Character Group PLC
17 December 2007
Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Monday, 17 December 2007 IMMEDIATE RELEASE
The Character Group plc
Current Trading Update
The Board of The Character Group plc ('Group' or 'Company') provides the
following update to shareholders in relation to trading in the final run up to
Christmas.
The Directors have noted that retail sales for Christmas 2007 started late and
that the market has not recovered from this belated seasonal start. The current
difficult trading environment has resulted in toy retail consumer sales being
slower than anticipated and consequently, lower than budgeted levels of stock
replenishment orders have been received by the Company from its customers.
Against the backdrop of these unusually difficult trading conditions, coupled
with the lost sales of Bindeez products and the Group's recent product recall
already reported (viewed by the Board as a one off impact), the Company is
taking a more cautious view on revenue outcome for the first half of the current
financial year. The Directors therefore expect that revenues for the four months
to 31 December 2007 will be down by approximately 18% on the same period last
year.
As a major UK supplier, the Group is not immune to the effects of faltering
consumer confidence and this view seems to be supported by the heavy discounting
occurring on the high street. Whilst the trading situation is disappointing to
report, overall the Board continues to be encouraged by the growth in its
brands.
Currently, the Group's 2008 product range is being previewed by the major
retailers. To date, there has been a very positive reaction to the new product
portfolio and therefore the Directors expect revenue growth in the second half
of the current financial year ending 31 August 2008 to be ahead of the same
period in 2007.
Enquiries:
Fiona Tooley, Director
Kiran Shah, Group Finance Director & Joint MD Keith Gabriel, Senior Account Manager
The Character Group plc Citigate Dewe Rogerson
Tel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370
Mobile: +44 (0) 7956 278522 (KS) Mobile: +44 (0) 7785 703523 (FMT)
www.thecharacter.com
www.character-online.co.uk
Richard Thompson
Philip Davies
Charles Stanley Securities
Nominated Adviser
Tel: +44 (0) 20 7149 6000
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