RNS Number:8534M
Cassidy Brothers PLC
27 June 2003
CASSIDY BROTHERS PLC
EMBARGOED FOR RELEASE 07.00, 27 JUNE 2003
Cassidy Brothers plc ("the "Company")
Preliminary Announcement of results for year to 30 April 2003
Chairman's Statement
As I mentioned at the time of our interim results in January trading conditions
presented some obstacles but I was optimistic that the upturn we saw at the
start of the second half, combined with measures taken to address a
traditionally quieter second half, would lead to an improved trading
performance. While there has been some recovery sales for the year were #5.3m
(2002: #6.3m)
In addition to the tougher conditions the Company has had to contend with
several expenses over the last 12 months which had it not been for these
circumstances a further #150,000 could have been added to the net profit before
tax of #194,000 (2002: #662,000). The first expense was #50,000, which the Board
decided to allocate to the Company's Money Purchase Pension Scheme. The schemes
provider had been Equitable Life and the fund had suffered from an imposed
devaluation when Equitable were in the process of re-structuring the
with-profits funds. The decision to make a top up was taken following some
excellent listings by our major customers, and as most of our staff are very
long standing employees with over 20 years service, a 20% reduction in their
funds was a bitter blow to them. It was felt that the Company's current
financial strength could well afford this payment. To maximize the benefit to
those closest to retirement who had given over 30 years service to the company
your chairman elected not to be included in this top up.
Further costs have been incurred with the protracted negotiations with Cadbury's
for the licence to supply their confectionery with two toy products. We had
planned to be making a return on our investment before the year-end but this has
not been the case, and as this report is being written we are still awaiting a
decision from the Cadbury's board. Two long serving middle management staff were
made redundant during the month of April, one with over 25 years and the other
with almost 20 years service to the Company. In the reorganization of the
Company, we endeavoured to provide positions elsewhere in the Company rather
than loose their respective skills. These last three years have shown us that
their worth to the Company had been too greatly affected by the changes made and
we could no longer continue to retain them.
The increase in our stock value of #386,000 is tied in with our new Spring /
Summer business and the necessity of holding confectionery stocks. There was
also a manageable carry over of sound, regular, stock from Christmas which will
be sold during the 2003 Spring / Summer period.
Our kitchen range sales have suffered further from cheaper look-alike products
flooding into the market, so the significant uplift in sales enjoyed in
2001-2002 could not be sustained. It was planned to replace some of this lost
revenue with the products launched in 2002, despite being well received, sales
of these were unable to replace those lost for the kitchen appliances. In spite
of the impact felt by competition in the role play sector Casdon still have
three products in the top ten selling items in this category.
Current Trading
Sales are buoyant despite the depressed retail market, in particular the Pick 'n
Mix sweet shop which is now listed by Woolworth's in their Chad Valley own brand
range. These sales have boosted turnover, which had been part of our 2002
strategy. We have continued the development of confectionery products, two of
which now enjoy an Argos listing. The successful Pick 'n Mix has now been joined
by the Belgian Chocolate Shop. The rationale here is to sustain the competitive
advantage by the inclusion of a speciality European made product.
Future Prospects
It is evident that Casdon can produce some startling products, particularly in
the field of domestic appliances. However, for as long as we continue to provide
our Far Eastern competition with 'hot products' to copy, and our customers
continue to buy and encourage this practice, our profits will be hit. We have a
range currently on our drawing board, which I cannot disclose until 2004, but
like the confectionery products which have proved a defence, for the time being,
from the "Pirates of Peking," I believe that these products will encourage them
to look elsewhere for easier pickings.
Final Dividend
In spite of the disappointing results the Company is in good shape with a strong
Balance Sheet, and supported by a strong pound sterling. The Directors are
confident in our future plans and we recommend a final dividend of 2.00 pence
per share (2002: 2.125p), making a total of 3.00 pence per share for the year.
The final dividend will be paid on 5th September 2003 to shareholders on the
register on 15th August 2003.
