Peppa Pig and Pokemon rights owner Character Group PLC (LON:CCT) said the business momentum reported in November has continued into the company’s new financial year as it confirmed “performance and prospects” remained in line with management’s expectations.
Ahead of the company’s annual meeting, the toys, games and gifts company told investors: “Despite disappointing performances reported by a number of retailers in recent weeks, our products maintained their popularity through the Christmas period, selling-through well at retail, and demand for our products is continuing.”
In the update, Character admitted the US continued to be “challenging” while the remainder of its overseas markets were “steady”.
Keeping up with the latest trends
It said its broad portfolio of toys and brands helped underpin growth as it followed the trends with the additions of Slo Squishies, Cra.Z.Slimy, Mashems and Treasure X to the portfolio.
In October it bought a 55% stake in Danish toy distributor OVG-PROXY, which is benefiting from logistical support from the wider group.
However, it has been hit by a “short-term” setback in the form of one of its major customers going bust.
“In any event, recent events in the market have shown that the market share of fallen retailers is quickly absorbed by other established retailers,” shareholders were told.
“In the circumstances, we remain confident that the acquisition will prove to be beneficial to the group.”