Character finish financial year “in strong position”

by TnP Staff
Published: 29 November 2018, 16:20
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Peppa Pig, Little Live Pets and Teletubbies “remain in demand”

Character Options has released its preliminary results for year ended 31 August 2018, with the board saying the company has “comfortably achieved market expectations”.

Boasting revenue of £106.2m with an operating profit of £11.7m, the company’s gross margin came in at 34.2 per cent with a pre-tax profit of £11.6m. Net assets were £31.8m with net cash of £15.6m.

This compares to the same period in 2017 which saw revenue of £115.3m with operating profit of £13.6m while gross margin came in at 32.6 per cent with pre-tax profit of £13.4m. Net assets in 2017 were £26.8m with net cash of £11.5m.

Speaking about their results, Character said: “Overall, Group revenue in the year ended 31 August 2018 was £106.2m, against £115.3m in the comparable 2017 period. The revenue generated in the year from UK sales increased to £87.1m (FY2017: £86.7m – 75% of sales), representing 82% of Group total revenue, whilst revenue relating to our international sales was lower at £19.1m being 18% of total sales (FY2017: £28.6m – 25% of sales). This shift in sales mix has resulted in the gross profit margin increasing from 32.6% in 2017 to 34.2% in the year being reported. On an absolute basis, despite the reduction of approximately 8% in the Group’s turnover, gross profit was £36.3m compared to £37.5m for the previous year.”

Character Options pointed out: “Key product ranges, such as Peppa Pig, Little Live Pets, Teletubbies and Stretch, remained in demand. Additions made to these ranges, to supplement and refresh these lines, have been well received by our customers and the consumer.”

It added: “Our strong and diverse, core portfolio has been complimented, and our sales efforts well supported by our ‘craze’ lines, such as Soft ’n Slo Squishies, Cakepop Cuties and Cra.Z.Slimy.The Group will be introducing new products and range extensions to its portfolio in the coming months, which will further strengthen the Group’s offering for the year ahead.”

Addressing the October acquisition of a 55% shareholding in PROXY, Character said that since the acquisitions: “PROXY has secured the exclusive distribution rights for the Nordic region of the FUNKO range including its Fortnite figurines. PROXY is expected to be earnings enhancing in first full year.”

Complimenting their 186 staff in the report, Character’s Board of Directors said: “Once again, the Board takes this opportunity to thank everyone in the business for their continuous hard work, enthusiasm and commitment. The loyalty, spirit and work ethic demonstrated by the teams through to relationships with our customers and suppliers underpins the strength of the Group’s model and provides us with the dynamics that assure us of the ability to deliver performance-led results.”