Malxwal
Well-Known Member
Source: The Times
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A sad sign of the Times
- Thread starter Malxwal
- Start date
Malxwal
Well-Known Member
Purdey made £4.6m pre tax loss.
Brexit dividends
Or it could be the drive to absolutely destroy any manufacturing chasing net zero with ridiculously high subsidised energy costs, crazy employment laws and tax systems that hammers hard work and investment.
Its only going to get worse too.
TringSaint
Well-Known Member
Why would lead ammo restrictions have any sort of impact on purdey’s modern guns and their ability to sell them into EU markets?
Woodenbeam
Well-Known Member
I’m thinking we’re not the only country going through tougher times at present which is probably what has caused the slow down into the EU - grass always looks greener when in reality it ain’t.
That said the sooner this bunch of clowns move on the better.
That said the sooner this bunch of clowns move on the better.
Freeforester
Well-Known Member
No Russian buyers.
possibly all the uncertainly around lead, not just lead shot but rifle ammo, uncertainty is not good for business, customers delay purchasing especially as I guess lead times on buying a new Purdey may be years.
TringSaint
Well-Known Member
They are part of Richemont so I think they will be ok.
Pair of Purdey Sidelock Shotguns 30794-5
A Fine Pair of B.Tallet-engraved 12-bore (3in.) Over-and-Under Game Guns Completed in 2015 and numbered ‘1’ & ‘2’ in gold, the actions are finely engraved with our large scroll pattern and vignettes of a pheasant and a grouse on the undersides, with gold-inlaid cocking-indicators and silver...
www.purdey.com
I would imagine 250k +VAT might put a few people off if they are rendered useless in the next decade.
Doesn't matter who you are life's costing more and luxury items will be first to be hit.
That's what the comma is there for I believe. The headline could also be phrased:
"Purdey have reported the loss along with a 50% drop in sales. The company is also struggling to adapt to upcoming lead ammunition restrictions."
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The headwinds for a company like Purdey are signifiant and I can see no real tailwinds other than a weak pound potentially creating some opportunities.
Inflation, cost of materials, cost of labour, employment law, tariffs, changing demography in terms of amounts and types of people who continue to shoot. All of these things will not help.
The weak pound potentially could make things easier for them in terms of the USA being a huge market for them but I have read that English guns are not flying off the shelves in the USA in recent years. If inventory remains positive, are they buying more stock? Likely not. Economic woes in terms of the last few year's worth of inflation and fiscal worry create lag in the system. It shows up more and more down the line. We will see more of this as the obvious symptoms of inflation (loss of purchasing power from all consumers and affordability being more and more stretched) become more apparent.
The rich can absorb Heinz charging £4 for a bottle of ketchup but there are limits. The luxury watch, car and house market tells you all you need to know. People are selling and not buying. They are also struggling to sell. I have never seen so many high end houses on Rightmove that remain unsold. Interest rates are still high which means access to money is harder and harder. The middle tier of rich people might look rich but large amounts of their assets are leveraged or borrowed. Increase the cost of servicing those debts that were initially taken on during a period of low rates, and you get a horrible storm brewing.
It will not get easier soon. Inflation still running too high to really loosen rates that much. USA is similar. Sticky inflation and a new Fed Reserve governor will cause issues if Trump pushes them to lower rates less than rate of inflation. That will not end well.
Cobblers and barbers are doing ok. Doesn't matter how much people are struggling, they always need shoes and haircuts. Best English guns though? Less so.
Inflation, cost of materials, cost of labour, employment law, tariffs, changing demography in terms of amounts and types of people who continue to shoot. All of these things will not help.
The weak pound potentially could make things easier for them in terms of the USA being a huge market for them but I have read that English guns are not flying off the shelves in the USA in recent years. If inventory remains positive, are they buying more stock? Likely not. Economic woes in terms of the last few year's worth of inflation and fiscal worry create lag in the system. It shows up more and more down the line. We will see more of this as the obvious symptoms of inflation (loss of purchasing power from all consumers and affordability being more and more stretched) become more apparent.
The rich can absorb Heinz charging £4 for a bottle of ketchup but there are limits. The luxury watch, car and house market tells you all you need to know. People are selling and not buying. They are also struggling to sell. I have never seen so many high end houses on Rightmove that remain unsold. Interest rates are still high which means access to money is harder and harder. The middle tier of rich people might look rich but large amounts of their assets are leveraged or borrowed. Increase the cost of servicing those debts that were initially taken on during a period of low rates, and you get a horrible storm brewing.
It will not get easier soon. Inflation still running too high to really loosen rates that much. USA is similar. Sticky inflation and a new Fed Reserve governor will cause issues if Trump pushes them to lower rates less than rate of inflation. That will not end well.
Cobblers and barbers are doing ok. Doesn't matter how much people are struggling, they always need shoes and haircuts. Best English guns though? Less so.
TringSaint
Well-Known Member
What are they making their barrels out of? Bacofoil?
Most shotguns made in the last 30+ years can take steel shot without issue - it’s only the older guns than might need sleeving, so if Purdey have buried their heads in the sand and done nothing on this than that’s just plain stupid - it’s not like the lead ban was a surprise!
Recent Purdey production is fully compatible with steel shot - as made clear in their publicity material.
TringSaint
Well-Known Member
So I don’t get the reference in the headline to issues relating to lead ammunition.
Maybe it just an excuse for poor sales.
Maybe they've had to invest in to new kit and kaboodle?
Equally, that's just me playing devil's advocate... I also don't see why they would have had to substantially change their processes because of a forthcoming lead ban...
Or you could listen to what Purdey themselves said about it. Telegraph head/subline
"King Charles’s gun maker says Brexit is keeping a cap on sales
James Purdey & Sons warns of ‘difficult market conditions’ following referendum"
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