VENTURES: Prima Brings X-Factor
Recent Western Cape Business News
SEARDEL’s businesses outside the core textile and clothing cluster continue to provide a pleasing profit underpin.
The toys, stationery and electronics segment performed soundly in the half-year to end September last year. While turnover only grew by 1.5% to R210 million, good cost controls and some help from a stronger Rand resulted in operating profit growing by 26% to R13 million.
Seardel CEO Stuart Queen was particularly pleased with the performance of the Seartec electronics business. He said some of the longer-term strategies that were put in place to make Seartec more competitive were starting to take effect.
But CBN suspects that it might be the Prima Toys division that provides some impetus in the second half trading – a period which includes the bumper Christmas trading period.
At Seardel’s recent AGM, Prima CEO Ian Morris said trading was still tough, but disclosed a potential bonus in that the company had secured the local distribution agreement for popular computer game offering, X-box.
This follows Prima being appointed the master toy licensee for ZhuZhu Pets in South Africa.
In the meantime, CBN hears that Joey Diamond, the former CEO and co-founder of Prima Toys, is gaining traction in his new venture, Diamond Toys.
With decades of experience in the toy sector, Diamond’s progress will probably be worth monitoring.
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