Cassidy Brothers

Family run toy manufacturer Cassidy Brothers crashed 40% as it revealed halving interim profits of £340,153 on sales down £700,000 at £3.2m. Chairman Paul Cassidy identified the impact of competition and cheap Chinese imports as the primary cause of his firms disappointing performance, singling out the launch, and subsequent success, of a replica MacDonald's food service counter as a particularly troublesome factor. 'We have now countered with a better and cheaper Kentucky Fried Chicken item' Cassidy enthused, however, 'if someone comes in and pinches a share of our market it takes us 12 months to hit back'. Traditionally loss making in the second half (most toys are sold in the run-up to Christmas and retailers stock up accordingly) Cassidy Brothers has developed a new low cost role-playing toy The Pick & Mix Sweet Shop in a bid to bolster its spring and summer sales. Branded by sweet manufacturer Barrett, Cassidy reckons it will be very difficult for anyone else to 'knock-off' a rival product and has high hopes for its success. Further offerings in this 'cheaper range' are now being considered. Unsurprisingly the shares fell heavily following the news and Cassidy's seasonality means any significant upturn in value is unlikely for 12 months, nonetheless those holding for the long term could be well rewarded.

Sector: Personal Goods

Companies: Casdon

Market cap: £3.4m

PE Forecast: 12.4

Share price: 61p

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