company as its Deputy Chairman in 1990, but as tax adviser to the Ashley
family had been associated with the business for many years. It was
Blakeway Webb, therefore, who announced Laura Ashley’s half year
results in September 1993. Sales were up by 23 per cent, but pre-tax profits
to 31 July were a mere £1.3 million, 30 per cent down on the previous year.
The US operations remained a bleeding sore, turning in half year operating
losses of £3.3 million. Maxmin was nevertheless determined to continue
with the planned investment, meaning that profits for the full year were
unlikely to be significantly higher than the year before. He confessed that
‘If I have been guilty of anything, then I have been guilty of being too opti-
mistic about the rate of turnaround in North America.’^13 The news sent the
share price tumbling, finishing the day 22p lower than its opening price of
87p. Only one institutional investor sold, but patience was wearing thin
(refer to Figure 6.1.1 for stock market performance).
Resignations
On 12 April 1994, Blakeway Webb announced that Maxmin had ‘resigned’.
There had, apparently, been a fundamental disagreement between the
Chief Executive and the company’s long-serving Non-executive Directors
over future levels of investment in the brand and human resources. The
City was stunned. Two days later Maxmin made his farewell presentation,
Creating and implementing relationship marketing strategies 449
Table 6.1.6 Stock levels as % of sales, 1980–94Year Sales Stock Sales
ending (£000) (£000) (%)Dec 1980 25 393 7225 28.5
Dec 1981 34 153 8880 26.0
Dec 1982 44 556 10 652 23.9
Jan 1984 66 701 17 053 25.6
Jan 1985 96 448 22 732 23.6
Jan 1986 131 513 35 603 27.0
Jan 1987 170 892 45 521 26.6
Jan 1988 201 477 66 824 33.2
Jan 1989 252 431 75 790 30.0
Jan 1990 296 608 104 804 35.3
Jan 1991 327 533 64 642 19.7
Jan 1992 262 757 57 239 21.8
Jan 1993 247 793 76 436 30.8
Jan 1994 300 387 70 802 23.6Source: Laura Ashley Annual Reports.