Final Results
Character Group PLC
03 November 2005
Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Thursday, 3 November 2005
Embargoed: 7.00am
The Character Group plc ('the Group')
Preliminary Results
for the year ended 31 August 2005
• Solid Improvement in H2 performance
- H2 sales + 57% to £55.4 million
- Full year + 30% to £98.8 million
- H1 operating loss reversed producing operating profit for year of £864,000
- Dividend for the year + 11%
• 50% of Toys, Gifts and Games together with 90% of digital products
designed and developed in-house.
• Strong line up of products including Robosapien; Roboraptor, Robopet, Dr
Who, Little Britain and Electronic Sudoku.
• Strategic review of business to include Transfer to AIM and possible
de-merger of Digital Division.
'Within our Toys, Games and Gifts Division, we have achieved a very strong
improvement in our ability to develop our own good quality and saleable product
lines, both under our own brands as well as under licences.
'Our enhanced ability to design and develop a more advanced product base within
our Digital Division should present opportunities for further expansion in both
product and customer base.
'I am pleased to report that the new financial year has started with both our
Divisions trading above our internal forecasts and with a higher level of sales
and orders than at the corresponding point last year.'
Richard King, Chairman
Enquiries:
Richard King, Chairman
Kiran Shah, Group Finance Director Fiona Tooley, Director
The Character Group plc Citigate Dewe Rogerson
Tel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370
Mobile: +44 (0) 7836 250150 (RK) Mobile: +44 (0) 7785 703523 (FMT)
Mobile: +44 (0) 7956 278522 (KS)
www.thecharacter.com
-2-
The Character Group plc ('the Group')
Preliminary Results
for the year ended 31 August 2005
STATEMENT BY THE EXECUTIVE CHAIRMAN, RICHARD KING
Introduction
It comes as no surprise to any of us that the markets within which the Group is
operating have been, and continue to be, very competitive, with retailing in the
UK, the main market for our Toys, Games and Gifts products, being hit especially
hard.
We started the 2005 financial year faced with this poor trading environment,
certain operating problems to be overcome and, with a few exceptions, a
lacklustre product range.
I reported in my interim statement a disappointing loss of £1.9 million for the
first half but stated that we expected the second half would witness an
improvement and that this trend would continue into the new financial year
ending 31 August 2006.
I am therefore pleased to report that the second half did indeed show a solid
improvement. We managed to more than reverse the first half loss and remain on
stream for the trading performance to continue along this trend. Not only did
trading significantly improve over the first half but, even more significantly,
our second half performance improved substantially against the 2004 comparable
period, with pre-exceptional profit in 2005 of £2.7 million and £2.1 million
post-exceptional (2004 pre-exceptional profit of £717,000, and £1.2 million
post-exceptional).
These financial results clearly demonstrate that, despite difficult market
conditions, the Group has produced a positive turnaround.
Financial Results
Sales in the year ended 31 August 2005 were £98.8 million, 29.9% higher than in
the previous year (2004: £76.0 million).
First half sales were £43.4 million compared to £40.9 million for the same
period in 2004, with second half sales £55.4 million, 57.7% higher than the same
period in 2004 (£35.1 million).
In the first half, the Group produced an operating loss of £1.5 million against
a £2.2 million operating profit in 2004. Following the strong second half
performance, the Group produced a pre-exceptional operating profit of £3.0
million for the second half compared to £994,000 in 2004.
As you will recall, the 2004 results were enhanced by the inclusion of an
exceptional item resulting in a credit to the profit and loss account of some
£492,000 before tax in respect of the settlement of our dispute with a former
distributor. The 2005 results have also been affected by an exceptional item,
resulting in a charge to the profit and loss account of some £643,000 before
tax, which arises from the costs associated with the integration of our gifts
business into the enlarged Toys, Games and Gifts Division.
Profit before tax for the year was £161,000 (2004: £3.2 million).
The first half basic loss per share amounted to 3.8 pence against earnings per
share of 4.22 pence for the first half in 2004. The recovery in the second half
produced earnings per share of 3.41 pence for the second half (2004: 3.26
pence), giving an overall loss per share of 0.39p.
On-going administration expenses were 13% of sales (2004: 14.6%).
continued...
