LONDON, September 14, 2016 /PRNewswire/ --
The Character Group plc (symbol: FTSE AiM All-share: symbol:
CCT.L), designers, developers and international distributor of
toys, games and giftware provides the following update on
trading.
Trading update
The Directors are pleased to report that solid progress
continues to be made and the Board expects to deliver results for
the year ended 31 August 2016 that
will meet market expectations.
The Group's portfolio continues to be derived from
own-developed, in-house ranges, including those produced 'under
licence' and others sourced through exclusive distribution
agreements. All our major product ranges have performed well.
We are very fortunate to continue to have strength and depth
across our brands, coupled with a high number of long established
customer and supplier relationships.
A recent extension to our portfolio is the iconic Stretch
Armstrong ; this range, produced under a master license
agreement from Hasbro, is marketed and sold on a global
basis. Sales in both the UK and international markets have
started extremely well and we are currently developing a wider
range of interesting products within the brand.
Another exciting new product range launched recently is
Twozies (a girls' collectable item). Early results are
very promising, and the Board is confident that Twozies will
become one of our Top10 brands in 2017.
A significant proportion of the Company's purchases are made in
U$ dollars and, therefore, the increasing strength of the US$
against £Sterling continues to put pressure on Group profitability.
Nevertheless, the Board remains of the view that it can
continue to mitigate the resulting increased costs. This is
being achieved through the expansion of our international business,
which generates revenue and profit in US$'s, and by our continuing
active programme of monitoring all costs and rationalising
operations where possible through increased efficiencies.
The Balance sheet continues to strengthen, working capital has
been tightly managed, there is no long-term debt and the business
continues to generate cash.
Against this backdrop, the Directors remain confident that the
Group shall continue to deliver progressive returns which will
further enhance shareholder value. The Board looks forward to
updating shareholders further when preliminary results are
announced in early December.
Copies of this statement can be viewed at
http://www.thecharacter.com
Product ranges can be viewed at
http://www.character-online.co.uk
Product names in italics represent copyright or registered
trademarks.