Sunday, June 28, 2009

It’s time to change not churn

Adnams' recent financial performance was given a scathing attack by Guinness Peat on implied grounds that they were not doing the kind of financial hoops and jumps other pubcos have been delivering during hard times.

That kind of criticism leads some companies to lose sight of why they are in business. The pubcos' measures of performance are purely about making money. If they are making shed loads of profit it does not matter one jot that their pubs are failing miserably all over the show. The bottom line says massive profit; the CEO says 'it's all rosy in the garden' and therefore everything is hunky dory. They see performance indicators such as CHURN, not as a clear sign that the wheels are dropping off their collective wagon but as proof positive that more fresh cash is coming into their deep trouser pockets. It's so blinkered it's totally perverse.

'One Wheel On My Wagon And I'm Still Rolling Along'. Well mateys the Cherokees are coming up fast and you're gonna get scalped...

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