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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Character Group Plc | LSE:CCT | London | Ordinary Share | GB0008976119 | ORD 5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-7.00 | -2.53% | 270.00 | 274.00 | 280.00 | 277.00 | 276.00 | 277.00 | 58,769 | 16:35:23 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Toys,hobby Gds & Supply-whsl | 122.59M | 3.5M | 0.1807 | 15.33 | 53.64M |
TIDMCCT
RNS Number : 1988L
Character Group PLC
12 May 2022
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
LONDON, THURSDAY 12 MAY 2022
The Character Group plc
(the "Company" or "Group" or Character")
Designers, developers and international distributor of toys, games and giftware
HALF YEARLY FINANCIAL REPORT
for the six months ended 28 February 2022
KEY PERFORMANCE INDICATORS Six months Six months Full-year CONTINUING OPERATIONS ended ended ended 28 February 28 February 31 August 2022 2021 2021 ------------- ------------- Revenue GBP90.9m GBP74.5m GBP140.0m Operating profit before highlighted GBP11.2m items* GBP6.5m GBP6.1m Pre-tax profit before highlighted GBP11.1m items* GBP6.5m GBP6.1m Basic earnings per share before highlighted items* 25.15p 23.00p 40.92p Diluted earnings per share before highlighted items* 24.62p 22.93p 40.37p Profit before tax GBP6.5m GBP7.6m GBP15.3m Basic earnings per share 25.21p 28.76p 56.86p Diluted earnings per share 24.68p 28.67p 56.09p Dividend per share 7.0p 6.0p 15.0p EBITDA GBP8.4m GBP7.9m GBP14.0m Cash and cash equivalents (after GBP35.9m a share buy-back of GBP13.6m) GBP21.5m GBP34.9m Net assets (after a share buy-back GBP44.9m of GBP13.6m) GBP35.2m GBP39.6m ------------------------------------- ------------- ------------- ----------- *Excludes Mark to market (loss)/profit adjustments on FX derivative positions - GBP(0.48)m GBP2.1m Profit on sale of property - GBP2.02m GBP2.0m * Against a backdrop of challenging operational conditions, the Group has delivered a very solid result first half result * Goo Jit Zu , our number 1 brand continues to sell well in UK and internationally in over 30 countries. We are also seeing consistent growth in other brands - Fireman Sam , Mashems , Jiggly Pets and Stretch Armstrong * New exciting products launched at the London Toy Fair in January 2022 and being well received by our customers * The Group's strategy is to increasingly develop its own products, either under its own brands or under well-known marques licenced from global brand owners. This strategy has enabled the Group to expand its global sales.
"The momentum seen in sales in the first half is continuing, particularly in the strong performance from our international FOB business. We remain mindful, however, of the current difficult macro-economic conditions and the recent weakness of Sterling. Like many others across the industry, we also continue to experience inbound shipping delays and other operational adversities due to continuing COVID-19 concerns, particularly in China. Despite these challenges, we expect the profit before tax and highlighted items for the full financial year ending 31 August 2022 to be in line with market expectations."
FTSE sector : leisure: FTSE AIM All-share: symbol: CCT.L: Market cap: GBP112.3m Copies of this statement can be viewed at www.thecharacter.com . Product ranges can be viewed at www.character-online.co.uk . The Character Group plc Jon Diver, Joint Managing Director Kiran Shah, Joint Managing Director Office: +44 (0) 208 329 3377 Mobile: +44 (0) 7831 802219 (JD) Mobile: +44 (0) 7956 278522 (KS) Email : info@charactergroup.plc.uk Panmure Gordon (Nominated Adviser and Joint Broker) Atholl Tweedie, Investment Banking Charles Leigh-Pemberton / Rupert Dearden, Corporate Broking Tel: +44 (0) 20 7886 2500 Allenby Capital Limited (Joint Broker) Nick Athanas, Corporate Finance Amrit Nahal, Sales & Corporate Broking Tel: +44 (0) 20 3328 5656 TooleyStreet Communications Limited (Investor and media relations) Fiona Tooley Tel: +44 (0) 7785 703523 Email : fiona@tooleystreet.com
The Character Group plc
(the "Company" or "Group" or "Character")
Designers, developers and international distributor of toys, games and giftware
HALF YEARLY FINANCIAL REPORT
for the six months ended 28 February 2022
INTRODUCTION
Against a backdrop of challenging operational conditions, the Group has delivered a very solid result for the period under review.
