TIDMCCT
RNS Number : 4258W
Character Group PLC
12 December 2023
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 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018.
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")
Designers, developers and international distributor of toys,
games, and giftware
Annual results for the year ended 31 August 2023
"Results in line with market expectations"
EXECUTIVE REVIEW
KEY PERFORMANCE INDICATORS
12 months 12 months ended
ended 31 August 2022
31 August
2023
----------- ----------------
Revenue GBP122.6m GBP176.4m
----------- ----------------
Operating profit before highlighted items
* GBP5.3m GBP11.4m
----------- ----------------
Profit before tax before highlighted items
* GBP5.2m GBP11.3m
----------- ----------------
Statutory profit before tax GBP4.7m GBP11.4m
----------- ----------------
EBITDA
(earnings before interest, tax, depreciation
and amortisation), before highlighted items GBP8.9m GBP14.2m
----------- ----------------
Basic earnings per share before highlighted
items* 20.15p 45.73p
----------- ----------------
Diluted earnings per share before highlighted
items* 20.00p 44.77p
----------- ----------------
Basic earnings per share after highlighted
items 18.08p 46.37p
----------- ----------------
Diluted earnings per share after highlighted
items 17.95p 45.39p
----------- ----------------
Dividends declared per share for the year 19.0p 17.0p
----------- ----------------
Net assets GBP39.4m GBP38.9m
----------- ----------------
Net cash GBP9.6m GBP20.0m
----------- ----------------
*Excludes: Mark to market (loss)/profit
adjustments on FX derivative positions GBP(0.5m) GBP0.2m
----------- ----------------
BUSINESS HIGHLIGHTS
* The resilience of the business to bounce back with an
anticipated stronger second half performance was
greatly assisted by the overall quality and depth of
our product portfolio delivering an overall gross
margin uplift and a profit before tax and highlighted
items of GBP5.2m
* Our enlarged merchandise portfolio, features exciting
and strong new toy product releases and brand
extensions including:
* Goo Jit Zu , Chill Factor , Teenage Mutant Ninja
Turtles , Fingerlings , Lankey Box and Aphmau - other
new ranges to be launched at the 2024 London Toy Fair
* Whilst the UK and Irish domestic markets will always
remain critical to Character, the Board recognises
that opportunities for significant sales and profit
growth lie in further developing the Group's
international markets
* Character Group continues to have a strong product
offering, a robust balance sheet, with a net cash
position cash and considerable unutilised working
capital facilities in place
* Despite a challenging macro-economic environment, the
business continues to trade satisfactorily, therefore
we expect to increase sales and profitability for the
current financial year as a whole, relative to FY
2023
INTRODUCTION
In May 2023 we reported that, although the first half of the
financial year had been disappointing owing to the challenging
trading conditions, we expected the second half to deliver a
significant improvement in the Group's revenue and profitability.
We are therefore pleased to report that the anticipated stronger H2
performance, with revenues up on H1 outturn by 12%, has enabled the
Group to deliver profit before tax and highlighted items in line
with market expectations.
We acknowledge that many of the challenging conditions, such as
the reduction in consumer spending and cost of living crisis,
affected the Group's trading performance throughout the year and
continue to impact the retail environment. Whist this has truly
tested the strength of the Character proposition, we are pleased
that the overall result endorsed the approach of our
management.
The resilience of the business to bounce back with a strong
second half performance was greatly assisted by the overall quality
and depth of our product portfolio delivering an overall gross
margin uplift and a profit before tax and highlighted items of
GBP5.2m.
OPERATIONAL PERFORMANCE
Group revenue in the year ended 31 August 2023 was GBP122.6m,
against GBP176.4m in the comparable 2022 period.
The gross profit margin was 26.7% (FY 2022: 23.4%). On an
absolute basis, gross profit reported is GBP32.8m compared to
GBP41.4m for the previous year. The profit before tax and
highlighted item was GBP5.2m (2022: GBP11.3m).
A significant proportion of the Group's purchases are made in US
dollars; therefore the business is exposed to foreign currency
fluctuations. It manages the associated risk through the purchase
of forward exchange contracts and derivative financial instruments.
