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The end is nigh

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The end is nigh

My last post on this got locked I seem to remember...

Anyway, keep an eye on the PlusNet PLC shareprice. It's falling faster than their subscriber numbers. Their interims are out on Tuesday, and they won't contain good news IMO.

No company can get away with shafting so many of its clients so many times - especially when the competition is so fierce.

A company in financial trouble will always try to cut its costs. They all do this in different ways, but employing more staff to sort out customer service issues is not normally a solution.

Watch this space.
15 REPLIES
kosh2
Grafter
Posts: 211
Registered: 04-08-2007

The end is nigh

Ripe for a buyout I reckon. I have recently had a suspicion that this is what senior management would like. regardless of CS or email issues, overal PN have a nice package to offer including all those customers.

I bet on Tiscalli or Sky. :shock:
James
Grafter
Posts: 21,036
Registered: 04-04-2007

The end is nigh

I think Sky have bigger fish to fry Smiley

Last I heard, they were considering AOL.
Community Veteran
Posts: 2,322
Registered: 01-08-2007

The end is nigh

And just how would PN cope should that occur? The way I see it, the squeeze is on.

As Sky will no doubt have the support channles already in place, and if they were to purchase another large supplier, they could utilise their call centres and support areas - what do you think they would do with the support areas of a supplier like PN if they were to buy it?

My bet would be on asset striping and swallowing the customer base. Would they seriously consider keeping the building/s going with the small number of staff, just under a heading of Sky? or would they close them down and absorb into the nearest massive support centre?

I said it many many months ago, an I'll say it again.. Look out for the shareholders and directors receiving very nice golden handshakes, and the rest forming a queue at the Job Centre.

That may sound harsh, but Ive seen it done. In fact Ive worked for a company that did just that, and had the unfortunate task of doing it to people. Its not very nice walking into a place knowing everyone is looking at you like something they dragged in on their shoes, because you are here to survey, reprt back and then weild the axe..
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The end is nigh

Quote
I think Sky have bigger fish to fry Smiley

Last I heard, they were considering AOL.


I think you are right. They'll buy up the big players and crush the minnows.
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The end is nigh

Sky have indicated that they're not interested in overpaying for AOL, but have an "opportunistic" interest in them.

The point that the CEO, James Murdoch made, during an analysts presentation, was that Sky consider many of AOL's customers to be Sky customers, and believe that they can acquire them at a favourable marketing cost, through their own efforts.
kosh2
Grafter
Posts: 211
Registered: 04-08-2007

The end is nigh

Wouldn't Sky risk a monopoly investigtion if they grabbed AOL?
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The end is nigh

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The end is nigh

Their share price has risen 29% in the last two years.

July 2004 97.50p
July 2006 126p
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The end is nigh

What did I say?
Down 15.8% already.
The 4th biggest drop in % terms of the entire market today.
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The end is nigh

Quote
what do you think they would do with the support areas of a supplier like PN if they were to buy it?

My bet would be on asset striping and swallowing the customer base. Would they seriously consider keeping the building/s going with the small number of staff, just under a heading of Sky? or would they close them down and absorb into the nearest massive support centre?

I said it many many months ago, an I'll say it again.. Look out for the shareholders and directors receiving very nice golden handshakes, and the rest forming a queue at the Job Centre.


There is a law TUPE (The Transfer of Undertakings (Protection of Employment) Regulations 1981 and 2006) which basically protects all employees in a buyout situation.

So, if sky was to buy PN then they would leagally have to take all the staff including their contracts, term of service etc.
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The end is nigh

Quote
Their share price has risen 29% in the last two years.

July 2004 97.50p
July 2006 126p


Not anymore it hasn't :lol:
Community Veteran
Posts: 2,322
Registered: 01-08-2007

The end is nigh

Yep I am aware of TUPE. And the fact that large corporations will not stick to it if they dont want to.

Royal Mail IT was outsourced/sold to CSC some time ago, and they have just shed nigh on 1000 jobs by mean of redundancy - all because the employment laws in this country compared to that of france and Germany are lacking somewhat. Luckily I jumped ship about 6 months before they started this exercise.

TUPE or not, if a big player were to buy the outfit and wish to immediatley strip it down to become more "streamlined", then the writing would be on the wall.
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The end is nigh

If you want to read the results go here The results are good. The dumping of shares and hence the drop in share price is probably down to speculators cashing in on the dividend i.e. they will dump shares after they have qualified for the dividend. Share prices are always fluid around the time that dividends are paid.
Laugh
Grafter
Posts: 470
Registered: 07-08-2007

The end is nigh

Thanks pchambers. I notice one little bit from the link was
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PlusNet's, self-developed operating system, 'Workplace', is highly automated,
flexible and scalable allowing PlusNet's products to be competitively priced,
whilst delivering a high quality of service and maintaining low operating costs.

Could provoke an interesting response from the forum Cheesy