10:53

No comment on the results. I think these could fall further in the run up to the shift to aim. Might present a buying opportunity?

[arthur_lame_stocks] 13/3/2006 10:47

Cosmetics was the main problem area again. It´s been the problem for as long as i´ve watched this company. It only contributes 25% of the turnover but loses money and has net assets of 6m. It must surely be time to think about biting the bullet there.

[arthur_lame_stocks] 13/3/2006 10:24

Fairly poor results as expected.

"In addition, we are reviewing the Company's
balance sheet with a view to improving asset utilisation and financial
effectiveness."

This bit was interesting mind you. Sounds like they´re going to have a look at their properties.

I might be wrong but with all the board changes and the aborted acquisition I get the feeling that there has been some dispute about the way forward here. I think some wanted to chase scale but the restructurers have one the day. That suits me just fine. I reckon there´s some value in here in a breakup.

[arthur_lame_stocks] 03/2/2006 12:59

Hi poacher

I know those two but I don't like the fact they have a controlling shareholder. I think you could wait years to see the value from them.

[poacher45] 03/2/2006 10:53

Just to sum it up Arthur knowing your love of assets you should be in western selection which is one of their biggest shareholders. Perhaps a better bet would be London Finance.

[arthur_lame_stocks] 03/2/2006 09:55

More board changes

[arthur_lame_stocks] 03/1/2006 14:52

3rd ADVARC have taken 3i's shares.



And the operations director has left, perhaps things aren't going too well?

[callumross] 21/12/2005 21:27

represents excellent value at these levels following the profits warning IMHO. Net assets at the year end even following the inclusion of the pension deficit onto the balance sheet following the new accounting rules and the £800k or so of restructuring and exceptional costs will still be over £9m which is equivalent to 82-85p per share. More importantly, these assets are virtually all tangible assets. Who feels an MBO coming on!

[ptgint] 20/12/2005 10:15

Phew, I was all set to buy today as the underlying figures looked so good. What a difference a couple of hours makes ! Good luck to you other guys still in there but I will be leaving this one alone for a while - after all one swallow doesn't make a summer !

[rarther] 20/12/2005 09:08

smashed through the bottom...

wonder how far she'll go... the news isn't THAT bad... okay the co will be breakeven this year... the assets are still there

[tomoslewis] 12/11/2005 12:00

have you seen the results for RDF group (RFG)spectaclar!! turnover and profits double in the first six months, with quality clients include IBM UK Ltd, Legal & General Assurance Society Ltd, Aegon UK plc, American Express UK plc and Abbey National plc and the new contracts were expected to add in excess of £5,000,000 to annual turnover ... but turnover in the first six months now increased by nearly this amount!!

[hybrasil] 07/11/2005 08:36

looks like another john lee mention has produced its usual wonders

[hybrasil] 25/10/2005 15:17

dipped in again today

[arthur_lame_stocks] 30/9/2005 12:17

The results were disappointing I thought and the outlook in the short term at least isn't good either.

[spooky] 30/9/2005 08:18

Obviously somethings up does anyone know what it is ?

[plutonian] 19/9/2005 13:36

Final Results

[arthur_lame_stocks] 12/7/2005 12:35

Was that a profit warning or not?