RNS Number:6720H
Cassidy Brothers PLC
21 January 2005
Cassidy plc wishes to make a correction to the announcement headed Interim
Results to 31 October 2004 (RNS Number: 6346H) which was issued on 21 January
2005 at 07.00 hours.
Amendments to the Company's balance sheet as at 31 October 2004 are identified
with an asterisk (*).
All other information in the announcement remains unchanged. The full amended
announcement reads as follows:
Cassidy Brothers plc (the "Company")
Interim Results to 31 October 2004
Chairman's Statement
This has been a difficult trading period for the Company with turnover falling
from #2.3 million in the first half of 2003 to #1.8 million. Nevertheless, gross
margins have continued to improve and costs have remained broadly stable. As a
result, despite the lower turnover, I am pleased to report that the Company
remained profitable with profits before tax of #38,699 (2003: #113,710).
I believe that the decision to enter the Arts and Crafts market has proven to be
the right direction. Sales of our Peg Sculpture(TM) range, explained in my April
year-end statement have exceeded our expectations. This success, however, came
very late in the year, as the UK shipments didn't arrive until early October,
and too late to get repeat supplies in time for Christmas. This has been a huge
change of direction for the company and not made any easier by its unique
status. The trade being understandably very cautious with new category products
without an historical track record from which to judge potential sales.
Current Trading
The costs of the PegSculpture(TM) range of some #150K in capital and time have
been financed by the sales of our current range in a toy market over burdened
with product, as the major food retailing chains have entered the UK toy market.
The PegSculpture(TM) tooling and production was undertaken in the Far East,
without any major problems, although the board felt that sourcing the clay in
the Far East at the requisite quality proved too great a risk. As a result
UK-made plasticine was purchased and finally packed with the product in our UK
factory. For the US market, US clay was purchased and shipped to China for
packing. Using US made clay for the UK market required EEC certification and was
subject to a significant delay in obtaining it. Using US clay was marginally
cheaper in spite of the shipping cost to China, but large quantities had to be
purchased to achieve this. (i.e. 8 tons at a time.) UK made clay is also
smoother and easier to work with.
The biggest costs have been in the UK, using experts in the field of forensic
sculpting. This vital knowledge and skill is now held by the Company's
development team and supported by three separate provisional patents and one
international application.
Other products continue to enjoy success with the Fun Fair range and we are
developing two new products to support it.
The Role Play range has suffered from competition in the UK but it is now
enjoying a revival in the USA in specialized markets attracted by the excellent
build quality. The Board expects that this business will grow over the next
twelve months.
Interim Dividend
Your Directors have decided that an interim dividend of 0.25 pence per share
(2003: 0.75 pence) will be appropriate for the current results, optimised by
future prospects. This will be paid on 5 April 2005 to those shareholders on the
register at the close of business on 4 March 2005.
Future Prospects
During the Nurnberg Toy Fair in 2004, an American company was so impressed with
the PegSculpture(TM) product that they developed a forensic range around it
based on the popular US television crime series CSI. Cassidy Brothers has now
granted a non-exclusive licence to this company to manufacture the CSI product
incorporating the PegSculpture(TM) technique. The licence is for worldwide sales
for which Cassidy Brothers will receive royalties. This agreement will not
compromise our current or future product development. We expect a significant
increase in sales for PegSculpture(TM) in the UK and the USA and although some
turnover will be in the second half year to April 2005, most can be expected to
impact in the interims for 2005 and 2006.
With PegSculpture(TM) in full production and incorporating an instructional DVD
in four European languages, the Company is better placed to market the range in
Europe, and will be exhibiting at two major German trade fairs in January and
February 2005. The foreign language DVD will also enhance the North American
market with Spanish and French. This DVD shows the facial reconstruction of
three skulls with approximately thirty-five minutes of instruction for each. It
was filmed by a local video company and was produced, directed and edited in-
house by Cassidy Brothers plc providing valuable experience in the production of
any future DVDs.
The reduction of overheads continues with the downsizing of non-essential
staffing levels and vacating over capacity warehouse space. A further 22,500
square feet of space has now been placed on the rental market, and a seven year
lease is currently being negotiated with a potential tenant. If successful,
38,700 square feet of surplus warehouse space will be generating rental income.
