Character Group scores with Go Go Pets
CHARACTER Group, the toy and game maker, has restored its dividend after returning to profit in the second half of the year.
The company, which employs 100 people at its distribution hub in Oldham, said it could not keep up with demand for Go Go Pets – an electronic hamster, which is proving an enormous hit with children in the run up to Christmas.
Chairman Richard King said that after a turbulent 12 months for the business and the sector – typified by the collapse of Woolworths, stability had returned.
Despite the return to profit in the second half, Character made a full-year pre-tax loss of £2.17m compared with a profit of £5.1m last year. Sales were down 16.6% at £68.6m.
Mr King said: ‘We have had to face the drastic changes to the marketplace following the closure of Woolworths, which affected not only our Christmas 2008 sales but had an even greater impact on our Spring 2009 business following this closure
‘It remains difficult to know exactly how the toy market will fare in the sales leading up to Christmas 2009, however, there are some very positive signs that our strategy of focusing on our own brands has been the correct approach for the group and that there will be a general shortage of stock in the market place by Christmas with many of our products featuring in this shortage.”
He said demand for the Go Go Hamster range was so strong that the company could be selling “two or three times” more than they are able to source. Character Group supplies the major retailers including Argos, Toys R Us, Tesco, Asda and Sainsbury’s.
