Character Group PLC (LON:CCT) has said it expects its interim profits to be much higher than last year after reporting a strong Christmas performance.
However, the group noted that the second half of the financial year is expected o be challenging due to coronavirus (COVID-19) lockdown restrictions and the continuing effect that the logistical difficulties are having on freight rates from the Far East, at times quadrupling since September.
As a result, the toymaker estimates it will achieve current market expectations for the year ending in August 2021.
For the six months to February 2020, Character's pre-tax profit was down 55% to £2mln compared to the same period the prior year.
The Christmas 2020 trading period was buoyant for the UK toy sector generally, with the UK market reportedly up by 5% year-on-year.
The group’s sales for the four months to December 31, 2020, surged by 30%, with the UK up 25% and international sales also delivering an increase compared to 2019.
The AIM-listed firm said all its major brands and hero lines have sold exceptionally well, so its inventory at the end of December reached the lowest level in over a decade.
Shares dipped 1% to 420p on Friday at the opening bell.