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CCT Character Group Plc

262.00
1.00 (0.38%)
Last Updated: 10:16:54
Delayed by 15 minutes
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
  1.00 0.38% 262.00 260.00 264.00 262.00 261.00 261.00 15,951 10:16:54
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Toys,hobby Gds & Supply-whsl 122.59M 3.5M 0.1807 14.50 50.74M

Character Group PLC Half-Yearly Financial Report period ended 28.2.17 (4810D)

27/04/2017 7:02am

UK Regulatory


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TIDMCCT

RNS Number : 4810D

Character Group PLC

27 April 2017

THURSDAY 27 APRIL 2017

The Character Group plc

Designers, developers and international distributor of toys, games and giftware

HALF YEARLY FINANCIAL REPORT

for the six months ended 28 February 2017

"Profitable, cash generative with a strong balance sheet; a set of solid results in challenging market conditions and against the backdrop of significant growth in the comparative period. Character remains the UK's leading independent toy company."

KEY PERFORMANCE INDICATORS

 
 CONTINUING OPERATIONS          Half-year   Half-year            Full-year 
                                    ended       ended                ended 
                                 February    February               August 
                                     2017        2016   Change        2016 
-----------------------------  ----------  ----------  -------  ---------- 
 Revenue                         GBP61.5m    GBP65.2m    -5.7%   GBP121.0m 
 Underlying operating                                   -17.2%    GBP12.7m 
  profit*                         GBP7.2m     GBP8.7m 
 Operating profit                 GBP6.6m     GBP8.8m   -25.0%    GBP13.3m 
 Underlying pre-tax profit*       GBP7.1m     GBP8.6m   -17.4%    GBP12.5m 
 Pre-tax profit                   GBP6.5m     GBP8.7m   -25.3%    GBP13.1m 
 Underlying basic earnings 
  per share*                       27.86p      32.43p   -14.1%      47.63p 
 Underlying diluted earnings 
  per share*                       27.07p      30.69p   -11.8%      45.16p 
 Basic earnings per share          25.18p      32.85p   -23.3%      50.30p 
 Diluted earnings per 
  share                            24.47p      31.09p   -21.3%      48.54p 
 Proposed dividend per 
  share                              9.0p        7.0p   +28.6%        8.0p 
 Underlying EBITDA*               GBP8.5m    GBP10.4m   -18.3%    GBP15.1m 
 EBITDA                           GBP7.9m    GBP10.5m   -24.8%    GBP15.7m 
 Net cash                        GBP18.6m    GBP14.5m   +27.9%     GBP6.9m 
 Net assets                      GBP25.2m    GBP21.4m   +17.8%    GBP22.9m 
-----------------------------  ----------  ----------  -------  ---------- 
 
 
   * Excludes mark to market 
    (loss)/profit adjustments 
    on FX derivative positions   GBP(0.6)m   GBP0.1m     GBP0.6m 
------------------------------  ----------  --------    -------- 
 
 
 Ø   Core group of products continues to have brand strength in depth - Top 3 brands are Peppa 
           Pig, 
          Little Live Pets and Teletubbies 
 Ø   Recently launched Stretch range becomes one of our top brands 
 Ø   Gross profit level holding well despite increased purchasing costs due to weakness of sterling 
 Ø   Strong balance sheet and highly cash generative model with net cash at bank of GBP18.6m at 
           HY 17 
 Ø   Proposed dividend of 9.0p up 28.6% on comparative period 
 Ø   Major range extensions currently in development for Peppa, Little Live Pets, Teletubbies, 
           Stretch, Mashems and Minecraft 
 Ø   We remain on target to achieve current market expectations for the full financial year to 
           31 August 2017 
 
 
FTSE sector: leisure: FTSE AIM All-share: symbol: CCT.L: 
 Market cap: GBP101m 
 Copies of this statement can be viewed at www.thecharacter.com. 
 Product ranges can be viewed at www.character-online.co.uk. 
 
