REG - Character Group PLC - Preliminary unaudited results - year ended 31.8.21
15/12/2021 07:00
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RNS Number : 6689V Character Group PLC 15 December 2021
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("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.
LONDON: Wednesday, 15 December 2021
THE CHARACTER GROUP PLC
("Character," "Group" or "Company")
Designers, developers and international distributor of toys, games and
giftware
PRELIMINARY UNAUDITED RESULTS FOR THE YEAR ENDED 31 AUGUST 2021
KEY PERFORMANCE INDICATORS 12 months ended 12 months ended
31 August 2021 31 August 2020
Revenue £140.0m £108.9m
Underlying Operating profit £11.2m £5.4m
Underlying pre-tax profit * £11.1m £5.0m
EBITDA £14.0m £8.2m
Statutory profit before tax £15.3m £3.9m
Basic earnings per share before highlighted items * 40.92p 18.12p
Diluted earnings per share before highlighted items * 40.37p 18.08p
Basic earnings per share after highlighted items 56.86p 14.76p
Diluted earnings per share after highlighted items 56.09p 14.73p
Dividends per share for the year 15.0p 5.0p
Net assets £44.9m £34.0m
Net cash £35.9m £19.1m
*Excludes:
Mark to market profit (loss) adjustments on FX derivative positions Profit on £2.1m £(2.0m)
sale of property
£2.0m -
Gain on buy back on loan
- £0.9m
"The buoyant demand for the Group's products has been sustained throughout the
year and has continued to rise in recent months despite the global supply-side
and logistics challenges, which have been relentless for many businesses."
"Moving into 2022, our line-up of merchandise not only continues to feature
some of the most sought-after toy products but will be further bolstered by
the launch of a number of exciting new concepts, additions and brand
extensions that the Group will unveil at the London Toy Fair in January 2022
and through to Spring of next year."
"Both domestic and international demand for our products remains strong and
the reception received so far by the new introductions planned for our ranges
in the coming months has been a very pleasing endorsement of our team's
designs, plans and execution."
"The Board believes that margins will be under pressure due to high freight
rates and increased materials and labour costs, however, it is satisfied that
the Group remains on target to meet current market expectations."
ENQUIRIES:
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) 7956 278522 (KS)
Mobile: +44 (0) 7831 802219 (JD)
Email: info@charactergroup.plc.uk (mailto:info@charactergroup.plc.uk)
FTSE sector: leisure:
FTSE AIM All-share: symbol: CCT.L
Market cap: £125m
Product ranges can be viewed at www.character-online.com
(http://www.character-online.com) .
Panmure Gordon
(Nominated Adviser and Joint Broker)
Atholl Tweedie, Investment Banking
Charles Leigh-Pemberton, 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 (mailto:fiona@tooleystreet.com)
Panmure Gordon
(Nominated Adviser and Joint Broker)
Atholl Tweedie, Investment Banking
Charles Leigh-Pemberton, 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 (mailto:fiona@tooleystreet.com)
Note:
A copy of this statement can also be found at www.thecharacter.com
(http://www.thecharacter.com)
THE CHARACTER GROUP PLC
Designers, developers and international distributor of toys, games and
giftware
PRELIMINARY UNAUDITED RESULTS FOR THE YEAR ENDED 31 AUGUST 2021
INTRODUCTION
The buoyant demand for the Group's products has been sustained throughout the
year and has continued to rise in recent months despite the global supply-side
and logistics challenges, which have been relentless for many businesses.
Against this backdrop, we acknowledge the loyalty and dedication of all our
staff in the UK, Europe and the Far East. They have been tested once again
and, exhibiting the superhero qualities that many of our toys products depict,
came through for the business and delivered a very creditable performance.
The turnover increased by 29% to £140.0m (2020: £108.9m) and underlying
operating profit more than doubled to £11.2m (2020: £5.4m).
The Group has continued to be cash generative, delivering £27.3m of cash from
operations (2020: £19.6m) and finishing the year with a net cash balance of
£35.9m (2020: £19.1m).
The Board presents the Group's results for the year ended 31 August 2021:
OPERATIONAL PERFORMANCE
Group revenue in the year ended 31 August 2021 was £140.0m, against a
turnover of £108.9m in the comparable 2020 period. Of particular note was
the continued growth in sales of the Group's products in the USA.
The gross profit margin for the Group was 28.9% (FY 2020: 27.7%) and, on an
absolute basis, the gross profit was £40.4m compared to £30.2m for the
previous year.
