Profits soar at toy maker

A BLACKPOOL toy firm is celebrating doubling profits boosted by demand for its Dyson vacuum cleaners.

Cassidy Brothers, which makes toys under the Casdon brand, said demand for its Dyson products has been high in the Middle East and Australia, and have also been bought by Dyson Appliances to assist in its marketing campaigns in Europe.
In the six month to October 31, turnover was up 6% to £2m, while pre-tax profits soared from £134,000 to £274,000.

Chairman Paul Cassidy said: “I believe the toy trade has ridden out past recessions under the presumption that parents and guardians continue to spend on their children.

“This next twelve months will test that theory, because the toy trade has received an approximate 25% drop in the £/$ exchange rate and an average 20% increase in the Chinese factory gate prices. The latter resulting from an increase in plastic raw materials and labour costs.

“The cost of oil has a direct effect on plastic raw material prices, therefore, mid-year we undertook a complete review of certain product designs, with a view to making tooling alterations in order to produce a lighter product. The resultant savings have far outweighed the additional tooling costs involved.”

The group added that it is launching a number of new products this year including a toy version of the George Foreman ‘lean mean grilling machine’.