Sat nav toy steers growth for local firm
Blackpool toy and games manufacturer Cassidy Brothers is banking on the launch of a sat-nav toy steering wheel to drive future revenues.
The toy was developed two years ago but the business has been waiting for patents to be granted in the UK, Hong Kong and the US before its release. The steering wheel has voice cjip instructions to fictional destinations with any driver errors being corrected by the voice of a 14-year-old girl.
It is one of three newly-developed toys that Cassidy Brothers has launched. The others are a child's sit-and-ride toy Henry vacuum cleaner and a Henry hoover toy cleaning trolley. The latter has been selected by Argos for the 2010 season.
The new product launches, coupled with increased sales from online sellers including Amazon, has helped push revenues up 24 per cent to £4.8m in the year to 30 April. However, pre-tax profits fell from £324,400 to £256,300.
Chairman Paul Cassidy said the business had agreed to supply Alworths stores – which launched following the demise of high street retailer Woolworths – although he warned that price rises would hurt margins in the next year.
“Trading in 2011 is going to be difficult and will see prices rise significantly,” he said. “Firstly because of the rise in VAT, but more importantly the impact of price rises in China and transportation and shipping costs from there to the UK. These will affect all important price bands of £5.99 to £10.99 that the consumer and trade has been accustomed to for the last ten years, most of which can no longer be maintained.
“The transition will take two or three years to filter through but it will happen, and any company which shuts its eyes to it will not survive. Companies have to expect negative responses from their customers and accept a decline in sales as a result. Cassidy Brothers has experienced this many, many times over the past 65 years and will be prepared.”
He added that “pragmatism will be the order of the day” in future years and recommended a final dividend of £2 per share payable on 25 October to shareholders on the register on 1 October.