Casdon PLC Preliminary Results (9609N)

TIDMCDY

RNS Number : 9609N

Casdon PLC

01 August 2014

Casdon plc (the 'Company')

Preliminary Announcement of results for the year ended 30(th) April 2014

Chairman's Statement

Company turnover for the 12 months ended 30(th) April 2014 of GBP7,514,576 (2013: GBP6,490,088) has increased by 15.78%. This has been achieved through the pursuit of national account business in the USA (with turnover increasing by 70% to GBP1,918,090), where payment is secure, but margin suffers.

Profit for the year of GBP289,651 (2013: GBP417,222), a drop of over 30%, is not in its entirety laid at the door of the USA business, but reflects the necessity of maintaining the Company's property assets.

The Directors have reviewed the Company's property portfolio, resulting in two of the Company's oldest properties (built in 1956/7) being demolished, the cost of keeping them and paying local authority rates outweighed their usefulness as overspill storage facilities. The most visible of our warehouse assets, although old, is on a valuable site on the main road, and therefore worthy of renovation.

The Company's net assets have increased to GBP3,876,324, (2013: GBP3,669,538) due to an increase in debtors and US dollar cash deposits. The fall in the value of the US dollar was not a welcome event when converted back into sterling in the accounts.

Current Trading

The results of the UK trade fairs in January and February 2014 were very encouraging with regard to a new wooden toy range, which has the advantage of no capital development costs. It is a section of the toy trade that Casdon has never tapped, and how far we expand into this sector will depend largely on its performance in 2014. With more of our larger independent retailers taking our stock directly from China, and therefore bearing the costs of shipping, import and storage, trade fairs are becoming more a shop window and preview arena than an order taking venue.

These UK Free on Board (FoB) sales however relieve us from the usual warehouse costs, results in payment several months quicker, and in US dollars. These dollars can then be used to pay our Chinese factory, which also functions as a natural hedge against currency fluctuations.

Our international trade fairs in Hong Kong, Nuernberg and New York, have secured us more export business, which now stands at 38% of the company's turnover.

Future Prospects

Our plans to move some manufacturing to Indonesia have been set back due to adverse quality assurance issues, revealed by recent audits. These will have to be addressed before we commit to a manufacturing program in this country, in spite of preferential duty tariffs and lower labour costs.

Dividends

The directors recommend no increase in the final dividend paid, which will remain at 0.75p per share (2013 0.75p), payable on 24(th) September to shareholders on the register on 15(th) August 2014.

Delisting

For the past 25 years the Company has never used its plc status to raise capital other than the first IPO in 1989, and the Directors do not believe that the opportunity to raise a meaningful amount of capital will arise in future. In addition there has not been a liquid market in the Company's shares for some time, and the Directors believe that the money and management time saved by no longer being listed can be used elsewhere in the business for the benefit of shareholders.

It is our wish to revert back to a private company by way of delisting from the AIM market.

The reasons for delisting are set out in detail in the circular published earlier today and which requires your immediate attention.

In summary it is the Company's intention to continue to:

Pay Dividends as before subject to the Company's profitability

Provide information to all shareholders

Provide a facility for Shareholders to trade in the Company's shares.

I personally believe that delisting from the AIM market is in the best interests of the Company and its shareholders, as do the other members of the Board.

Paul Cassidy

Chairman

For further information please contact;

Casdon plc

   Paul Cassidy                                                                Tel [phone] 
   Zeus Capital Limited                                                   Tel [phone] 

Nick Cowles

Profit & Loss Account

 
 Company Number 565383 
 For the year ended 30 April 2014 
 
 
 
                                                2014          2013 
                                                 GBP           GBP 
 
 Turnover                                  7,514,756     6,490,088 
 Cost of Sales                           (4,923,795)   (4,096,810) 
 GROSS PROFIT                              2,590,961     2,393,278 
 
 Warehouse & Distribution costs          (1,860,438)   (1,582,045) 
 Administrative expenses                   (461,108)     (408,237) 
 Other operating income                      113,000       150,209 
 
 OPERATING PROFIT                            382,415       553,205 
 Interest receivable and similar 
  income                                         385           284 
 Interest payable and similar charges        (5,120)       (4,405) 
 PROFIT ON ORDINARY ACTIVITIES 
 BEFORE TAXATION                             377,680       549,084 
 
 Tax on Profit on ordinary activities       (88,029)     (131,862) 
                                        ------------  ------------ 
 
