The group achieved strong double-digit profit before tax and expects full-year results to beat current market expectations, as key brands shine
Character Group has reported first-half profit growth and, with strong sales across key brands, anticipates its full-year results to beat current market expectations.
The group delivered a robust first half 2026, with profit before tax and highlighted items rising by 15 per cent to £2.4m – double the group’s full 2025 financial year result. Although sales were lower year-on-year due to the impact of US tariffs, margins and disciplined cost control supported the improved performance.
Strong sales for brands such as Goo Jit Zu, Sticki Rolls, Peppa Pig, and Taba Squishy ranges, plus a strong first half performance in Scandinavia by its fully owned subsidiary Proxy, contributed to the enhanced results.
The group expects full-year results to come in ahead of current market expectations. Second-half momentum is expected to strengthen, supported by a strong product pipeline, sustained margin levels and disciplined cost management.
For FY2026, the group continues to expect broadly flat turnover whilst maintaining HY2026 gross margin gains, attributable to the geographical sales mix and new product additions. Character also expects the benefit of the cost management measures to continue into the second half. Rental income from and/or a potential sale of its Oldham base, Infinity House,would further reduce costs and strengthen the balance sheet and liquidity.
Subject to delivering forecast trading performance in Q4, the group’s key trading period, the board currently expects profit before tax and highlighted items for the year ending 31 August 2026 to be ahead of current market expectations.