In Memoriam
Joseph Cassidy, Technical Director up to his retirement in 1992, sadly died of a
heart attack on January 3 2005 after a short illness. Joe was the father of
Stephen Cassidy the Company's current Technical Director. Joe will be missed.
Paul M. Cassidy
Chairman
21 January 2005
Profit and Loss Account
Six months Six months Year
ended ended ended
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited)
# # #
Turnover 1,829,325 2,314,350 3,950,783
Cost of Sales (1,061,514) (1,412,194) (2,357,714)
Gross Profit 767,811 902,156 1,593,069
Warehouse and Distribution Costs (439,300) (510,724) (1,130,414)
Administrative Expenses (311,314) (279,110) (562,805)
Other Operating Income 26,985 14,008 38,531
Operating profit 44,182 126,330 (61,619)
Net interest payable (5,483) (12,620) (21,966)
Profit on ordinary
activities before taxation 38,699 113,710 (83,585)
Taxation - (22,742) 35,598
Profit attributable
to shareholders 38,699 90,968 (47,987)
Dividends (see below) (13,811) (41,432) (55,243)
Retained profit 24,888 49,536 (103,230)
Dividends are as follows:
Interim dividend of 0.25p per share 13,811 41,432 41,432
Final dividend of 0.25p per share - - 13,811
13,811 41,432 55,243
Earnings per share 0.70p 1.65p (0.01)p
Summarised Balance Sheets As at As at As at
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited)
# # #
Fixed assets 2,018,044 2,152,171 2,119,464
Stock 857,468 1,181,516 953,030
Debtors 1,259,731 1,787,097 455,765
Cash 470,492 287,316 548,504
Current assets 2,587,691 3,255,929 1,957,299
Creditors: amounts falling due
within one year (953,908)* (1,619,760) (424,155)
Net current assets 1,633,783* 1,636,169 1,533,144
Total assets less current liabilities 3,651,827* 3,788,340 3,652,608
Deferred liabilities and provisions (73,289) (81,924) (98,958)
Net assets employed 3,578,538* 3,706,416 3,553,650
Share capital 552,435 552,435 552,435
Reserves 3,026,103* 3,153,981 3,001,215
Shareholders' funds 3,578,538* 3,706,416 3,553,650
Cash Flow Statement Six Months Six Months Year
Ended Ended Ended
31 October 31 October 30 April
2004 2003 2004
# # #
Operating Profit 44,182 126,330 (61,619)
Depreciation charges 108,810 137,193 236,866
Profit on sale of tangible fixed assets (7,200)
(Increase) / Decrease in Stock 95,562 116,336 344,822
(Increase) / Decrease in Debtors (803,967) (1,457,854) (90,924)
Increase / (Decrease) in Creditors 100,513 154,410 (129,278)
(454,900) (923,585) 292,667
Net Interest paid (5,483) (12,620) (21,966)
Taxation (15,194)
Capital Expenditure (7,390) (115,151) (182,117)
Equity Dividends paid (13,811) (110,487) (151,919)
Unsecured loan and Finance lease (43,319) 75,174 97,412
(Decrease) in Cash Flow (524,903) (1,086,669) 18,883
Notes
1. The results for the half year ended 31 October 2004, which have been
prepared in accordance with the accounting policies adopted in the
financial statements for the year ended 30 April 2004, have not been
audited or reviewed by the Company's Auditors and do not constitute
statutory accounts as defined in s240 of the Companies Act 1985.
The financial information for the year ended 30 April 2004 is an abridged
version of the full accounts for that year, which have received an
unqualified audit report and have been filed with the Registrar of
Companies.
2. Taxation for the six months ended 31 October 2004 has been based on the
estimated effective tax rate for the full year.
3. The calculation of Earnings per share is based upon the profit after
taxation for the period divided by the weighted average number of ordinary
shares in issue during the period. The weighted average number of shares in
issue was 5,524,350 ordinary shares.
4. This interim report will be available from the Company's offices and will
be sent to shareholders by no later than 28 January 2005.
5. Analysis of Deferred liabilities and provisions
As at As at As at
31 October 31 October 30 April
2004 2003 2004
# # #
Finance leases and Hire Purchase 7,289 15,924 32,958
Deferred Taxation 66,000 66,000 66,000
Deferred liabilities and provisions 73,289 81,924 98,958
This information is provided by RNS
The company news service from the London Stock Exchange
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