The Hour Glass

[lazyplane]

Swiss Watch Industry, Prospects and Challenges
Swiss Issues Industries, October 2013, by Credit Suisse

https://www.credit-suisse.com/media/prod...die-en.pdf

(not vested)

When is a good time to enter this stock ? Seems rather low these few days.

[crabcrab]

Swiss watchmaking in November 2013
High level confirmed

With watch exports having attained a particularly high level in November 2012, it was difficult to do better in November 2013, especially with one fewer working day. However the monthly result was practically identical at 2.1 billion francs (-0.5%). Once again, watch exports have confirmed their consolidation at a high level.

Gold and bimetallic watches exerted a negative overall effect, while steel timepieces saw their value increase. Platinum watches recorded a very marked upturn. In volume terms, several important materials registered a decline, with the exception of the category of other materials. However the total monthly level was down 120,000 units compared to November 2012.

The main price segments lost ground. Only watches between 200 and 500 francs (export price) stood out from the rest, as in previous months. Below 200 francs, volumes contracted by 7.8%. The 500-3,000 francs category saw its value fall by 7.4%. Above 3,000 francs, the value remained stable, however the number of timepieces exported was down 4.0%.

The main markets of the Swiss watch industry recorded mixed results. Hong Kong and the United States saw their value decline, while Germany and Italy comfortably exceeded their 2012 level. China lost ground due to a marked downturn. Finally, France recorded a significant increase, something of a rarity in 2013.

Source: FHS

[dydx]

Hublot's MD Ricardo Guadalupe talked about, among other things, his company's business relationship with THG, in an interview piece…..
http://www.thehourglass.com/?p=1226

[dydx]

Notwithstanding a seemingly less favourable operating environment and slowing consumer demand, THG has just reported another good 3Q - with higher sales and slightly lower profits, attributable mainly to a lower GP Margin (when compared with last FY), higher rental expense, higher salaries and employee benefits, and higher other operating expenses…..
http://infopub.sgx.com/FileOpen/THGL_3Q_...eID=274475 [3Q results announcement]

Following past years' pattern, I suppose we can reasonably expect 4Q to be another good quarter. With a yearly PBT in excess of $60.0m (last FY13: $65.9m), I believe THG is already one of the most profitable retail enterprises in Singapore!

[promptpost]

Other luxury goods retailers/companies can and should learn from THG successful business model and strategies.

[valuehunter]

I thought the most recent results is commendable. Inventory days has again fallen and stock turn has improved. Clearly THG is working very hard in managing inventory. I'll place my faith in this experienced and, in my opinion, conservative management team.

[felixleong]

EPS seems to be on a decline, any view on that?

[greengiraffe]

Squabbling The Hour Glass founders head to court again

Published on Feb 27, 2014

Dr Henry Tay and Ms Jannie Chan (above) divorced in 2010 but are still directors of the family's company.


By Rachael Boon

THE high-profile founders of luxury watch retailer The Hour Glass continue to be at loggerheads two years after they originally resolved things out of court.

The founders, Dr Henry Tay and his former wife, Ms Jannie Chan, had split up in 2010 but are still linked as directors of the family's investment vehicle, TYC Investment.

In the latest twist, Ms Chan is now being taken to court by TYC for allegedly refusing to approve payments that TYC has to make.

They include expenses relating to two Nassim Road properties as well as legal and accounting fees.

Ms Chan is also being asked to redeem 6.5 million The Hour Glass shares that she had borrowed from TYC and pledged to OCBC Bank for a personal loan. She was supposed to have redeemed them by April last year.

This comes two years after the high-profile pair had settled a separate suit out of court, regarding an injunction by Dr Tay to stop Ms Chan from signing cheques on behalf of TYC.

Dr Tay and Ms Chan have management control of the firm, which owns about 108 million shares in The Hour Glass.

Part of the settlement included both parties having to agree on payments before TYC can act.

But this has caused a new set of problems as Ms Chan is now accused of withholding her approval for payments.

TYC and three other family-run vehicles submitted papers in the High Court last September to compel Ms Chan to sign payment cheques and vouchers. Dr Tay is included in the suit as a nominal party because any legal action taken by TYC regarding such matters would necessarily involve all its directors.