A considerable proportion of the Group's purchases are made in US dollars; the
Group is therefore exposed to foreign currency fluctuations and 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 profit of £2.1m.
This compares to a corresponding notional loss of £2.0m reported in the year
to 31 August 2020. 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 but shown separately as "highlighted items" to
demonstrate the "underlying" profitability.
During the year, the Group also made a pre-tax gain of £2.0m on the sale of
one of its freehold properties (Vernon Mill), which is shown as a highlighted
item.
The Group is reporting a profit before tax in the year under review, after the
highlighted items, of £15.3m (FY 2020: £3.9m). Underlying earnings before
interest, tax, depreciation, amortisation and gain on property disposal
(EBITDA) were £14.0m (FY 2020: £8.2m).
Underlying basic earnings per share before highlighted items amounted to
40.92p (FY 2020: 18.12p). Underlying diluted earnings per share, on the same
basis, were 40.37p, (FY 2020: 18.08p).
Basic earnings per share after highlighted items were 56.86p (FY 2020:
14.76p). Diluted earnings per share, on the same basis, were 56.09p, (FY
2020: 14.73p).
FINANCIAL POSITION, WORKING CAPITAL & CASH FLOW
The Group's net assets as at 31 August 2021 totalled £44.9m (FY 2020:
£34.0m) and, notwithstanding the payment of total dividends of £1.9m, the
capital base of the Company has been strengthened considerably from last
year's level.
Inventories were c.£3.9m lower at the end of the financial period at £10.9m
(FY 2020 £14.7m), reflecting the delay in shipments from the Far East due to
the logistical challenges which all importers have faced.
During the financial year, the Group generated cash from operations of £27.3m
(FY 2020: £19.6m). Interest charges on short-term use of working capital
facilities during the year amounted to £0.1m (FY 2020: £0.34m).
At the end of the financial year, after making payments for dividends, the
Group had a net cash position of £35.9m, compared to £19.1m at the end of
the 2020 comparative period.
DIVIDEND
The Board remains committed to a progressive dividend policy as we believe
this reflects our confidence in the Company's ability to grow profits and
generate and develop further sustainable cash flow.
The Board will be recommending to shareholders a final dividend of 9.0p (2020
H2: 3.0p per share), an increase of 200% when compared to the final dividend
last year. Together with the interim dividend of 6.0p per share paid in July
2021, this will, if approved by shareholders, bring the total dividend for the
year to 15.0p per share (FY 2020: 5.0p). The 2021 total dividend is covered
approximately 2.7 times by underlying annual earnings (2020: 3.6 times).
Subject to approval by shareholders at the Annual General Meeting at 11am on
Friday, 21 January 2022, the following timetable will apply for this dividend
:
Event Date
Ex-dividend date 13 January 2022
Record date 14 January 2022
Payment date 28 January 2022
OUR PRODUCT PORTFOLIO
Our portfolio of products has performed extremely well throughout the year,
living up to the Board's expectations, and is selling through well in the lead
up to Christmas 2021.
Products from the Group's portfolio featured in the Toy Retailers
Association's prestigious "DreamToys" list announced in early November 2021,
which reflects the most sought-after toy categories in the UK for Christmas
2021. Although the supply chain issues that have plagued importers
throughout the year have thwarted us from realising the portfolio's full sales
potential, the careful and skilfully managed operation of the business has
enabled optimum sales to be realised.
Moving into 2022, our line-up of merchandise not only continues to feature
some of the most sought-after toy products but will be further bolstered by
the launch of a number of exciting new concepts, additions, and brand
extensions that the Group will unveil at the London Toy Fair in January 2022
and through to Spring of next year.
In July 2021, the Group acquired the business and assets of the Chill
Factor branded range of drink chilling bottles and slushy makers for a cash
consideration of USD 1.31m. The first quarter of the new calendar year will
witness the Group's full relaunch of its Chill Factor branded range,
including products produced under a new licence signed by the Group for the
Coca Cola and Fanta brands.
The Group has maintained its focus on further developing its own, in-house
originated brands and reducing reliance on capturing distribution rights in
its home territories for third-party products. We continue to work on
developing our pipeline of new projects, some as far ahead as two years before
an introduction to our range, and these feed into our portfolio at
predetermined stages in the annual toy selling cycle and renew and enlarge our
offering. The growth potential of these projects is considerable,
initially from sales following release in our domestic markets and then to the
subsequent development of sales in international markets. This change of
mix, favouring in-house developed products to distribution of third-party
products, has been gradual but is gathering pace. This has drawn on the
depth and range of skills that we have developed and our successes in
strategic planning and implementation of new brand and product launches in our
domestic and international markets. The Board considers that this approach
will continue to mitigate the impact of retirements from our product portfolio
as licence agreements expire and are not renewed and product distribution
agreements come to an end.