The Group's income in the period was GBP90.9m, an increase of 22% over the same six months in 2021 (HY 2021: GBP74.5m). This is a great achievement given the global logistics challenges encountered in the first half, particularly in the lead up to Christmas 2021. The profit before tax and highlighted items was GBP6.5m, an increase of 7.7% over the same period in the previous year (HY 2021: GBP6.1m). The Group also generated cash of GBP3.4m from operations. At the end of the period, cash at bank was GBP21.5m after a share buyback of c.GBP13.6m.
COVID-19 concerns and effects remained at the core of the global supply chain difficulties. Although the majority of countries where we sell or distribute our products relaxed or even eliminated COVID-19 restrictions, the strict controls applied in China, where almost all of the Group's manufacturing takes place, resulted in delays in production at factories and shipping exports to our global markets. Consequently, this led to extended lead times, uncertainty over delivery dates and significant cost increases. In the UK, the shortage of HGV driver capacity and delays at ports added to the convolutions that all these factors have presented to the business.
Despite such difficulties, the business has traded well in the first six months of the current financial year, as the Group's reported revenue reflects, and the sales momentum is continuing into the second half.
GROUP TRADING
As stated, revenue in the period at GBP90.9m was up 22% on the comparable period last year (HY 2021 GBP74.5m; FY 2021: GBP140.0m).
The Group is reporting a profit before tax and highlighted items for the period of GBP6.5m (HY 2021: GBP6.1m; FY 2021: GBP11.1m). E arnings before interest, tax, depreciation and amortisation (EBITDA) were GBP8.4m (HY 2021 GBP7.9m; FY 2021: GBP14.0m) .
Gross profit margin in the period came in at 24.8%, compared to 29.2% in the same 2021 period and 28.9% for the August 2021 financial year. The reduction in margin reflects the growth in international FOB sales, particularly in the competitive USA market, which attracts a lower margin than the Group's domestic sales. The increases in costs of production in the Far East and the continuing high freight costs also affected the margin.
Basic earnings per share before highlighted items amounted to 25.15p (HY 2021: 23.0p; FY 2021: 40.92p). Diluted earnings per share, on the same basis, were 24.62p (HY 2021: 22.93p; FY 2021: 40.37p).
A significant proportion of the Group's purchases are made in US dollars. The business is therefore exposed to foreign currency fluctuations and manages the associated risk through the purchase of forward exchange contracts and derivative financial instruments. Under International Financial Reporting Standards (IFRS), at the end of each reporting period the Group is required to make an adjustment in its financial statements to incorporate a 'mark to market' valuation of such financial instruments. The 'mark to market' adjustment for the financial period under review results in a profit of GBP16,000. This compares to a charge of GBP0.48m shown in the corresponding period in 2021 and a profit of GBP2.1m reported in the year to 31 August 2021. These 'mark to market' adjustments are non-cash items, calculated by reference to unpredictable and sometimes volatile currency spot rates at the respective balance sheet dates.
FINANCIAL POSITION, WORKING CAPITAL & CASH FLOW
The Group's capital base remained solid, with net assets at 28 February 2022 of GBP35.2m, after a share buyback of GBP13.6m (HY 2021: GBP39.6m; FY 2021: GBP44.9m). During the period, the Group generated cash from operations of GBP3.4m (HY 2021: GBP21.3m; FY 2021: GBP27.3m). The reduction in cash generation is mainly due to the increase in the inventory position.
