News: Funtastic swings to FY profit

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Funtastic Limited (ASX:FUN) expects further growth in the year ahead after returning to profitability in fiscal 2012.



The toy distributor posted a full year net profit of $10.4 million, rebounding from a $38 million loss last year.



CEO Stewart Downs attributed the swing to cost reduction and improved profit margins on a more successful product range, including the Ben 10, Razor and Power Rangers brands.



Mr Downs says the company's commercial performance was also boosted by the acquisition of the Pillow Pets brands as well as licences to manufacture and distribute selected LEGO products.



Funtastic acknowledges that the retail environment is likely to remain hazardous, but is confident that their fortunes are not strictly dependant on a retail revival.



A $20 million reduction in the company's debt in 2012 will allow Funtastic to begin paying dividends in the next financial year.