Our full current portfolio of products and brands can be viewed at
www.character-online.com (http://www.character-online.com) .
PROXY
In the year under review, the Group's Scandinavian subsidiaries, which trade
under the "Proxy" name in Denmark, Sweden and Norway, saw strong demand for
their top brands, although they were not immune from the supply chain issues
that affected the Group generally. The mix of its domestic distribution
business and significant FOB business from the Far East combined to produce a
near break-even position for Proxy for the year as a whole.
This result was achieved following senior management changes made in the early
part of the year and through the determined and exceptional efforts of all
members of the Proxy team and the Board offers its thanks and appreciation to
each of them.
SHARE BUY-BACK PROGRAMME
During FY 2021, the Company effected no buybacks of ordinary shares in the
Company. It remains part of the Group's overall strategy to continue to
repurchase the Company's own shares, when considered appropriate. However,
certain provisions of the UK Market Abuse Regulation have frustrated this
objective in recent years.
The Company currently has authority to buy-back up to 3,200,000 ordinary
shares but this has not been utilised since it was granted at the Annual
General Meeting ("AGM") in January 2021 and this authority will expire at the
2022 AGM.
The Board believes that it is in the Company's and all investors' interests to
provide shareholders who wish to realise part or all 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.
Accordingly, the Board will be seeking to renew its authority to buy back up
to 3,200,000 ordinary shares (constituting approximately 15% of the total
voting rights in the Company) at the forthcoming 2022 AGM.
Subject to the authority being renewed at the 2022 AGM in January 2022, the
Company will be proceeding with the tender offer proposed earlier in the year
and full details of the size, pricing and exact timing of the offer will be
announced following the AGM.
TOTAL VOTING RIGHTS
As at today's date, the Company has 23,608,501 ordinary shares in issue,
excluding shares held in treasury. The Company holds 2,226,220 ordinary
shares in treasury, representing approximately 10.4 per cent. of the issued
share capital (excluding these treasury shares), which do not carry voting or
dividend rights. Therefore, the total number of voting rights in the Company
is 21,382,281. This figure of 21,382,281 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 a total of 209 people across its locations in the UK,
Scandinavia and Asia (FY 2020: 209).
Regular readers of this report will be aware of the high esteem in which the
workforce throughout the Group is held by the Board. Just when it was
thought that there were no challenges that had not been thrown at our teams
that they had not already encountered and overcome, a new and potentially
paralysing fragility was exposed in the global supply chain on which our
business is dependent. The communications and seamless synchronicity
between, and the agile reactions of, those teams to the testing logistical
challenges that they faced in the year under review armed them with the
ability to deliver what the Board considers to have been a terrific outcome
for the Group in the circumstances.
Our reported results have been achieved through the determined and exceptional
efforts of all of our teams across the world and the Board offers its thanks
and appreciation to each of them.
THE BOARD
The composition of and the succession planning for the Board, particularly the
non-executive directors, has been a matter of careful focus for the Directors
over the past year. The Board agreed early in the year to look to appoint two
new non-executive directors to the Board. Independence, diversity and
experience have all been significant selection criteria in the process.
The Company welcomed the appointment of Carmel Warren to the Board as an
independent, non-executive director in April and, subsequently Carmel has been
appointed to all of the Board's committees and to the Chair of the Audit
Committee. As a consequence, the composition of each of those committees is,
in the Board's view, is now made up of wholly independent, non-executive
directors. In addition, David Harris has stepped down as the Chair of the
Remuneration Committee and Clive Crouch has been appointed as his successor.
Richard King has stepped down as a member of the Audit Committee, the
Remuneration Committee and the Nominations Committee. The Board wishes to
acknowledge and thank him for his commitment and service on these Committees
over the years and also for his continued leadership and support as its
Chairman. Richard remains a member and Chair of the Corporate Governance and
Risk Management Committee, as the role of the Chair is pivotal to the
articulation and implementation of good corporate governance within the
Company and it is appropriate that the Board's Chairman also chairs this
Committee.