The Group has no long-term debt. Net interest charges on the use of working capital facilities during the period were GBP23,000
(HY 2021: GBP0.1m; FY 2021: GBP0.1m). After implementing the GBP13.6m tender offer in February 2022 and making dividend payments, the Group had cash and cash equivalents of GBP21.5m (HY 2021: GBP34.9m; FY 2021: GBP35.9m) at the end of the first-half period. In addition, the Group had unutilised headroom of over GBP50m under its banking and other finance facilities.
One of the difficulties experienced in the lead up to Christmas 2021 was the Group's inability to satisfy all customer demand due to the shortage of stock. Inventory at 28 February 2022 of GBP17.9m was materially up against the comparative period last year
(HY 2021: GBP9.1m). These remain high, due in part to late arrivals of stock but increasingly to a conscious decision to bring stock in early to ensure the ability of the Group to satisfy demand and maintain sales in the second half.
DIVID
The Board remains committed to maintaining a progressive dividend policy. Reflecting its confidence in the Company's ability to continue to grow profits and generate and develop further sustainable cash flow, t he Board is declaring an interim dividend of 7.0 p per share (HY 2021: 6.0p; final dividend 2021: 9.0p). This interim dividend, which is covered 3.6 times by the earnings before highlighted items (HY 2021: 3.8 times), will be paid on 29 July 2022 to shareholders on the register as at the close of business on 15 July 2022. The shares will be marked ex-dividend on 14 July 2022.
SHARE BUYBACK PROGRAMME
Shareholders passed a resolution at the Annual General Meeting held in January 2022 authorising the Company to effect share buybacks (including by way of tender offers) of up to 3,200,000 issued ordinary shares of 5p each in the Company ("Ordinary Shares").
The Company announced a Tender Offer to buyback up to 10% of the Company's total voting rights on 28 January 2022. The exercise was successfully completed in February 2022 and the Company bought back a total of 2,142,572 Ordinary Shares at a price of GBP6.30 per Ordinary Share pursuant to the Tender Offer. The Company has a remaining unutilised capacity to buyback up to a further 1,057,428 ordinary shares under the authority granted at the 2022 AGM.
T he Board continues to believe that it is in the interests of all shareholders to provide investors who wish to realise part or all of their investment in the Group with an opportunity to access liquidity that is not otherwise available in the market and to return excess capital to shareholders. The Board will consider further buyback initiatives in the future, reflecting its confidence in the Group's ability to maintain strong, ongoing cash generation in excess of the current and projected requirements of the business .
TOTAL VOTING RIGHTS (TVR)
As at today's date, the Company's issued share capital consists of 21,465,929 Ordinary Shares. The Company holds 2,165,577 Ordinary Shares in treasury which do not carry voting rights and, accordingly, the total number of voting rights in Character is 19,300,352 . The figure of 19,300,352 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or change to their interest, in the Company under the FCA's Disclosure Guidance and Transparency Rules.
OUR PRODUCT PORTFOLIO
Goo Jit Zu , our number 1 brand continues to sell well in the UK and internationally in over 30 countries. We are also seeing consistent growth in other brands - Fireman Sam , Mashems , Jiggly Pets and Stretch Armstrong .
We introduced some exciting new products at the London Toy Fair in January 2022:
Ø Weebles , including licenced ranges featuring Peppa Pig , Cocomelon and Bluey; Ø Chill Factor (the brand we acquired last year), with a number of new brand extensions; Ø Mouse in the House , a new concept and brand that we have wholly developed in-house; and Ø Shimmer and Sparkle , including the Instaglam make up-range.
The Group's strategy is to increasingly develop its own products, either under its own brands or under well-known marques licenced from global brand owners. This approach has enabled the Group to expand its global sales in recent years. Whilst opportunities to capture distribution rights for third-party products in our domestic markets in the UK and Scandinavia continue to be sought and taken, the increase in investment in our own product development demonstrates that we remain committed to developing this successful strategy further and enhancing our global toy company credentials.
To view our full current portfolio of products and brands, go to www.character-online.co.uk .