-3-
Stocks at the end of the first half stood at £8.9 million and by the end of the
financial year they totalled £9.8 million (2004: £12.2 million).The increase
over the first half reflects the higher stock levels required to service the
increased level of sales in the current year. The decrease in stock at the
year-end when compared to 2004 was achieved through both higher sales in August
as well as improved efficiencies due to the restructuring of the Toys, Games and
Gifts Division during the year under review.
Cash at bank, as at 31 August 2005, stood at £3.7 million, compared to £3.9
million at the interim stage and £4.2 million at 31 August 2004.
At 28 February 2005, the Group had unused bank and trade finance facilities
totalling £11.0 million. By the year-end, unused bank and trade finance
facilities were £4.1 million, again a reflection of the higher level of trading
and seasonality.
On our normal business, excluding exceptional items, our gross margin was 24%
(2004: 30.8%). This lower gross margin is mainly due to the higher percentage of
Group sales of Digital Products, which are at a lower margin than the Toys,
Games and Gifts products.
Net assets at the end of the period were £10.5 million against £11.8 million in
2004. The decrease in net assets resulted from an overseas tax charge as well as
the payment of the dividends.
Dividend
The Directors are proposing a final dividend of 0.9 pence per share. This,
together with the interim dividend of 1.1 pence already paid, makes the total
dividend for the year of 2.0 pence, an increase of 11.1% on the previous year.
The final dividend, which is subject to shareholder approval at the EGM on 29
November 2005, will be paid on 27 January 2006 to shareholders on the Register
as at 6 January 2006. The shares go ex-dividend on 4 January 2006.
Business Overview
Toys, Games and Gifts
During the financial year, we have accomplished our strategic plans of
integrating firstly, Games and then Gifts within this Division, with the former
being completed in the first half and the latter in the second half.
Although we have received a limited benefit from these changes in the latter
part of the financial year being reported upon, we expect that there will be a
more positive impact during the new financial year in terms of both efficiencies
and costs.
We stated in our interim report, that the outlook for the remainder of the year
and for the new financial year remained encouraging. I am pleased to be able to
report that during the second half of the financial year, we introduced a number
of new products which were very well received by both the trade and the
consumer. As these new products did not come on stream until late in the
financial year, they have had a limited effect on the results being reported.
However, we expect our sales to increase significantly in the period leading up
to Christmas and for the current financial year as a whole.
The results for the first two months of this new financial year, together with
the management team's expectations for the financial year as a whole, are very
encouraging, especially when they are measured against the retail market
environment in both the UK and international markets.
We have improved our offering throughout the Division over the past year and, as
previously, indicated, the benefits started to come through in the second half
of the financial year. We have witnessed a positive sales improvement since the
year-end, which is above our internal budgets and leaves us optimistic for the
prospects for the current financial year as a whole.
continued...
-4-
For the first time, we have enclosed with this report a DVD which shows some of
the television commercials that we are airing in the run up to Christmas and
which the Directors hope shareholders will find informative.
Within this business, we are very fortunate to have a great line up of products
which includes:
•our range of Robosapien, Roboraptor, Robopet
•Dr Who for both the toy and gift markets
•Little Britain gift line
•Scooby Doo range
•Gr8 Gear range for Girls
•Cinderella range of dolls and accessories
•a new game Boney Head to add to our already successful line-up of games,
which includes our new electronic Sudoku (endorsed by Carol Vorderman) and
Peppa Pig, our successful pre-school range
•Witch - a new girls range produced under Disney License
We are also pleased to have several new items for launch in 2006 including
Trolls, which are destined for the gift trade and which were very successful
when last marketed, together with toys from Biker Mice from Mars, which are to
be featured in a new TV series next year, and Superman, which is to be based on
a new feature film due for release in 2006.
It is interesting to note that Roboraptor is the first second generation remote
controlled robot from the same family as last year's Toy of the Year,
Robosapien, which sold in excess of 1 million units worldwide. Invented by
ex-NASA scientist, Dr Mark Tilden, the 32-inch robotic raptor beast has already
won Toy of the Year in Australia and Norway and was voted top toy in the 8-10
year-old category by the Duracell European Toy Survey.
At Dream Toy 2005, The Toy Retailers Association ('TRA') included Character's
Roboraptor in its 'Hot Dozen' for Christmas 2005 listing.
