Half Yearly Report (0060A)

TIDMCDY

RNS Number : 0060A

Casdon PLC

25 January 2011

CASDON plc (the "Company")

Interim Results to 31 October 2010

Chairman's Statement

The Company results for the six months to 31 October 2010 has shown an increase in turnover to GBP3,208,401 (2009: GBP3,033,375) and an interim profit before taxation of GBP126,914 (2009: GBP334,928).

The Company maintains a strong balance sheet with net assets of GBP3,554 304 (2009: GBP3,716,240), representing a net asset value of 64.3 pence per share (2009: 67.3 pence per share). As at 31 October 2010 the Company had a cash balance of GBP462,727 (2009: GBP508,186). The decrease in cash is due to the financing of additional stock at favourable prices for Spring Summer 2011.

Current Trading

The UK toy market trading has been bullish over Christmas 2010 but the trade anticipates inflationary prices in 2011. Internet traders continue to expand and independent toy shops who have a foot in both camps are thankful for the extra revenue generated.

Two major areas of necessary expenditure that have been overdue for a number of years have impacted on our interim profit.

The first area was to present Casdon in a new and fresh image, and as the company has always been fondly known as Casdon Toys by the trade and the consumer alike, a company name change from Cassidy Brothers plc to Casdon plc was thought to be a good move. This engendered a further desire to re-design the product packaging, especially as 2011 marks the company's 65th anniversary. A graphics company was, therefore, commissioned to take on the full task of child model photography, packaging design and exhibition stand styling. This investment will present Casdon in 2011 in a vibrant and upbeat image for at least the next three years.

The second area of expenditure was the company's property and warehousing, embracing the new health and safety legislation, energy cost saving and some demolition. The company's 30 year old fluorescent lighting system was replaced in the main warehouse and offices and an old building from 1957 which was little used, due to the low ceiling height, was demolished. This area, when resurfaced will create additional parking space, and saving on local authority rates.

Future Prospects

The new Hong Kong office/showroom is to be used in 2011 for the first time during the Hong Kong Toy Fair in early January and will receive overseas buyers by appointment.

Three Casdon executives will be there for the week. Joint M.D.'s Philip and Peter Cassidy and Sales Manager Roger Howard, each with their expertise. Philip and Roger are to share the responsibilities of sales between the exhibition stand and the office/showroom. Peter's time will be spent mainly in the China factory overseeing new 2011 developments, tooling and cost savings on the production lines. This latter area is an aspect the Chinese have now to focus on as inflation and national wage increases impact costings and, therefore, factory gate prices worldwide.

Interim Dividend

As the Company's expenditure has affected mid-term profits, the Directors feel that an interim dividend of 0.75 pence per share would be prudent (2009: Interim Dividend 2.0 pence per share) to be paid on 11 April 2011 to shareholders on the register on 4 March 2011.

The Directors would like to wish all shareholders a prosperous new year for 2011, and to thank you all for your support.

Paul M. Cassidy

Chairman

24 January 2011

 
Profit & Loss Account                    Six months   Six months         Year 
                                              ended        ended        ended 
                                         31 October   31 October     30 April 
                                               2010         2009         2010 
                                        (unaudited)  (unaudited) 
                                                GBP          GBP          GBP 
 
Turnover                                  3,208,401    3,033,375    4,819,263 
                                        -----------  -----------  ----------- 
 
Cost of Sales                           (2,346,912)  (2,055,203)  (3,146,320) 
                                        -----------  -----------  ----------- 
 
Gross Profit                                861,489      978,172    1,672,943 
 
Warehouse and Distribution 
 Costs                                    (582,718)    (492,664)  (1,131,605) 
Administrative Expenses                   (210,238)    (224,608)    (415,755) 
Other Operating Income                       69,767       80,258      140,121 
 
Operating profit                            138,300      341,158      265,704 
 
Net interest payable                       (11,386)      (6,230)      (9,359) 
                                        -----------  -----------  ----------- 
 
Profit on ordinary 
activities before taxation                  126,914      334,928      256,345 
 
Taxation                                 (26,652)       (73,391)   (36,032) 
                                        -----------  -----------  ----------- 
 
Profit attributable 
to shareholders                             100,262      261,537      220,313 
 
Dividends                                (110,487)     (110,487)   (220,974) 
 
Retained profit                            (10,225)      151,050        (661) 
                                        ===========  ===========  =========== 
 
 
 
 
 
 
Earnings per share                            1.81p        4.73p        3.99p 
 
 
 
 
Summarised Balance Sheets                     As at        As at        As at 
                                         31 October   31 October     30 April 
                                               2010         2009         2010 
                                        (unaudited)  (unaudited) 
                                                GBP          GBP          GBP 
 
Fixed assets                              2,412,963    2,244,243    2,267,731 
                                        -----------  -----------  ----------- 
 
Stock                                       817,249      681,440      710,955 
Debtors                                   2,171,358    1,869,508      521,247 
Cash                                        462,727      508,186      563,490 
 
Current assets                            3,451,334    3,059,134    1,795,692 
                                        -----------  -----------  ----------- 
 
Creditors: amounts falling 
 due 
within one year                         (2,279,923)  (1,547,191)    (465,037) 
                                        -----------  -----------  ----------- 
Net current assets                        1,171,411    1,511,943    1,330,655 
                                        -----------  -----------  ----------- 
 
Total assets less current liabilities     3,548,374    3,756,186    3,598,386 
 
Deferred liabilities and provisions        (30,070)     (39,946)     (33,857) 
 
Net assets employed                       3,554,304    3,716,240    3,564,529 
                                        -----------  -----------  ----------- 
 
Share capital                               552,435      552,435      552,435 
Reserves                                  3,001,869    3,163,805    3,012,094 
 
Shareholders' funds                       3,554,304    3,716,240    3,564,529 
                                        -----------  -----------  ----------- 
NAV per share                                 64.3p        67.3p        64.5p 
                                        -----------  -----------  ----------- 
 
 
 
Cash Flow Statement               Six Months   Six Months       Year 
                                       Ended        Ended      Ended 
                                  31 October   31 October   30 April 
                                        2010         2009       2010 
                                         GBP          GBP        GBP 
 
 
Operating Profit                     138,300      341,158    265,704 
 
Depreciation charges                  77,130       71,110    139,956 
Profits on sale of tangible 
 fixed assets                                       2,025  (2,875) 
(Increase) / Decrease in Stock     (106,294)      171,918    142,403 
(Increase) in Debtors            (1,650,111)  (1,359,354)   (11,093) 
Increase in Creditors                297,497      282,344      6,212 
 
                                 (1,243,478)    (490,799)    540,307 
 
Net Interest paid                   (11,386)      (6,230)    (9,359) 
Taxation                                                    (55,309) 
Capital Expenditure                (222,362)    (108,513)  (195,947) 
Equity Dividends paid              (110,487)    (110,487)  (220,974) 
Unsecured loan and Finance 
 lease                               (3,787)      (3,532)    (7,190) 
 
(Decrease) / Increase in Cash 
 Flow                            (1,591,500)    (719,561)     51,528 
                                 -----------  -----------  --------- 
 
 
 

Notes

1. The results for the half year ended 31 October 2010, which have been prepared in accordance with the accounting policies adopted in the financial statements for the year ended 30 April 2010, have not been audited or reviewed by the Company's Auditors and do not constitute statutory accounts as defined in s434 of the Companies Act 2006.

The financial information for the year ended 30 April 2010 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 2010 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

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