Casdon Toys playing well in US markets
US growth has underpinned a rise in sales at Blackpool toy maker Casdon as the company now looks to expand its Lancashire operation.
Casdon specialises in developing realistic role-play toys such as miniature branded kitchens and vacuum cleaners, amongst its range of models and appliances. Chairman Paul Cassidy said the company is embarking on its first recruitment programme in eight years and could soon have a permanent showroom in Hong Kong.
In its interim results for the year ended 30 April 2013, the listed company posted revenue of £6.5m, up from £5.26m, while operating profit climbed from £229,924 to £553,205. Pre-tax levels were up from £215,344 to £549,084.
Cassidy said: “The company has managed to secure a high level of new business from the US in the last financial year which has made up a large proportion of the increase in sales.
“The gross profit has been achieved in spite of forsaking low margin sales, a tendency easily fallen into with certain business, in pursuit of the vanity of turnover.
“The company’s application of exclusive product development for certain overseas customers has provided a rise in profit before tax.
“The company is now recruiting for administrative staff for the processing of overseas orders at our Blackpool head office.
“This is the first time we have recruited office staff for eight years, and the more sustainable our overseas business becomes, the prospect of a permanently manned Hong Kong showroom could be on the horizon.”
Cassidy said UK trade fairs in January and February were busy with customers showing little sign of despondency and there was a marked increase in the value of orders taken compared to 2012.
“At a more recent trade fair, where discounts were offered for orders placed there and then, we were delighted to see an increase of 40 per cent on the previous year,” he added.
“Our international trade fairs in Hong Kong, Nuernberg and New York, which appeared to be generally quieter in the halls, were nevertheless lucrative for Casdon, and I will be better able to report on by ‘how much’ in my interim report.”
The firm is expected tp progress plans to transfer some production to a new factory in Indonesia, following an audit of the site to ensure staff are treated well and no exploitation or child labour is involved.
This was posted in Bdaily's Members' News section by Simon Malia .