 
ENQUIRIES 
The Character Group plc 
Jon Diver, Joint Managing Director 
Kiran Shah, Joint Managing Director 
Mark Dowding, Group Finance Director 
Office: +44 (0) 208 329 3377 
 Mobile: +44 (0) 7831 802219 (JD) 
 Mobile: +44 (0) 7956 278522 (KS) 
 Mobile: +44(0)7967185269 (MD) 
 Email: info@charactergroup.plc.uk 
 
Panmure Gordon 
(Nominated Adviser and Joint Broker) 
Andrew Godber, Investment Banking 
Tom Salvesen, Corporate Broking 
Tel: +44 (0) 20 7886 2500 
 
Allenby Capital Limited 
 (Joint Broker) 
 Nick Athanas 
 Katrina Perez 
 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 2017

INTRODUCTION

The Board is pleased to report that the Group continues to deliver consistently solid financial results. In a period where a number of macro-economic factors, particularly the weakness of sterling have worked against us and considering the backdrop of an exceptional period of growth experienced in the comparative period last year, our core brands have continued to perform well.

The balance sheet continues to strengthen and the repeating success of our cash generation model leads us to report a net cash balance of GBP18.6m at the 2017 HY balance sheet date. The Board's continued confidence gained from these results and the current outlook for the business enable it to declare an increased interim dividend of 9.0 pence per share, up 28.6% on last year.

As previously communicated we have instigated several specific measures to improve operational efficiency to mitigate the adverse effect of increased stock purchase costs arising as a result of the weakness of sterling. We are pleased to say that good progress has been made on these initiatives and material cost savings are now coming through, this gives us confidence on our ability to meet current market forecasts.

OUR BRANDS

Our Top performing brands in the period were Peppa Pig, Little Live Pets, Teletubbies, Mashems, Minecraft, Scooby Doo, Stretch and Fireman Sam. This core group of products continues to have brand strength and depth. Peppa is consistently our top performing brand; Little Live Pets and Teletubbies complete our Top 3. The recently launched Stretch range has importantly already established itself as one of our top brands in the UK and internationally.

Our continued market leading position in the UK ensures that we remain the partner of choice for many of the leading brand owners and we remain confident in our ability to further expand our presence both domestically and internationally in the years to come.

PERFORMANCE ON CONTINUING OPERATIONS

Revenue in the period was GBP61.5m, against GBP65.2m in the comparable 2016 period (year ended 31 August 2016 GBP121m). Geographically our revenue split in the period remained consistent with the comparable 2016 period and was United Kingdom 76% (2016: 76%), Rest of the World (including USA) 24% (2016: 24%). As we highlighted at the time of our Annual General Meeting in January 2017 our sales levels leading up to the 2016 Christmas period were marginally down compared to what was an exceptional comparative period in 2016. The Group adopted a cautious approach to purchasing stocks in the lead up to the Christmas 2016 period and, although the Group's sales in the period could have been marginally higher were it not for this caution, we believe that this was a prudent approach in the circumstances. Sales in the United States were down compared to HY 2016, which was a contributing factor to the reduction in revenue overall for the period, but the effect on gross profit was minimal, given that the margin on US sales is generally lower than on sales to other territories.

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 this financial period results in a charge against profit of GBP0.6m being reported. This compares to an additional profit of GBP0.1m shown in the corresponding period in 2016 and an additional profit of GBP0.6m reported in the year to 31 August 2016. These mark to market adjustments are non-cash items calculated by reference to unpredictable and sometimes volatile currency spot rates at the various balance sheet dates. To highlight profitability on a normal basis these adjustments have been added back to arrive at the "underlying" profit measures presented in this report.

Underlying gross profit margin in the period being reported amounted to 32.2%, compared to 33.9% in the same 2016 period, (a reduction of 1.7%) and 31.1% for the August 2016 financial year. Underlying margins have been impacted by the weakness of sterling; in the case of UK domestic sales (which currently make up the majority of our business) purchase costs have increased whilst the profits from our US dollar based business make a positive impact when translated into our reporting currency sterling.

The Group is reporting an underlying profit before tax in the period under review of GBP7.1m, down 17.4% on the comparative period (HY2016: GBP8.6m), whilst the full year ended 31 August 2016 was GBP12.5m. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were GBP8.5m, down 18.3% on the comparative period (2016: GBP10.4m) and GBP15.1m for the full year to August 2016.