Under International Financial Reporting Standards (IFRS), at the
end of each reporting period the Group is required to make an
adjustment in its financial statements to incorporate a "mark to
market" valuation of such financial instruments. The "mark to
market" adjustment for this financial period results in a notional
loss of GBP0.5m. This compares to a corresponding notional profit
of GBP0.2m reported in the year to 31 August 2022. These "mark to
market" adjustments are non-cash items calculated by reference to
unpredictable and sometimes volatile currency spot rates at the
relevant balance sheet dates. To present the results on a "normal"
basis, these "mark to market" profit adjustments on FX derivative
positions are excluded, although shown separately as "highlighted
items" to demonstrate the "underlying" position.
The Group is reporting a profit before tax in the period, after
highlighted items, of GBP4.7m (FY 2022: GBP 11.4 m). Underlying
earnings before interest, tax, depreciation and amortisation were
GBP8.9m (FY 2022: GBP14.2m).
Underlying basic earnings per share before highlighted items
amounted to 20.15p (FY 2022: 45.73 p). Diluted earnings per share,
on the same basis, were 20.0p (FY 2022: 44.77p).
Basic earnings per share after highlighted items were 18.08p (FY
2022: 46.37p). Diluted earnings per share, on the same basis, were
17.95p (FY 2022: 45.39p).
FINANCIAL POSITION, WORKING CAPITAL & CASH FLOW
The Group's net assets at 31 August 2023 totalled GBP39.4m (31
August 2022: GBP38.9m).
Inventories were c.GBP 8.2m lower at the end of the financial
period at GBP18.0m (31 August 2022: GBP26.2m).
During the period, the Group generated cash from operations of
GBP0.1m (FY 2022: GBP4.2m). Net interest charges on short-term use
of working capital facilities during the year amounted to GBP 0.1 m
(FY 2022: GBP 0.2 m).
At the end of the financial year, the Group had a net cash
position of GBP9.6m, compared to GBP20.0m at the end of the 2022
comparative period.
DIVID
The Directors will be recommending to shareholders a final
dividend of 11.0p (H2 2022: 10 .0 p per share). This, together with
the interim dividend of 8 .0 p per share paid in July 2023, will
bring the total dividend for the year to 19.0p per share (FY 2022:
17 .0 p), an increase of c.12%. The total dividend is covered
approximately 1.1 times by underlying annual earnings (2022: 2.7
times).
Subject to approval by shareholders at the Annual General
Meeting ("AGM") which is scheduled to be held at 11am on Friday, 19
January 2024, the following distribution timetable will apply:
Event Date
------------- ----------------
Ex-dividend 11 January 2024
date
Record date 12 January 2024
Payment date 26 January 2024
OUR PRODUCT PORTFOLIO
The second half rebound was supported by the roll out of our
enlarged 2023 spring/summer merchandise portfolio, featuring some
exciting and strong new toy product releases and brand extensions:
Goo Jit Zu , Chill Factor , Teenage Mutant Ninja Turtles ,
Fingerlings , Lankey Box and Aphmau .
The Group continues to develop its own products which allows it
to access international markets and is not merely dependent on
distribution within our original domestic markets in the UK and
Ireland.
Once again Character's products featured in the official 2023
Toy Retailers Association Dream listing. Selected by an independent
panel of toy retailers and toy experts the annual DreamToys bills
itself as the most authoritative prediction of what are expected to
be the hottest new toys on the high street this festive season.
We are delighted to have achieved triple success from our
portfolio in the Top 20 with:
* Teenage Mutant Ninja Turtles Pizza Fire Van
* Fingerlings Monkey ASST
* MINTiD Dog-E
The Group is launching several new product ranges at the London
Toy Fair in January 2024 and the customer reactions to previews so
far have been very encouraging.
The Group's current portfolio of products and brands can be
viewed at www.character-online.com .