This follows on from Dream Toy 2004 where Robosapien first came to prominence
and went on to become '2004 Toy of the Year'. Also within the individual
category listings at Dream Toy 2005, Character's ranges tipped for success for
Christmas 2005 were:
•Pre-School - Peppa Pig Playhouse
•Boys - Stretch Homer
•Big Kidz - Dr Who's Dalek
•Games - Electronic Sudoku
It is also very gratifying to report that approximately 50% of our Toys, Games
and Gifts product line up is made up of products that we have designed and
developed in-house. This alone has opened up further opportunities for
international sales, which have grown by over 250% in the period under review.
Through this stronger and improved product offering, we anticipate that we will
incur a lower percentage of credits and marketing spend in the current new
financial year, with stock write-downs also expected to remain within the levels
budgeted.
The Directors believe that the strategic changes made over the past year and the
improved quality of products will greatly benefit the Group's performance in
both this and the following financial years.
continued...
-5-
Digital Division
World Wide Licenses ('WWL')
Despite the fact that this Division faces an extremely competitive environment,
with downward pressure on pricing being an every day event and with strong
competition from some leading retail brands, I am delighted to report that,
following the major problem experienced last year with our previous US
distributor, WWL has significantly grown its sales and profits during the year.
In August, the last month of the financial year, WWL shipped over US$20 million
of cameras, a record level of monthly sales for WWL.
We have continued to increase our capacity to design, develop, manufacture and
supply ever increasingly complex products.
At the interim stage of the year, I informed shareholders that the Polaroid(R)
brand had been purchased by the Petters Group and that the Group would be
negotiating with Petters on how best to develop the business. Following
discussions, we have jointly decided that the original distribution and licence
model was not appropriate for the future and, accordingly, the original
licensing agreements will not be renewed. In their place, we have entered into a
supply arrangement whereby WWL has first rights of supply and, although the
basic commercial terms have been agreed and currently form the basis of our
dealings with Petters in North America, the final form of the legal agreement is
currently in the final stages of negotiation. We will update shareholders on
this status in due course.
We are also working very closely with Petters in designing the new Polaroid(R)
product line-up and have no reason to believe that our sales to Petters will not
continue to increase. In essence, we see no changes in our prospects other than
the fact that we shall not be acting as a distributor of the Polaroid(R) digital
camera products in the UK, which will have limited effect on the Group's overall
profitability.
Sales and orders for WWL for the period to Christmas are above our original
internal budgets. The Digital Division has reached critical mass and the
Directors will, through exploiting WWL's technical base which has been developed
over the past years, now be able to look at further opportunities for growth.
Strategic Review
The Directors are mindful that the Board has a duty to improve shareholder value
and to prepare the Group for long term growth. Accordingly, the Board has
undertaken a strategic review of the business and has agreed a strategy to
accomplish the goals that it has set.
•Transfer to AIM
At the time of the Group's interim results statement issued in April, the
Company highlighted its intention to seek a cancellation of its listing and an
admission to trading of its shares on AIM as it provides, in the Board's view, a
more flexible environment in which to achieve the Group's objectives and to
reduce costs and formalities relating to maintaining a market in its shares and
undertaking future transactions.
The process of transferring from the Official List to AIM has commenced and
details will be included in a Circular to be posted to shareholders together
with the Annual Report on 4 November 2005. Subject to shareholder approval at a
second Extraordinary General Meeting to be held on 29 November, we expect
trading in the Group's shares on AIM to commence on 2 December 2005.
•Possible de-merger of WWL
The Board is, as already announced, considering the possible de-merger of the
Digital Division, a distribution of the shares in WWL (or the shares of a
company formed for the purpose of the de-merger) to shareholders and
simultaneously seeking admission of those shares to trading on AIM in their own
right. Whilst there are no immediate plans to make this move, the Board believes
that this could better promote shareholder value. Shareholders will be updated
with news of any developments in this regard as soon as practicable and
appropriate.
continued...
-6-
•Executive Changes
We also announced in April that we had begun the process of recruiting a new
Chief Executive Officer and a Group Finance Director. Having taken into account
the progress being made in the trading position of the Group and the need to
manage each of the Group's businesses, the Board decided that whilst these
proposed changes to the Group structure are being completed, it would in the
interests of both the business and its shareholders that Kiran Shah and I should
be appointed interim joint managing directors to oversee the changes.