OUR PEOPLE
The teams at Character in the UK, Scandinavia and the Far East have consistently demonstrated an ability to anticipate and adapt to the conditions in our markets.
The onset of COVID-19 could not have been anticipated. However, the Board believes that the manner in which the Group initially preserved and subsequently grew the business, and has continued to do so, is a testament to the enterprising spirit , consummate skills, irrepressible optimism and uncompromising dedication of every member of the Group's global teams. Collaboration is in our DNA and sees its expression in the seamless coordination of our teams' responses to market intelligence and data from our business. This, combined with our close working relationships with our customers and suppliers, underpins our proven ability to identify and profitably exploit brand and product development opportunities in the market.
As always, on behalf of all stakeholders in the business, the Board wishes to express thanks to all our colleagues for their efforts and commitment.
OUTLOOK
As we indicated earlier in this report, the momentum seen in sales in the first half is continuing, particularly in the strong performance from our international FOB business. We remain mindful, however, of the current difficult macro-economic conditions and the recent weakness of Sterling. Like many others across the industry, we also continue to experience inbound shipping delays and other operational adversities due to continuing COVID-19 concerns, particularly in China.
Despite these challenges, we expect the profit before tax and highlighted items for the full financial year ending 31 August 2022 to be in line with market expectations.
The Board will keep shareholders updated as we progress through the year.
12 May 2022
The Character Group plc Consolidated Income Statement six months ended 28 February 2022 six months six months six months six months six months six months 12 months 12 months 12 months ended ended ended ended ended ended ended ended ended 28 February 28 February 28 February 28 February 28 February 28 February 31 August 31 August 31 August 2022 2022 2022 2021 2021 2021 2021 2021 2021 Result *highlighted Statutory Result *highlighted Statutory Result *highlighted Statutory before items Result before items Result before items Result *highlighted *highlighted *highlighted items (unaudited) (unaudited) items (unaudited) (unaudited) items (audited) (audited) (unaudited) GBP'000 GBP'000 (unaudited) GBP'000 GBP'000 (audited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------- -------------- ------------- -------------- ------------- ------------- Revenue 90,947 - 90,947 74,543 - 74,543 139,997 - 139,997 Cost of sales (68,347) - (68,347) (52,751) - (52,751) (99,553) - (99,553) ---------------- ------------- -------------- ------------ ------------- -------------- ------------ ------------- ------------- ---------- Gross profit 22,600 - 22,600 21,792 - 21,792 40,444 - 40,444 Other income 339 - 339 256 - 256 332 - 332 Selling and distribution expenses (5,140) - (5,140) (5,469) - (5,469) (8,248) - (8,248) Administrative expenses (11,251) - (11,251) (10,468) - (10,468) (21,301) - (21,301) Profit on sale of property - - - - 2,016 2,016 - 2,016 2,016 ---------------- ------------- -------------- ------------ ------------- -------------- ------------ ------------- ------------- ---------- Operating profit 6,548 - 6,548 6,111 2,016 8,127 11,227 2,016 13,243 Finance income 17 - 17 15 - 15 36 - 36 Finance costs (40) - (40) (66) - (66) (113) - (113) Changes in fair value of financial instruments - 16 16 - (482) (482) - 2,128 2,128 Profit before tax 6,525 16 6,541 6,060 1,534 7,594 11,150 4,144 15,294
Income tax (1,188) (3) (1,191) (1,095) (303) (1,398) (2,353) (737) (3,090) ---------------- ------------- -------------- ------------ ------------- -------------- ------------ ------------- ------------- ---------- Profit for the period 5,337 13 5,350 4,965 1,231 6,196 8,797 3,407 12,204 ---------------- ------------- -------------- ------------ ------------- -------------- ------------ ------------- ------------- ----------
*highlighted items comprise material items that are disclosed separately by virtue of their size or incidence and because they are considered relevant to an
understanding of the overall performance of the company.
