Toys retailer reports better annual figures, but warns of low consumer confidence

Oldham-based toys retailer, Character Group, reported higher revenues and profits for the year to August 31, 2024, today.
Turnover rose from £122.6m to £123.4m, while pre-tax profits of £5.7m were £1m higher than the previous year.
Net cash stood at £13.2m, up from £9.6m in 2023, and the annual dividend has been maintained at 19p per share.
Group said this performance was achieved in a harsh trading environment and against a constant flow of negative headlines and data concerning the cost of living and a lack of consumer confidence combining to produce a reduction in sales at retail.
It said the ongoing conflicts in key regions in the Middle East continued to severely disrupt the global supply chain and shipping from the Far East. So, viewed against this backdrop, the group’s results are creditable and a testament to the strength of its product portfolio and the energy, talent and resourcefulness of its teams around the world, it said.
Character said it has been able to achieve significant savings through the successful implementation of operational cost efficiencies, including reductions in storage costs in Scandinavia and efficient marketing.
Particularly pleasing has been the turnaround in the year under review in cash generated from operations, which increased substantially to £14.9m (FY 2023: £136,000). This resulted in cash as at the year end of £13.2m, (FY 2023: £9.6m), after the successful conclusion of the £2m share buyback programme announced in February 2024.
Character said its portfolio of brands and products performed well across the full range during the financial year, and this has left it well poised at the beginning of the current year.
It said its Goo Jit Zu range continues to be the leading brand both at home and abroad and the plans for expanding the range during 2025 and beyond are well developed and very encouraging.
Character Group stocks brands such as Goo Jit Zu, Peppa Pig, Pokemon, Little Live Pets, Shimmer ‘ SparklInstaglam, Stretch Armstrong, Fireman Sam and Scooby Doo.
Looking ahead it said the reception that its retail customers and distributors have given to the current portfolio, together with the brands and product lines it will be introducing in the Autumn/Winter 2025 product launches has been very gratifying.
However, it warned that the challenging and unpredictable conditions that persisted throughout much of the last financial year have continued into the current fiscal year.
With buffeting from political and macroeconomic developments, consumer confidence remains low, and this has adversely affected footfall in the high street and click-through from online marketplaces in the lead up to the key Christmas 2024 trading period.
Despite this, the group said it is encouraged by the resilience of its market share in the domestic markets and the prospects for growth in the international markets expected in Q4 of the current financial year.
Accordingly, the board expects sales and profit before tax and highlighted items for the full year ending August 31, 2025, to remain at similar levels to those reported in the year under review.
Two non-executive directors, Mike Hyde, and Clive Crouch, are not offering themselves for re-election at next month’s annual general meeting and a search for suitable replacements has begun.