PROXY
The Scandinavian markets have been subjected to very similar
conditions to our domestic market in the UK and the weakness of the
Swedish Krona against the US Dollar in particular resulted in the
Swedish Krona reaching all-time lows in currency markets. Despite
this, Proxy contributed to the Group's profit that was generated in
the second half of the financial year.
The integration of Proxy into the Group has been continuing with
the alignment of processes and procedures being achieved during the
year under review.
Proxy's existing stable of hero products, Pokémon ( from
Jazwares) and the extensive range of Funko collectable Pop!
figurines, have all sold well during the year. These solid brands
are being augmented as we move into 2024 by the addition of:
* Topps Trading Cards - based on the 2024 UEFA European
Football Championship; and
* Littlest Pet Shop - a well-known collectible toy
brand in Scandinavia
This should enable Proxy to continue to increase its
turnover.
SHARE BUY-BACK PROGRAMME
In the period under review, no ordinary shares in the Company
were acquired in exercise of the authority granted at the AGM in
January 2023, which authority will expire at the 2024 AGM.
It remains part of the Group's overall strategy to continue to
repurchase the Company's own shares, when considered appropriate.
The Board believes that it is in the Company's and investors'
interests to provide shareholders who wish to realise part or all
of their investment in the Company with an opportunity to access
liquidity that is not otherwise available in the market and to
return excess capital to shareholders. Therefore, the Board will be
seeking a new authority to buy back up to 2,890,000 ordinary shares
(representing approximately 15% of the total voting rights in the
Company) at the 2024 AGM. This authority will also allow the
Company to implement buybacks either by way of an announced buyback
programme or by way of tenders for its issued shares. Details of
any intention to exercise this authority will be announced and any
tender proposal(s) will be fully communicated to shareholders if
and when the Board chooses to implement such arrangements.
TOTAL VOTING RIGHTS
As at today's date, the Company has 21,465,929 ordinary shares
in issue, excluding shares held in treasury. The Company holds
2,100,159 ordinary shares in treasury, representing approximately
9.8 per cent. of the issued share capital. These treasury shares do
not carry voting or dividend rights. Therefore, the total number of
voting rights in the Company is 19,365,770 . This figure of
19,365,770 may be used by shareholders as the denominator for the
calculations by which they may determine if they are required to
notify their interest, or change to their notified interest, in the
Company under the Financial Conduct Authority's Disclosure Guidance
and Transparency Rules.
OUR PEOPLE
The Group employs approximately 209 permanent staff across its
locations in the UK, Scandinavia and Asia (FY 2022: 216),
supplemented by additional seasonal labour at its warehouses in
Oldham, Lancashire during peak demand periods. The longevity of
staff employment with the Group, many with over 15 years' service,
demonstrates the bond and loyalty that many of them feel towards
their colleagues and the business as a whole.
On behalf of our shareholders, the Board pays tribute to and
thanks all our personnel for their dedication and hard work in
delivering these results and for their continued support.
THE BOARD
The Company yesterday received and accepted Richard King's
notice of his intention to step down as the Company's Chairman and
to retire from the Board at the commencement of the 2024 AGM and,
therefore, not to offer himself for re-election.
Richard's management and leadership skills and entrepreneurial
flair were critical to the Group's fledgling business back at the
time of its formation in 1991. He, together with the other founding
Directors, quickly forged a place and reputation for the Group in
the toy market and the respect of many of the industry doyens, of
which, in time, he became one himself. This coupled with his
ability to identify, recruit, develop, promote and incentivise raw
talent had a considerable impact on the growth trajectory and
strategy of the Group. The industry's recognition of the Group's
achievements over the years culminated in a lifetime achievement
award being bestowed in 2016 on Richard King. Although Richard will
always emphasise the team effort that was recognised by that award,
there is little doubt that his leadership and drive motivated and
directed the efforts of that team in the formative stages of the
Group's history.
Whilst we are sad to see him depart from formal ties with the
Group, Richard has accepted the Company's offer of an appointment
to the new office within the Company as an "Honorary Adviser." This
will not be a Board position. It will not give Richard the burden
of responsibility of voting on matters along with Board members and
Richard has required that it can only be accepted by him as an
unpaid role. We are pleased that Richard has accepted this role and
that we will, accordingly, be assured of being granted continued
access to his wisdom and advice.
