CASDON PLC
Casdon plc (the 'Company')
Preliminary Announcement of results for the year ended 30th April 2014
Chairman's Statement
Company turnover for the 12 months ended 30th April 2014 of £7,514,576 (2013: £6,490,088) 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 £1,918,090), where payment is secure, but margin suffers.
Profit for the year of £289,651 (2013: £417,222), 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 £3,876,324, (2013: £3,669,538) 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 24th September to shareholders on the register on 15th 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 01253 766411
Zeus Capital Limited Tel 0161 831 1512
Nick Cowles
Profit & Loss Account
Company Number 565383 | ||||
For the year ended 30 April 2014 | ||||
2014 | 2013 | |||
£ | £ | |||
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 | |||||
£ | £ | £ | £ | |||
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 | |||||
£ | £ | £ | £ | |||
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 | |
£ | £ | ||
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 30th 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 30th 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 £289,651 (2013 £417,222) 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 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
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