The Character Group plc
Consolidated Income Statement
six months ended 28 February 2022
Notes six months six months 12 months ended ended ended 28 February 28 February 31 August 2022 2021 2021 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------- --------------- --------------- Attributable to: ----------------------------------------------- ------- --------------- --------------- ----------- Owners of the parent 5,350 6,148 12,156 Non- controlling interest - 48 48 ----------------------------------------------- ------- --------------- --------------- ----------- Profit for the period 5,350 6,196 12,204 ----------------------------------------------- ------- --------------- --------------- ----------- Earnings per share before highlighted items (pence) 4 Basic earnings per share 25.15p 23.00p 40.92p Diluted earnings per share 24.62p 22.93p 40.37p ----------------------------------------------- ------- --------------- --------------- ----------- Earnings per share after highlighted items (pence) 4 ----------------------------------------------- ------- --------------- --------------- ----------- Basic earnings per share 25.21p 28.76p 56.86p Diluted earnings per share 24.68p 28.67p 56.09p Dividend per share (pence) 3 9.00p 3.00p 15.0p ----------------------------------------------- ------- --------------- --------------- ----------- EBITDA (earnings before interest, tax, depreciation and amortisation) 8,407 7,889 14,036 ----------------------------------------------- ------- --------------- --------------- -----------
The Character Group plc
Consolidated Statement of Comprehensive Income
six months ended 28 February 2022
six months six months 12 months ended ended ended 28 February 28 February 31 August 2022 2021 2021 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 --- -------------- --------------- Profit for the period after tax 5,350 6,196 12,204 Items that may be reclassified subsequently to profit and loss Net exchange differences on translation of foreign operations 201 (247) 7 -------------------------------------------------- -------------- --------------- ------------ Total comprehensive income for the period 5,551 5,949 12,211 -------------------------------------------------- -------------- --------------- ------------ Total comprehensive income for the period attributable to: -------------------------------------------------- -------------- --------------- ------------ Equity holders of the parent 5,551 5,906 12,163 Non-controlling interest - 43 48 -------------------------------------------------- -------------- --------------- ------------ 5,551 5,949 12,211 -------------------------------------------------- -------------- --------------- ------------ The Character Group plc Consolidated Balance Sheet at 28 February 2022 28 February 28 February 31 August 2022 (unaudited) 2021 2021 GBP'000 (unaudited) (audited) GBP'000 GBP'000 --- -------------- ------------- Non-current assets Intangible assets 1,567 446 1,806 Investment property 1,485 1,551 1,519 Property, plant and equipment 8,471 7,422 8,230 Right of use assets 1,162 1,718 1,454 Deferred tax assets 432 658 243 ------------------------------------------ -------------- ------------- ----------- 13,117 11,795 13,252 ----------------------------------------- -------------- ------------- ----------- Current assets Inventories 17,946 9,145 10,893 Trade and other receivables 14,827 11,651 26,019 Current income tax receivable 596 244 766 Derivative financial instruments 44 206 75 Cash and cash equivalents 21,550 35,037 35,920 ------------------------------------------ -------------- ------------- ----------- 54,963 56,283 73,673 ----------------------------------------- -------------- ------------- ----------- Current liabilities Short term borrowings (3) (140) - Trade and other payables (29,133) (22,589) (38,390) Lease liabilities (545) (538) (557) Income tax payable (1,936) (951) (1,610) Derivative financial instruments (118) (2,906) (165) ------------------------------------------ -------------- ------------- ----------- (31,735) (27,124) (40,722) ----------------------------------------- -------------- ------------- ----------- Net current assets 23,228 29,159 32,951 ------------------------------------------ -------------- ------------- ----------- Non --current liabilities Deferred tax (430) (90) (405) Lease liabilities (676) (1,221) (946) ------------------------------------------ -------------- ------------- ----------- (1,106) (1,311) (1,351) ----------------------------------------- -------------- ------------- ----------- Net assets 35,239 39,643 44,852 ------------------------------------------ -------------- ------------- ----------- Equity Called up share capital 1,074 1,181 1,181 Shares held in treasury (1,826) (1,870) (1,870) Capital redemption reserve 1,883 1,776 1,776 Share based payment reserve 3,857 3,640 3,749 Share premium account 17,540 17,324 17,324 Merger reserve 651 651 651 Translation reserve 887 590 767 Profit and loss account 11,173 16,351 21,274 ------------------------------------------ -------------- ------------- ----------- Total equity attributable to equity
