UK's Character Group half-year profit rises 15% despite revenue drop

Character

12/05/2026 07:12

Overview

UK toy distributor's half-year revenue fell 9% yr/yr, impacted by US tariffs

Profit before tax and highlighted items rose 15%, with underlying EPS up 29%

Company raised interim dividend by 33% and continued share buyback programme

Outlook

Company expects flat turnover for the 2026 financial year

Character Group expects to maintain improved HY26 gross margin for the rest of the year

Company sees FY26 profit before tax and highlighted items significantly above market expectations

Result Drivers

US TARIFFS - Co said lower sales were due to the substantial impact of US tariffs

MARGIN IMPROVEMENT - Gross profit margin rose to 31.7% from 29.3% a year earlier, helping offset lower revenue

COST MANAGEMENT - Reduced overheads and ongoing cost management measures contributed to higher profit

Company press release: ID:nRSL8826Da

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
GBP 48.30 mln
H1 EPS
GBP 0.11
H1 Adjusted EBIT
GBP 2.35 mln
H1 Adjusted Pretax Profit
GBP 2.40 mln
H1 EBITDA
GBP 4.20 mln
H1 Pretax Profit
GBP 2.30 mln


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the toys & children's products peer group is "buy."

Wall Street's median 12-month price target for Character Group PLC is GBp270.00, about 9.8% above its May 11 closing price of GBp246.00

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)