Mr Enrico Preziosi resigned from the Board and from his Executive position as
Managing Director and CEO in September 2005. The Directors would like to put on
record their gratitude to him for his service to the Company since assuming his
Board position in August 2000 and thank him for his considerable contribution to
the Group. Enrico Preziosi played a pivotal role in developing the close working
relationship between Giochi Preziosi S.p.A. ('Giochi Preziosi') and the Group,
which will manifest itself in a substantially increased level of inter-company
business in this new financial year.
Giochi Preziosi remains a 22.5% shareholder in the Character Group.
Management, People and Development Training
The year under review has seen many changes within the Group and the Directors
would like to acknowledge and thank all the Group's employees for their hard
work and determination to return the Group to profitability. At the year-end,
the Group employed 231 people.
Looking Forward
I am pleased to report that the new financial year has started with both our
Divisions trading above our internal forecasts and with a higher level of sales
and orders than at the corresponding point last year.
Our focus continues to be to improve our operational efficiencies and further
develop our product portfolio.
Within our Toys, Games and Gifts Division, we have achieved a very strong
improvement in our ability to develop our own good quality and saleable product
lines, both under our own brands as well as under licences.
Our enhanced ability to design and develop a more advanced product base within
our Digital Division should present opportunities for further expansion in both
product and customer base.
By the end of 2005 calendar year, over 50% of our products within the Toys,
Games and Gifts Division and over 90% of our digital products will have been
developed in-house. This in-house expertise in developing licensed properties
and also bringing new products to market quickly is becoming generally
recognised in the Group's markets. It is also proving to be a major benefit to
the Group in attracting and winning both strong new licences and finished
products for distribution.
As a Board, we believe that by refocusing the efforts of the Executive team, the
Group can leverage its market position and ultimately this will be reflected in
our commercial performance and improved shareholder value.
-7-
The Character Group plc
Preliminary Results
Consolidated Profit and Loss Account
for the year ended 31 August 2005
Note 2005 Total Other Exceptional
£'000 2004 2004 2004
£'000 £'000 (note 2)
£'000
--------------------------------------------------------------------------------
Turnover 1 98,791 76,046 74,653 1,393
Cost of sales (75,110) (54,332) (51,675) (2,657)
--------------------------------------------------------------------------------
Gross profit 23,681 21,714 22,978 (1,264)
Net operating expenses
Selling and distribution (9,750) (9,409) (9,131) (278)
costs
Administration expenses (12,867) (11,389) (10,919) (470)
Administration expenses -
Exceptional 2 (643) - - -
Other operating income 443 2,761 257 2,504
--------------------------------------------------------------------------------
Operating profit 2 864 3,677 3,185 492
Interest 3 (703) (453) (453) -
--------------------------------------------------------------------------------
Profit on ordinary activities
before taxation 161 3,224 2,732 492
Taxation 4 (365) 503 589 (86)
--------------------------------------------------------------------------------
(Loss)/profit on ordinary
activities after taxation (204) 3,727 3,321 406
Dividend 5 (1,051) (1,093)
--------------------------------------------------------------------------------
Retained (loss)/profit for
the year (1,255) 2,634
--------------------------------------------------------------------------------
(Loss)/Earnings per share 6
- basic (0.39)p 7.48p
- fully diluted (0.39)p 7.31p
Dividend per share 5 2.0p 1.80p
--------------------------------------------------------------------------------
EBITDA (earnings before
interest, 1,492 4,444
tax, depreciation
and amortisation)
--------------------------------------------------------------------------------
All activity has arisen from continuing operations.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
12 months to 12 months to
31 August 2005 31 August 2004
£'000 £'000
--------------------------------------------------------------------------------
(Loss)/profit for the financial period (1,255) 2,634
Foreign exchange differences (64) (541)
--------------------------------------------------------------------------------
Total recognised gains and losses relating
to the financial period (1,319) 2,093
--------------------------------------------------------------------------------
-8-
The Character Group plc
Preliminary Results
Consolidated Balance Sheet
as at 31 August 2005
