Toys retailer, Character, bounces back in second half
Character Group, the Oldham-based toys retailer, has published annual figures today, and announced that chairman, Richard King, is to step down at the company’s AGM next month, after nearly 33 years as a director and chairman.
The business said a better second half has helped improve the first six month performance, with expected strong activity.
Revenues for the year to August 31, 2023, were £122.6m, down from £176.4m, and a pre-tax profit of £4.7m was less than half the previous year’s £11.4m figure.
However, the final dividend has been raised from 17p per share in 2022 to 19p.
Net assets at the year end stood at £39.4m, compared with £38.9m a year ago, and net cash of £9.6m was a reduction on the previous year’s £2om mark.
The group said that, despite a challenging macro-economic environment, the business continues to trade satisfactorily, therefore, it expects to increase sales and profitability for the current financial year as a whole, relative to FY 2023.
It hinted at wider expansion, saying: “While the UK and Irish domestic markets will always remain critical to Character, the board recognises that opportunities for significant sales and profit growth lie in further developing the group’s international markets.”
The second half rebound was supported by the roll-out of Character’s enlarged 2023 spring/summer merchandise portfolio, featuring some exciting and strong new toy product releases and brand extensions, including Goo Jit Zu, Chill Factor, Teenage Mutant Ninja Turtles, Fingerlings, Lankey Box and Aphmau.
The group is launching several new product ranges at the London Toy Fair in January 2024 and the customer reactions to previews so far have been very encouraging, it said.
Chairman, Richard King, has told the board he will not seek re-election at the 2024 AGM.
The group said: “Whilst we are sad to see him depart from formal ties with the group, Richard has accepted the company’s offer of an appointment to the new office within the company as an ‘Honorary Adviser’. This will not be a board position.”
Speaking on behalf of the board, Jon Diver and Kiran Shah, joint managing directors, said: “On behalf of everyone in the business and shareholders we would like to thank Richard for his energy, leadership and friendship. We wish him well and whilst we hope that he enjoys his formal retirement we look forward to working with him in his advisory capacity over the coming years.”
The board said Carmel Warren, currently an Independent Non-Executive Director of the company has, subject to her re-election at the 2024 AGM, agreed to accept the board’s nomination for her to succeed Richard as non-executive chair.
Carmel joined the board in April 2021. She will retain her role as chair of the audit committee and no other changes are in prospect as a consequence of these board changes.
