Character Group PLC (AIM:CCT) was still feeling the effects of the Trump tariff turmoil after it gave a lukewarm assessment of trading alongside its interims.
The shares fell 3.5% after it told investors revenue fell £53 million, down from £57.6 million a year earlier.
Today, the UK-based Peppa Pig and Dr Who toy seller noted that US sales accounted for 20% of group sales in the last financial year, and substantially all of the group's products sold in the States are manufactured in China. It puts the company firmly in the cross-hairs.
In April, the firm suspended its guidance for the current financial year amidst the volatility.
And, it noted that the 90-day reduction in tariffs between the USA and China announced on 11 May has given hope for a negotiated resolution, although uncertainties remain at this time.
“The uncertainty flowing from the imposition of these tariffs has been felt in other parts of the world as customers have become increasingly cautious and are not committing to orders to our expectations,” the toy firm said in the results statement.
Specifically, Character Group said that its sales are impacted in all key territories.
“Despite this, the board remains confident that the Group will be profitable in the current financial year as a whole, although it is too early to forecast short to medium term trading at this juncture,” the company added.
Citing a strong balance sheet ‘with healthy cash balances’ and the ‘strength of its portfolio of products’, Character Group told investors that its confident that the business can continue to ride out this current storm and emerge “in good shape”.
Interim results
Today’s numbers, whilst taking a back seat to guidance, revealed £2.1 million of pre-tax profit and gross margin for the six months ended 28 February improved to 29.3% from 27.2%.
It ended the half year with £16 million of cash and cash equivalents.
Character Group is to pay an interim dividend of 3p, reduced from 8p this time last year.