finch2Good work. Yes, sale of the the US operations was an...

finch2

Good work.

Yes, sale of the the US operations was an unmitigated disaster to urgently satisfy the demands of PPX's bankers, and auditors, by June 30 balance date. PPX (North America) was innovative, well managed and profitable.

Harry Boon's a genius. He called it a Strategic Plan; and said Hastie wasn't a "sinking ship". Oh dear!

PPX in the UK and Europe is a bloated inefficient mess reflective of its former management. Local (Northampton) beliefs about maintaining the status quo are endemic.

Recall at the AGM the chairman said PPX would have to reduce costs (labour) ahead of the curve. On any sensible ratios, more cuts to follow.

Wholesaling is a relatively simple low margin high volume numbers, or percentages, game. Fine paper distribution is no different to any other localised B2B commodity distribution; like timber or steel.

Try these current ratios, and then review PaperlinX's acquisitions back in 2002-04:

-- $Sales/total employee count;

-- $Sales/total employee $costs (incl directors).

PaperlinX was acquiring profitable businesses at $700-900,000 annual sales per employee (in early 2000's). Of course they were all profitable; then fecked.

TRY THIS:

What will be the PPX headcount be if the benchmark is very simply:

-- $1 million of sales pa per employee?