AGM Statement - Trading Update

Character Group PLC

19 January 2024

 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 4 as it forms part of UK domestic law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310) ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

THE CHARACTER GROUP PLC

("Character," the "Company" or the "Group")

Designers, developers and international distributor of toys, games, and giftware

Trading Update

London: Friday, 19 January 2024: The Character Group (AIM: CCT) will be holding its Annual General Meeting today at 11.00am.  Ahead of this, the Group provides the following trading update:

As we highlighted in our annual results announcement on 12 December 2023, trading conditions across all the Group's markets have remained challenging, with the cost-of-living crisis impacting consumer spend/demand for the second successive Christmas.  During the first four months of the current financial year, whilst Group turnover remained flat and largely in line with the comparable period in FY23, we have seen an improvement in profitability. 

Going into 2024, the strength of our product offering will be crucial in delivering the Group's forecast sales in the second half of the current financial year.  We are entering the Toy Fair season starting with the London Toy Fair at Olympia next week, quickly followed by the Nurenberg Toy Fair.  Whilst these are important showcasing events for our product offerings to the market, previews with domestic and international customers have already taken place and these have confirmed that the portfolio is strong. Therefore we anticipate that this view will be fully endorsed by buyers and visitors to our stand at the forthcoming shows.

Overall, Character Group has a strong portfolio of products to offer the market, a robust balance sheet, with a net cash position and substantial unutilised working capital facilities in place.  The business continues to trade satisfactorily, and we expect profitability for the current financial year ending August 2024 to be in line with current market expectations. 

A further update to shareholders will be given at the time of the publication of the interim results for the six months to 29 February 2024, which are scheduled to be released in May 2024.

As previously announced in December 2023, following the AGM, Richard King will be retiring as Chair and will leave the Board after 33 years of service.  Character will continue to have the benefit of his wisdom and counsel going forward as an Honorary Adviser.  The Board takes this opportunity to thank Richard for his dedication and commitment to the business, and on behalf of all stakeholders wish him well in his retirement.  Subject to re-election to office as a director by shareholders at the AGM, Carmel Warren will succeed Richard as Non-Executive Chair. 

The Character Group plc

FTSE sector:  leisure goods:

FTSE AIM All-share: symbol: CCT

Market cap: £53m

Email:  [e-mail]

Group website: www.thecharacter.com

Product ranges can also be viewed at www.character-online.co.uk

CHARACTER GROUP PLC CCT Stock | London Stock Exchange

Enquiries to: The Character Group plc Jon Diver, Joint Managing Director Kiran Shah, Joint Managing Director & Group Finance Director Office:  [phone] Mobile: [phone] (JD) Mobile: [phone] (KS)
Panmure Gordon (Nominated Adviser and Joint Broker) Atholl Tweedie, Investment Banking Rupert Dearden, Corporate Broking Tel:  [phone]
Allenby Capital Limited (Joint Broker) Nick Athanas, Corporate Finance Amrit Nahal / Tony Quirke, Sales & Corporate Broking Tel:  [phone]
TooleyStreet Communications Limited (Investor and media relations) Fiona Tooley Tel:  [phone] Email: [e-mail]

 

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