11.06
November 11 2009 is 5 years after November 11 2004.
The share price of Pinewood Shepperton PLC on November 11 2004 was £2.15
Today it is under £1.33
Maybe over the next five days it will jump to 2004 heights in time for its anniversary.
On the other hand in five years time it may not be worth 50p a share if the speed of descent in share price is maintained.
This is a British asset in jeapordy and the plc model coupled with the present business model is very worrying.
This is one of the world’s top 25 global brandnames (this is official).
Yet it is attached to a small corner shop in a tiny secluded village which has decided it does not want it to grow any larger on its doorstep.
Were this still on its present sites BUT expanding on premises in a much bigger pond then merchandising alone as well as sponsorship of its building could bring in far more revenue than the £40 million or so turnover it is now on course for.
A much bigger pond is indeed China, Malaysia, but of course also includes British cities such as Birmingham, Manchester, Liverpool, Cardiff, Glasgow, Edinburgh, Sheffield, Leeds. The hungriest region to embrace it is The West Midlands with a population of over 5 million between Coventry and Stoke. An average £10 spend by the people would yield £50 million additional revenue each year.
Football clubs such as Aston Villa look to make £1000 per fan per year in merchandising. So £10 is not setting the bar very high. If they can get it up to £100 then this is serious money for this company. A wise Board would be considering it actively.
Jonathan Stuart-Brown
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