Anyone else notice they can't spell "premium". Maybe that's why they're against long names; they're dyslexic or have learning difficulties.
If people could only post about stuff they know about, some would never be able to post anything at all.
I still don't see why any manufacturing business would want or need to sit on 200 days stock. I have worked across a number of manufacturing businesses and no business has ever held that amount of stock.
There's a million ways to run a business, stock can be better than money in the bank. As was pointed out their stock is going down when they claimed earlier their advantage was having more on stock. Add that to the reduced turnover and profit, things are not going as well as they once were.
They specialise (or did) in off-the-shelf generating units. Their huge 2011 sales were on the back of an extraordinary year for natural disasters in their market area - just Google 2011 natural disasters. Their ability to respond to demand wins the market, hence they need ready packaged units for immediate delivery and commissioning - ask any pump or dehumidifier manufacturer/hire company about their successes in the recent UK flood years. I would guess, which I see no harm in, that they have ridden the market with high stock levels in the hope that further calamities make them a premium priced asset, but that level of need has not returned, so they reduce stock levels as they are now. They actually have a very good business model, it's just a pity they can't do the same with the club. I do find it amusing that some posters, who appear to have absolutely zilch life experience, find it difficult to understand (or resent) that others just might not be as naive as they are and try to ridicule them for it. Still, as long as it amuses them on here then that's just fine.
That's a lot of potential natural disasters they're banking on. I can only imagine a Chinese equivalent sitting on a months stock, but being in a position to turn around finished goods in next to no time at all should the need arise.
Doesn't Allam Marine hold stock to supply to the other generator manufacturers? If they do then they will be the supply of last resort when demand rises. If they don't have what the customers want they would just increase their own production and they could lose more than just the odd sale. They could lose the customer.
The guy to his right with the striped tie was bidding on his behalf for the HU11 CTY car registration at the DVLA auction - he was desperate to own it to save it for his club - 2 months later the silly **** decided he was going to change the name because he lost the car registration - fact
I think that is the crux of it, they over-egged projections and have revised them. There will always be disasters, but just an earthquake is okay, whereas one with a tsunami is bountiful ... for some.
I would seriously doubt that they do. Their sales strategy would be to secure contracts with a partial fulfilment, following up with the remainder in an agreed time. The components they use are serious brands, they are used to build their own Allam brand identities, it would be questionable to dilute that. There will be agents involved in sales and service. Like I said, they have a seriously good business model that is doing no more than reacting to market forces. What a damn sadness it is that They cannot adapt their success to football.
I thought someone on here said that is what they did. I couldn't be bothered to look for the thread which is why its written as a question. I used google and it appears that is exactly what they do. http://economia.icaew.com/business/april2013/riding-high
Aye, I stand corrected, Obi, although, as I said, it was mainly guesswork on that aspect of their sales. But well found, it simply makes their business model even better. I wouldn't mind knowing how it has evolved since that article.
Amending accounts have been submitted. It would appear that the only change is including the 2014 dividends in note 19 that was omitted in the previous year. It's strange how that would happen. I have known quite large firm's of accountants using Excel or Word to prepare annual accounts but it is a rarity. Most firms of accountants use accounts production software that would automatically move one years accounts to the next years comparative figures. This would avoid any problems like this.
In this article someone who does supposedly know about the industry, namely Assem Allam, explains that they chose to operate differently to others in the industry by having a larger stockholding so customers could come in and buy something they could use immediately instead of having to wait for fulfilment. http://www.hulldailymail.co.uk/8217...-Assem-Allam/story-11968981-detail/story.html As outsiders we don't need to know about the international generator business to notice the change in stockholding, or to understand that a significant change like that will represents a change in philosophy if it's been chosen by the owners, or is a warning sign if it's been forced on them due to suppliers/creditors not extending them the same level of credit as before. This is why I expressed the stock level in days rather than £ when I pointed it out. I agree, if a company goes from £100M in sales to £50M a year in sales they would want to reduce their stockholding to half the level, but they would usually look to keep the same duration of stock in place when their stated practice is to hold high levels of stock. It could be a shift in balance between Finished Goods/WIP/Materials which would vary the labour and overheads added on, but it's an awfully big swing if it is. ------------------------------------------------------------ Allamhouse obviously accounts for the club and Allam Marine, are there any other businesses in there? Only with one business only having a net value on the balance sheet of about £50M and making £7M profit, I'd be a bit concerned about the other business owing me more than £60M already, having virtually no assets of it's own, and it making a loss this year (they've budgeted for a loss so it's fair to assume we are). Allam Marine isn't really generating enough profit for it to be balancing the football club, combined they're negative equity and probably losing money, which means a 3rd (or more) business(es) making up the shortfall, Allamhouse reserves are being depleted, or Allamhouse is taking out loans to cover it. Only one of those situations is financially sustainable, and even that isn't sustainable from a practical point because nobody wants to run 2 or more profitable businesses just to sustain a 3rd.
