LONDON (Alliance News) - Character Group PLC saw its shares hit a 16 year high Thursday after it reported strong growth in profit and revenue in the first half of the year that beat management expectations, and said current trading remains "very encouraging".
The developer of toys and games, whose licensed brands include Peppa Pig, Fireman Sam, Scooby Doo and Doctor Who, and game Minecraft, reported a pretax profit of GBP8.5 million for the six months to February 28, up from GBP3.1 million a year earlier, as revenue rose to GBP58.2 million from GBP46.9 million. Basic earnings per shares rose to 35.66 pence, from 11.4p.
Excluding a GBP1.5 million gain on the mark to market valuation of derivatives and forward contracts it uses to hedge risks associated with its heavy dollar cost exposure, pretax profit rose to GBP7.0 million, from GBP6.0 million.
It raised its interim dividend to 5.00 pence, from 3.30 pence, as cash from operations rose to GBP16.6 million, from GBP6.4 million.
"Overall, we were very encouraged by trading in the run up to the crucial 2014 Autumn/Christmas season, where we witnessed strong sales at consumer level from across our brands. Pleasingly, this continued through Christmas and assisted us to deliver a strong first half, which was ahead of management expectations," Chairman Richard King said.
The company said it took market share in the toy market, driven by recently added brands like Teksta, The Zelfs, Little Live Pets and Shimmer 'n Sparkle.
"Current trading remains very encouraging. We have had a great reception to our product portfolio from both the retailers and media, this follows on from our customers' reactions to our offer at various trade expos. Therefore, against this backdrop we expect this season's ranges to deliver in terms of demand and sales at consumer level across both our UK and international markets," King added.
Character Group is adding ranges based on Clangers, Ugglys Pet Shop, Yummy Nummies and Teletubbies to its lineup.
The CEO said the company expects to meet current market expectations for the year as a whole.
Charles Stanley is forecasting that the company will report a pretax profit of GBP11.0 million in the year as a whole and earnings per share of 40.03p, according to data on Morningstar. It is expecting a total dividend of 8.0p.
Character Group reported a pretax profit of GBP7.1 million in its last financial year as a whole, as revenue rose 46% to GBP97.9 million. Basic EPS were 27.66p, and its total dividend was 7.25p, up from 6.6p.
The company's shares were up 7.2% at 418.00p Thursday morning, and are up 57% so far in 2015. The stock last traded at this level in May 1999.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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Character (CCT)