Underlying basic earnings per share amounted to 27.86 pence, a decrease of 14.19% (HY2016: 32.43p; FY2016: 47.63p. Underlying diluted earnings per share, on the same basis, were 27.07 pence (HY2016: 30.69p: FY2016: 45.16p).

The Key Performance Indicators table shown at the front of this report provides the foregoing data on an underlying basis and by reference to Generally Accepted Accounting Practice, as adopted consistently by the Group.

FINANCIAL POSITION, WORKING CAPITAL & CASH FLOW

The Group's capital base strengthened considerably in the period with net assets at 28 February 2017 of GBP25.2m an increase of 10% on the position shown at the end of the 2016 financial year of GBP22.9m.

Inventories at 28 February 2017 were GBP6.2m (HY2016: GBP5.2m: FY2016 GBP10.3m); the increased book value of stock is in large part due to the increased US dollar cost of purchase. Our stock position is lean and made up predominantly of recent purchases; slow moving inventory is minimal.

During the period the Group generated cash from operations of GBP16.4m (HY2016 GBP14.8m: FY 2016 GBP10.8m).

The Group has no long-term debt. Interest charges on the use of working capital facilities during the period were GBP0.1m (HY2016: GBP0.1m: FY 2016 GBP0.2m).

After making dividend payments and share buy-backs (see below), at the end of the first-half period, the Group had net cash on the balance sheet of GBP18.6m (2016: GBP14.5m) an increase of 27.8% on the position at the end of the comparative period.

SHARE BUY-BACK PROGRAMME

In the period under review, the Company acquired a total of 292,402 ordinary shares in the Company at an aggregate cost of GBP1.3m (excluding dealing costs), with the average cost being GBP4.475 per ordinary share (HY2016: 213,936 ordinary shares at an aggregate cost of GBP1m and an average cost of GBP4.70 per ordinary share). There have been no further buy-backs since 28 February 2017. The Company has an unutilised authority to buy-back up to a further 3,214,700 ordinary shares. It remains part of the Group's overall strategy to continue to repurchase the Company's own shares when appropriate under its current share buy-back programme and, as previously indicated, the Directors could also be prepared to participate in any future share buy-back programme the Company proposes.

Total Voting Rights (TVR)

As at today's date, the Company has 21,218,352 ordinary shares in issue. The Company holds 3,269,456 ordinary shares in treasury, representing approximately 15.41 per cent of the share capital excluding these treasury shares, which do not carry voting or dividend rights. The figure of 21,218,352 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 Disclosure and Transparency Rules.

DIVID

We remain focused on delivering a progressive dividend policy. Given our ongoing progress, the Board is declaring an interim dividend of 9.0 pence per share, an increase of 28.6% (2016: 7.0p). This interim dividend, which is covered 2.8 times by earnings, will be paid on 28 July 2017 to shareholders on the Register as at the close of business on 7 July 2017. The shares will be marked ex-dividend on 6 July 2017.

OUR PEOPLE

The business employs 194 people across its locations in the UK and Asia. The Board once again takes this opportunity to thank every one of its colleagues around the business for their continuous hard work, dedication and loyalty, which underpins both the high-level customer relationships and the Group's overall performance

OUTLOOK

Our strategic focus remains: "to seek out and develop exciting products which meet domestic and international market demand". Our portfolio continues to be derived from, both our own-developed in-house ranges, including those produced 'under licence', and others sourced through exclusive distribution agreements. We continue to have great strength and depth across our brands and a wide range of long term customers and suppliers; potential concentration risk is well diversified.

A number of new products are currently in development for launch this calendar year across our core ranges - Peppa, Little Live Pets, Teletubbies, Stretch, Mashems and Minecraft. In particular, there are a number of exciting developments on the "Stretch" range, which we believe will create a strong level of sales later this calendar year and beyond. Once again, the positive customer feedback we have received in relation to these iterations within existing brands and on other new products to be distributed in the near future provide the Board with great confidence in its view that the Group will continue to achieve consistently good results for the remainder of this financial year and beyond.

The second half has started in line with budget and the Board remains of the view that the Group is on target to achieve current market expectations for the full financial year to 31 August 2017.

