Character Regulatory News (CCT)

17 Dec 2007 11:19

Character Group PLC17 December 2007 Issued by Citigate Dewe Rogerson Ltd, BirminghamDate: Monday, 17 December 2007 IMMEDIATE RELEASE The Character Group plc Current Trading Update The Board of The Character Group plc ("Group" or "Company") provides thefollowing update to shareholders in relation to trading in the final run up toChristmas. The Directors have noted that retail sales for Christmas 2007 started late andthat the market has not recovered from this belated seasonal start. The currentdifficult trading environment has resulted in toy retail consumer sales beingslower than anticipated and consequently, lower than budgeted levels of stockreplenishment orders have been received by the Company from its customers. Against the backdrop of these unusually difficult trading conditions, coupledwith the lost sales of Bindeez products and the Group's recent product recallalready reported (viewed by the Board as a one off impact), the Company istaking a more cautious view on revenue outcome for the first half of the currentfinancial year. The Directors therefore expect that revenues for the four monthsto 31 December 2007 will be down by approximately 18% on the same period lastyear. As a major UK supplier, the Group is not immune to the effects of falteringconsumer confidence and this view seems to be supported by the heavy discountingoccurring on the high street. Whilst the trading situation is disappointing toreport, overall the Board continues to be encouraged by the growth in itsbrands. Currently, the Group's 2008 product range is being previewed by the majorretailers. To date, there has been a very positive reaction to the new productportfolio and therefore the Directors expect revenue growth in the second halfof the current financial year ending 31 August 2008 to be ahead of the sameperiod in 2007. Enquiries: Fiona Tooley, DirectorKiran Shah, Group Finance Director & Joint MD Keith Gabriel, Senior Account ManagerThe Character Group plc Citigate Dewe RogersonTel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370Mobile: +44 (0) 7956 278522 (KS) Mobile: +44 (0) 7785 703523 (FMT)www.thecharacter.comwww.character-online.co.uk Richard Thompson Philip Davies Charles Stanley Securities Nominated Adviser Tel: +44 (0) 20 7149 6000 This information is provided by RNS The company news service from the London Stock Exchange