Character Group plans for a conservative Christmas

TOY licensing firm Character Group has said that it will be taking a conservative approach this Christmas, to protect profitability and cash flow.

The company, which is headquartered at New Malden in Surrey but has a large distribution centre in Oldham, said in an update to the stock market that trading for the financial year ended 31 August 2011 will meet market expectations.

It added that although it is too early to reach realistic conclusions for the new financial year,it expects that the  group’s results will at least match those for the year just ended.

Character Group designs and develops toy ranges under a series of licences. Current licenses held by the firm include Peppa Pig, Doctor Who, Fireman Sam and Zhu Zhu Pets.

The group said it was pleased with  the  level  of  distribution  of  the  group’s  brands  for  this  Christmas  and  the  indicated  support  across  major  brands  for  the  spring.

However, it said that it would be taking a more conservative approach this Christmas to  reduce  the  company’s  risk  profile  by  tighter  than  usual  stock  control. 

“In taking this approach, it is likely that the company may not maximise its potential sales but would, however, protect its profitability and cash flow,” it said.

Character Group will announce its preliminary results on 29 November 2011.