27 April 2017

 
      The Character Group plc 
    Consolidated Income Statement 
  six months ended 28 February 2017 
 
 
                                         Notes      six months      six months    12 months 
                                                         ended           ended        ended 
                                                   28 February     29 February    31 August 
                                                          2017            2016         2016 
                                                   (unaudited)     (unaudited)    (audited) 
                                                       GBP'000         GBP'000      GBP'000 
--------------------------------------  ------  --------------  --------------  ----------- 
 
 Revenue                                                61,542          65,245      120,967 
 Cost of sales                                        (42,298)        (43,035)     (82,694) 
--------------------------------------  ------  --------------  --------------  ----------- 
 Gross profit                                           19,244          22,210       38,273 
 Net operating expenses 
 Selling and distribution 
  costs                                                (4,535)         (4,440)      (7,128) 
 Administration expenses                               (8,280)         (9,178)     (18,447) 
 Other operating income                                    206             250          602 
--------------------------------------  ------  --------------  --------------  ----------- 
 Operating profit                                        6,635           8,842       13,300 
 Finance income                                             14              14           47 
 Finance costs                                           (139)           (121)        (215) 
--------------------------------------  ------  --------------  --------------  ----------- 
 Profit before income taxation                           6,510           8,735       13,132 
 Taxation                                              (1,170)         (1,683)      (2,345) 
--------------------------------------  ------  --------------  --------------  ----------- 
 Profit for the period attributable 
  to equity holders of the 
  parent                                                 5,340           7,052       10,787 
--------------------------------------  ------  --------------  --------------  ----------- 
 
 Earnings per share (pence)                4 
 Basic earnings per share                               25.18p          32.85p       50.30p 
 Diluted earnings per share                             24.47p          31.09p       48.54p 
 
 Dividend per share (pence)                3              8.0p            6.0p       13.00p 
--------------------------------------  ------  --------------  --------------  ----------- 
 
 EBITDA 
  (earnings before interest, 
  tax, depreciation and amortisation)                    7,873          10,471       15,689 
--------------------------------------  ------  --------------  --------------  ----------- 
 
 
                     Consolidated Statement of Comprehensive Income 
                                               six months      six months     12 months 
                                                    ended           ended         ended 
                                              28 February     29 February     31 August 
                                                     2017            2016          2016 
                                              (unaudited)     (unaudited)     (audited) 
                                                  GBP'000         GBP'000       GBP'000 
-------------------------------------  ---  -------------  --------------  ------------ 
 
 Profit for the period after 
  tax                                               5,340           7,052        10,787 
------------------------------------------  -------------  --------------  ------------ 
 Items that will not be reclassified 
  subsequently to profit and 
  loss 
  Current tax credit relating 
   to exercised share options                           -               -           421 
  Deferred tax credit relating 
   to share options                                    77              30         (414) 
------------------------------------------  -------------  --------------  ------------ 
                                                       77              30             7 
 -----------------------------------------  -------------  --------------  ------------ 
 Items that may be reclassified 
  subsequently to profit and 
  loss 
  Net exchange differences on 
  translation of foreign operations                 (224)           (129)         (676) 
------------------------------------------  -------------  --------------  ------------ 
 Total comprehensive income for 
  the period attributable to the 
  equity holders of the parent                      5,193           6,953        10,118 
------------------------------------------  -------------  --------------  ------------ 
 
 
   The Character Group plc 
  Consolidated Balance Sheet 
     at 28 February 2017 
 
 
                                           28 February    29 February    31 August 
                                                  2017           2016 
                                           (unaudited)    (unaudited)         2016 
                                               GBP'000        GBP'000    (audited) 
                                                                           GBP'000 
----------------------------------  ---  -------------  -------------  ----------- 
 
