Character Group PLC (AIM:CCT) has reported improving profitability in recent months despite broadly flat turnover compared to last year.
Profitability has improved in the first four months of the financial year since August, the toymaker announced on Friday ahead of its annual general meeting.
“Overall, Character Group has a strong portfolio of products to offer the market, a robust balance sheet, with a net cash position and substantial unutilised working capital facilities in place,” the company said. “The business continues to trade satisfactorily.”
Character saw pre-tax earnings fall by over a third to £8.9 million in the year to August, alongside a similar drop in revenue to £122.6 million.
Upcoming toy fairs in London and Nuremberg will offer the company a chance to display product offerings, Character said, which will be “crucial” to achieving forecasted sales growth in the second half of the year.
“Previews with domestic and international customers have already taken place and these have confirmed that the portfolio is strong,” the group added.
“Therefore, we anticipate that this view will be fully endorsed by buyers and visitors to our stand at the forthcoming shows.”
Character will host an annual general meeting on Friday, with the event also set to see Richard King hand over the role of non-executive chair to Carmel Warren.