Paul Cassidy
Chairman
Profit and Loss Account
For the year ended 30 April 2003
Notes 2003 2002
# #
Turnover 5,343,290 6,301,520
Cost of Sales (3,122,702) (3,640,181)
----------------- -----------------
Gross Profit 2,220,588 2,661,339
Warehouse & Distribution costs (1,399,867) (1,386,915)
Administrative Expenses (607,302) (567,891)
Other operating income 26,444 10,162
----------------- -----------------
Operating Profit 239,863 716,695
Interest receivable and similar income 7,648 9,680
Interest payable and similar charges (53,128) (64,613)
----------------- -----------------
Profit on ordinary activities before taxation 194,383 661,762
Tax on Profit on ordinary activities (8,591) (80,765)
----------------- -----------------
Profit for the financial year 185,792 580,997
Dividends (165,730) (172,635)
----------------- -----------------
Profit retained for the year 20,062 408,362
========= =========
Earnings per share 2 3.36p 10.52p
Dividend per share 3 2.00p 2.125p
========= =========
Balance Sheet
At 30 April 2003
2003 2002
# #
Fixed Assets
Tangible Assets 2,174,213 2,088,704
Current Assets
Stocks 1,297,852 911,632
Debtors 329,243 538,091
Cash at Bank and in hand 524,038 1,068,779
----------------- -----------------
2,151,133 2,518,502
Creditors (amounts falling due within one year) (568,140) (848,784)
----------------- -----------------
Net Current Assets 1,582,993 1,669,718
----------------- -----------------
Total Assets less current liabilities 3,757,206 3,758,422
Creditors (amounts falling due after one year) (34,326) (49,604)
Provisions for liabilities and charges (66,000) (72,000)
----------------- -----------------
Net Assets 3,656,880 3,636,818
========= =========
Capital and Reserves
Called up share capital 552,435 552,435
Share Premium Account 43,522 43,522
Revaluation Reserve 598,187 612,507
Profit and Loss Account 2,462,736 2,428,354
----------------- -----------------
Equity shareholders' fund 3,656,880 3,636,818
========= =========
Cash Flow Statement
For the year ended 30 April 2003
2003 2002
# #
Net cash inflow from operating activities 104,566 1,197,724
Returns on investments and servicing of finance
Interest received 7,648 9,680
Interest paid (45,691) (61,726)
Interest element of finance lease rental payments (7,437) (2,887)
----------------- -----------------
(45,480) (54,933)
Taxation
Corporation tax (27,661) 18,543
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (301,294) (305,614)
Receipts from sales of tangible fixed assets 4,500 12,300
----------------- -----------------
(296,794) (293,314)
Equity dividends paid (172,635) (82,865)
----------------- -----------------
Net cash (outflow)/inflow (438,004) 785,155
Financing
Repayment of unsecured directors' loan (67,604) (39,816)
Capital element of finance lease rental payments (39,133) (12,512)
----------------- -----------------
Net cash outflow from financing (106,737) (52,328)
----------------- -----------------
(Decrease)/Increase in cash (544,741) 732,827
========= =========
NOTES TO THE ACCOUNTS
1. BASIS OF PREPARATION
The financial information set out above does not comprise the Company's
Statutory Accounts.
Statutory Accounts for the previous financial year ended 30 April 2002 have been
delivered to the Registrar of Companies. The auditor's report on those accounts
was unqualified, and did not contain any statements under section 237 (2) or (3)
of Companies Act 1985. The auditors have reported on the accounts for the year
ended 30 April 2003, but such accounts have not yet been delivered to the
Registrar of Companies.
2. EARNINGS PER SHARE
Earnings per share are calculated on profit for the financial year of #185,792
(2002: #580,997) and on the weighted average number of shares in issue during
the year of 5,524,350 (2002: 5,524,350).
3. DIVIDENDS
The Directors recommend a final dividend payment of 2.00p per Ordinary Share be
declared payable on 5 September 2003 to shareholders registered at close of
business on 15 August 2003.
4. COPIES OF REPORTS
Copies of the Report and Accounts will be posted to shareholders shortly.
Copies of this announcement will be available for a period of one month from the
Company's offices at Mitcham Road, Blackpool, Lancashire FY4 4QW.
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