I am sure all shareholders will join me in thanking Richard for
his energy, leadership and friendship. We wish him well and whilst
we hope that he enjoys his formal retirement we look forward to
collaborating with him in his advisory capacity over the coming
years.
The Board is delighted to announce that, after due and careful
consideration, it has unanimously resolved that when Mr King
retires during the 2024 AGM, Carmel Warren (a non-executive
Director of the Company) will, subject to being re-elected at the
2024 AGM, succeed Richard as the Company Chair. Mrs Warren was
appointed to the Board in April 2021 and is Chair of the Audit
Committee and a member of each of the Remuneration and Nominations
Committees.
THE 2024 ANNUAL GENERAL MEETING (AGM)
The Company's 2024 AGM will take place as an in-person meeting
at 11:00 a.m. on Friday, 19 January 2024. The Meeting is to be held
at the Group's head office in New Malden, Surrey.
The formal Notice of the Meeting is set out in the Audited
Annual Report and Accounts published today. Explanatory notes in
relation to the resolutions to be proposed at the AGM are set out
at the end of the notice of meeting. Attendance can be in person or
by proxy or, in the case of a company or organisation, by
appointment of a corporate representative.
The Company is providing facilities which will enable
shareholders to:
Ø view the live meeting electronically. If you wish to attend in
this fashion, please email info@charactergroup.plc.uk (stating
"Character Group: 2024 AGM virtual attendance" in the subject line
of the email) by 11:00 a.m. on Wednesday, 17 January 2024 to ensure
the issue to you of a Microsoft Teams invitation. Invitations
enabling remote attendance will be issued by 6:00 p.m. on 18
January 2024. Please note, however, that joining remotely will not
constitute attendance at the meeting for the purposes of being
counted in the quorum for the AGM and that virtual attendees will
not be able to vote at the AGM. Shareholders wishing to attend the
meeting virtually in this fashion are, therefore, requested to
exercise their votes by submitting their forms of proxy appointing
the Chair of the AGM as their proxy, in accordance with the
instructions set out in the notes to the Notice of Meeting, by no
later than 11:00 a.m. on 17 January 2024. If the Chair of the AGM
is appointed as proxy to a shareholder, she will vote in accordance
with any instructions given to her. If the Chair of the meeting is
given discretion as to how to vote, she will vote in favour of each
of the resolutions to be proposed at the AGM; and
Ø submit written questions prior to the AGM. Any shareholder
that wishes to put questions to the Board is invited to submit
those questions in writing in advance of the meeting by sending
them to info@charactergroup.plc.uk (stating "Character Group: 2024
AGM Questions" in the subject line of the email) by 11:00 a.m. on
17 January 2024. The Board will seek to respond to questions which
are put forward in this way either in advance of the AGM, during
the AGM and/or by publishing written responses on the Company's
website after the AGM, together with results of voting. Although it
will be possible to take questions during the course of the meeting
itself, time may not permit responses to all of the questions to be
given at the meeting and, in those circumstances, written responses
will be published on the Company's website after the meeting.
OUTLOOK
The Group has a strong product offering for its all markets
going into Christmas 2023 and beyond, which is gaining support and
recognition from our UK customers and global distributors. Despite
this we have to recognise that trading conditions remain tough,
with reduced consumer spending and changed priorities being an
enduring effect of the cost-of-living crisis. Whilst we have
adapted our product range to target lower price points to respond
to consumer financial constraints, Christmas demand has been later
than usual and is clearly very sensitive to discounting.
Whilst the UK and Irish domestic markets will always remain
critical to Character, the Board recognises that opportunities for
significant sales and profit growth lie in further developing the
Group's international markets. We are focussing on this area of our
business and we are pleased to report at this early stage that,
following the r ecent previews and presentations of our 2024 ranges
and new additions at the Global Toy Fair in Los Angeles to our
retail and international distribution customers, our 2024 product
offering has been very well received. Therefore, with International
sales forecast to grow in the second half of the current financial
year, this bodes well for the Group's strategic focus in this
area.
