The Group reports a Â£5million profit despite pandemic challenges and anticipates growth in the coming year
The Character Group has published its results year ending August 31st 2020. Despite the challenges due to the pandemic, the Group traded satisfactorily reporting a profit before tax for the full year of Â£5.0m on turnover of Â£105m.
In the financial statement issued today it was acknowledged the strong performance that was originally forecast at this time last year was not fully realised due to the lockdowns and restrictions that subsequently impacted the global economy since March 2020. Despite the challenges faced during the Covid-19 pandemic, the Group traded satisfactorily.
It was also noted that the performance of the Group since the end of the first lock-down in the UK in early July 2020 and in the lead up to this Christmas has been tremendous and, as a consequence, the anticipated strengthening and growth of the groupâ€™s business was not lost but deferred and will be realised in the current financial year.
Having maintained operations throughout the year to preserve the business-critical functions of the Group and to fulfil demand for its brands and products over the lockdown period and beyond the business is in a strong position to move on across all the markets in which it operates.
On the topic of Brexit, The Groupâ€™s 2018 acquisition of Proxy has ensured the uninterrupted continuity of the Groupâ€™s UK operations and its cross-border business with the EU. The mainland UK business will be unaffected by the changes following Brexit, as the imports of its inventories are from the Far East.
Fresh collections for the trading period included exciting new distributor lines, as well as some key brands developed in house. Among the highlights are Gotta Go Flamingo, which joined the Little Live Pets range, Squeakee the Balloon Dog and Laser Battle Hunters. Also strong were the Peppa Pig collection which saw a new eco-friendly wooden option, PokÃ©mon and Heroes of Goo Jitzu. The launch of the in-house developed InstaGlam into the Shimmer â€˜nâ€™ Sparkle collection also had a beneficial effect on the companyâ€™s Arts and Craft category.
The strength of the portfolio was also seen in the awards and top toys lists of the year. Three of Characterâ€™s hero toys for 2020 were selected for the DreamToys Dream Dozen; Peppa Pigâ€™s Shopping Centre Playset, Laser Battle Hunters and the PokÃ©mon Carry Case Playset; while five further items were names in the supplementary lists.
Broadcast reviews have also been strong with KickerBall and Gottaâ€™ Go Flamingo selected as hottest toys on sale, as well as other television appearances for Squeakee the Balloon Dog and Laser Battle Hunters.
The statement ended with an outlook for the next financial year: â€œWe believe that the product portfolio is one of the strongest and best performing offerings that the Group has gone to market within recent years.
â€œThe resilience of Characterâ€™s performance has arisen from the ability of many of its customers to â€œeffectively service demand by migrating sales from bricks and mortar outlets to online shops and marketplaces, when needed. Characterâ€™s success in preserving profitability in troubled times and positioning itself to take advantage of the current opportunities has been down to the managementâ€™s ability to read and respond to the Groupâ€™s fast-evolving market trends.
â€œThe Group has developed an exciting and innovative line of new products, many of which are already in our current catalogue and others are in the pipeline for launch in the New Year.
â€œTrading in the lead up to Christmas 2020, including during the second UK lockdown, has been significantly ahead of the previous yearâ€™s sales and the prospects for the current financial year ending August 2021 are looking extremely positive.â€