Cassidy Brothers PLC - Interim Results
January 21 2000 - 7:00AM
UK Regulatory
RNS Number:1853E
Cassidy Brothers PLC
21 January 2000
Interim Results to 31 October 1999
CHAIRMAN'S STATEMENT
The first six months of the company's sales have been generated mainly from
products made in the U.K. factory. These have been showing low profit margins,
which is the reason why some of our tooling has been moved to the factory in
China. Our Chinese made range did not start to make a positive impact on the
profit margins until late August 1999.
With turnover for the six months ending 31 October 1999 down by some 15%, the
company has achieved good results under the most trying of circumstances. Our
current U.K. made range is suffering severe competition from the Far East, and
some of our sizeable customers have switched to the cheaper alternatives. Of
the 45 items in our toy range 29 are still made in the U.K. and although we
are moving our manufacturing base, at this stage not all our production
requirements have been replicated in China. We are blessed, however, with the
majority of our customers supporting us during this process.
Interim Dividend
The Directors would have great difficulty in justifying a generous interim
dividend and under the transitional circumstances of the company, the
directors recommend a dividend of 0.25 pence per share, payable on 6 April
2000 to the ordinary shareholders on the register at the close of business on
4 February 2000.
Current Trading
Notwithstanding the dip in sales, the more important aspect is the raising of
overall profit margins from our Chinese made toy range, some have been made
using our old U.K. tooling, but all our products have been designed in our
U.K. factory using computer aided technology. These healthy margins have
provided strong support for the poor performance shown by U.K. production. The
Supermarket Checkout applauded loudly in 1998/99 is proving a great success.
As the deliveries into the U.K. did not arrive until the end of September the
full potential of this product will not be felt until the financial year
2000/2001. The toy Dyson is proving an excellent product, and the electronic
Teletubbies item is showing great resilience for a TV license character. We
certainly made the right decision applying for the license because the sales
are still buoyant, with good listings for year 2000.
Future Prospects
In negotiation with Dyson Appliances we have secured distribution of all toy
versions of Dyson products throughout the EEC. This has encouraged us to
develop a toy DC05 (Dysons version of the traditional cylinder type). Upright
cleaners are not as popular in Europe as the cylinder type, so the DC05 should
bring us more useful earnings in the latter part of year 2000.
Negotiations with Dixons and their Curry stores have resulted in the
development of a toy Hotpoint Washing Machine with electronic sounds. Dixons
were so impressed with the toy Dyson they approached us on behalf of Hotpoint,
and the toy will be on sale throughout Dixons stores in the Spring of 2000,
giving us good revenue in the latter six months of the 1999/2000 financial
year up to April 30th. In previous years this has traditionally been a period
of low revenue.
Finally, in late September 1999 Ken Hopkinson was made our Joint Managing
Director. It has been Ken's brief to time and implement most of the
redundancies, organise the factory in the Far East, and set up production. Ken
worked for the company originally as a toolmaker during the sixties, and had a
brief spell in Canada as a draughtsman/tool designer. He returned to the
company in 1971 as a draughtsman designer, but for the last twenty years he
has been Works Director in charge of purchasing, personnel, and production.
My next statement will be in the Annual Report in June 2000, when many of the
company changes will have started to crystallize.
Paul M. Cassidy
Chairman
21 January 2000
Six months ended Six months ended Year ended
31 October 1999 31 October 1998 30 April
(unaudited) (unaudited) 1999
# # #
Turnover 3,463,469 4,087,745 7,258,770
Operating profit 52,534 337,087 124,075
Net interest payable (38,650) (70,182) (118,755)
Profit on ordinary
activities before taxation 13,884 266,905 5,320
Taxation (2,777) (66,100) 500
Profit attributable to
shareholders 11,107 200,805 5,820
Dividends (see below) (13,811) (41,433) (165,731)
Retained profit/(loss) (2,704) 159,372 (159,911)
Dividends are as follows:
Interim dividend of 0.25p
per share (proposed at 31
October, paid at 30 April) 13,811 41,433 41,433
Final dividend of 2.25p per
share - - 124,298
13,811 41,433 165,731
Earnings per share 0.20p 3.64p 0.11p
Summarised Balance Sheets
As at As at As at
31 October 31 October 30 April
1999 1998 1999
(unaudited) (unaudited)
# # #
Fixed assets 2,404,537 2,598,095 2,488,732
Current assets 4,361,924 5,442,831 3,128,637
Creditors: amounts falling due
within one year (2,583,927) (3,464,328) (1,403,505)
Net current assets 1,777,997 1,978,503 1,725,132
Total assets less current
liabilities 4,182,534 4,576,598 4,213,864
Deferred liabilities and
provisions (27,596) (99,673) (56,222)
Net assets employed 4,154,938 4,476,925 4,157,642
Share capital 552,435 552,435 552,435
Reserves 3,602,503 3,924,490 3,605,207
Shareholders' funds 4,154,938 4,476,925 4,157,642
Notes
The results for the half year ended 31 October 1999, which have been prepared
in accordance with the accounting policies adopted in the financial statements
for the year ended 30 April 1999, are unaudited and do not constitute
statutory accounts as defined in s240 of the Companies Act 1985.
The financial information for the year ended 30 April 1999 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.
Taxation for the six months ended 31 October 1999 has been based on the
estimated effective tax rate for the full year.
END
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