In summary, Character Group continues to have a strong product
offering, a robust balance sheet, with a net cash position cash and
considerable unutilised working capital facilities in place.
Despite a challenging macro-economic environment, the business
continues to trade satisfactorily, therefore we expect to increase
sales and profitability for the current financial year as a whole,
relative to FY 2023.
We look forward to updating shareholders on the outcome of the
2023 Christmas trading period at the time of its forthcoming
AGM.
THE CHARACTER GROUP PLC
11 December 2023
GROUP INCOME STATEMENT
for the year ended 31 August 2023
12 months 12 months
ended ended
31 August 12 months 12 months 31 August 12 months 12 months
2023 ended ended 2022 ended ended
Result 31 August 31 August Result 31 August 31 August
before 2023 2023 before 2022 2022
highlighted highlighted Statutory highlighted highlighted Statutory
items items Result items items Result
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ----- ------------- -------------- ----------- ------------- -------------- -----------
Revenue 122,591 - 122,591 176,402 - 176,402
Cost of sales (89,805) - (89,805) (135,036) - (135,036)
--------------------- ----- ------------- -------------- ----------- ------------- -------------- -----------
Gross profit 32,786 - 32,786 41,366 - 41,366
Other income 473 - 473 502 - 502
Selling and
distribution
expenses (8,534) - (8,534) (8,260) - (8,260)
Administrative
expenses (19,425) - (19,425) (22,173) - (22,173)
Operating profit 5,300 - 5,300 11,435 - 11,435
Finance income 173 - 173 51 - 51
Finance costs (269) - (269) (207) - (207)
Changes in fair
value
of financial
instruments - (510) (510) - 159 159
Profit before tax 5,204 (510) 4,694 11,279 159 11,438
Income tax (1,305) 110 (1,195) (2,018) (30) (2,048)
--------------------- ----- ------------- -------------- ----------- ------------- -------------- -----------
Profit for the
period 3,899 (400) 3,499 9,261 129 9,390
--------------------- ----- ------------- -------------- ----------- ------------- -------------- -----------
Attributable to
owners
of the parent
Profit for the
period 3,499 9,390
--------------------- ----- ------------- -------------- ----------- ------------- -------------- -----------
Earnings per share
(pence) 3
--------------------- ----- ------------- -------------- ----------- ------------- -------------- -----------
Basic earnings per
share 18.08p 46.37p
--------------------- ----- ------------- -------------- ----------- ------------- -------------- -----------
Diluted earnings per
share 17.95p 45.39p
--------------------- ----- ------------- -------------- ----------- ------------- -------------- -----------
GROUP STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 August 2023
Total Total
2023 2022
GBP000's GBP000's
------------------------------------------------------- ---------- ----------
Profit for the year after tax 3,499 9,390
------------------------------------------------------- ---------- ----------
Items that may be reclassified subsequently to
profit and loss
Exchange differences on translation of foreign
operations 421 1,070
Income tax on exchange differences (301) 21
------------------------------------------------------- ---------- ----------
Other comprehensive income for the year, net of
income tax 120 1,091
------------------------------------------------------- ---------- ----------
Total comprehensive income for the year attributable
to equity holders of the parent 3,619 10.,481
------------------------------------------------------- ---------- ----------
GROUP BALANCE SHEET
As at 31 August 2023
2023 2022
GBP000's GBP000's
------------------------------------------------ ---------- ----------
Non - current assets
Intangible assets 2,338 1,963
Investment property 1,388 1,453
Property, plant and equipment 10,009 9,307
Right of use assets 747 1,216
Deferred tax assets 525 542
------------------------------------------------ ---------- ----------
15,007 14,481
------------------------------------------------ ---------- ----------
Current assets
Inventories 17,955 26,173
Trade and other receivables 26,696 24,728
Current income tax receivable 717 576
Derivative financial instruments 57 412
Cash and cash equivalents 10,894 26,646
------------------------------------------------ ---------- ----------
56,319 78,535
------------------------------------------------ ---------- ----------
