Character Regulatory News (CCT)

16 Jan 2008 07:00

Character Group PLC16 January 2008 Issued by Citigate Dewe Rogerson Ltd, BirminghamDate: Wednesday, 16 January 2008 Embargoed 7.00am The Character Group plc The Board of The Character Group plc ("Group" or "Character") provides thefollowing update to the market prior to the Annual General Meeting scheduled for11.00am today, Wednesday 16 January 2008: "BACK ON TRACK" Trading UpdateThe Group, as a major UK toys and games supplier is not immune to the effects offaltering consumer confidence and, as forecast in our statement on 17 December2007, trading to Christmas was disappointing as a result of both the poor andwell publicised retail trading environment as well as the lost sales and cost ofthe recall of Bindeez product. The Group has weathered these problems and, despite the poor trading resultsexpected for the first half of the current financial year, the Board anticipatessubstantial revenue growth for the second half against the same period for 2007. The Group has come through this difficult trading period with a strong balancesheet and is today totally ungeared despite having bought back approximately 1.4million Character shares in this financial year. The Group has the capacity forfurther substantial buy-backs, if deemed appropriate by the Board, as well assufficient resources to fund further expansion. The general reaction by our major customers to our new product portfolio hasbeen both positive and pleasing and we are looking forward to exhibiting at theLondon Toy Fair later this month. Despite acknowledging that trading conditions are likely to remain testing forsome time, we believe that we are now back on track and are looking for revenuegrowth for the second half of the financial year and for the calendar year as awhole. Accordingly, the Board is comfortable with the current marketexpectations for the 2008 financial year. 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 ThompsonPhilip DaviesCharles Stanley SecuritiesNominated AdviserTel: +44 (0) 207149 6000 This information is provided by RNS The company news service from the London Stock Exchange