 Non-current assets 
 Intangible assets - product 
  development                                      729            682        1,117 
 Investment property                             1,813          1,878        1,845 
 Property, plant and equipment                   3,317          3,450        3,357 
 Deferred tax assets                               462            559          474 
---------------------------------------  -------------  -------------  ----------- 
                                                 6,321          6,569        6,793 
 --------------------------------------  -------------  -------------  ----------- 
 Current assets 
 Inventories                                     6,205          5,153       10,303 
 Trade and other receivables                     5,754          8,302       25,082 
 Current income tax receivable                       -              -            7 
 Derivative financial instruments                  104            118          533 
 Cash and cash equivalents                      21,709         16,331       28,560 
---------------------------------------  -------------  -------------  ----------- 
                                                33,772         29,904       64,485 
 --------------------------------------  -------------  -------------  ----------- 
 Current liabilities 
 Short term borrowings                         (3,132)        (1,790)     (21,647) 
 Trade and other payables                      (9,921)       (12,279)     (25,418) 
 Income tax payable                            (1,577)          (723)      (1,106) 
 Derivative financial instruments                (228)          (156)         (89) 
---------------------------------------  -------------  -------------  ----------- 
                                              (14,858)       (14,948)     (48,260) 
 --------------------------------------  -------------  -------------  ----------- 
 Net current assets                             18,914         14,956       16,225 
---------------------------------------  -------------  -------------  ----------- 
 Non - current liabilities 
 Deferred tax                                     (22)          (136)         (99) 
---------------------------------------  -------------  -------------  ----------- 
 Net assets                                     25,213         21,389       22,919 
---------------------------------------  -------------  -------------  ----------- 
 Equity 
 Called up share capital                         1,224          1,235        1,235 
 Shares held in treasury                       (2,743)        (2,743)      (2,743) 
 Capital redemption reserve                      1,732          1,714        1,717 
 Share based payment reserve                     2,854          2,705        2,778 
 Share premium account                          15,483         15,428       15,450 
 Merger reserve                                    651            651          651 
 Translation reserve                             1,293          1,578        1,274 
 Profit and loss account                         4,719            821        2,557 
---------------------------------------  -------------  -------------  ----------- 
 Total equity                                   25,213         21,389       22,919 
---------------------------------------  -------------  -------------  ----------- 
 
 
        The Character Group plc 
  Consolidated Statement of Cash Flows 
   six months ended 28 February 2017 
 
 
                                              six months      six months      12 months 
                                                   ended 
                                             28 February           ended          ended 
                                                    2017 
                                             (unaudited)     29 February      31 August 
                                                                    2016 
                                                 GBP'000     (unaudited)           2016 
                                                                 GBP'000      (audited) 
                                                                                GBP'000 
-----------------------------------------  -------------  --------------  ------------- 
 Cash flow from operating activities 
 Profit before taxation for the 
  period                                           6,510           8,735         13,132 
-----------------------------------------  -------------  --------------  ------------- 
 Adjustments for: 
 Depreciation of property, plant 
  and equipment                                      204             224            441 
 Depreciation of investment property                  33              33             65 
 Amortisation of intangible assets                 1,001           1,372          1,925 
 (Profit) on disposal of property, 
  plant and equipment                                  -               -            (1) 
 Interest expense                                    125             107            168 
 Financial instruments fair value 
  adjustments                                        568            (91)          (573) 
 Share based payments                                 76              74            147 
 Decrease/(increase) in inventories                4,098           3,812        (1,338) 
 Decrease/(increase) in trade and 
  other receivables                               19,328           7,233        (9,547) 
 (Decrease)/increase in trade and 
  other creditors                               (15,497)         (6,736)          6,403 
-----------------------------------------  -------------  --------------  ------------- 
 Cash generated from operations                   16,446          14,763         10,822 
-----------------------------------------  -------------  --------------  ------------- 
 Interest paid                                     (125)           (107)          (168) 
 Income tax paid                                   (623)         (2,219)        (2,419) 
-----------------------------------------  -------------  --------------  ------------- 
 Net cash inflow from operating 
  activities                                      15,698          12,437          8,235 
-----------------------------------------  -------------  --------------  ------------- 
 Cash flows from investing activities 
 Payments for intangible assets                    (613)         (1,217)        (2,205) 
 Payments for property, plant and 
  equipment                                        (160)           (128)          (247) 
 Proceeds from disposal of property, 
  plant and equipment                                  -              13             14 
 Net cash outflow from investing 
  activities                                       (773)         (1,332)        (2,438) 
-----------------------------------------  -------------  --------------  ------------- 
 Cash flows from financing activities 
 Proceeds from issue of share capital                 37           1,417          1,442 
 Purchase of own shares for cancellation         (1,315)         (1,011)        (1,244) 
 Dividends paid                                  (1,697)         (1,285)        (2,785) 
-----------------------------------------  -------------  --------------  ------------- 
 Net cash used in financing activities           (2,975)           (879)        (2,587) 
-----------------------------------------  -------------  --------------  ------------- 
 Net increase in cash and cash 
  equivalents                                     11,950          10,226          3,210 
 Cash, cash equivalents and borrowings 
  at the beginning of the period                   6,913           4,535          4,535 
 Effects of exchange rate movements                (286)           (220)          (832) 
-----------------------------------------  -------------  --------------  ------------- 
 Cash, cash equivalents and borrowings 
  at the end of the period                        18,577          14,541          6,913 
-----------------------------------------  -------------  --------------  ------------- 
 