2005 2004
£'000 £'000
--------------------------------------------------------------------------------
Fixed assets
Intangible assets 646 692
Tangible assets 1,849 1,599
Investments 2 2
--------------------------------------------------------------------------------
2,497 2,293
Current assets
Stocks 9,810 12,227
------------------------
Trade debtors subject to finance arrangements 9,053 8,319
Factor advances (6,937) (6,785)
------------------------
2,116 1,534
Debtors - including non-factored trade debtors 21,803 16,024
Cash at bank and in hand 3,748 4,183
--------------------------------------------------------------------------------
37,477 33,968
Creditors: amounts falling due within one year:
Other creditors (29,482) (24,484)
--------------------------------------------------------------------------------
Net current assets 7,995 9,484
--------------------------------------------------------------------------------
Total assets less current liabilities 10,492 11,777
--------------------------------------------------------------------------------
Net assets 10,492 11,777
================================================================================
Capital and reserves
Called up share capital 2,641 2,634
Investment in own shares (908) (908)
Capital redemption reserve 40 40
Share premium 11,821 11,794
Merger reserve 651 651
Profit and loss account (3,753) (2,434)
--------------------------------------------------------------------------------
Equity shareholders' funds 10,492 11,777
================================================================================
-9-
The Character Group plc
Preliminary Results
Consolidated Cash Flow Statement
for the year ended 31 August 2005
Note 2005 2004
£'000 £'000
--------------------------------------------------------------------------------
Cash inflow from operating activities 7 2,870 3,326
--------------------------------------------------------------------------------
Returns on investment and servicing of finance
Interest received 18 7
Interest paid (721) (460)
--------------------------------------------------------------------------------
Net cash outflow for returns on investment and
servicing of finance (703) (453)
--------------------------------------------------------------------------------
Taxation (844) (315)
--------------------------------------------------------------------------------
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (868) (510)
Sale of tangible fixed assets 25 9
--------------------------------------------------------------------------------
Net cash outflow for capital expenditure and
financial investment (843) (501)
--------------------------------------------------------------------------------
Equity dividends paid (945) (1,626)
--------------------------------------------------------------------------------
Cash inflow before financing (465) 431
--------------------------------------------------------------------------------
Issue of new shares 34 6
Purchase of own shares - (121)
Capital element of finance lease rentals (4) (5)
Expenses in relation to the conversion of loan - (60)
note
--------------------------------------------------------------------------------
Net cash inflow/(outflow) from financing 30 (180)
(Decrease)/Increase in cash in the year (435) 251
================================================================================
(Increase)/Decrease in net debt in the year 8 (431) 256
--------------------------------------------------------------------------------
-10-
The Character Group plc
Preliminary Results
Notes to the Accounts
1. Turnover
Turnover represents the amount derived from the provision of goods and services
which arise from the Group's ordinary activities, stated net of value added tax.
Analysis of turnover by geographical market by 12 months 12 months
destination to to
31 August 31 August
2005 2004
£'000 £'000
-------------------------------------------------------------------------------
United Kingdom 45,893 52,347
Rest of the world 52,898 23,699
-------------------------------------------------------------------------------
Total 98,791 76,046
-------------------------------------------------------------------------------
Analysis of turnover by division 12 months 12 months
to to
31 August 31 August
2005 2004
£'000 £'000
-------------------------------------------------------------------------------
Toys, Games and Gifts 48,669 44,989
Digital 50,122 31,057
-------------------------------------------------------------------------------
Total 98,791 76,046
-------------------------------------------------------------------------------
All the Group's activities during the 12 months ended 31 August 2005 are classed
as continuing. The Directors consider that the disclosure of further
disaggregated information would be seriously prejudicial to the commercial
interests of the Group.
