TIDMCDY
RNS Number : 1527M
Cassidy Brothers PLC
26 January 2009
CASSIDY BROTHERS plc (the "Company")
Interim Results to 31 October 2008
Chairman's Statement
The Company's performance for the six months to 31 October 2008 has shown a 6%
increase in turnover to GBP2.07 million (2007: GBP1.95 million), generating a
profit before taxation of GBP274,239 (2007: GBP134,751).
This increase has occurred by increased overseas F.O.B. business from the Middle
East and Australia, and the purchase of the toy Dyson vacuum cleaners by Dyson
Appliances to assist their marketing campaigns in Europe.
The Company maintains a strong balance sheet with net assets of GBP3,571,675
(2007: GBP3,318,264), representing a net asset value of 64.7 pence per share
(2007: 60.1 pence per share). As at 31 October 2008 the Company had a cash
balance of GBP440,794.
Current Trading
I believe the toy trade has ridden out past recessions under the presumption
that parents / guardians continue to spend on their children. This next twelve
months will test that theory, because the toy trade has received an approximate
25% drop in the GBP/$ exchange rate and an average 20% increase in the Chinese
factory gate prices. The latter resulting from an increase in plastic raw
materials and labour costs.
The cost of oil has a direct effect on plastic raw material prices, therefore,
mid-year we undertook a complete review of certain product designs, with a view
to making tooling alterations in order to produce a lighter product. The
resultant savings have far outweighed the additional tooling costs involved.
Our overseas FOB business is increasing every year and as we invoice all these
customers in US$ and indeed on occasion in Euro, it is comforting to hold these
currencies on bank deposit whilst the value of sterling declines.
This year we tooled and developed a toy version of the latest Dyson canister
type vacuum cleaner, the DC22. The success of this project is reliant on sales
from two directions. Firstly, Dyson Appliances themselves, whose first orders
helped significantly towards the tooling costs, and secondly, sales into Europe
through a German toy distributor. Germany and France favour the
canister/cylinder type vacuum cleaner as opposed to the U.K. and U.S.A. who
favour the upright.
We have struggled to improve on the increases experienced over the U.K.
Christmas period last year. The November and December sales figures, which are
not included in this report, will be lower than 2007 owing to the difficult
trading conditions in the U.K. high street stores.
The Company was not affected directly by the closure of Woolworths, but the
price cutting will have hurt the independent retail sector.
Future Prospects
The U.K. high street has been competing for an ever decreasing slice of the
consumers income, with tactics such as "50% off", "3 for 2", "BOGOF" (Buy One
Get One Free). It is amazing how the independent toy retailer has survived and
we are now witnessing the laws of "economic selection", where he who survives,
wins. If you take out 800 Woolworths stores, this has got to speed up the
changes that are going to occur with the juggernaut of internet sales.
As anticipated in my 2007 Interim Statement, the Chinese governments tightening
of factory controls has seen the closure of over 3,000 toy factories, a further
result of "economic selection".
Due to the disappointing sales from the U.S.A. in 2008 we have decided to handle
this business ourselves rather than rely on a U.S. based distributor. The
Company will be exhibiting at the New York toy fair in February, offering FOB
terms directly to major accounts, with sales administration being handled from
our Blackpool office.
We will have two new products for 2009, the first being a toy version of the
George Foreman health grills by Salton Europe, "the lean mean grilling machine".
The second is a Postman Pat steering wheel with electronic sounds. This
television series has been given a brand new make over with up to date vehicles.
We are planning a targeted television promotion for both of these products on
children's television which will be funded from our existing working capital
resources.
Interim Dividend
In spite of recession fears, the Directors remain positive, and the Board has
therefore announced an increased interim dividend of 1.0 pence per share (2007:
Interim Dividend 0.7 pence per share) to be paid on 9 April 2009 to shareholders
on the register on 6 March 2009.
The Directors would like to wish all shareholders a prosperous new year for
2009, and to thank you all for your support.
