Ashley (Laura) Holdings plc (lon:aly)
Laura Ashely A Dying Brand Or Just Jittery Shareholders?


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Title: Laura Ashely A Dying Brand Or Just Jittery Shareholders?
Company: ALY - Ashley (Laura) Holdings plc
Share Price Then: 10p
Author: Ian Smith
Date: Tue 27 Jun 2017
Comments: Laura Ashely are now at their lowest value since early 2009, having been trading in the 10p-35p range, now at 10p thay have lost nearly 50% of thier value since since Feb 2016 (19p).

So you have to ask is some of this drop overreacting or is there a fundamental problem?

The 2017 Interim Report notes an increase in debt from about £2m to £22m but most of this is from the purchase of an office building in Singapore. As the company is trying to create franchises in this area it is not as daft as it first seems.

Group sales are pretty much unchanged from the previous year, internet sales were also pretty much unchanged fron the previous year. Conventional wisdom is that internet sales should rise so this is a problem, but I am not convinced about this.

Laura Ashely is not a brand aimed at younger consumers making ad-hoc purchases via their mobile phones so internet takeup is not going to be typical.

Whilst there are ongoing projects to sell outside of the UK about 90% revenue came from the UK where the brand is well established. So without a big change of direction or advertising campiagn sales increases or decrease of a few percent are hard to use as indicators of anything.

As the company is still paying a 0.5p dividend, that's 5% it is hard to say that they are losing their way in the same way that many see M&S as having done,

Recent trading volumes are very low suggesting to me that most people who have lost interest in the company have sold out and the price seems to have stabilised at 10p. So is there an easy 20%-30% gain just waiting?
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