 
 
 Cash, cash equivalents and borrowings 
  consist of: 
 Cash, cash equivalents                    21,709    16,331     28,560 
 Short term borrowings                    (3,132)   (1,790)   (21,647) 
---------------------------------------  --------  --------  --------- 
 Cash, cash equivalents and borrowings 
  at the end of the period                 18,577    14,541      6,913 
---------------------------------------  --------  --------  --------- 
 
 
                                                       The Character Group plc 
                                             Consolidated statement of changes in equity 
                      Called   Investment   Treasury      Capital     Share                Share   Translation    Profit 
                          up           in     shares   redemption   premium     Merger     based       reserve       and 
                       share          own                 reserve   account    reserve   payment                    loss       Total 
                     capital       shares    GBP'000      GBP'000   GBP'000    GBP'000   GBP'000       GBP'000   account     GBP'000 
                     GBP'000      GBP'000                                                                        GBP'000 
------------------  --------  -----------  ---------  -----------  --------  ---------  --------  ------------  --------  ---------- 
 Balance 
  as at 
  1 September 
   2015 
  (unaudited)          1,244            -    (3,373)        1,704    14,642        651     2,631         1,374   (3,632)      15,241 
------------------  --------  -----------  ---------  -----------  --------  ---------  --------  ------------  --------  ---------- 
 Profit for 
  the period               -            -          -            -         -          -         -             -     7,052       7,052 
 Exchange 
  differences 
  on translation 
  of foreign 
  operations               -            -          -            -         -          -         -           204     (333)       (129) 
 Deferred 
  tax credit 
  relating 
  to share 
  options                  -            -          -            -         -          -         -             -        30          30 
 Total 
  comprehensive 
  income/(expense) 
  for the 
  period                   -            -          -            -         -          -         -           204     6,749       6,953 
------------------  --------  -----------  ---------  -----------  --------  ---------  --------  ------------  --------  ---------- 
 Transactions 
  with owners 
 Dividend 
  paid                     -            -          -            -         -          -         -             -   (1,285)     (1,285) 
 Share based 
  payment                  -            -          -            -         -          -        74             -         -          74 
 Shares issued             1            -        630            -       786          -         -             -         -       1,417 
 Shares cancelled       (10)            -          -           10         -          -         -             -   (1,011)     (1,011) 
------------------  --------  -----------  ---------  -----------  --------  ---------  --------  ------------  --------  ---------- 
 Six months 
  ended 
  29 February 
  2016                 1,235            -    (2,743)        1,714    15,428        651     2,705         1,578       821      21,389 
------------------  --------  -----------  ---------  -----------  --------  ---------  --------  ------------  --------  ---------- 
 
