Trading Update

RNS Number : 1884J

Character Group PLC

25 March 2010

 



Date: Thursday 25 March 2010

Immediate Release

The Character Group plc

("Character, Group or Company")

designers, developers and international distributors of toys, games and gifts

Trading Update

Retirement of Non-Executive Directors

Notice of Results

·    Trading update

Further to our announcement made on 4 March 2010, we are now able to comment further on trading for the six months ended 28 February 2010.

Following the difficult Christmas trading period in 2008, the Group had taken a conservative approach to Christmas 2009.

In the run up to last Christmas, however, most of our brands performed at least up to our expectations and some like Go Go Pets (now renamed ZhuZhu Pets) vastly outperformed our original estimates and sold out so quickly that we could not keep pace with the demand.

Our brands have continued to sell well at retail since Christmas with trading in January and February 2010 unusually strong with Group sales approximately 70% higher than the comparative two-month period in 2009.

Overall, solid trading in the first half of our current financial year has enabled the Group to maintain a strong balance sheet position with a good cash flow and no pressure on banking facilities following the share buy backs undertaken in the first half.

Outlook

Looking ahead, we expect our portfolio to continue to perform well. In particular, our new Doctor Whorange, an iconic brand in its own right, will be on sale to coincide with the airing of the new BBC series next month. In addition, the exceptional on-going consumer demand for ZhuZhu Pets and strong sales at retail from many of our other brands such as HM Armed Forces, Peppa Pig, Postman Pat, Fireman Sam, Scooby Doo and Let's Cook gives the Board confidence that the Group will continue to perform well.

The Directors believe that Character will see a further significant growth in revenue and profit for both the 2010 financial and calendar years and consequently, these will exceed current market expectations. 

Half Year Dividend

As already indicated, the Board believes that the Company is now in a position to return to its progressive dividend policy. Given Character's continuing strong cash position, and UK income tax increases coming into force on 6 April 2010, the Board announced on 4 March 2010 that the Company would be paying an interim dividend of 2.0 pence per ordinary share to shareholders on the Register as at 12 March 2010.   That interim dividend is being paid tomorrow (26 March), ahead of the Group's half-year results announcement next month.

·     Main Board Retirements

The Company announces the following changes to the Board effective from tomorrow (March 26 2010):

Alan MacKay -Independent Non-Executive

Alan McKay joined The Character Group Board in 2006 following 3i's acquisition of a major shareholding in the Company. In July 2009, this 3i holding was acquired by the Company and certain Directors of the Group, details of which are contained in an announcement issued at that time. Whilst Alan was happy to remain on the Board, he has tendered his resignation and will step down as a Non-Executive Director of The Character Group to allow him to pursue a senior executive role within a new venture.

Ian Fenn-Senior Independent Non-Executive

Ian Fenn (aged 67) has decided to retire and will also be stepping down from the Board tomorrow. Ian joined The Character Group Board in May 1995 and, through his extensive experience in corporate finance gained over a long career in merchant banking and stockbroking, played a key role during the flotation of our business. He has enriched Character with his participation over the years and has never flinched, even in the more difficult times. He has served on all the Board Committees and we have all learned much from his professional approach to his responsibilities. His wise counsel will be missed by all of us.

On behalf of shareholders and employees, the Directors would like to thank Alan and Ian for their contribution and wish them well for the future.

The Board is committed to maintaining an appropriate balance between Executive and Non-Executive Directors. It currently consists of four Executive and two Non-Executive Directors. This is currently considered by the Board to be an appropriate balance for a Company of Character 's  size and structure. This position will continue to be reviewed on a regular  basis.

Updated details of Members of the Committees can be found on the Group's website.

·     Notice of Results

The Company also confirms that it intends to publish half-year results on Tuesday 27 April 2010 via the Regulatory News Service (RNS) and its investor website. The full financial statements for the six months ended 28 February 2010 will be available for viewing and download on the Group's website (www.thecharacter.com) after this date.

Enquiries:
Richard King, Chairman	Fiona Tooley	Russell Cook
Kiran Shah, Group Finance Director & Joint MD	Keith Gabriel	Carl Holmes
The Character Group plc	Citigate Dewe Rogerson	Charles Stanley Securities
Mobile: [phone] (RK)	Mobile: [phone] (FT)	(Nominated Adviser)
Mobile: [phone] (KS)	Tel: [phone]	Tel: [phone]
Tel: [phone]
www.thecharacter.com
Ticker: AIM: CCT

 

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