2. Operating Profit
12 months to 12 months to
31 August 2005 31 August 2004
£'000 £'000
--------------------------------------------------------------------------------
Operating profit is stated after charging:
Staff costs 6,717 6,185
Principal auditors' remuneration
- Statutory audit services 48 69
- Financial reporting advisory services 16 60
- Tax compliance services 20 8
- Tax advisory services 3 8
- Further assurance services 12 9
Other auditors' remuneration
- Statutory audit services 32 28
--------------------------------------------------------------------------------
-Total fees payable to auditors 131 182
--------------------------------------------------------------------------------
Operating leases - land and buildings 349 343
--------------------------------------------------------------------------------
Research and development costs 1,143 1,971
--------------------------------------------------------------------------------
Depreciation of tangible fixed assets
- owned assets 579 718
- assets held under finance leases and HP
contracts 3 4
--------------------------------------------------------------------------------
582 722
--------------------------------------------------------------------------------
Goodwill amortisation 46 45
--------------------------------------------------------------------------------
-11-
The Character Group plc
Preliminary Results
Notes to the Accounts (continued)
2. Operating Profit (continued)
Exceptional Item
The 2005 exceptional item of £643,000 relates to relocation and restructuring
costs of Character Gifts Limited which now operates from the Group's central
facility at Oldham, Lancashire.
2004 Exceptional Item
In November 2004, World Wide Licenses Limited ('WWL') settled its dispute with
Uniden America Corporation ('Uniden') which commenced when Uniden terminated its
distribution agreement with WWL. Under the settlement, Uniden paid to WWL the
sum of US$4.5 million by two equal instalments.
WWL has incurred substantial costs since Uniden terminated its distribution
agreement. The settlement as well as the associated costs incurred have been
classified as an exceptional item.
The exceptional income and costs, as set out on the face of the consolidated
profit and loss account, are explained below.
Turnover is the sale of products which had to be sold elsewhere at lower prices.
Cost of sales are the costs of those products, as well as a write-off of
royalties paid which are unlikely to be recoverable.
Selling and distribution costs represent an additional amount of commission
payable under the terms of WWL's contract with a USA company as a consequence of
the settlement.
Administration expenses comprise the legal costs incurred.
Other operating income is the settlement from Uniden.
3. Interest
12 months to 12 months to
31 August 2005 31 August 2004
£'000 £'000
--------------------------------------------------------------------------------
Total interest receivable 18 7
Total interest payable:
On bank overdraft and similar charges (444) (296)
Convertible loan note interest - (56)
Finance leases and hire purchase contracts (1) (1)
Factor advances (276) (107)
--------------------------------------------------------------------------------
(703) (453)
--------------------------------------------------------------------------------
-12-
The Character Group plc
Preliminary Results
Notes to the Accounts (continued)
4. Taxation
12 months to 12 months to
31 August 2005 31 August 2004
£'000 £'000
--------------------------------------------------------------------------------
UK Corporation Tax
Tax on profit for the period - -
Adjustments to tax charge in respect of
previous periods - (241)
--------------------------------------------------------------------------------
Total UK corporation tax - (241)
--------------------------------------------------------------------------------
Foreign Tax
Tax on profit for the period 355 444
Adjustments to tax charge in respect of
previous periods 24 17
--------------------------------------------------------------------------------
Total foreign tax 379 461
--------------------------------------------------------------------------------
Total current tax 379 220
--------------------------------------------------------------------------------
Deferred Tax
Tax losses - (764)
Origination and reversal of timing
differences (14) 41
--------------------------------------------------------------------------------
Total deferred tax (14) (723)
--------------------------------------------------------------------------------
Tax on profit on ordinary activities 365 (503)
--------------------------------------------------------------------------------
Factors affecting tax charge for the period
Profit on ordinary activities before
taxation 161 3,224
--------------------------------------------------------------------------------
Profit on ordinary activities multiplied by
standard rate of corporation 48 967
tax in the UK of 30% (2004: 30%)
Effects of:
Expenses not deductible for tax purposes 182 301
Capital allowances less than/(in excess of)
depreciation (178) 16
Other temporary differences between taxable
and accounting profit 93 162
Lower tax rate on overseas earnings (198) (252)
Utilisation of tax losses - (1,003)
Tax losses not utilised - 253