Paul M. Cassidy
Chairman
26 January 2009
+----------------------------------+-------------+--+-------------+--+-------------+
| Profit & Loss Account | Six months | | Six months | | Year |
+----------------------------------+-------------+--+-------------+--+-------------+
| | ended | | ended | | ended |
+----------------------------------+-------------+--+-------------+--+-------------+
| | 31 October | | 31 October | | 30 April |
+----------------------------------+-------------+--+-------------+--+-------------+
| | 2008 | | 2007 | | 2008 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | (unaudited) | | (unaudited) | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| | GBP | | GBP | | GBP |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Turnover | 2,075,962 | | 1,948,465 | | 3,319,759 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Cost of Sales | (1,211,017) | | (1,309,739) | | (1,871,085) |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Gross Profit | 864,945 | | 638,726 | | 1,448,674 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Warehouse and Distribution Costs | (446,500) | | (382,588) | | (925,862) |
+----------------------------------+-------------+--+-------------+--+-------------+
| Administrative Expenses | (209,022) | | (190,402) | | (407,066) |
+----------------------------------+-------------+--+-------------+--+-------------+
| Other Operating Income | 66,309 | | 62,962 | | 128,605 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Operating profit | 275,732 | | 128,698 | | 244,351 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Net interest (payable) / | (1,493) | | 6,053 | | (3,253) |
| receivable | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Profit on ordinary | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| activities before taxation | 274,239 | | 134,751 | | 241,098 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Taxation | (57,590) | | (26,950) | | 25,000 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Profit attributable | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| to shareholders | 216,649 | | 107,801 | | 266,098 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Dividends | (82,865) | | (71,817) | | (110,487) |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Retained profit | 133,784 | | 35,984 | | 155,611 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Earnings per share | 3.92p | | 1.95p | | 4.82p |
+----------------------------------+-------------+--+-------------+--+-------------+
| Summarised Balance Sheets | As at | | As at | | As at |
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| | 31 October | | 31 October | | 30 April |
+----------------------------------+-------------+--+-------------+--+-------------+
| | 2008 | | 2007 | | 2008 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | (unaudited) | | (unaudited) | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| | GBP | | GBP | | GBP |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Fixed assets | 2,114,481 | | 2,035,994 | | 2,131,784 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Stock | 541,442 | | 529,626 | | 379,950 |
+----------------------------------+-------------+--+-------------+--+-------------+
| Debtors | 1,640,966 | | 1,567,582 | | 279,997 |
+----------------------------------+-------------+--+-------------+--+-------------+
| Cash | 440,794 | | 578,739 | | 961,340 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Current assets | 2,623,202 | | 2,675,947 | | 1,621,287 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Creditors: amounts falling due | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| within one year | (1,122,930) | | (1,323,840) | | (285,932) |
+----------------------------------+-------------+--+-------------+--+-------------+
| Net current assets | 1,500,272 | | 1,352,107 | | 1,335,355 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Total assets less current | 3,614,753 | | 3,388,101 | | 3,467,139 |
| liabilities | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Deferred liabilities and | (43,078) | | (69,837) | | (29,248) |
| provisions | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Net assets employed | 3,571,675 | | 3,318,264 | | 3,437,891 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Share capital | 552,435 | | 552,435 | | 552,435 |
+----------------------------------+-------------+--+-------------+--+-------------+
| Reserves | 3,019,240 | | 2,765,829 | | 2,885,456 |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
| Shareholders' funds | 3,571,675 | | 3,318,264 | | 3,437,891 |
+----------------------------------+-------------+--+-------------+--+-------------+
| NAV per share | 64.7p | | 60.1p | | 62.2p |
+----------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+----------------------------------+-------------+--+-------------+--+-------------+
+----------------------------------+--------+------+----+----+--------+--------+----+----+-------+------+----+
| Cash Flow Statement | Six | | Six | | Year |
| | Months | | Months | | |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | Ended | | Ended | | Ended |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | 31 | | 31 | | 30 |
| | October | | October | | April |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | 2008 | | 2007 | | 2008 |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | GBP | | GBP | | GBP |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | | | | | |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | | | | | |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| Operating Profit | 275,732 | | 128,698 | | 244,351 |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | | | | | |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| Depreciation charges | 58,650 | | 51,750 | | 86,433 |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| Profits on sale of tangible | | | (11,531) | | (11,531) |
| fixed assets | | | | | |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| (Increase) in Stock | (161,492) | | (332,232) | | (182,556) |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| (Increase) / Decrease in Debtors | (1,360,969) | | (1,262,115) | | 25,470 |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| Increase in Creditors | 379,727 | | 497,525 | | 106,113 |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | | | | | |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | (808,352) | | (927,905) | | 268,280 |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | | | | | |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| Net Interest (paid)/received | (1,493) | | 6,053 | | (3,253) |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| Taxation | | | | | |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| Capital Expenditure | (41,347) | | (66,693) | | (197,166) |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| Equity Dividends paid | (82,865) | | (71,817) | | (110,487) |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| Unsecured loan and Finance lease | 13,830 | | (1,285) | | (49,244) |
+----------------------------------+---------------+---------+-----------------+---------+--------------+
| | | | | | |
+-------------------------------------------+-----------+-------------+-------------+------------+-----------+
| (Decrease) in Cash Flow | (920,227) | | (1,061,647) | | (91,870) |
+-------------------------------------------+-----------+-------------+-------------+------------+-----------+
| | | | | | |
+----------------------------------+--------+------+----+----+--------+--------+----+----+-------+------+----+
Notes
1. The results for the half year ended 31 October 2008, which have been prepared
in accordance with the accounting policies adopted in the financial statements
for the year ended 30 April 2008, have not been audited or reviewed by the
Company's Auditors and do not constitute statutory accounts as defined in s240
of the Companies Act 1985.
The financial information for the year ended 30 April 2008 is an abridged
version of the full accounts for that year, which have received an unqualified
audit report and have been filed with the Registrar of Companies.
2. Taxation for the six months ended 31 October 2008 has been based on the
estimated effective tax rate for the full year.
3. The calculation of Earnings per share is based upon the profit after taxation
for the period divided by the number of ordinary shares in issue during the
period. The number of shares in issue was 5,524,350 ordinary shares.
4. The calculation of Net Asset Value per share is based upon shareholders funds
divided by the number of ordinary shares in issue at the balance sheet date. The
number of shares in issue was 5,524,350 ordinary shares.
5. Deferred liabilities and provisions relate to provisions for deferred
taxation and motor vehicle hire purchase.
6. This interim report will be sent to shareholders in due course. Further
copies will be available to the public from the Company's registered office,
Cornford Road, Off Clifton Road, Marton, Blackpool, FY4 4QQ and on the Company's
website www.casdon.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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