The Character Share Discussion Threads

[mcartdon] 27/4/2017 11:42

If you look back historically they were turning over 100 m many years ago 1999,
the cycle of growth and collapse is going nowhere.this is the growth i refer to.

the dividend is 2.7% inflation is 2% and rising rapidly.
a real return is in order of 5-7% with dividend and share price.
over the last two years shareholders have received no share growth a low return on dividend with respect to earnings.

the shares are 98m less 18 m cash
80 m in prudential bond made 5-6% last year returned to owner.
why take the risk for 2.7% nullified by share stagnation

[darlocst] 27/4/2017 11:37

Panmure Gordon put out a bullish note this morning post results, this snippet re H2 was reassuring:

(2) our
conversations with management that current trading has picked up in the UK
(recalling that the UK represents 76% of group sales) in the first two months of
H2FY17, slightly ahead of the growth in the UK Toy market; (3) our conversations with
management suggest that the initial favourable reaction of UK retailer customers to
CCT’s 2017 product range including major range extensions for most of the top 10
cornerstone brands, is now translating into a high single digit/low double-digit
increase in product listings for the second half of calendar 2017 with many of CCT’s
major UK retailer customers

[campbed] 27/4/2017 10:54

Mcartdon

The dividend is failing to cover inflation with no growth

They have just hiked the dividend by nearly 30% so how can you say no growth in connection with their dividend.

They don’t have £18m of free cash all the time – it’s seasonal and end of Feb will be a high point (low stocks post Christmas and debtors collected).

Acquisitions, even bolt-on ones, have risk.

They use debt factoring (working capital financing).

I disagree about borrowing to fund acquisitions when they have reasonably good growth prospects from their own range of products.

[dangersimpson2] 27/4/2017 10:54

I agree about the cash - either a more aggressive share buyback or a special dividend would start to make sense if the cash level increases much more.

They do have big swings in working capital due to seasonal effects so maintaining a strong balance sheet with net cash is a prudent way to manage the business but probably a bit too prudent at the moment.

Think you are wrong about the dividend though - since 2014 it has been increased rapidly in the last couple of years and many times the rate of inflation.

[mcartdon] 27/4/2017 10:21

Why do they hold 18m in cash? through a low interest rate period? it earnt very little.
why not borrow 18m and buy earnings in solid expansion of its range with a business enhancing merger.
Then use the income to pay off the debt over 4 years.

Better than buying directors free shares to maintain the same number in circulation over 4 years while pretending this is share price enhancing for shareholders.
The dividend is failing to cover inflation with no growth.
they had better think of something or loose investors and partners interest.

[campbed] 27/4/2017 10:07

I think today’s note from Allenby says it all

hxxp://www.allenbycapital.com/research/research-char_20_3344302872.pdf


Kept target share price of 700p and FY outlook per company’s guidance.

Obviously sales decline of 5.7% in H1 was a bit disappointing but guidance is for sales growth in H2 at improved margins. The directors’ confidence in this guidance is underpinned by 28.6% hike in H1 interim dividend declared.

So I’m prepared to regard last 6-12 months as a period of consolidation ahead of a longer period of improved performance and hold on to see that.

[rcturner2] 27/4/2017 09:06

Nobody got anything to say?

[gargleblaster] 26/4/2017 16:47

zedman - You are right the last two half-year reports were on 27th and 30th of April respectively. Bit of a fingers crossed situation since the company provide minimum on-going info!

[mcartdon] 26/4/2017 16:15

REMARKABLY UNEXCITING LAST TWO YEARS

[zedman_1] 26/4/2017 15:32

Half yearly results any day now.

[orange1] 19/4/2017 13:35

Character is also readying for the launch of its new Telly Tubbies Tiddlytubbies collection.

The Tiddlytubbies made their first appearance in the new Teletubbies in November 2015 and have since gone on to become fan favourites among the show’s pre-school audience.

The new range of plush and interactive toys is now set to land this July.

The first line in the collection of Giggling Tiddlytubbies plush toys are Umby Pumby and Mi-Mi. Squeeze their tummy gently and they release a tumult of giggles.

Press the back of the interactive Shuffle and Giggle Ping and they crawl along the floor.

Mark Hunt, marketing manager at Character Options, said: “We have received a high demand for the Tiddlytubbies from both retailers and consumers, following their introduction to the series.

“They are cute and highly collectable additions to the toy line and should drive incremental sales. We’ll be advertising through TV, print and digital platforms, as well as an extensive programme of blogging and unboxing videos to make sure everyone knows about this exciting new range of Tiddlytubbies toys.”

[coppertrader] 09/3/2017 17:24

If they were, the sold them today!

[h1a3] 09/3/2017 05:33

Just wondering if we may soon a RNS regarding recent share movements/transactions.
Is CCT buying back some shares?

[mcartdon] 16/2/2017 01:57

50% increase in overseas earnings to 32m in 2016. with the brexit effect this may be touching 50% with teletubbies and streach expanding, this has been the company focus growing and stabilising against currency changes.
it may well pay off with much increased t/o and interest in a takeover.

[stoxx67] 14/2/2017 07:16

there will be a print of £5.70 in short term IMHO, due to the technical position of the stock.

would me most pleasant to have something positive from CCT that facilitated a REAL rerating of the stock, rather than the malaise of the last few years.

a takeover at £8 ish would be very well received by my SIPP.

[mcartdon] 14/2/2017 03:19

Raised divi we hope, loads of cover to pay for years, been a good toy fair?
or is it that the next move for the pound is up against the dollar and that bet is on?
with the adjustments coming through, prospects may be improving and those in the know are buying.
400k went through yesterday at 555 some upward pressure +20% maybe.
the pe is 11, and the ftse 33, some difference.

[gargleblaster] 13/2/2017 21:05

On an excellent run at the mo - soaring on the back of a suspect trading statement - strange!

[mcartdon] 06/2/2017 09:53

540 ask on 1000 somewhat of a tight market.

[mcartdon] 01/2/2017 17:49

On the cusp of a push up?. The management have promised a progressive dividend policy.
that should see strength, with recovering profitability and a fairer valuation due.

[mcartdon] 30/1/2017 17:24

I would hope its more that there was a good toy fare with good reception and orders
and a substantial rise in dividend is due towards 20p,a big cash sum collecting in the bank, allowing a cash return to shareholders. and the shares are due a run up to the easter trading statement.
the word is out this share is under performing and the directors need to up their game.

[gargleblaster] 30/1/2017 17:10

Looks like that trading statement was a bit of a head-fake, especially since a couple of directors topped up, and the price has returned to where it was before - also they have form regarding this. So a bit curious. Perhaps a bid could be in the offing in view of Sterling's fall?

[h1a3] 30/1/2017 16:45

I presume we will see a RNS tomorrow following today's 130K of buys.
More director's sales? It would be good to see some share price movement towards £6 and then I would be selling.

[stoxx67] 30/1/2017 13:08

interesting stat mcartdon

believe the endgame is placing the company in the "shop window"

hope the buyer turns up sooner rather than later, the directors have enjoyed themselves far more than the shareholders for the last few Years.

[rcturner2] 30/1/2017 12:42

I've sold mine now. Took my profit. The last trading statement has put me off.