Current liabilities
Short-term borrowings (1,284) (6,627)
Trade and other payables (26,945) (42,151)
Lease Liabilities (486) (577)
Income tax (2,117) (3,345)
Derivative financial instruments (498) (343)
(31,330) (53,043)
------------------------------------------------ ---------- ----------
Net current assets 24,989 25,492
------------------------------------------------ ---------- ----------
Non-current liabilities
Deferred tax (367) (427)
Lease liabilities (264) (648)
------------------------------------------------ ---------- ----------
(631) (1,075)
------------------------------------------------ ---------- ----------
Net assets 39,365 38,898
------------------------------------------------ ---------- ----------
Equity
Called up share capital 1,074 1,074
Shares held in treasury (1,762) (1,813)
Capital redemption reserve 1,883 1,883
Share-based payment reserve 4,161 3,957
Share premium account 17,751 17,566
Merger reserve 651 651
Translation reserve 971 1,950
Profit and loss account 14,636 13,630
------------------------------------------------ ---------- ----------
Total equity attributable to equity holders of
the parent 39,365 38,898
------------------------------------------------ ---------- ----------
GROUP CASH FLOW
for the year ended 31 August 2023
Group
-------------------------------------------
2023 2022
GBP000's GBP000's
------------------------------------------ ------------- -------------
Cash flow from operating activities
Profit before taxation for the year
after highlighted items 4,694 11,438
------------------------------------------- ------------- -------------
Adjustments for:
Depreciation of property, plant
and equipment 791 556
Depreciation of investment property 65 66
Depreciation of right of use assets 609 632
Amortisation of intangible assets 2,175 1,509
(Profit) on disposal of property,
plant and equipment (52) (3)
Net interest expense 96 156
Financial instruments fair value
adjustments 510 (159)
Share-based payments 204 208
Decrease/(increase) in inventories 8,218 (15,280)
(Increase)/decrease in trade and
other receivables (1,968) 1,291
(Decrease)/increase in trade and
other creditors (15,206) 3,761
------------------------------------------- ------------- -------------
Cash generated from operations 136 4,175
------------------------------------------- ------------- -------------
Finance income 173 51
Finance expense (269) (207)
Income tax paid (3,014) (401)
------------------------------------------- ------------- -------------
Net cash (outflow)/inflow from operating
activities (2,974) 3,618
------------------------------------------- ------------- -------------
Cash flows from investing activities
Payments for intangible assets (2,550) (1,666)
Payments for property, plant and
equipment (1,611) (1,845)
Proceeds from disposal of property,
plant and equipment 164 225
Net cash outflow from investing
activities (3,997) (3,286)
------------------------------------------- ------------- -------------
Cash flows from financing activities
Payment of lease liabilities (671) (538)
Proceeds from issue of share capital 236 299
Purchase of own shares for cancellation - (13,640)
Dividends paid (3,486) (3,280)
Net cash used in financing activities (3,921) (17,159)
------------------------------------------- ------------- -------------
Net decrease in cash and cash equivalents (10,892) (16,827)
Cash, cash equivalents and borrowings
at the beginning of the year 20,019 35,920
Effects of exchange rate movements 483 926
------------------------------------------- ------------- -------------
Cash, cash equivalents and borrowings
at the end of the year 9,610 20,019
------------------------------------------- ------------- -------------
Cash, cash equivalents and borrowings consist of:
Cash and cash equivalents 10,894 26,646
Total borrowings (1,284) (6,627)
--------------------------------------- ------- -------
Cash, cash equivalents and borrowings
at the end of the year 9,610 20,019
--------------------------------------- ------- -------
GROUP STATEMENT OF CHANGES IN EQUITY
for the year ended 31 August 2023
Shares Profit
Called held Capital Share Share-based and
up share in redemption premium Merger payment Translation loss
capital treasury reserve account reserve reserve reserve account Total
GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's
------------- --------- --------- ----------- --------- --------- ------------ ------------- --------- ---------
