Character Share Discussion Threads

[davebowler] 05/5/2021 14:29

htTPs://masterinvestor.co.uk/equities/small-cap-round-up-featuring-character-worsley-investors-react-and-more/?mc_cid=71fa6d3b10&mc_eid=31ad53697c

[mcartdon] 02/5/2021 18:55

where will it go if it breaks up?
dollar weakness against pound is very profit positive. That must show in the next results on top of just t/o gains.
buybacks need to be higher to attract sellers in any quantity so that might be positive.
a strong second half will bring significant dividend growth if the vaccines have worked and they stop holding cash.
160m fy would see 750 at some point this year.
very narrow market with no volume available.
29% institutional
33% directors and ex directors with just the big holdings
35m cash.

[deanowls] 29/4/2021 15:33

9-18 that’s a bit of a spread.

[sketchley] 29/4/2021 15:05

I have just been cold called by a Asian sounding gentleman from Bullion International asking if I want to sell my Character shares for between 9 and 18 pounds in order to support a hostile takeover of the company. I strung him along for a bit, but when I started asking questions that obviously weren't on his script he hung up ! I do hope nobody falls for this kind of scam. Please be aware.

[deanowls] 29/4/2021 14:27

Great minds and all that. Upgs with a presentation on Tuesday also. Doubt they would be doing it if it’s bad news. I expect two quid. Sorry for the off topic guys, it is hard to sometimes get the comparable to CCT to garner a read across sector wise.

[thorpematt] 29/4/2021 13:20

deanowls,
During my morning bike ride (just got back) I was thinking EXACTLY the same thing regarding UPGS, TND, CCT. As you say there are similarities and my mind did ponder this.

Looking at the (small) number of employees for each company, we can also apreciate that management and personnel are very important to these particular business models.

Whilst I do "get" the references to bonus structure. We must as shareholders be fair to those that create the wealth. I have no problem with good bonus and salaries PROVIDED the REAL performance of the company warrants it.

With TND, UPGS and CCT I think the performace has been pretty darn good of late.

[deanowls] 29/4/2021 11:55

Good posts. After today’s trades I also expect tandem and UPGS who report next week and operate similar business models but in different segments to also be well ahead of where they were last year and I still consider to be cheap. Aimho of course.

[orange1] 29/4/2021 11:35

And a Morphle film to look forward to in 2025:

[orange1] 29/4/2021 11:34

New licence Morphle looks interesting:



Character Options has been named the EMEA and Australian master toy partner for the popular children’s series Morphle in the latest advance for Moonbug Entertainment’s growing licensing plans.

The deal was brokered by The Point. 1888 and will see Character Options produce a range of Morphle branded play-sets, plush, vehicles, figures, bath toys, as well as dough.

This comes just a few months after The Point.1888 announcing multiple major licensee partnerships for two of Moonbug Entertainment Ltd.’s other world-famous brands, Cocomelon and Blippi.

With over 300 episodes created and broadcast via YouTube and Netflix globally, as well as other platforms, Morphle has amassed a following of over 18 million subscribers. It follows the adventures of an energetic little red creature who can morph into anything that Mila’s playful mind can imagine.

Mila’s dad runs the only magic pet store in the city – a fantastical place where you can find all sorts of cute and quirky pets who each have their own unique magic powers, and he has gifted Mila the most magic pet of all, Morphle. She shows him everything she knows about the world, and in particular how to have fun. With Morphle’s morphing powers and Mila’s boundless imagination every day is the most exciting playdate.

Jon Diver, Joint MD of The Character Group plc, said: “As the nature of the lead character, Morphle, is to morph into many different things, it gave us so much scope for toy development. As a result, we’re investing heavily in the brand and the range and are thoroughly enjoying working with Moonbug and The Point.1888.”

Bethan Garton, commercial director at The Point.1888, said: “When Character Options takes on a new brand, it fully commits to the partnership and on building the brand. We haven’t had the good fortune to work with the company before but it’s been a life-long dream of mine, having seen how they launched, developed and managed a number of successful preschool master toy programs.”

The Point.1888 was appointed last summer as Master Licensing Agency across EMEA for Moonbug Entertainment’s entire portfolio. Since coming on board, the brand extension specialist has sought to capitalise on the shows’ popularity with young children as well as the need to keep them entertained and engaged by signing licensees across a broad range of categories.

Character Options join Aykroyds TDP (Nightwear, Underwear & Swim), Poetic (Daywear), Zak (Lunchware), Character World (Bedding).

Product development and marketing plans are underway and The Point.1888 is currently in talks with retailers and distributors. The range will launch in Q4 2021 with a full EMEA roll out in 2022.

[stpalm] 29/4/2021 11:29

Buybacks are in my opinion the worst way to return capital to shareholders. There are exceptions but Ideally at a low share price. BOD love them because they increase EPS to justify their as gdjs says egregious bonuses!

[sketchley] 29/4/2021 09:56

Great results and forward looking statement. Only disappointment with all that cash around is the 6p divi. They were paying 13p for both interim and final before the pandemic. Perhaps it's all needed for the buy backs which will now be at a much higher price !

[gdjs100] 29/4/2021 09:50

Use it to give the directors egregious bonuses again!

[18bt] 29/4/2021 09:30

Yes - cracking results - what they do with the cash could be a further catalyst to a re-rating.

