Toy and confectionery distributor Funtastic (FUN) surprised yesterday with a request for a suspension to allow a fund raising to be determined by tomorrow.
The company told the ASX yesterday morning that it was requesting the suspension until Wednesday, unless it makes an announcement sooner.
Funtastic shares finished Friday at 18c.
That’s down from the most recent high of just over 20c earlier this month, but up from the most recent low of 15.2 a week or so ago.
FUN YTD – Funtastic raising cash
The company didn’t say what the raising was for, but brokers assumed it was for a new acquisition.
Funtastic made an acquisition in March of last year when it acquired a company holding the rights to distribute some Lego products for three years.
The company returned to paying dividends in the first half of the 2012-13 year with a payment of 0.5c a share.
That doesn’t sound much, but it met a promise from the company last year that it would resume paying out dividends in the 2012-13 financial year after a couple of rough years.
Following extensive restructuring and cost-cutting, the company returned to profit in 2011-12 with a net profit of $10.4 million against a loss of $38 million for 2010-11.
It also paid down debt by $20 million.
In the six months to last December, it lifted net profit 68% to $9.3 million, from $5.5 million the previous year, so on the face of it the trading side of the business would appear to be in good shape.
There’s been no update on trading performance since the interim profit announcement in March.
The company has a July end of financial year balance date.