The Group
At 1
September
2021 1,181 (1,870) 1,776 17,324 651 3,749 767 21,274 44,852
-------------- --------- --------- ----------- --------- --------- ------------ ------------- --------- ---------
Profit for
the year
after tax 9,390 9,390
============== ========= ========= =========== ========= ========= ============ ============= ========= =========
Net exchange
differences
on
translation
of foreign
operations - - - - - - 1,183 (92) 1,091
Total other comprehensive income/(expense) 1,183 (92) 1,091
------------------------------------------------------------------------------------- ------------- --------- ---------
Total comprehensive income for the year 1,183 9,298 10,481
------------------------------------------------------------------------------------- ------------- --------- ---------
Share-based
payment - - - - - 208 - - 208
Current tax
credit
relating to
exercised
share
options - - - - - - - 18 18
Deferred tax
debit
relating to
share
options - - - - - - - (40) (40)
Dividends - - - - - - - (3,280) (3,280)
Shares Issued - 57 - 242 - - - - 299
Tender offer
fees - - - - - - - (142) (142)
Shares
cancelled on
tender offer (107) - 107 - - - - (13,498) (13,498)
At 31 August
2022 1,074 (1,813) 1,883 17,566 651 3,957 1,950 13,630 38,898
-------------- --------- --------- ----------- --------- --------- ------------ ------------- --------- ---------
Profit for
the year
after tax - - - - - - - 3,499 3,499
============== ========= ========= =========== ========= ========= ============ ============= ========= =========
Net exchange
differences
on
translation
of foreign
operations - - - - - - (979) 1,099 120
Total other comprehensive income/(expense) (979) 1,099 120
------------------------------------------------------------------------------------- ------------- --------- ---------
Total comprehensive income for the year (979) 4,598 3,619
------------------------------------------------------------------------------------- ------------- --------- ---------
Share-based
payment - - - - - 204 - - 204
Deferred tax
debit
relating to
share
options - - - - - - - (106) (106)
Dividends - - - - - - - (3,486) (3,486)
Shares Issued - 51 - 185 - - - - 236
At 31 August
2023 1,074 (1,762) 1,883 17,751 651 4,161 971 14,636 39,365
-------------- --------- --------- ----------- --------- --------- ------------ ------------- --------- ---------
THE CHARACTER GROUP PLC
NOTES TO THE STATEMENT
1. GEOGRAPHICAL DESTINATION OF REVENUE
12 months 12 months
to to
31 August 31 August
2023 2022
GBP000's GBP000's
------------------- ----------- -----------
United Kingdom 61,116 84,605
Rest of the world 61,475 91,797
------------------- ----------- -----------
Total Group 122,591 176,402
------------------- ----------- -----------
2. EXPENSES BY NATURE - Group
12 months 12 months
to to
31 August 31 August
2023 2022
GBP000's GBP000's
-------------------------------------------------------- ----------- -----------
Operating profit is stated after charging/(crediting):
Cost of inventories recognised as an expense
(included in cost of sales) 77,100 117,586
======================================================== =========== ===========
Product development costs incurred 2,609 1,957
Product development costs capitalised (2,550) (1,666)
Amortisation of capitalised product development
costs 2,155 1,489
======================================================== =========== ===========
Product development costs expensed to
cost of sales 2,214 1,780
======================================================== =========== ===========
Debit/(credit) financial instruments fair
value adjustments 510 (159)
Inventories provisions 944 634
Exchange losses 1,513 2,406
Staff costs 11,358 15,171
Depreciation of tangible fixed assets
- owned assets 791 556
Depreciation of investment property 65 66
Profit on disposal of property, plant
and equipment (52) (3)
Depreciation - right of use assets 609 632
Auditor's remuneration 154 160
-------------------------------------------------------- ----------- -----------
3. Earnings per share - group
The earnings used in the calculation of basic and diluted
earnings per share are as follows:
Year ended Year ended
31 August 31 August
2023 2022
Profit after Profit after
taxation taxation
GBP GBP
------------------------------------------------ -------------- --------------
Profit attributable to equity shareholders
of the parent 3,499,000 9,390,000
