ALLIED BRANDS ANNUAL PACK OF LIES SHOWS MANAGEMENT CONTINUES TO LIE EVEN FACED WITH FACTS

Late Tuesday, at the very end of their deadline, Allied Brands Ltd. (ABQ) has released the 2009-2010 PRELIMINARY FINAL REPORT as well as 2010 RESULTS ANNOUNCEMENT. We expect a professional review of this document presently, but a cursory look at these reports show no cause for optimism.

On a cash basis, with slightly increased sales, profits are down 397% (hint: no profits, massive losses) as the result of in part a massive over-doubling of expenses to run the company. Same company, double the expenses. Administration and Employee expenses have both over-doubled - this the proximate cause for the company's failure. Cash has been pumped into senior management, employee, and director pockets, stripping the company of cash. And the increase in issued capital from $30.6 to $36.5 million during the year validates again the observation that the company has been bleeding cash, with every dollar raised going to operations and not the expansion of the company that was promised to investors. Of course since these "operations" are in fact money for management and directors, it's clear shareholders have been duped.

The company is out of cash, and living only on drawdown of $641,000.00 overdraft - an overdraft that's almost exhausted (or may now be, two months later).

This statement is unaudited as noted earlier. The note says "the auditors are currently assessing whether the Director's going concern assumption is appropriate". Since Hacketts has signed off on other lies from the company it's unclear if they are going to sign this new, obvious manipulation despite the fact that, currently, the company cannot pay its debts including the costs of closing stores in New Zealand and Australia. Can't pay debts "as they come due" is operating while insolvent. Something chairman Lachlan McIntosh should be familiar with as director of insolvency firm KordaMentha.

The statement released acknowledges that stores have been closed, but since it's going to take $3,000,000 to complete this closure and pay off the debts incurred, money the company doesn't have, any attempt to capitalise the company will require the lender to flush this $3 million down this dunny.

We understand as a result Westfield and other dudded landlords are threatening to push the company into liquidation. This report should show them they are again being lied to by Allied Brands.

LIES, LIES, LIES!

The company again uses tricky language about the Baskin Robbins shops. The company says the brand has "store on store growth", and "projections are promising". The actual numbers however show Baskin Robbins DROPPING in revenue from $14.4 to $12.4 in revenue - a whopping 17.8% decline! Even if the company wanted to keep this brand, they've shown a massive loss on Baskin alone of $2.3 million. If the company gives away all the brands except Baskin Robins and Cookie Man, it STILL can't operate profitably!

One other note - the company is under legal attack by "several employees", which the company has mysteriously left undetailed. This is as previously reported. One of these suits is believed to be a serious sexual harassment suit against an as-yet undisciplined Baskin Robbins manager and the company that tolerates this behaviour. Another suit is said to be for "misleading and deceptive conduct". Suits alone that are likely to cost millions.

Allied Brands is known for "misleading and deceptive conduct", so this employee allegation is a hit for six. It's their key operation strategy. It's hard to believe a company can have massive operational failures, in-house sexual and employee abuse, revolving door personnel, stock shortages, angry franchisees, destroyed families, deported migrants, dudded investors and vendors - and just say "excuse me". How can this be anything but fraud?