holders of the parent 35,239 39,643 44,852 ------------------------------------------ -------------- ------------- ----------- The Character Group plc Consolidated Statement of Cash Flows six months ended 28 February 2022 six months six months 12 months ended 28 February ended ended 2022 (unaudited) 28 February 31 August 2021 GBP'000 (unaudited) 2021 GBP'000 (audited) GBP'000 -------------- -------------- Cash flow from operating activities Profit before taxation for the period 6,541 7,594 15,294 ---------------------------------------------------- -------------- -------------- ------------ Adjustments for: Depreciation of property, plant and equipment 304 284 567 Depreciation of investment property 33 33 65 Depreciation of right of use assets 276 278 556 Amortisation of intangible assets 1,246 1,187 1,621 Write off plant and equipment - - 132 (Profit)/loss on disposal of property, plant and equipment - (2,020) (2,028) Interest expense 23 51 77 Financial instruments fair value adjustments (16) 482 (2,128) Share based payments 108 271 380 (Increase)/decrease in inventories (7,053) 5,591 3,853 Decrease/(increase) in trade and other receivables 11,192 11,362 (3,006) (Decrease)/increase in trade and other creditors (9,257) (3,843) 11,957 ---------------------------------------------------- -------------- -------------- ------------ Cash generated from operations 3,397 21,270 27,340 ---------------------------------------------------- -------------- -------------- ------------ Interest paid (23) (51) (77) Income tax paid (841) (1,065) (1,788) ---------------------------------------------------- -------------- -------------- ------------ Net cash inflow from operating activities 2,533 20,154 25,475 ---------------------------------------------------- -------------- -------------- ------------ Cash flows from investing activities Purchase of business - - (945) Payments for intangible assets (1,007) (742) (1,615) Payments for property, plant and equipment (547) (5,918) (7,128) Proceeds from disposal of property, plant and equipment - 3,450 3,458 Net cash outflow from investing activities (1,554) (3,210) (6,230) ---------------------------------------------------- -------------- -------------- ------------ Cash flows from financing activities Payment of leasing liabilities (268) (338) (606) Proceeds from issue of share capital 260 - - Purchase of own shares for cancellation (13,640) - - Dividends paid (1,929) (642) (1,924) Net cash used in financing activities (15,577) (980) (2,530) ---------------------------------------------------- -------------- -------------- ------------ Net (decrease)/increase in cash and cash equivalents (14,598) 15,964 16,715 Cash, cash equivalents and borrowings at the beginning of the period 35,920 19,124 19,124 Effects of exchange rate movements 225 (191) 81 ---------------------------------------------------- -------------- -------------- ------------ Cash, cash equivalents and borrowings at the end of the period 21,547 34,897 35,920 ---------------------------------------------------- -------------- -------------- ------------ Cash, cash equivalents and borrowings consist of: Cash, cash equivalents 21,550 35,037 35,920 Short term borrowings (3) (140) - ----------------------------------------------- ------- ------- ------- Cash, cash equivalents and borrowings at the end of the period 21,547 34,897 35,920 ----------------------------------------------- ------- ------- ------- The Character Group plc Consolidated Statement of Changes in Equity six months ended 28 February 2022 Called Shares Capital Share Share Profit Non- up held redemption premium Merger based Translation and controlling share in reserve account reserve payment reserve loss interest Total capital treasury GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 account GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 -------- --------- ----------- -------- --------- -------- ------------- -------- ------------ Balance as at 31 August 2020 (unaudited) 1,181 (1,870) 1,776 17,324 651 3,369 727 11,231 (343) 34,046 ------------------ -------- --------- ----------- -------- --------- -------- ------------- -------- ------------ --------- Profit