CEO Departs Amidst 66% Share Plunge Following Price Increase
- CEO of Connect newsagent distributors resigns after World Cup sticker price increase
- Shares plummet by 66% following price hike from 50p to 80p
- CFO David Bauernfeind also leaves the company
- Profit expectations slashed from £3m to £1.5m
- World Cup stickers second best selling toy in UK
- Football-related toy sales reach £11 million in 2018
- Sales of football-related toys almost double in Euro and World Cup years
Mark Cashmore, the CEO of Connect newsagent distributors, has resigned after the company experienced a significant drop in shares following an increase in the price of Panini’s World Cup sticker packs from 50p to 80p. Chief financial officer David Bauernfeind also left the company due to the share price decline. The company typically makes £3 million profit from these stickers but has now reduced their profit expectations to £1.5 million. The price hike caused chaos at the newsagent distributors and is expected to force a cut in dividends. Despite this, World Cup stickers are currently the second best-selling toy in the UK, according to The NPD Group. Frédérique Tutt, toys global industry analyst at The NPD Group, stated that during the UEFA 2016 European Championship, over 24 million football-related toys were sold in the UK, accounting for 6% of all toy sales in the country that year. In 2018, football-related toy sales reached £11 million (including Premier League-related toys). The most recent week with available data (ending May 19) saw £921,000 spent on football-related toys, equating to approximately £5,500 per hour. One in eight toys sold in the UK during the third week of May were football-related, indicating a positive impact on the toy sector in the coming weeks. Sammy Ford, a mathematician at Balliol College, calculated that a complete set of stickers would cost consumers £773.12.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the company’s financial situation and the impact of World Cup sticker packs on toy sales in the UK. It also includes relevant quotes from experts in the industry. However, it could be improved by providing more context about the company’s overall performance before the price hike and including data to support the claim that football-related toys almost double in sales during Euro and World Cup years.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of price hike on a specific company and the toy industry, but it could benefit from more in-depth analysis or context on the broader implications of this event.
Financial Relevance: Yes
Financial Markets Impacted: Connect newsagent distributors’ share price and profit expectations
Financial Rating Justification: The article discusses the impact of a price hike on Connect newsagent distributors’ shares and profits, as well as the overall toy industry sales related to football events.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.
www.retailsector.co.uk 
