Allam Marine Limited accounts for 2015 - turnover down from £100m to £80m; operating profit down from £9m to £7m (nearest £million).
According to perceived wisdom, he just needs a shorter name...that's actually longer. What about "All Mine, Tigers For Sale Limited"?
They turned over £159m in 2011, it's not been so good since, maybe he's fallen out with his customers.
Strange actually when Allam Marine is actually expanding. AA allowing his son to run another business badly and also put in grave danger a cash injection of £100m plus does appear rather silly.
The change in stocks is what catches my attention most. This year they've allowed sales to reduce the stock level by almost and used the cash to pay off money they owed. I know they say in their statement that it's to do with managing these things with the sales affected by other situations, and I understand they'd want to do that. But even with the reduction in sales for the year they've gone from having 200 days stock to having 150 days, and the explanation is that they can step up manufacturing when demand increases again. They've previously said though that the basis of the business compared to competitors is that with competitors a customer puts in an order and then has to wait for it to be produced, but his business does well because they hold far higher levels of stocks so they can operate more like a cash and carry basis. Surely "we'll increase production when the demand increases again" goes against that? Other than the change in philosophy they're claiming, or creditors not being prepared to extend the same levels of credit to them as before, are there any reasons they'd do that?
Having cash tied up in 200 days worth of stock is madness in any business. Have they not heard of just in time manufacturing? Customers also know that with a competitor generator if the item is manufactured to order then they are getting something brand new - not something that has sat on a shelf for 6 + months. More crack pot business management from Assem.
Everything I have read about their generator business has indicated they target areas of the world that are subject to natural disaster, where generators are needed immediately. They target misery and urgent need so they can charge a premium price to fulfill that urgent need quickly. Reducing stock should not lose them those orders, it should still allow immediate fulfillment of whole or part orders, any remainder following up quickly. They would look for JIT in their own procurement process, but it is barely relevant to their sales. Depending on the size and complexity of the generator models, most would be ready to go off-the-shelf even though sat for some time, otherwise there would be a commissioning process at site (this would then trigger the warranty). Any reduction in stock numbers could be attributed to an improvement in production time, just as much as a fall in demand projections. When looking at the peaks and troughs of their turnover, it might be worthwhile looking at corresponding world events.
Could part of their plan be that them holding the large stock of components gives them a degree of control on market prices, particularly at times of high demand.
Long names must be in fashion. They've now added a "The". It sounds like they own a circus act. For one night only, visit our Big Top and see The Hull Tigers, their world famous, their fearless and they've earned their stripes. No concessions. We don't want you to get angry because the toddler sat next to you has paid less.
I'm guessing most posters that have commented about Allam Marine have no idea about the international generator business. Stick to football.