for the period - - - - - - - 6,148 48 6,196 Exchange differences on translation of foreign operations - - - - - - (137) (105) (5) (247) Total comprehensive income/(expense) for the period - - - - - - (137) 6,043 43 5,949 ------------------ -------- --------- ----------- -------- --------- -------- ------------- -------- ------------ --------- Transactions with owners Change in non-controlling interest - - - - - - - (300) 300 - Dividend paid - - - - - - - (642) - (642) Deferred tax relating to share options - - - - - - - 19 - 19 Share based payment - - - - - 271 - - - 271 ------------------ -------- --------- ----------- -------- --------- -------- ------------- -------- ------------ --------- Six months ended 28 February 2021 1,181 (1,870) 1,776 17,324 651 3,640 590 16,351 - 39,643 ------------------ -------- --------- ----------- -------- --------- -------- ------------- -------- ------------ --------- Balance as at 1 September 2020 (audited) 1,181 (1,870) 1,776 17,324 651 3,369 727 11,231 (343) 34,046 ---------------------- ------- --------- ------- -------- ----- ------- ----- ------------ ------- --------- Profit for the year after tax - - - - - - - 12,156 48 12,204 Net exchange differences on translation of foreign operations - - - - - - 40 (28) (5) 7 Total comprehensive income for the year - - - - - - 40 12,128 43 12,211 ---------------------- ------- --------- ------- -------- ----- ------- ----- ------------ ------- --------- Transactions with owners Change in non-controlling interest - - - - - - - (300) 300 - Share based
payment - - - - - 380 - - - 380 Deferred tax relating to share options - - - - - - - 139 - 139 Dividends - - - - - - - (1,924) - (1,924) At 31 August 2021 1,181 (1,870) 1,776 17,324 651 3,749 767 21,274 - 44,852 ---------------------- ------- --------- ------- -------- ----- ------- ----- ------------ ------- --------- Profit for the period - - - - - - - 5,350 - 5,350 ---------------------- ------- --------- ------- -------- ----- ------- ----- ------------ ------- --------- Net exchange differences on translation of foreign operations - - - - - - 120 81 - 201 ---------------------- ------- --------- ------- -------- ----- ------- ----- ------------ ------- --------- Total comprehensive income/(expense) for the period - - - - - - 120 5,431 - 5,551 ---------------------- ------- --------- ------- -------- ----- ------- ----- ------------ ------- --------- Transactions with owners - Share based payment - - - - - 108 - - - 108 Deferred tax relating to share options - - - - - - - 37 - 37 Dividend paid - - - - - - - (1,929) - (1,929) Shares issued - 44 - 216 - - - - - 260 Tender offer fees - - - - - - - (142) - (142) Cancellation on tender offer (107) - 107 - - - - (13,498) - (13,498) ---------------------- ------- --------- ------- -------- ----- ------- ----- ------------ ------- --------- Six months ended 28 February 2022 1,074 (1,826) 1,883 17,540 651 3,857 887 11,173 - 35,239 ---------------------- ------- --------- ------- -------- ----- ------- ----- ------------ ------- --------- The Character Group plc Notes to the Financial Statements six months ended 28 February 2022 1. BASIS OF PREPARATION The financial information set out in this Half Yearly Financial Report has been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union and in accordance with the accounting policies which will be adopted in presenting the Group's Annual Report and Financial Statements for the year ending 31 August 2022. These are consistent with the accounting policies used in the financial statements for the year ended 31 August 2021 as described in those annual financial statements. As permitted, this Half Yearly Financial Report has been prepared in accordance with the AIM rules and not in accordance with IAS 34 'Interim Financial Reporting'. The consolidated financial statements are prepared under the historical cost convention, as modified by the revaluation of certain financial instruments and share based payments at fair value. These Half Yearly Financial Statements and the financial information for the six months ended 28 February 2021 do not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006 and are unaudited. These unaudited Half Yearly Financial statements were approved by the Board of Directors on 11 May 2022. The information for the year ended 31 August 2021 is based on the consolidated financial statements for that year on which the Group's auditor's report was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. 