REG - Character Group PLC - Trading Update

CharacterAnnouncement

04/10/2022 07:00

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RNS Number : 6404B  Character Group PLC  04 October 2022

 

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 4 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.

 

 

 

 

THE CHARACTER GROUP PLC

("Character", the "Company" or the "Group")

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

 

Trading Update

 

 

London: Tuesday, 4 October 2022:  The Board of Character provides the
following update to shareholders on the Group's trading and outlook ahead of
the publication of its results for the financial year ended 31 August 2022,
which are scheduled to be released in December 2022.

 

As anticipated in the Company's half yearly report published in May 2022, the
Group's sales momentum continued through the remainder of the financial year
ended 31 August 2022. Despite the influence of adverse factors, such as
continuing high freight rates and the increasing strength of the US Dollar,
the Board expects the Group's underlying profit before tax and highlighted
items for the year ended 31 August 2022 to be broadly in line with current
market expectations.*

 

The Company has now entered its new financial year and we are focused on the
lead up to the all-important Christmas trading period.  The industry previews
of our new product ranges and introductions for the 2023 season have been well
received by our customers and prospective customers alike.  However, given
current macro-economic headwinds, including the weakness of Sterling and the
expected curtailment of consumer spending in the lead up to Christmas due to
concerns over cost-of-living increases, the Group's trading conditions remain
challenging.  Against this economic environment and although only one
complete month into the 2023 financial year, the Board considers that the
trading performance for the current financial year is unlikely to match the
expected outcome for the year ended 31 August 2022.

 

The Group however continues to trade profitably, has a strong balance sheet,
is debt-free with a substantial cash balance and considerable unutilised
working capital facilities.  The Board is, accordingly, committed to
maintaining its progressive dividend policy.

 

The Company will update the market further on the current year's trading at
the time of the publication of the results for the year ended 31 August 2022
in December 2022.

 

 

 

Note:

* Current market consensus compiled by the Company for the year ended 31
August 2022 is an underlying profit before tax of c.£11.275m.

 

 

The Character Group plc

FTSE sector:  leisure goods:

FTSE AIM All-share: symbol: CCT

Market cap: £95m

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)

CHARACTER GROUP PLC CCT Stock | London Stock Exchange
(https://www.londonstockexchange.com/stock/CCT/character-group-plc/company-page)

 

 

 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 (mailto:fiona@tooleystreet.com)

 

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