Cassidy Brothers PLC - Interim Results
January 26 1999 - 3:30AM
UK Regulatory
RNS No 6077m
CASSIDY BROTHERS PLC
26th January 1999
INTERIM RESULTS TO 31 OCTOBER 1998
CHAIRMAN'S STATEMENT
We are pleased to report increases of 14% in turnover and 63% in operating
profit, these are most encouraging advances compared to 1997. The improvement
in the financial results would have been greater but for the delayed
acceleration in retail sales in the period leading up to Christmas, a trend
which has already been well documented by other reporting companies.
Consequently, many retail traders deferred orders until the last possible
moment.
The items launched in January 1998 have all been successful, but none more so
than the Dyson toy vacuum cleaner and the Teletubby electronic activity
centre. The high demand for both of these items has meant that incoming
consignments have been distributed onwards to our customers virtually
immediately upon receipt. Overseas sales of these items, although relatively
modest so far, have generated a welcome increase in our overseas earnings and
further growth is expected.
Our staff have conducted several quality inspections of overseas manufacturing
facilities in the last six months, and the strong overall sales and low level
of returns associated with our imported merchandise owe much to their
diligence and attention to detail.
Unfortunately, in order to contain costs we have been forced to trim
production at our own factory by implementing limited redundancies, but
shareholders must be assured that we have retained all of our previous
capabilities. A healthy proportion of the developments for 1999 that are
outlined later in this statement are designed to be manufactured at our
Blackpool factory, and we look forward to activity levels here being sustained
and nurtured over time.
Having made these comments on the company's progress, I wish to announce to
shareholders that I shall be standing down as Chairman of the company at the
end of January. I will become Deputy Chairman as of then and Mr Paul Cassidy
will become Chairman and Managing Director.
Interim Dividend
The Directors are pleased to maintain the usual dividend of 0.75 pence per
share, payable on 6 April 1999 to the ordinary shareholders on the register at
the close of business on 5 February 1999.
Current Trading
Our pre-Christmas trade tailed off markedly in 1997, but the fact that our
despatches for November and December 1998 were 56% higher than last year is
still notable and highly satisfying in the context of disappointing retail
activity nationwide. Most importantly, sales in these months were ahead of our
own targets.
We expect to incur a loss in the second, much quieter, half of the financial
year, but we are very confident that it will be significantly lower than
97/98, and that the year to April 1999 will mark a return to profitability and
a welcome advance in the Company's renaissance.
Future Prospects
We launched a fascinating selection of new items for 1999 at the Harrogate Toy
Fair from 9-13 January. There are a number of shopping related toys, most of
which have electronic features. Perhaps the most advanced item is the
Supermarket Checkout, with an integral barcode reader which will scan the
simulated cans and boxes supplied and then display the item and price in any
of five different languages - a truly European toy.
Our nursery range, which makes a valuable contribution to turnover and
profits, has been represented in new fabrics which have already attracted an
excellent response from buyers.
In the realm of character merchandising, we have added high profile characters
to our range. 1999 marks the 50th "birthday" of Noddy and the other Toyland
characters, and major promotions are planned by the BBC and leading retailers.
We are delighted to announce that these much loved characters will play a
central role in our revised range.
We are also working on a totally new character concept, as yet unseen in the
UK. The concept is assured of considerable television exposure, and emanates
from one of the top worldwide production houses.
We are about to make an initial foray into a market which is totally new for
the Company. Our first trade fair in this sector is still some months away, so
I must request your forebearance for not being more expansive on this subject.
Shareholders should be assured that this policy has been researched dutifully,
and we are confident that it represents sound and profitable diversification.
The Board of Directors are constantly striving to increase the Company's
profitability, whether through established markets or new ventures, and I
envisage a further statement of progress in the next Annual Report, which is
due in late June.
Thomas Cassidy
Chairman
26th January 1999
Six months Six months Year
ended ended ended
31st October 31st October 30th April
1998 1997 1998
(unaudited) (unaudited)
# # #
Turnover 4,087,745 3,582,547 5,654,361
Operating profit/(loss) 337,087 207,236 (39,454)
Net interest payable (70,182) (39,552) (67,954)
Profit / (loss) on ordinary
activities before taxation 266,905 167,684 (107,408)
Taxation (66,100) (20,250) 26,400
Profit / (loss) attributable
to shareholders 200,805 147,434 (81,008)
Dividends (see below) (41,433) (41,433) (165,731)
Retained profit / (loss) 159,372 106,001 (246,739)
Dividends are as follows:
Interim dividend of 0.75p per share
(proposed at 31 October, paid at 30
April) 41,433 41,433 41,433
Final dividend of 2.25p per share - - 124,298
41,433 41,433 165,731
Earnings per share 3.64p 2.67p (1.47)p
Summarised Balance Sheets
As at As at As at
31st October 31st October 30th April
1998 1997 1998
# # #
(unaudited) (unaudited)
Fixed assets 2,598,095 2,254,943 2,713,473
Current assets 5,442,831 4,160,504 2,835,928
Creditors: amounts falling due
within one year (3,464,328) (2,127,390) (1,119,443)
Net current assets 1,978,503 2,033,114 1,716,485
Total assets less current liabilities 4,576,598 4,288,057 4,429,958
Deferred liabilities and provisions (99,673) (181,581) (112,405)
Net assets employed 4,476,925 4,106,476 4,317,553
Share capital 552,435 552,435 552,435
Reserves 3,924,490 3,554,041 3,765,118
Shareholders' funds 4,476,925 4,106,476 4,317,553
Notes
The results for the half year ended 31 October 1998, which have been prepared
in accordance with the accounting policies adopted in the financial statements
for the year ended 30 April 1998, 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 1998 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 1998 has been based on the
estimated effective tax rate for the full year.
END
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