CASDON PLC 
By CASDON plc (the "Company")
Interim Results to 31 October 2010Chairman's Statement
The Company results for the six months to 31 October 2010 has shown an increase in turnover to £3,208,401 (2009: £3,033,375) and an interim profit before taxation of £126,914 (2009: £334,928).
The Company maintains a strong balance sheet with net assets of £3,554,304 (2009: £3,716,240), 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 £462,727 (2009: £508,186). 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) | ||||
£ | £ | £ | |||
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) | ||||
£ | £ | £ | |||
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 | |||||||||
£ | £ | £ | |||||||||
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
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