AliB Posted December 9, 2009 Share Posted December 9, 2009 Discovery Leisure Group announced their operating figures yesterday. Revenue of £84M down from £135M the previous year. http://www.iii.co.uk/investment/detail?code=cotn:DISL.L&it=le Looks like they struggled in 2009 but £84M is still a ot of caravans, motorhome and accessories. Do you think they will bounce back next year? Link to comment Share on other sites More sharing options...
Petra Posted December 9, 2009 Share Posted December 9, 2009 We are not surprised that their revenue is down. We wanted to buy a new van and they could not be bothered to deal with us because we wanted left hand drive. They never ring back and their servicing department is a joke. We are still waiting for parts over 3 months later. They need to drastically improve their customer service. Link to comment Share on other sites More sharing options...
GypsyTom Posted December 9, 2009 Share Posted December 9, 2009 The possible reason for a decline in turnover is more likely to be because they are now a much smaller and leaner company, having closed a number of outlets. You may well find that, site for site, their sales are actually up. Turnover is unimportant, it's profit that matters. If they are now smaller and leaner they could actually be making more money on this smaller turnover as the branches that they've closed were obviously losing money, or they wouldn't have closed them! Link to comment Share on other sites More sharing options...
Corky 8 Posted December 9, 2009 Share Posted December 9, 2009 I was over at Discover in Darlington to have a door lock replaced under warranty ,I have been waiting since June this year, guess what they had the wrong lock,another six weeks wait and another 320 mile round trip , the Motorhomes on display in the grounds were down to about 20 New Motorhomes with only a few secondhand Motorhome,s on offer, Barren compared to earlier in the year. must be feeling the pinch and the Fiat saga wont help. :-S Link to comment Share on other sites More sharing options...
Brock Posted December 9, 2009 Share Posted December 9, 2009 Asset rich companies can ride out a period of loss making with good financial backing and perhaps the disposal of some of the assets. Most companies fail through lack of cash flow, that is they do not generate enough cash on a day to day basis to pay their bills. Decisions on what assets to sell rarely depend on the profitability of the asset. For example, a site worth £3m will be sold to generate much needed cash even if the site is generating profits of say £500k pa. It might also depend on the asset value shown in the balance sheet. Saleability of the site and the cost of closing a site will be big considerations. From the figures, Discovery Leisure seems a long way from turning itself around so I wouldn't hold your breath. However, the Board is trying hard to keep the business going so we can all live in hope. We don't want anyone going under. Link to comment Share on other sites More sharing options...
Rayjsj Posted December 9, 2009 Share Posted December 9, 2009 I have no experience of running a Dealership, so speaking purely as a customer (or potential customer) I am 'Peed Off' with 'Discover leisure' We had several good dealers near us (relatively!) Mendip at Newport, Barrons at Wrexham, Harringtons at Cardiff and Mendip at Weston-Super-Mare, all within a days travelling distance from home, So what do they do ?? take them ALL over with a Fanfare of trumpets......then shut them all (and many more !) Down. Thank you very much ! Only the branches in 'The North' (where they are already 'well served' with dealerships) have survived. Personally I hope they go 'Titsup'. Bring back Barrons, Harringtons and Mendip. The Bigger they get the harder they fall. :'( Ray I think this was a case of 'Asset stripping' for the freehold of any properties in the south of the country, to help pay-off their massive borrowing.... and 'Sod the customers'..... Link to comment Share on other sites More sharing options...
RonB Posted December 10, 2009 Share Posted December 10, 2009 I think that Discover Liesure overstretched themselves financially at the worst possible time and could not meet their bank loan commitments. The sale of many of their sites was forced on them during the loan renegotiating process. Link to comment Share on other sites More sharing options...
Rayjsj Posted December 10, 2009 Share Posted December 10, 2009 RonB you are probably right, but why only southern dealerships (oops, High Hesket, Carlisle, went too.) leaving any customer in the south of the country completely unsupported ? Methinks they should have left things as they were, and not gone on a Buying spree with money they didn't have. I wouldn't even buy toilet fluid from them. *-) Ray Link to comment Share on other sites More sharing options...
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