Funtastic wants to be removed from ASX

Struggling toy and confectionary wholesaler Funtastic is taking steps to delist from the Australian Securities Exchange after a decade of sliding earnings and shares.

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Funtastic, which distributes Cabbage Patch Kids, Care Bears and Star Wars branded toys and merchandise, has seen its share price fall markedly since a profit warning in 2007.

Its shares were trading around $1.57 in December 2006 but had fallen to 16.6 cents by December 2008.

At their peak in 2003, they were at $2.13.

They started Monday’s session at 1.5 cents and, since mid-morning, have dropped 33.33 per cent, or 0.5 cents, to one cent after announcing that it intends to delist.

Funtastic said that, consistently over the past six months, less than two per cent of its shares have traded in any one month.

“This low liquidity has created significant share price volatility,” Funtastic said in a statement.

“The costs of the company remaining listed outweigh any benefits.”

The company’s once enviable list of investors included Gerry Harvey, listed in the 2016 annual report as a shareholder, and Lachlan Murdoch.

Funtastic – which suffered a $23.85 million annual net loss in 2015/16 – said it expects its ability to raise capital, to grow the business and restructure debt will improve after it is removed from the ASX.

The 2016 result was an improvement on its $56.48 million loss in 2014/15.

Its 2016 revenue fell 14 per cent to $90.9 million.

The company has previously blamed its profit downgrades on major retailers importing more products directly from China, retailers’ focus on reducing stock, and a downturn in consumer spending.

If Funtastic gains shareholder approval to delist – at an extraordinary general meeting on May 4 – it expects to be removed in early June.