------------------------------------------------ -------------- --------------
Financial instruments fair value adjustments
net of tax 400,000 (129,000)
------------------------------------------------ -------------- --------------
Profit for adjusted earnings per share 3,899,000 9,261,000
------------------------------------------------ -------------- --------------
Weighted average number of ordinary shares
in issue during the year - basic 19,348,548 20,251,532
Weighted average number of dilutive potential
ordinary shares 148,497 436,409
------------------------------------------------ -------------- --------------
Weighted average number of ordinary shares
for diluted earnings per share 19,497,045 20,687,941
------------------------------------------------ -------------- --------------
Earnings per share before highlighted
items
Basic earnings per share (pence) 20.15p 45.73p
------------------------------------------------ -------------- --------------
Diluted earnings per share (pence) 20.00p 44.77p
------------------------------------------------ -------------- --------------
Earnings per share after highlighted items
Basic earnings per share (pence) 18.08p 46.37p
------------------------------------------------ -------------- --------------
Diluted earnings per share (pence) 17.95p 45.39p
------------------------------------------------ -------------- --------------
4. DIVIDEND - GROUP
12 months 12 months
to to
31 August 31 August
2023 2022
GBP000's GBP000's
------------------------------------------ ----------- -----------
On equity shares:
Final dividend paid for the year ended
31 August 2022
10.0 pence (2021: 9.0 pence) per share 1,937 1,929
Interim dividend paid for the year ended
31 August 2023
8.0 pence (2022: 7.0 pence) per share 1,549 1,351
------------------------------------------ ----------- -----------
18.0 pence (2022: 16.0 pence) per share 3,486 3,280
------------------------------------------ ----------- -----------
The Directors recommend a final dividend of 11.00 pence per
share (2022: 10.00 pence) amounting to GBP2,130,235 (2022:
GBP1,936,577).
If approved by shareholders, the final dividend will be paid on
26 January 2024 to shareholders on the register on 12 January
2024.
5. ANNUAL REPORT AND ACCOUNTS
The financial information set out in the announcement does not
constitute the Company's statutory accounts for the years ended 31
August 2023 and 2022. The financial information for the year ended
31 August 2022 is derived from the statutory accounts for that year
which have been delivered to the Registrar of Companies. The
financial information for the year ended 31 August 2023 is derived
from the statutory accounts for that year and those accounts have
today been published and may be viewed and/or downloaded from the
Company's website at www.thecharacter.com . The auditors reported
on each of those accounts: their report was unqualified, did not
draw attention to any matters by way of emphasis and did not
contain a statement under s498(2) or (3) of the Companies Act 2006.
The audited statutory accounts for the year ended 31 August 2023
will be delivered to the Registrar of Companies following the
Company's Annual General Meeting.
6. ANNUAL GENERAL MEETING
The Annual General Meeting will be held at 2nd Floor, 86-88
Coombe Road, New Malden, Surrey KT3 4QS on Friday, 19 January 2024
at 11.00am.
7. ELECTRONIC COMMUNICATIONS
The full Financial Statements for the year ended 31 August 2023,
incorporating the Notice of Meeting convening the Company's 2024
Annual General Meeting, is available for viewing on and download
from the Group's website: www.character.com .
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) or Mobile: +44 (0) 7956 278522
(KS)
Panmure Gordon (Nominated Adviser and Joint Broker)
Atholl Tweedie, Investment Banking
Rupert Dearden, Corporate Broking
Tel: +44 (0) 20 7886 2500
Allenby Capital Limited (Joint Broker)
Nick Athanas, Corporate Finance
Amrit Nahal / Tony Quirke, 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
The Character Group plc
FTSE sector : leisure goods:
FTSE AIM All-share: symbol: CCT
Market cap : GBP55m
Email: info@charactergroup.plc.uk
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
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END
FR TTBTTMTABMIJ
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December 12, 2023 02:01 ET (07:01 GMT)
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