2. GOING CONCERN The Directors acknowledge the Financial Reporting Council's 'Guidance on the going concern basis of accounting and reporting on solvency and liquidity risks' issued in April 2016. In assessing the Group and Company's ability to continue as a going concern, the Board reviews and approves the annual budget and updated forecasts, including forecasts of cash flows, borrowing requirements and headroom. The Board reviews the Group's sources of available funds and the level of headroom available against its committed borrowing facilities. The Group's financial forecasts, taking into account possible sensitivities in trading performance including the potential impact of COVID-19, indicate that the Group will be able to operate within the level of its committed borrowing facilities for the foreseeable future. The banks remain supportive of the Group and has an ongoing invoice discount facility of GBP20m, together with overdraft and trade finance facilities of GBP3 8 m. The Directors have a reasonable expectation that the Group and Company have adequate resources to continue their operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the Half Yearly Report. 3. DIVIDS six months six months 12 months ended ended ended 28 February 28 February 31 August 2021 2022 2021 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 -------------- ------------- On equity shares: Final dividend paid for the year ended 31 August 2021 * 9.00p (2020: 3.00p) per share 1,929 642 642 Interim dividend paid for the year ended 31 August 2021 * 6.00p per share - - 1,282 ------------------------------------------------- -------------- ------------- ---------------- 1,929 642 1,924 ------------------------------------------------- -------------- ------------- ---------------- The Character Group plc Notes to the Financial Statements six months ended 28 February 2022 4. EARNINGS PER SHARE Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares during the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all dilutive potential ordinary shares. The Group has one (2021: one) category of dilutive potential ordinary shares, being share options granted where the exercise price is less than average price of the company's ordinary shares during this period. An adjusted earnings per share has also been calculated as, in the opinion of the directors, this will allow shareholders to gain a clearer understanding of the trading performance of the Group. The calculations are based on the following: six months six months 12 months ended ended ended 28 February 29 February 31 August 2021 2022 2021 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------------------------------------------- -------------- ------------- ---------------- Profit attributable to equity shareholders of the parent 5,350 6,148 12,156 ------------------------------------------------- -------------- ------------- ---------------- Financial instruments fair value adjustments net of tax (13) 391 (1,724) ------------------------------------------------- -------------- ------------- ---------------- Gain on sale of property net of tax - (1,622) (1,683) ------------------------------------------------- -------------- ------------- ---------------- Profit for adjusted earnings per share 5,337 4,917 8,749 ------------------------------------------------- -------------- ------------- ---------------- Weighted average number of shares In issue during the year - basic 21,217,582 21,379,781 21,379,781 Dilutive potential ordinary shares 457,318 66,078 291,974 ------------------------------------------------- -------------- ------------- ---------------- Weighted average number of ordinary for diluted earnings per share 21,674,900 21,445,859 21,671,755 ------------------------------------------------- -------------- ------------- ----------------
Earnings per share after highlighted items Basic earnings per share (pence) 25.21 28.76 56.86 -------------------------------------- ------ ------ ------ Diluted earnings per share (pence) 24.68 28.67 56.09 -------------------------------------- ------ ------ ------ Earnings per share before highlighted items Basic earnings per share (pence) 25.15 23.00 40.92 --------------------------------------- ------ ------ ------ Diluted earnings per share (pence) 24.62 22.93 40.37 --------------------------------------- ------ ------ ------ 5. ELECTRONIC COMMUNICATIONS The Half Yearly Financial Report for the six months ended 28 February 2022 will shortly be available for viewing and download on the Group's website, www.thecharacter.com . --- ------------------------------------------------------------------------
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(END) Dow Jones Newswires
May 12, 2022 02:02 ET (06:02 GMT)
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