Profits fall at toy maker HTI
HTI, which designs and manufactures toys, has reported a fall in profits as a result of hiking its investment in sales and marketing.
The privately-owned company based at Fleetwood on the Fylde coast, says it expects future growth to come from international sales after an 18% hike in overseas markets in the year to March 31 2015.
Newly filed accounts for parent company JR Hutt Holdings, show revenues unchanged at £61.5m in the year, but underlying operating profits falling £1m to £2.3m.
HTI, which has licensing deals with some of the world’s most recognisable brands, from Barbie and Peppa Pig to Hello Kitty and JCB, supplies customers in more than 70 countries, ranging from the major high street and grocery retailers to independent toy shops, discounters and the discount chains.
Writing in the accounts, finance director John McCooey states: “Careful financial management has continued to strengthen the group’s balance sheet and position it favourably to take advantage of new market opportunities in the years ahead.
He adds: “Sales to international markets increased thanks to a continued focus on developing new and existing markets with key retailer and distributor relationships. Non-UK sales now represent over a third of total sales and the group retails with over 75 countries worldwide.”
Looking ahead, McCooey says: “The group expects the combination of recent investment in sales, marketing and new products to drive further opportunities… It anticipates continued growth from non-UK markets, specifically the Americas, Australia and the Middle and Far East, where it has significant opportunity to grow some newly-established relationships to achieve further scale.”
