Toy firm Casdon cautious despite profits leap
BLACKPOOL toy maker and distributor Casdon has reported strong first half growth on the back of higher online sales.
The company, owned by the Cassidy family, said profits for the six months to the end of October 2012 surged 117% to £691,937 from £317,771 the year before.
Turnover at Casdon, which specialises in developing realistic role-play toys such as miniature branded kitchens and vacuum cleaners was 33% ahead at £4.4m in the period.
Although hailing the results as “excellent” chairman Paul Cassidy warned it would be difficult to repeat them. He also pledged further investment in new poduct ranges.
As a consequence of this uncertain outlook the group reduced its interim dividend by half from 1.5p per share to 0.75p.
Mr Cassidy explained: “Whilst the first half results are excellent, much of the growth has come from overseas, which may prove difficult to repeat.
“Success with on line traders has been offset by reductions in sales to the majority of UK customers. It is hoped that new product development will bring additional sales opportunities.
“With little or no economic growth in prospect for the UK and Europe, the directors wish to move forward cautiously.”
He said Casdon’s investment in new products could ” run to several hundred thousand pounds” but would not affect the year’s trading figures and would be financed from current cash resources.