The search for another non-executive director continues and the Board is
determined to complete this search and appoint as soon as practicable in early
2022.
OUTLOOK
Both domestic and international demand for our products remains strong and the
reception received so far by the new introductions planned for our ranges in
the coming months has been a very pleasing endorsement of our team's designs,
plans and execution.
Whilst it is not possible to predict when the global logistics issues will be
fully resolved, the Group is well placed to satisfy anticipated demand in its
markets.
The Board believes that margins will be under pressure due to high freight
rates and increased materials and labour costs, however, it is satisfied that
the Group remains on target to meet current market expectations.
The Board looks forward to further updating shareholders on the outcome of the
2021 Christmas trading period and prospects at the time of the forthcoming AGM
on 21 January 2022.
E
GROUP INCOME STATEMENT-UNAUDITED
for the year ended 31 August 2021
Note 12 months ended 12 months ended 12 months ended 12 months ended 12 months ended 12 months ended
31 August 31 August 2021 31 August 2021 31 August 31 August 31 August 2020
2021 *highlighted items Statutory 2020 2020 Statutory
Result before £'000 Result Result before *highlighted items *highlighted items Result
*highlighted items £'000 £'000 £'000 £'000
£'000
Revenue 1 139,997 - 139,997 108,867 - 108,867
Cost of sales (99,553) - (99,553) (78,704) - (78,704)
Gross profit 40,444 - 40,444 30,163 - 30,163
Other income 332 - 332 501 - 501
Selling and distribution expenses (8,248) - (8,248) (7,355) - (7,355)
Administrative expenses (21,301) - (21,301) (17,949) - (17,949)
Profit on sale of property - 2,016 2,016 - - -
Operating profit 2 11,227 2,016 13,243 5,360 - 5,360
Finance income 36 - 36 47 - 47
Finance costs (113) - (113) (388) - (388)
Changes in fair value of financial instruments - 2,128 2,128 - (1,980) (1,980)
Gain on buy back on loan - - - - 886 886
Profit before tax 11,150 4,144 15,294 5,019 (1,094) 3,925
Income tax (2,353) (737) (3,090) (1,312) 376 (936)
Profit for the period 8,797 3,407 12,204 3,707 (718) 2,989
Attributable to:
Owners of the parent 12,156 3,154
Non-controlling interest 48 (165)
Profit for the period 12,204 2,989
Earnings per share before highlighted items (pence)
Basic earnings per share 3 40.92p 18.12p
Diluted earnings per share 3 40.37p 18.08p
Earnings per share after highlighted items (pence)
Basic earnings per share 3 56.86p 14.76p
Diluted earnings per share 3 56.09p 14.73p
Dividend per share (pence) 4 9.00p 15.00p
EBITDA 14,036 8,158
(earnings before interest, tax, depreciation, amortisation and gain on
property disposal)
GROUP STATEMENT OF COMPREHENSIVE INCOME - UNAUDITED
for the year ended 31 August 2021
Total Total
2021 2020
£000's £000's
Profit for the year after tax 12,204 2,989
Items that may be reclassified subsequently to profit and loss
Exchange differences on translation of foreign operations - (5)
Income tax on exchange differences 7 (93)
Other comprehensive income/(expense) for the year, net of income tax 7 (98)
Total comprehensive income for the year 12,211 2,891
Total comprehensive income for the year attributable to:
Equity holders of the parent 12,163 3,056
Non-controlling interest 48 (165)
12,211 2,891
GROUP BALANCE SHEET - UNAUDITED
as at 31 August 2021
2021 2020
£000's £000's
Non - current assets
Intangible assets 1,806 891
Investment property 1,519 1,584
Property, plant and equipment 8,230 3,226
Right of use assets 1,454 2,069
Deferred tax assets 243 704
13,252 8,474
Current assets
Inventories 10,893 14,736
Trade and other receivables 26,019 23,013
Current income tax receivable 766 244
Derivative financial instruments 75 75
Cash and cash equivalents 35,920 22,292
73,673 60,360
Current liabilities
Short-term borrowings - (3,168)
Trade and other payables (38,390) (26,432)
Lease Liabilities (557) (550)
Income tax (1,610) (777)
Derivative financial instruments (165) (2,293)
(40,722) (33,220)
Net current assets 32,951 27,140
Non-current liabilities
Deferred tax (405) (21)
Lease liabilities (946) (1,547)
(1,351) (1,568)
Net assets 44,852 34,046
Equity
Called up share capital 1,181 1,181
Shares held in treasury (1,870) (1,870)
Capital redemption reserve 1,776 1,776
