The Character Group (LSE:CCT) said trading conditions remain difficult, with like-for-like sales in the four months to Christmas 2025 around 11% lower year on year. The company expects first-half sales to 28 February 2026 to fall below the comparable period, reflecting ongoing pressure across the toy retail market.
Looking ahead, management is forecasting a stronger second half, with full-year 2026 revenue expected to be broadly in line with 2025 levels. Supported by an improved product mix and portfolio optimisation, the Group anticipates that profit before tax and highlighted items will more than double despite relatively flat turnover. The update also emphasised the company’s robust balance sheet, net cash position and substantial unused working capital facilities.
In addition, Character confirmed the completion of its latest share buyback programme, under which 1,126,549 shares were repurchased for approximately £3.0 million. The move underscores the Group’s continued focus on returning capital to shareholders ahead of the release of its interim results in May 2026.
From a market perspective, the outlook remains mixed. Financial performance is under pressure from declining revenues, weaker profitability and soft cash generation, while technical indicators point to bearish momentum, with the shares trading below key moving averages. Although the dividend yield remains high, a negative P/E ratio highlights ongoing profitability concerns, limiting the stock’s appeal to growth-oriented investors.
More about Character Group
The Character Group plc is a UK-based designer, developer and international distributor of toys, games and giftware. Operating within the leisure goods sector, the Group supplies products to customers in the UK, Scandinavia and other international markets, with a broad portfolio of branded ranges showcased at major global toy fairs.
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