Character Group PLC Trading Update (2865T)
11 October 2017 - 6:00PM
UK Regulatory
TIDMCCT
RNS Number : 2865T
Character Group PLC
11 October 2017
The Character Group plc
("Group" or the "Company")
designers, developers and international distributors of toys,
games and giftware
Trading update
LONDON: Wednesday, 11 October 2017: The Board of The Character
Group plc (AIM: symbol: CCT.L), provides the following trading
update.
As reported in the Trading statement issued by the Company on 19
September 2017, conditions in the Group's markets remain
challenging. The Board notes, however, that the portfolio of brands
serviced from our UK base continue to trade well, with domestic
sales holding up at levels comparable to the same period last year
and against the year to date trends of the toy industry as a
whole.
Our international and "FOB" sales have been adversely effected
by a combination of several factors, not least of which is one of
the world's largest toy retailers entering into Chapter 11
bankruptcy protection in the US and Canada, which has had
subsequent knock-on repercussions in every market where it trades
(including the UK). Our international customers are also taking a
very conservative approach to purchases.
At this early stage of the Group's new financial year the Board
consider that, based on the latest sales and market data available
to them, the Group's performance for the year ending 31 August 2018
is now expected to be significantly below current market estimates.
Nevertheless, the Directors believe this to be a temporary downturn
and that the Group anticipates returning to its previous growth
pattern during the second half of the 2018 calendar year, and this
ultimately is expected to be reflected in the financial performance
for the year ending 31 August 2019.
The single biggest factor underpinning our optimism is that
during 2018 we shall be introducing exceptionally exciting new
products, many developed in-house which, together with the current
product portfolio will, the Directors believe, give the Group its
strongest ever product line up.
Additionally, even in these tough trading conditions, we expect
our cash flow to remain positive, our reserves to grow, and our
Christmas stocks to remain under control.
Furthermore, we are committed to maintaining our progressive
dividend policy and continuing our share buy-back programme, as and
when considered appropriate.
2017 financial results
As reported in September, the business has had a solid finish to
the 2017 financial year. Accordingly, the Directors anticipate
that, Group underlying pre-tax profits for the year ended 31 August
2017 are projected to meet current market estimates. The Group's
balance sheet remains strong.
The Character Group will be updating the market further when the
Company announces its preliminary results during the week
commencing 4 December 2017.
ENQUIRIES
The Character Group plc
Jon Diver, Joint Managing Director
Kiran Shah, Joint Managing Director and Group
Finance Director
Office: +44 (0) 208 329 3377
Mobile: +44 (0) 7831 802219 (JD)
Mobile: +44 (0) 7956 278522 (KS)
Email: info@charactergroup.plc.uk
FTSE sector: leisure: FTSE AIM All-share: symbol:
CCT.L: Market cap: GBP93m
Copies of this statement can be viewed at www.thecharacter.com.
Product ranges can be viewed at www.character-online.co.uk.
Panmure Gordon (Nominated Adviser and Joint Broker)
Andrew Godber, Investment Banking
Tom Salvesen, Corporate Broking
Tel: +44 (0) 20 7886 2500
Allenby Capital Limited (Joint Broker)
Nick Athanas
Katrina Perez
Tel: +44 (0) 20 3328 5656
TooleyStreet Communications Limited (Investor
and media relations)
Fiona Tooley
Tel: +44 (0) 7785 703523
Email:fiona@tooleystreet.com
Market Abuse Regulation (MAR)
The information contained within this announcement may contain
inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014. Upon the publication of this announcement via
the Regulatory Information Service, this inside information is now
considered to be in the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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