 
 Balance as 
  at 
  1 September 
   2015 
  (audited)             1,244   -   (3,373)   1,704   14,642   651   2,631   1,374   (3,632)    15,241 
---------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 Profit for 
  the year 
  after tax                 -   -         -       -        -     -       -       -    10,787    10,787 
 Exchange 
  differences 
  on translation 
  of foreign 
  operations                -   -         -       -        -     -       -   (100)     (576)     (676) 
 Deferred 
  tax credit 
  relating 
  to share 
  options                   -   -         -       -        -     -       -       -     (414)     (414) 
 Current tax 
  credit relating 
  to exercised 
  share options             -   -         -       -        -     -       -       -       421       421 
---------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 Total comprehensive 
  income /(expense) 
  for the year              -   -         -       -        -     -       -   (100)    10,218    10,118 
---------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 Transactions 
  with owners 
 Share based 
  payment                   -   -         -       -        -     -     147       -         -       147 
 Dividends                  -   -         -       -        -    --       -       -   (2,785)   (2,785) 
 Shares issued              4   -       630       -      808     -       -       -         -     1,442 
 Shares cancelled        (13)   -         -      13        -     -       -       -   (1,244)   (1,244) 
---------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 Year ended 
  31 August 
  2016                  1,235   -   (2,743)   1,717   15,450   651   2,778   1,274     2,557    22,919 
---------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 
 
 Balance as at 
  1 September 2016 
  (unaudited)              1,235   -   (2,743)   1,717   15,450   651   2,778   1,274     2,557    22,919 
------------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 Profit for the 
  period                       -   -         -       -        -     -       -       -     5,340     5,340 
 Exchange differences 
  on translation 
  of foreign operations        -   -         -       -        -     -       -      19     (243)     (224) 
 Deferred tax 
  credit relating 
  to share options             -   -         -       -        -     -       -       -        77        77 
------------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 Total comprehensive 
  income/(expense) 
  for the period               -   -         -       -        -     -       -      19     5,174     5,193 
------------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 Transactions 
  with owners 
 Dividend paid                 -   -         -       -        -     -       -       -   (1,697)   (1,697) 
 Share based payment           -   -         -       -        -     -      76       -         -        76 
 Shares issued                 4   -         -       -       33     -       -       -         -        37 
 Shares cancelled           (15)   -         -      15        -     -       -       -   (1,315)   (1,315) 
------------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 Six months ended 
  28 February 2017         1,224   -   (2,743)   1,732   15,483   651   2,854   1,293     4,719    25,213 
------------------------  ------      --------  ------  -------  ----  ------  ------  --------  -------- 
 
 
      The Character Group plc 
  Notes to the Financial Statements 
 
 
 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 2017. These are consistent with the accounting 
  policies used in the financial statements for the year 
  ended 31 August 2016 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 2017 
  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 
  27 April 2017. 
  The information for the year ended 31 August 2016 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 consider that the Group has adequate resources 
  to continue operating for the foreseeable future and 
  therefore continue to adopt the going concern basis in 
  preparing the financial statements. 
--------------------------------------------------------------- 
 
 
 3.                              Dividends 
------------------------------ 
                                                         six months     six months    12 months 
                                                              ended          ended        ended 
                                                        28 February    29 February    31 August 
                                                               2017           2016         2016 
                                                        (unaudited)    (unaudited)    (audited) 
                                                            GBP'000        GBP'000      GBP'000 
                                                      -------------  ------------- 
 On equity shares: 
 Final dividend paid for 
  the year ended 31 August 
  2016 
 
        *    8.00 pence (2015: 6.00p) per share               1,697          1,285        1,285 
 
        *    Interim                                              -              -        1,500 
----------------------------------------------------  -------------  -------------  ----------- 
                                                              1,697          1,285        2,785 
----------------------------------------------------  -------------  -------------  ----------- 
 
 
 
 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 only 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. The 
  calculations are based on the following: 
                                      six months     six months      12 months 
                                           ended          ended          ended 
                                     28 February    29 February      31 August 
                                            2017           2016           2016 
                                     (unaudited)    (unaudited)      (audited) 
                                        GBP000's       GBP000's       GBP000's 
-------------------  ------------  -------------  -------------  ------------- 
 Profit attributable to 
  equity shareholders of 
  the parent                               5,340          7,052         10,787 
---------------------------------  -------------  -------------  ------------- 
 Weighted average number of shares 
 In issue during the year 
  - basic                             21,205,059     21,467,202     21,445,576 
 Dilutive potential ordinary 
  shares                                 619,240      1,213,847        775,967 
---------------------------------  -------------  -------------  ------------- 
 Weighted average number 
  of ordinary for diluted 
  earnings per share                  21,824,299     22,681,049     22,221,543 
---------------------------------  -------------  -------------  ------------- 
 