Adjustments to tax charge in respect of
previous periods 24 (224)
Remitted earnings of overseas subsidiaries 408 -
--------------------------------------------------------------------------------
Current tax charge for the year 379 220
--------------------------------------------------------------------------------
5. Dividend
12 months to 12 months to
31 August 2005 31 August 2004
£'000 £'000
--------------------------------------------------------------------------------
On equity shares:
Interim dividend paid - 1.1 pence (2004: 1.1
pence) per share 578 726
Final dividend proposed - 0.9 pence (2004:
0.7 pence) per share 473 367
--------------------------------------------------------------------------------
Total - 2.0 pence (2004: 1.8 pence) per
share 1,051 1,093
--------------------------------------------------------------------------------
-13-
The Character Group plc
Preliminary Results
Notes to the Accounts (continued)
6. Earnings per Share
12 months to 31 August 2005 12 months to 31 August 2004
Loss Pence Profit Pence
after Weighted per after Weighted per
taxation average share taxation average share
number of number of
ordinary ordinary
shares shares
----------------------------------------------------------------------------------
Basic earnings
per share (204,000) 52,475,156 (0.39) 3,727,000 49,811,576 7.48
Impact of
share option
schemes - - - 1,190,106 (0.17)
----------------------------------------------------------------------------------
Diluted
earnings per
share (204,000) 53,740,156 (0.39) 3,727,000 51,001,682 7.31
----------------------------------------------------------------------------------
7. Reconciliation of Operating Profit to Net Cash Inflow from Operating
Activities
12 months to 12 months to
31 August 2005 31 August 2004
£'000 £'000
----------------------------------------------------------------------------------
Operating profit 864 3,677
Depreciation, impairment and amortisation 628 767
Loss/(Profit) on disposal of fixed assets 11 (7)
Decrease/(Increase) in stocks 2,417 (4,084)
Decrease/(increase) in debtors (6,347) 1,843
Increase in creditors 5,361 1,671
Exchange movement (64) (541)
----------------------------------------------------------------------------------
Net cash inflow from operating activities 2,870 3,326
----------------------------------------------------------------------------------
Reconciliation of Exceptional Profit to Net Cash Outflow from Exceptional
Activities
12 months to 12 months to
31 August 2005 31 August 2004
£'000 £'000
----------------------------------------------------------------------------------
Exceptional (loss)/profit (643) 492
Decrease/(increase) in debtor 2,504 (2,504)
(Decrease)/increase in creditors (551) 926
----------------------------------------------------------------------------------
Net cash inflow/(outflow) from operating
activities 1,310 (1,086)
----------------------------------------------------------------------------------
There was no cash flow relating to taxation in respect of the exceptional items.
8. Reconciliation of Net Cash Flow to Movement in Net Debt
12 months to 12 months to
31 August 2005 31 August 2004
£'000 £'000
----------------------------------------------------------------------------------
(Decrease)/Increase in cash in the period (435) 251
Cash inflow from movement in debt and lease
financing 4 5
----------------------------------------------------------------------------------
Movement in net debt resulting from cash
flows (431) 256
Net debt at 1 September 2004 4,179 3,923
----------------------------------------------------------------------------------
Net debt at 31 August 2005 3,748 4,179
----------------------------------------------------------------------------------
-14-
The Character Group plc
Preliminary Results
Notes to the Accounts (continued)
9. Analysis of Net Debt
Cash at bank Lease Total
and in hand finance £'000
£'000 £'000
----------------------------------------------------------------------------------
1 September 2003 3,932 (9) 3,923
Cash flow 251 5 256
----------------------------------------------------------------------------------
31 August 2004 4,183 (4) 4,179
Cash flow (435) 4 (431)
----------------------------------------------------------------------------------
31 August 2005 3,748 - 3,748
----------------------------------------------------------------------------------
10. The Extraordinary General Meeting will be held at the offices of Citigate
Dewe Rogerson Ltd, 26 Finsbury Square, London, EC2A 1DS on Tuesday, 29 November
2005.
11. The Report & Accounts will be posted to shareholders. Further
copies will be available from the Company's Office: 2nd Floor, 86-88 Coombe
Road, New Malden, Surrey, KT3 4QS or info@charactergroup.plc.uk or
character@citigatedr.co.uk and will be posted on the Company's website at
www.thecharacter.com.
12. The preliminary announcement does not constitute statutory accounts. The
annual report and accounts for the year ended 31 August 2005 have yet to be
reported on by the auditors and have not yet been filed with the registrar of
companies.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 1 day ago Centrica
- 1 day ago AJ Bell
- 1 day ago JPMorgan European Discovery Trust
- 1 day ago JPMorgan European Discovery Trust
- 1 day ago CVC Income & Growth Limited NPV GBP