(CDY) Casdon

Casdon plc (the 'Company)

Formally Cassidy Brothers plc.

Preliminary Announcement of results for the year to 30^th April 2011

Chairman's  Statement 

The huge cost increases in China have been the main factor in creating a  £ 198,000 loss during the year. ( 2010 - £256,345 profit), in spite of an 11% increase in sales to £5,360,444  ( 2010 - £4,819,263).

These cost increases significantly reduced our margins, but raising our own prices at such a late stage in the trading year to major customers would only have had precedence during the 1970's, when the country expected it. The spiralling costs escalation in Chinese food alone effects factory gate prices, because the factory staff live in campus accommodation wings, and meals are provided.  Raw materials and statutory wage increases have forced the Chinese to look at alternative countries with a more stable currency and economy, such as India, Indonesia, and Vietnam. 

The domino effect of world recession overspills into transport and shipping, and when shipping lines pulled out of the Orient to European markets in 2010, Casdon had to absorb transport increases costing £100,000.

Warehouse refurbishment involved the removal of crumbling sills and lintels, the cost which escalated as worse was found once the job commenced.

The demolition of an old low ceiling warehouse has been carried out, but the proposed

resurfacing of the now exposed area, has been postponed. It was however a comfort to receive a cheque for a return of business Rates, once the premises had gone.

The graphics company that was commissioned in 2010 to restyle our boxes have completed the full range; a task that was necessary but impossible to do 'in house' in such a short time slot. The 'Wow' factor this produced at a cost of £75,000 was clearly evident at the 2011 London Toy Fair, where we received plaudits from all sectors of the trade.

Our entry into TV advertising in 2009 wasn't a success, and culminated in unsold stock and a character license to pay for. Consequently we have provided a reduction in value in the 2010-11 accounts of £25,831 for the sale of this stock to be realised in the 2011-12 trading year.  

We are weathering all this because the company still maintains a strong balance sheet, with net assets of £3,245,673. ( 2010- £3,564,529) slightly down on 2010, owing to higher borrowing.  

Current Trading, and Future Prospects.

Quoting the British  Retail Consortium (BRC) once again, it is expected that there will be a further decline in the high street trade during 2011. We have already seen one of our customers go into liquidation very recently, namely TJ Hughes, but they had thankfully

paid us. The BRC doesn't mention toy trade specifically, and although yes the retail trade is suffering from too few customers chasing too much product, and the online

 e-tailers are taking business away from them, I believe the high street will just have fewer shops.

In the 1960's the mail order houses were said to be the future, but what transpired was  fewer wholesalers, fewer department stores, and more specialised shops.

The digital age has created far more opportunities to market ones product with the use

of media marketing, and is something all distributors and manufacturers should embrace.

Although some of our high street customers have gone, we are pleased to advise that two new  supermarkets  and two new prestigious high street accounts have been opened  for 2011. We have every confidence they will still be there next year.

The above is reflected in an improved first quarter performance this year, which combined with increased margins gives rise to cautious optimism.

Final Dividend.

Under the current circumstances, the directors feel they cannot recommend a final dividend (2010 2.0p). An interim Dividend of 0.75p per share (2009 2.0p) has been paid.

Paul Cassidy

Chairman

For further information please contact;

Casdon plc

Paul Cassidy                                                                Tel 01253 766411

Zeus Capital Limited                                                  Tel 0161 831 1512

Ross Andrews

Nick Cowles

Notes to the Accounts

1.   Basis of Preparation.

The financial information set out above does not comprise the Company's Statutory Accounts.

Statutory accounts for the previous financial year ended 30^th April 2010 have been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified, and did not contain any statements under section 498 (2) to (4) of the Companies Act 2006. The auditors reported on the accounts for the year ended 30^th April 2011, but such accounts have not yet been delivered to the Registrar of Companies.

2.   Earnings Per Share

Earnings per share are calculated on the loss for the financial year of £166,938 (2010 Profit of £220,313) and on the weighted average number of shares in issue during the year of 5,524,350 (2010 5,524,350).

3.   Dividends

The Directors do not recommend the payment of a final dividend.

4.   Copies of Reports

Copies of the Report and Accounts will be posted to shareholders shortly.

Copies of this announcement will be available on the Company's website at www.Casdon.comand, for a period of one month, from the Company's offices at Cornford Road, Blackpool, Lancashire FY4 4QW.