Costs hit toy maker’s profits

INVESTING in a new brand look and also on its property and warehousing  dented profits at North West toy maker Casdon.

The Blackpool company, formerly known as Cassidy Brothers, said the toy market over Christmas had been “bullish” but warned of inflationary pressures on the horizon.

In the six months to October 31 last year turnover grew to £3.2m from £3m, but profits fell to £126,914 from £334,928 as a consequence of the investment.

Chairman Paul Cassidy explained: “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.”

He said this had prompted a re-design of product packaging across the business. The investment “will present Casdon in 2011 in a vibrant and upbeat image for at least the next three years”, he added.

The second area of investment was to upgrade the firm’s property and warehousing, including the replacement of a 30-year-old lighting system and the demolition of an old office building.

In light of the investment the group said it would be prudent to cut the half-year dividend from 2p per share to 0.75p.

Later this year Casdon, which makes children’s toys such as miniature Dyson vacuum cleaners, will open a new showroom in Hong Kong.