Share-based payment reserve 3,749 3,369
Share premium account 17,324 17,324
Merger reserve 651 651
Translation reserve 767 727
Profit and loss account 21,274 11,231
Attributable to equity holders of the parent 44,852 34,389
Non-controlling interest - (343)
Total equity 44,852 34,046
GROUP CASH FLOW STATEMENT - UNAUDITED
for the year ended 31 August 2021
2021 2020
£000's £000's
Cash flow from operating activities 15,294 3,925
Profit before taxation for the year after highlighted items
Adjustments for:
Depreciation of property, plant and equipment 567 544
Depreciation of investment property 65 65
Depreciation of right of use assets 556 412
Amortisation of intangible assets 1,621 1,783
Gain on buyback of loan - (886)
Write off plant and equipment 132 -
(Profit) on disposal of property, plant and equipment (2,028) (9)
Net interest expense 77 341
Financial instruments fair value adjustments (2,128) 1,980
Share-based payments 380 189
Decrease in inventories 3,853 1,669
(Increase) / Decrease in trade and other receivables (3,006) 11,960
Increase / (Decrease) in trade and other creditors 11,957 (2,334)
Cash generated from operations 27,340 19,639
Finance income 36 47
Finance expense (113) (388)
Income tax paid (1,788) (1,728)
Net cash inflow from operating activities 25,475 17,570
Cash flows from investing activities
Purchase of business (945) -
Payments for intangible assets (1,615) (1,771)
Payments for property, plant and equipment (7,128) (528)
Proceeds from disposal of property, plant and equipment 3,458 12
Net cash outflow from investing activities (6,230) (2,287)
Cash flows from financing activities
Reduction of borrowings - 1,408
Buyback of loan - (521)
Payment of lease liabilities (606) (378)
Proceeds from issue of share capital - 205
Purchase of own shares for cancellation - (163)
Dividends paid (1,924) (3,207)
Net cash used in financing activities (2,530) (2,656)
Net increase / (decrease) in cash and cash equivalents 16,715 12,627
Cash, cash equivalents and borrowings at the beginning of the year 19,124 6,504
Effects of exchange rate movements 81 (7)
Cash, cash equivalents and borrowings at the end of the year 35,920 19,124
Cash, cash equivalents and borrowings consist of:
Cash and cash equivalents 35,920 22,292
Total borrowings - (3,168)
Cash, cash equivalents and borrowings at the end of the year 35,920 19,124
GROUP STATEMENT OF CHANGES IN EQUITY - UNAUDITED
for the year ended 31 August 2021
Called up share capital Shares held in treasury Capital Share premium account Merger reserve Share-based payment reserve Profit Total
£000's £000's redemption £000's £000's £000's Translation reserve and loss account Non-controlling interest £000's
reserve £000's £000's £000's
£000's
The Group
At 1 September 2019 1,183 (1,912) 1,774 17,161 651 3,180 1,223 11,293 (416) 34,137
Profit/(loss) for the year after tax 3,154 (165) 2,989
Other comprehensive (expense)/income
Net exchange differences on translation of foreign operations - - - - - - (496) 398 - (98)
Total other comprehensive expense (496) 398 - (98)
Total comprehensive income for the year (496) 3,552 (165) 2,891
Transactions with owners, recorded directly in equity
Change in non-controlling interest - - - - - - - (238) 238 -
Share-based payment - - - - - 189 - - - 189
Deferred tax debit relating to share options - - - - - - - (6) - (6)
Dividends - - - - - - - (3,207) - (3,207)
Shares issued - 42 - 163 - - - - - 205
Shares cancelled (2) - 2 - - - - (163) - (163)
At 31 August 2020 1,181 (1,870) 1,776 17,324 651 3,369 727 11,231 (343) 34,046
Profit for the year after tax 12,156 48 12,204
Other comprehensive (expense)/income
Net exchange differences on translation of foreign operations - - - - - - 40 (28) (5) 7
Total other comprehensive expense 40 (28) (5) 7
Total comprehensive income for the year 40 12,128 43 12,211
Transactions with owners, recorded directly in equity
Change in non-controlling interest - - - - - - - (300) 300 -
Share-based payment - - - - - 380 - - - 380
Deferred tax credit relating to share options - - - - - - - 139 - 139
Dividends - - - - - - - (1,924) - (1,924)
Shares issued - - - - - - - - - -
Shares cancelled - - - - - - - - - -
At 31 August 2021 1,181 (1,870) 1,776 17,324 651 3,749 767 21,274 - 44,852
NOTES TO THE UNAUDITED PRELIMINARY STATEMENT
