A check of the share price chart for PMP, parent of magazine distributor Gordon and Gotch, shows shows a decline of 25% in six weeks. Various restructures over the last couple of years have failed to arrest the share price. It can only be a matter of time before shareholders demand another approach.
I’d love to see Fairfax acquire the magazine distribution business from PMP and to bring to the Gotch titles the control I have today over IPS titles. Yes, I know others have complained here about IPS. I see it working. Yes I have to commit to new titles for a while – but I get absolute control over what I sign on for and the quantity. They also promote my business through a terrific website.
Of course, fairfax will not buy the Gotch business given what they have said recently about acquisition plans.
Please don’t let Network get it or we will
have a monopoly and then see how well
we all fare.
IPS is only small and will possibly get swallowed up and there are very few others – overseas publications aside
What would happen to the thousands of dollars owed to newsagents for credits if
GG go bust????? Scary thought!!
Imagine having to take all of gotchas tittles for a minimum of 3 issues with no early return hmmm no thanks
Mark, how do you have control over stock & quantity? I have no idea what new titles IPS is going to send me & once they’re here I’m committed for 3 issues. If I was given an option prior to allocation I would be happy or alternatively have an early return mechanism. In their current form IPS’s operating principles would fall outside the TPA, ie they could load us with unsolicited stock & demand payments that we could not meet.
If there are any IPS people watching this blog, how about you give us FULL control of allocations through your website & then we might engage with you. You might find we sell more stuff….. Good for all of us.
Shaun, IPS does not require you to take all their titles. You can choose.
May, can I pass on your details nd have them contact you?
Sure Mark, ta
The IPS system is only manageable because of the small number of titles they have most of which are niche. If they were to take on the full range carried by G&G how many newsagents could realistically say they have the knowledge, time and information to manage their own magazine allocation. Not me. I have big problems with the way the current system is run by G&G and Network who seem to be taking the p**s with their allocation’s, not the system its self.
Mark but once they send one issue you have to continue for the next 2 . i have a bowling magazine that has bucklys of selling (i have tried) but it will keep coming .I know you can probally contact them and get it changed But i want full control on their web site without having to ring them or sending an email
Shaun you should only get titles you request. If this is not the case, advise them.
The last email i sent i did request to be contacted before sending any new stock . From day one i have never orderd in any stock ,IPS must be the ones deciding what to send .
I suggest you give them a call.
Mark
I don’t know what your IPS contract say’s but mine definitely gives IPS the right to send me new titles until the returns are finalised for the third issue by which time I’ve received the forth issue which I am contractually required to keep on display for the full on sale period
Since emailing them i have not recieved any new stock . Is everyone on the same agreement that Mark mentions ?
They must be Shaun we signed the standard agreement. Call them.
Have spoken to IPS often about sending mags I don`t require. They will stop them for a few months than back they will come or a new one that I didn`t ask for.
If it wasn`t the for racing papers I would cancell all mags from them.
It would a nightmare if they took over GG mags.
But I will say they are best by far to deal with on the phone. Always polite and helpful.
Just my opinion
Getting back to the original topic of the article…
Is the share price a concern for Newsagents? Is it possible PMP could collapse or go into liquidation??
Or is the company in a safe position, with contingencies in place to tackle declines in magazine sales?
I don’t think a collapse or liquidation are a concern Amanda, just a share price that demands attention.
ProPrint speculates about PMP as a takeover target: http://www.proprint.com.au/News/328871,pmp-investor-print-giant-is-sitting-duck-for-a-takeover.aspx
The price decline is continuing.
Interesting article.
If the value of the assets are in fact undervalued then it doesn’t matter what business it is in it will draw the attention of someone who would benefit to swoop on it. Fourteen cents is a long way from fifty or seventy cents.