 
 
 Basic earnings per share 
  (pence)                      25.18   32.85   50.30 
----------------------------  ------  ------  ------ 
 Diluted earnings per share 
  (pence)                      24.47   31.09   48.54 
----------------------------  ------  ------  ------ 
 
 
 5.   Electronic Communications 
---  -------------------------------------------------------------------- 
      The Half Yearly Financial Report for the six months 
       ended 28 February 2017 will shortly be available for 
       viewing and download on the Group's website, www.thecharacter.com. 
---  -------------------------------------------------------------------- 
 
 
 
       Independent Review Report to The Character Group plc 
---------------------------------------------------------------- 
 
   Introduction 
   We have been engaged by the Company to review the condensed 
   set of financial statements in the Half Yearly Financial 
   Report for the six months ended 28 February 2017, which 
   comprises the Consolidated Income Statement, the Consolidated 
   Statement of Comprehensive Income, the Consolidated Balance 
   Sheet, the Consolidated Statement of Cash Flows, the 
   Consolidated Statement of Changes in Equity and related 
   notes 1 to 4. We have read the other information contained 
   in the Half Yearly Financial Report which comprises the 
   Board's letter and considered whether it contains any 
   apparent misstatements or material inconsistencies with 
   the information in the condensed set of financial statements. 
 
   This report is made solely to the Company in accordance 
   with guidance contained in ISRE 2410 (UK and Ireland) 
   "Review of Interim Financial Information Performed by 
   the Independent Auditor of the Entity" issued by the 
   Auditing Practices Board. Our review work has been undertaken 
   so that we might state to the company those matters we 
   are required to state to them in a review report and 
   for no other purposes. To the fullest extent permitted 
   by law, we do not accept or assume responsibility to 
   anyone other than the Company, for our work, for this 
   report, or for the conclusions we have formed. 
   Directors' responsibilities 
   The Half Yearly Financial Report is the responsibility 
   of, and has been approved by, the Directors. The Directors 
   are responsible for preparing the Half Yearly Financial 
   Report in accordance with the AIM rules of the London 
   Stock Exchange which requires that the accounting policies 
   and presentation applied to the financial information 
   in the Half Yearly Financial Report are consistent with 
   those which will be adopted in the annual accounts having 
   regard to the accounting standards applicable for such 
   accounts. 
   As disclosed in Note 1, the annual financial statements 
   of the Group are prepared in accordance with IFRSs as 
   adopted by the European Union. The condensed set of financial 
   statements included in this Half Yearly Financial Report 
   has been prepared in accordance with the AIM rules of 
   the London Stock Exchange. 
   Our Responsibility 
   Our responsibility is to express to the Company a conclusion 
   on the condensed set of financial statements in the Half 
   Yearly Financial Report based on our review. 
   Scope of Review 
   We conducted our review in accordance with International 
   Standard on Review Engagements (UK and Ireland) 2410, 
   "Review of Interim Financial Information Performed by 
   the Independent Auditor of the Entity" issued by the 
   Auditing Practices Board for use in the United Kingdom. 
   A review of interim financial information consists of 
   making enquiries, primarily of persons responsible for 
   financial and accounting matters, and applying analytical 
   and other review procedures. A review is substantially 
   less in scope than an audit conducted in accordance with 
   International Standards on Auditing (UK) and consequently 
   does not enable us to obtain assurance that we would 
   become aware of all significant matters that might be 
   identified in an audit. Accordingly, we do not express 
   an audit opinion. 
   Review conclusion 
   Based on our review, nothing has come to our attention 
   that causes us to believe that the condensed set of financial 
   statements in the Half Yearly Report for the six months 
   ended 28 February 2017 is not prepared, in all material 
   respects, in accordance with the AIM rules of the London 
   Stock Exchange. 
   MHA MacIntyre Hudson 
   Statutory Auditors and 
    Chartered Accountants 
   New Bridge Street House 
   30-34 New Bridge Street 
   London, EC4V 6BJ 
 
 
   27 April 2017 
================================================================ 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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