Funtastic swings to H1 loss

Toy distributor declines to pay interim dividend as writedowns weigh on profit.

Funtastic (FUN) expects a return to growth in the second half of 2014 despite after swinging to a first-half loss due largely to a significant writedown on one of its brands.

In the six months to January 31, Funtastic posted a net loss of $25.88 million, after posting a $9.27m profit in the previously corresponding period.

The large loss in profit is due to the company writing down the value of its Madman Enterprise business. Two expressions of interest for the brand were valued significantly lower than the brand’s carrying value.

Total revenue in the period was $84.62m, a decrease on the $86.98m posted in the first half of 2013.

Funtastic will not pay a dividend.

“Going forward I remain confident that the company's second half performance improvement will result in us reporting a full year EBITDA number in the range of $19 to $23 million (Continuing operations $13-$16 million)," Funtastic’s chief executive and managing director, Stewart Downs, said.

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