Palf/facts12 Oct 2010 13:25
If you look at my posts from last month, your comments seem to support what I said then, being that the industry was rife with rumours or facts that suppliers were not being paid and new payment terms were being forced on some!
Restructuring payments are a normal process when things are tight, but when both the markets and sales of your products are down and suppliers are putting you on stop, then it becomes difficult to operate a business.
Couple this with poor customer service, poor product image and now giving your lucrative parts business away where margins are great, is simply not good business at all.
Then you have a new share issue 50% underwriten by Directors, but as as a secured loan, it all makes you think! for come hell or high water they will not lose a penny if it all goes to the wall.
My personal oppinion is that Upright/Snorkel days are numbered in the UK and it will either be sold off soon, if they can find a buyer in the US, or they will try to find funding in the US to support the Snorkel brand.
The problem they have now is that Upright has sullied the Snorkel brand name that was once regarded highly in the past, particuarly in the US, now it too, is a tarnished brand, by it's association with the much bought and sold Upright Brand.
It is for this reason Major Rental Companies have avoided the Upright brand and will continue to do so, particuarly in light of the lack of product support and other quality issues!
As for SEV? God knows! the saga just continues! Why the offer in March 37Million was never closed remains baffling to any sensible person, then again, it was probably all just smoke and mirrors.
I think that it has been great that some people have made some money over the last week or so, but Beware for the Future!