REG - Character Group PLC - Trading Update

CharacterAnnouncement

21/01/2022 07:05

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RNS Number : 1635Z  Character Group PLC  21 January 2022

 

 

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
pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310)
("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: Friday, 21 January 2022

 

 

 

THE CHARACTER GROUP PLC

Designers, developers and international distributor of toys, games and
giftware

(the "Group" or the "Company")

 

Trading Update

 

The Character Group (AIM: CCT) will be holding its Annual General Meeting
today at 11am.  Ahead of this, the Group provides the following update:

 

The Group maintained a steady performance in the lead up to and through the
Christmas 2021 period, notwithstanding global logistical challenges which
continue to impact the export of product from the Far East to UK and our
global markets.  Whilst the consequent escalation in freight rates from the
Far East has significantly increased costs, the Group has endeavoured, where
possible, to raise its prices in the UK and Scandinavia to mitigate the impact
on margins.  Turnover increased by c. 23% in the four-month period ended 31
December 2021 compared to the previous year (in part benefiting from delayed
shipments in August 2021).  The bulk of this growth  was attributable to
sales to the USA and Scandinavia, whilst turnover in the UK and the rest of
the world remained largely flat.

 

Our sales levels are a reflection of the strong portfolio of brands and
products that we have at this time.  In the UK, retailers have reported good
sell through of our products and this bodes well for the rest of the financial
year.  Our teams are excited to be presenting to our customers at the London
Toy Fair at Olympia next week (25 - 27 January) and showcasing the 2022 range
and introducing new products, brands and refreshed items.

 

Assuming no further worsening of the trading conditions, including adverse
COVID developments impacting normal commercial activity, the Board believes
that the Group will achieve current market expectations* for the year ending
31 August 2022.

 

Subject to the share buyback authority being renewed at the Annual General
Meeting later today, the Company will be proceeding with the tender offer
proposed last year and full details of the size, pricing and exact timing of
the offer are expected to be announced next week.

 

 

Note:

*Current market consensus compiled by the Company for the year ending 31
August 2022, prior to the release of this announcement, is an underlying
profit before tax averaging c. £11.275m

 

 

 The Character Group plc

 FTSE sector:  leisure goods:

 FTSE AIM All-share: symbol: CCT

 Market cap: £133m

 Email:  info@charactergroup.plc.uk (mailto:info@charactergroup.plc.uk)

 Group website:  www.thecharacter.com (http://www.thecharacter.com)
 Product ranges can also be viewed at  www.character-online.co.uk
 (http://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 / 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

 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)

 

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