[thorpematt] 29/4/2021 09:16

That's better than even I was expecting.

When I looked previously I could only find one broker on this and they were at £10.5m adjusted or 37.6eps for full year. On that basis you would say at least £6 a share surely.

BUT given the ridiculosly high cash position(£35m) you can argue you have to make it about more like £8.50

The outlook statement indicates materialy ahead of consensus: -

"Building further on the substantial increase in Group sales in the first half, we have continued to see a strong performance in sales of our product portfolio in all our territories from the commencement of the second half of the year. This growth is forecast to continue through to and beyond Christmas 2021 and we are on target to deliver the best sales performance in any calendar year in the Group's history. Accordingly, we expect the 2021 full financial year's underlying profit before tax will be materially ahead of the published market consensus of GBP10.5m. "

I am most impressed by the cashflow. The balance sheet is so robust now that the tripled interim divi and buyback seems the only sensible way to go.

[deanowls] 29/4/2021 07:47

Great half year results. Increased divi. Large cash balance and hidden in the small print a proposed 10m share buy back.

[orange1] 29/1/2021 14:25

Announcement just out:

Contracts signed to extend Peppa Pig licence

The Board of Character is delighted to report that, as contemplated in the Group's announcement on 10 December 2020, agreement has been reached and contracts signed with the brand owner, Hasbro, to continue the Group's current Peppa Pig wood products licence through to 31 December 2023 and to significantly extend the product range under that licence. As previously reported, the new toy product categories to be added to this licence include basic plush, eco plush, feature plush, activity toys and a nursery product range.

[thorpematt] 22/1/2021 16:17

The Monologue thread:-

"Challenging" of course is not a word you want to see, but then again under the circumstances it's perhaps the right word.

Strength of sales, despite a very difficult year is encouraging for the product mix moving forward.

A little bit of a lack of shareholder interest here. Perhaps those out of date headline trailing PERs don't help?

Nor the lack of brokers forecast being publicly available.

The house broker has produced a 3 page note today though.

A brief summary: -

Strong growth expected for the first half –

buoyant Christmas for the UK toy market which grew by an estimate 5%,

Character : UK revenue growth of 25% in the first four months

International sales were also strong, particularly to the USA overall sales in the first four months were ahead by over 30% yoy.–

Balance sheet strengthened

exceptional profit of around £2m property sale

In December, FY2021 forecasts raised significantly,
EBITDA to £13m from £9.7m,
PBT to £10.5m from £7m
EPS to 37.6p from 24.9p.

..management believes that assuming no further worsening of conditions the Group will still achieve market expectations.


So fEPS 38P gives a PER of circa 11 at 420p, which is OK for a company with modest debt I suppose...

..oh no wait, there's a huge cash pile, maybe that real PER is about 7.5

Might be a bit too cheap that. (refer to lack of shareholder interest comment above).

[thorpematt] 31/12/2020 10:06

A comparison of outlooks from the results statement for the last 2 years is interesting:-

OUTLOOK 2019 dec
The challenging trading in prospect for Christmas 2019 will affect the first half of our current financial year. By contrast, the prospects for the second half look positive.

OUTLOOK 2020 Dec.
"Trading in the lead up to Christmas 2020, despite the second UK lockdown, has been significantly ahead of the previous year's sales. Sales in Q1 are up by more than 30% over the same period last year and the prospects for the current financial year are looking extremely positive."

"We expect FY 2021 to be the beneficiary of the deferral of the strong trading that we originally anticipated. Whilst we will continue to monitor the position, it is apparent that the Group is ahead of management expectations for the first half to February 2021 and market expectations for the financial year as a whole."

--------------
In mid January of 2020 the AGM report gave rise to a profit warning and kicked a pre-covid decline into play for the share price.

I expect another TS at the AGM date in January 2021 to be more upbeat.

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Historically CCTs shareholder value is less top line growth and more about shrinking shares in issue and rising dividend. The cash pile is more than healthy at present and I suspect a return to generous divis is likely.

Looking at valuation, its hard to argue that an EV of circa £75m versus potential profits before tax of £11m and more, does not reprresent value.

CCTs earnings have been choppy of late but the discount here still seems large given the positive trading statements of late.

[discodave45] 17/12/2020 14:54

Any upgraded eps forecasts for this FY?.......thanks

[orange1] 10/12/2020 12:09

There's more to Peppa Pig than wooden products:

Agreement has been reached, subject to contract, with the brand owner, Hasbro, to continue our current European Peppa Pig wood products licence through to 31 December 2023 and to significantly extend the product range under that licence.

The new toy product categories to be added to this licence include basic plush, eco plush, feature plush and activity toys, including magnetic scribblers and a nursery product range. A further announcement will be made in relation to this anticipated brand extension following signing of the enabling amendments to this licence.

We, therefore, see the Peppa Pig brand continuing to be a central part of our product portfolio for many years to come.

[redwing1] 10/12/2020 11:00

A little strange that their final dividend doesn't reflect the net cash position or the apparent confidence in the 2021 numbers. 5p down from 26p last year removes the yield attractions of the stock temporarily.

[deanowls] 10/12/2020 10:03

It’s going but they have other opportunities

[capercaillie] 10/12/2020 09:24

Retention of the Peppa Pig wooden products but what of the rest of the portfolio?

[matt123d] 10/12/2020 09:13

Potential for a big move here