First-half revenues jump at Character; current trading 'encouraging'

Character Group said the enduring popularity of brands such as Peppa Pig, along with increased impulse buying, had boosted first half revenues and left it well positioned ahead of core winter trading.

Revenues for the six months to 28 February came in at £58.8m, up on the £50.5m recorded over the same period a year earlier, while operating profits rose from £4.6m to £5.9m. Pre-tax profits were £5.6m against £4.5m a year earlier.

The company said: “Character has delivered a strong first-half performance and the directors remain optimistic about the progress the business will make over this calendar year and the important 2019/20 winter year.”

Character also said that its pre-school Peppa Pig range had seen sales grow both domestically and overseas, while Fireman Sam and Ben and Holly toys had “performed with resilience”.

But it added: “Impulse buying at the right price point is a growing trend, and Character has successfully tapped into this category with innovative new trend lines being sourced and introduced regularly.” Current popular brands include Treasure X figures and Bubbleezz squishies.

UK sales increased while international sales outside the US “remained steady”. However, sales in America continued to be challenging, the group said, following the collapse last year of retailer Toys R Us.

Looking forward, Character sounded a note of caution: “The political landscape is providing an unwelcome distraction for many businesses and the performance of the UK economy generally. The macroeconomic factors, including currency volatility and the potential implications of Brexit, will continue to influence market behaviour.”

But it added: “Overall trading remains encouraging and in line with management expectations and market consensus for the finance year.”