 PROFIT FOR THE FINANCIAL YEAR               289,651       417,222 
                                        ------------  ------------ 
 
 
 EARNINGS PER SHARE - BASIC AND 
  DILUTED                                      5.24p         7.55p 
                                        ============  ============ 
 
 

Balance Sheet

 
 Company Number 565383 
 At 30 April 2014 
 
                                                       2014                        2013 
                                                GBP                  GBP         GBP         GBP 
 FIXED ASSETS 
 Tangible assets                                               2,266,675               2,281,936 
                                                               2,266,675               2,281,936 
 
 CURRENT ASSETS 
 Stocks                                     766,782                          888,474 
 Debtors                                    752,576                          547,300 
 Cash at bank and in hand                   863,896                          766,696 
                                          2,383,254                        2,202,470 
 
 CREDITORS (amounts falling due 
  within one year)                        (746,370)                        (789,512) 
 
 NET CURRENT ASSETS                                            1,636,884               1,412,958 
 
 TOTAL ASSETS LESS CURRENT LIABILITIES                         3,903,559               3,694,894 
 
 CREDITORS 
 (amounts falling due after more 
  than one year)                                                       -                       0 
 PROVISIONS FOR LIABILITIES                                     (27,235)                (25,356) 
 
 NET ASSETS                                                    3,876,324               3,669,538 
 
 
 
 CAPITAL AND RESERVES 
 Called up share capital                                         552,435                 552,435 
 Share premium account                                            43,522                  43,522 
 Revaluation reserve                                             563,989                 579,014 
 Profit and loss account                                       2,716,378               2,494,567 
 
 EQUITY SHAREHOLDERS' FUNDS                                    3,876,324               3,669,538 
 
 
 

Cash Flow Statement

 
 For the year ended 30 April 2014 
 
 
                                                   2014                      2013 
                                                    GBP         GBP        GBP        GBP 
 
 NET CASH INFLOW FROM 
 OPERATING ACTIVITIES                                       425,761               619,855 
 
 
 RETURNS ON INVESTMENTS AND 
 SERVICING OF FINANCE 
 Interest received                                  385                    284 
 Interest paid                                  (5,120)                (4,405) 
 Interest element of finance lease 
  rental payments                                     -                      - 
 
 
                                                            (4,735)               (4,121) 
 
 TAXATION 
 Corporation tax                                          (133,713)              (44,232) 
 
 CAPITAL EXPENDITURE 
 Payments to acquire tangible fixed 
  assets                                      (127,661)               (90,700) 
 Receipts from sales of tangible 
  fixed assets                                   25,999                1,600 
                                      -----------------              --------- 
 
                                                          (101,662)              (89,100) 
 
 EQUITY DIVIDENDS PAID                                     (82,865)              (82,865) 
 
 
 NET CASH INFLOW BEFORE FINANCING                           102,786               399,537 
 
 
 FINANCING 
 
 Unsecured loan repayments                      (5,586)               (14,216) 
 Capital element of finance lease 
  rental payments                                     -                      0 
 
 
 NET CASH (OUTFLOW) FROM FINANCING                          (5,586)              (14,216) 
 
 
 
 
 INCREASE IN CASH                                            97,200               385,321 
 
 
 
 

Segmental Breakdown of Sales

 
 An analysis of turnover by 
  Geographical destination is as 
   follows:                              2014         2013 
                                          GBP          GBP 
 
  United Kingdom                    4,659,874    4,895,083 
  Europe                              475,734      301,648 
  Australia                            84,146            - 
  U.S.A.                            1,918,090    1,130,426 
  Rest Of World                       376,910      162,931 
                                    7,514,754    6,490,088 
                                   ==========  =========== 
 

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(th) April 2013 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 498 (2) to (4) of the Companies Act 2006. The auditors reported on the accounts for the year ended 30(th) April 2014, but such accounts have not yet been delivered to the Registrar of Companies.

   2.   Earnings Per Share 

Earnings per share are calculated on the profit for the financial year of GBP289,651 (2013 GBP417,222) and on the weighted average number of shares in issue during the year of 5,524,350 (2013 5,524,350).

   3.   Dividends 

The Directors recommend the payment of a final dividend of 0.75p per share (2013 0.75p).

   4.   Copies of Reports 

Copies of the Report and Accounts will be posted to shareholders shortly.

Copies of this announcement will be available on the Company's website at www.Casdon.com and, for a period of one month, from the Company's offices at Cornford Road, Blackpool, Lancashire FY4 4QW.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR EAXXFDEPLEFF