Character Group PLC Trading Update (5356M)
January 22 2021 - 1:00AM
UK Regulatory
TIDMCCT
RNS Number : 5356M
Character Group PLC
22 January 2021
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.
Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
LONDON : Friday, 22 January 2021
THE CHARACTER GROUP PLC
("Character", "Group" or "Company")
Designers, developers and international distributor of toys,
games and giftware
Trading Update
Ahead of the Group's Annual General Meeting being held today (22
January at 11.00am.) Character provides the following trading
update:
The Christmas 2020 trading period was buoyant for the UK toy
sector generally, with the UK market reportedly up by c.5%
year-on-year. The Group's UK sales for the four months to 31
December 2020 were up c.25% over the same period in 2019.
International sales in the period were also significantly higher
than in the same period last year, with sales to the USA featuring
particularly well. As a consequence, overall Group sales were
boosted, with an aggregate increase of over 30% against the
comparable period in 2019.
All our major brands and hero lines have sold exceptionally
well. This, coupled with the judicious approach to purchases made
for the UK market for the commencement of this calendar year, has
resulted in the Group's inventory at 31 December 2020 being at its
lowest level for over a decade.
As announced on 7 January 2021, the Group has sold the freehold
to its former over-spill warehousing facility in Oldham, Vernon
Works, for GBP3.5 million in cash (ex VAT), with completion
scheduled for the end of this month. The sale at this price will
result in an exceptional profit of approximately GBP2 million.
Despite the extended lockdowns and logistical difficulties that
have arisen from container shortages, delays with shipping from the
Far East, congestion at UK ports and the fall-out from Brexit,
underlying profitability for the six months ending 28 February 2021
will be significantly higher than for the same period last year.
Looking beyond this, we expect that the second half year of this
financial year to be challenging due to the continuance of the
lockdowns, restrictions and the continuing effect that the
logistical difficulties are having on freight rates from the Far
East (at times quadrupling since September 2020). Assuming no
further worsening of these conditions, the Board believes the Group
will achieve current market expectations for the year ending 31
August 2021.
The Board looks forward to updating shareholders at the time of
the publication of its interim results at the end of April
2021.
Note:
Traditionally, the Board enjoys the opportunity to meet with all
shareholders at its AGM. However, due to Covid-19 guidelines and as
previously communicated to investors, the Company will be
conducting today's Meeting (22 January at 11.00am.), as a closed
meeting with the minimum necessary quorum of shareholders present
or by proxy required under these circumstances. Results of voting
at the AGM will be announced later today.
The Character Group plc
FTSE sector : leisure goods:
FTSE AIM All-share: symbol: CCT
Market cap : GBP91m
Email: info@charactergroup.plc.uk
Group website: www.thecharacter.com
Product ranges can also be viewed at www.character-online.co.uk
Enquiries to:
The Character Group plc
Jon Diver, Joint Managing Director
Kiran Shah, Joint Managing Director & Group Finance Director
Office: +44 (0) 208 329 3377
Mobile: +44 (0) 7831 802219 (JD)
Mobile: +44 (0) 7956 278522 (KS)
Panmure Gordon
(Nominated Adviser and Joint Broker)
Atholl Tweedie, Investment Banking
Charles Leigh-Pemberton, Corporate Broking
Rupert Dearden, Corporate Broking
Tel: +44 (0) 20 7886 2500
Allenby Capital Limited (Joint Broker)
Nick Athanas, Corporate Finance
Amrit Nahal, Sales & Corporate Broking
Tel: +44 (0) 20 3328 5656
TooleyStreet Communications Limited
(Investor and media relations)
Fiona Tooley
Tel: +44 (0) 7785 703523
Email: fiona@tooleystreet.com
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