Toy firm issues upbeat trading statement despite tough conditions on High Street

A firm which makes toys based on film and TV characters enjoyed a busy Christmas despite the tough trading conditions on the high street.

The Character Group, which is based in Oldham, has issued an upbeat trading statement ahead of its annual general meeting.

The company said its strong performance in the UK market in the second half of the 2018 financial year has continued into the first half of the 2019 financial year.

Despite the problems of the retail sector the firm’s products remained popular through the Christmas period, selling-through well at retail.

International sales, excluding USA, remain steady. Whilst USA sales continue to be challenging the company said it making good progress.

Character’s resilient and diverse portfolio is continuing to grow steadily.

The firm is in the process of rolling out a range of new products and range extensions and they will be officially unveiled at the London Toy Fair, which opens at Olympia next week.

Trading at OVG-PROXY (“Proxy”), the Danish toy distributer based in Copenhagen in which the Company acquired a 55% interest in October last year is going well.

In November last year A major customers filed for bankruptcy, though there is news of a potential buyer for part of the customer’s business.

This created a short-term setback, although the impact on Group revenue and profit will be minimal.

A spokesman said: “Experience has shown, however, that the demise of a major toy retailer creates opportunities for distributors such as Proxy.

“In any event, recent events in the market have shown that the market share of “fallen” retailers is quickly absorbed by other established retailers.

In the circumstances, we remain confident that the acquisition will prove to be beneficial to the group.

“As we said in the Annual Report, macroeconomic factors, including currency volatility, the potential implications of Brexit and the performance of the UK economy generally, will continue to influence market behaviour in the coming months and our business is not immune from these factors.

“Notwithstanding this, the board remains confident in its strategy and the Group’s flexibility to adapt to change and will continue to strive to grow the business, while facing any challenges as and when they arise.”

Character said it has started 2019 with stocks firmly under control, a net cash position, and a strong balance sheet. With a proven and balanced product portfolio.

The group’s performance and prospects remain in line with management expectations and market consensus.