Bluebird plans pounds 10m share buy-back

NIGEL COPE

Bluebird Toys, the Polly Pocket and Mighty Max toy group, announced a fall in profits yesterday alongside plans for a pounds 10m share buy-back.

The company currently has pounds 34m of net cash and will be seeking shareholder approval to repurchase the shares. A spokesman said: "There is no point in spending the money on buying dud toy companies. The toy market now is all about power brands and you can't just buy those."

Bluebird had a tough year in 1995 as its popular Mighty Max range of boys' toys ran out of steam and Mimi and the Goo Goos performed below expectations. However the fall in profits was in line with expectations and the shares fell only 6p to 311p.

Pre-tax profits for the year to December fell from pounds 19.7m last year to pounds 17.8m this time. Sales were also down 12 per cent to pounds 87m, though the dividend was increased by 12.5 per cent to 6.75p.

The Polly Pocket girls' range performed strongly as did Peter Pan, despite dull trading in many markets. The Peter Pan range will shortly include electronic diaries and other hand-held electronic toys under the Bluetech name.

Bluebird has recently signed deals with Mattel and Walt Disney to develop miniature play-sets featuring Disney characters. It has also signed deals with Hasbro for a Batman range and Marvel for Spiderman toys.

It has high hopes for a new idea called Space Monkeys, which will be launched this year and is based on an animated TV programme, Captain Simian and the Space Monkeys. Bluebird expects only limited sales this year but larger volumes in 1997.