http://www.investegate.co.uk/Article.aspx?id=200912010700093480D
The Woolies disaster last year lost them a major retailer, wrecking Xmas sales - overall sales for the year ending 16% down. And sterling's decline didn't help. This has resulted in a restructuring, reducition in staff and in stocks held. H2 ((Mar-Aug) saw a return to profitability and the dividend has been re-instated.
Significant turnaround achieved, returned to profitability in H2
Business remains cash generative, even after major share buy-back [what has a share buyback got to do with cash generation???]
Group currently has a net cash position of £3m and has substantial unused finance facilities
Dividend re-introduced reflecting Board's confidence
Focus on costs, productivity and efficiencies delivered ongoing benefits
Market share increased to 5% by end of October 2009 - expect to see further improvement
Product portfolio successes include
Peppa Pig, H M Armed Forces; Postman Pat; Scooby Doo; and new to the portfolio, Go Go Pets. New introductions in the current financial year include product ranges relating to the new TV series of both Doctor Who and Fireman Sam
My spies (nieces seen at the weekend) are enthusiastic about Go Go Pets:
One such product line this year is Go Go Pets, (to be renamed Zhu Zhu Pets in Spring 2010 as the product line evolves). This range of interactive hamsters, which respond to noise and touch, was launched in the US in the summer and became an overnight success within the US and the UK, with the demand for product far outstripping our ability to satisfy ahead of Christmas. We believe that this category is set for explosive growth throughout the year ahead.
They are pretty cautious about this year's Xmas :
With just under a month to go before Christmas, it would be brave and possibly even foolhardy to make a forecast at this stage on the final outcome of the current festive trading season; we only have to look at the disruption that the Woolworths failure caused in the market last year, coupled with the general malaise that existed across many industries, to know that such predictions at these times are unreliable and unwise.
db
