Character Group upbeat on full year profit prospects despite poor Christmas sales
Oldham headquartered toy distributor and licensee the Character Group told the markets this morning that it expects to make full year profits “in line with market expectations” despite a poor Christmas.
The AIM listed business admitted that trading conditions across the retail sector have been “persistently challenging” throughout the financial year ended 31 August 2023, particularly during the important Christmas 2022 period, and these factors impacted performance in the first half of the financial year.
“However, the Directors are pleased to report that, in line with the board’s predictions, the business has performed more strongly in the second half and the group expects to report full year underlying profitability in line with current market expectations. The strength of the group’s product portfolio has played a crucial part in achieving this result in the second half.”
Earlier this year the company reported that revenue in the first half of the year fell to £57.9m, down 36.3% on the comparable period last year (HY 2022 £90.9m; FY 2022: £176.4m), and that profits before tax were £2.7m (HY 2022 £8.4m; FY 2022: £14.2m).
The company said it has a strong balance sheet and a net cash position and full year audited results will be released in December.
Character Group designs, manufactures, and distributes various toys, games, and gifts based on television and cartoon characters. The company operates in the United Kingdom and other parts of the World under the brand name Peppa Pig, Bluey, Pokemon, My Little Pony, and others.
Its geographical segments include the United Kingdom, the Far East, and Scandinavia.