1. GEOGRAPHICAL DESTINATION OF REVENUE
12 months ended 12 months ended
31 August 31 August
2021 2020
£000's £000's
United Kingdom 79,509 69,078
Rest of the world 60,488 39,789
Total Group 139,997 108,867
2. EXPENSES BY NATURE - GROUP
12 months ended 12 months ended
31 August 31 August
2021 2020
£000's £000's
Operating profit is stated after charging/(crediting):
Cost of inventories recognised as an expense (included in cost of sales) 88,729 71,281
Product development costs incurred 1,736 1,863
Product development costs capitalised (1,615) (1,771)
Amortisation of capitalised product development costs 1,619 1,783
Product development costs expensed to cost of sales 1,740 1,875
(Credit)/debit financial instruments fair value adjustments (2,218) 1,980
Inventories (credit) (1,022) (97)
Exchange losses 130 119
Staff costs 13,958 10,542
Depreciation of tangible fixed assets
- owned assets 567 544
Depreciation of investment property 65 65
(Profit) on disposal of property, plant and equipment (2,028) (9)
Depreciation - right of use assets 556 412
Operating leases - land and buildings - 233
Auditor's remuneration 141 141
3. EARNINGS PER SHARE - GROUP
The earnings used in the calculation of basic and diluted earnings per share
are as follows:
12 months ended 12 months ended
31 August 31 August
2021 2020
£ £
Profit attributable to equity shareholders of the parent 12,156,000 3,154,000
Financial instruments fair value adjustments net of tax (1,724,000) 1,604,000
Gain on buyback of loan - (886,000)
Gain on sale of property net of tax (1,683,000) -
Profit for adjusted earnings per share 8,749,000 3,872,000
Weighted average number of ordinary shares in issue during the year - basic 21,379,781 21,367,710
Weighted average number of dilutive potential ordinary shares 291,974 50,590
Weighted average number of ordinary shares for diluted earnings per share 21,671,755 21,418,300
Earnings per share before highlighted items 40.92p 18.12p
Basic earnings per share (pence)
Diluted earnings per share (pence) 40.37p 18.08p
Earnings per share after highlighted items 56.86p 14.76p
Basic earnings per share (pence)
Diluted earnings per share (pence) 56.09p 14.73p
4. DIVIDEND - GROUP
12 months ended 12 months ended
31 August 31 August
2021 2020
£000's £000's
On equity shares:
Final dividend paid for the year ended 31 August 2020
3.00 pence (2019: 13.00 pence) per share 642 2,777
Interim dividend paid for the year ended 31 August 2021
6.00 pence (2020: 2.00 pence) per share 1,282 430
9.00 pence (2020: 15.00 pence) per share 1,924 3,207
The Directors recommend a final dividend of 9.00 pence per share (2020: 3.00
pence) amounting to £1,924,000 (2020: £642,000).
If approved by shareholders, the final dividend will be paid on 28 January
2022 to shareholders on the register on 14 January 2022.
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 2021 and 2020.
The financial information for the year ended 31 August 2020 is derived from
the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on 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 audit of the statutory accounts for the year ended 31 August
2021 is not yet complete. These accounts will be finalised on the basis of
the financial information presented by the Directors in this preliminary
announcement and 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 2(nd) Floor,86-88 Coombe Road, New
Malden, Surrey KT3 4QS on Friday, 21 January 2022 at 11.00am.
7. ELECTRONIC COMMUNICATIONS
The full Financial Statements for the year ended 31 August 2021, together with
a Circular letter incorporating the Notice of Meeting convening the Company's
2022 Annual General Meeting, will be available for viewing and download on the
Group's website, www.character.com (http://www.character.com) by 23 December
2021.
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See all newsREG - Character Group PLC - Transaction in Own Shares and Total Voting Rights
AnnouncementREG - Character Group PLC - Transaction in Own Shares and Total Voting Rights
AnnouncementREG - Character Group PLC - Transaction in Own Shares and Total Voting Rights
AnnouncementREG - Character Group PLC - Transaction in Own Shares and Total Voting Rights
AnnouncementREG - Character Group PLC - Transaction in Own Shares and Total Voting Rights
Announcement