Five hearings have been held since then. The latest, on Monday, gave Ms Chan one more month to cooperate with TYC regarding the share redemption, with another hearing set for next month.

In Ms Chan's affidavit, she said she was disappointed with the action taken and that she had signed the cheques she deemed necessary. She said that US$4.2 million (S$5.3 million) to be transferred for the release of the pledge over the shares was due to arrive last November. The funds are now expected to arrive by the end of next month.

Noting that the firms are family-run, she added: "I always believed that we should and we can resolve matters internally within the family."

Ms Chan added in her affidavit that Dr Tay had refused to call a meeting involving them and their three children - all TYC Investment shareholders - and had called for extraordinary general meetings (EGMs) on dates she was not in Singapore.

The calling of an EGM on Sept 4 last year was "in bad faith" despite her requests to postpone it to the end of the month, and only Dr Tay and their son, Michael, attended, she claimed.

Despite her objections to resolutions approving certain payments and withholding her The Hour Glass dividends for 2013 for the redemption of shares under TYC, these were passed at the EGM.

She said the proceedings by Dr Tay are to compel her to make payments to him, and "on the other hand, Henry has also been trying to starve me financially".

Ms Chan's main assets are her shares in TYC Investment and her 50 per cent stake in 40C, Nassim Road, of which she and Dr Tay are co-owners.

She said her dividends from TYC have been withheld, and she is prevented from monetising her stake in the Nassim Road property due to a caveat lodged by Dr Tay on June 30, 2012, to sell the property. She also said that the property had been renovated and expenses incurred without her knowledge and approval.

The documents filed in the latest court action also showed how lawyers' letters have been flying to and fro regarding various matters, including The Hour Glass dividends and the caveat.

Ms Chan is represented by Mr Eugene Thuraisingam of Eugene Thuraisingam, TYC is represented by Senior Counsel Thio Shen Yi of TSMP Law Corporation, and Dr Tay is represented by Senior Counsel Chelva Rajah of Tan Rajah & Cheah.

rachaelb@sph.com.sg

[pianist]

such a rich lady also needs to pledge shares for a loan? hmm...

[crabcrab]

Jornal Independente
21 January
Timor-Leste coffee king in $5.7m scandal

SINGAPORE- The directors of leading Timor-Leste coffee company Timor Global have been ordered by the Singaporean High Court to pay some US$5.7 million in bank defaults.

The Australia & New Zealand Banking Group (ANZ) sought to recover the sums from Jannie Chan and his business partners, Tan Tjo Tek and Dili-based Bobby Lay Ni Sing, all of whom were directors of Timor Global, a coffee plantation and trading company in Timor-Leste. Mr Tan ceased to be director in June last year.

Ms Chan is co-founder and executive vice-chairman of The Hour Glass, a luxury watch retailer with 24 boutiques in eight cities in the Asia-Pacific.

All three had underwritten the credit facilities extended by ANZ's Timor-Leste branch to the company in October 2012.

But in May last year, the company defaulted twice on paying a total of US$2.3 million back to the bank.

This triggered a move by ANZ to recover all outstanding sums, which amounted to US$5.75 million.

The bank gave the company a July deadline in response to its request for more time.

The woes of the coffee bean trading firm are understood to be rooted in its loss of 38 containers of beans worth some US$2.26 million in 2012.

They are believed to have been misappropriated.

The company said then it meant to raise US$10 million by June last year to clear the bank debts.

But they were not cleared and WongPartnership lawyer Chou Sean Yu, representing ANZ, moved to seek recovery from the Singaporean directors.

Known as the "coffee king", Mr Tan, 70, used to run Timor Global, one of the three largest coffee plantations in Timor-Leste, comprising about 3,000ha.

He was the former managing director of Teck Hock Coffee.

Assistant Registrar Eunice Chua issued summary judgment for the sums against the two parties on Friday.

Ms Chan said through her lawyer Eugene Thuraisingam yesterday that she had been "let down" as a guarantor for bank facilities extended to Timor Global and is taking legal action to pursue her rights against the appropriate party.

Recognised for her entrepreneurial skills, she also founded holding company Hypha Holdings under Save Our Planet Investments and the non-profit Save Our Planet Foundation, which promotes reforestation to mitigate climate