Character Group PLC (AIM:CCT), a designer, developer and distributor of toys and giftware, has issued a profit warning after reporting that its sales dropped by 42% in the four months to 31 December 2022.
Ahead of Friday’s annual general meeting (AGM) of shareholders, the company said its revenue plummeted as a result of challenging markets, with the US showing a “marked drop.”
As a result, it added, sales and pre-tax profits - before highlighted items - are expected to be below market expectations.
However, Character Group said its board remains optimistic that the company will rebound strongly in the second half.
The company, which creates toys based on cartoon characters such as Peppa Pig, highlighted its “strong product portfolio of both in-house developed and distributed products" and said its "customers have shown great enthusiasm for our offering at previews. “
“With innovative and exciting new brand concepts, additions and extensions being unveiled at the London Toy Fair next week (24 - 26 January), we are very encouraged and expect similar reactions from the market to our enlarged portfolio over the coming months,” Character Group said in its pre-AGM statement.