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CCT The Character Group Plc

240.00
-4.00 (-1.64%)
Share Name Share Symbol Market Type Share ISIN Share Description
The Character Group Plc LSE:CCT London Ordinary Share GB0008976119 ORD 5P
  Price Change % Change Share Price Shares Traded Last Trade
  -4.00 -1.64% 240.00 20,840 08:00:00
Bid Price Offer Price High Price Low Price Open Price
234.00 246.00 240.00 240.00 240.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Toys,hobby Gds & Supply-whsl 123.42M 4.95M 0.2651 9.05 45.58M
Last Trade Time Trade Type Trade Size Trade Price Currency
15:33:25 O 31 237.00 GBX

The Character (CCT) Latest News

The Character (CCT) Discussions and Chat

The Character Forums and Chat

Date Time Title Posts
16/5/202513:58** Character Group **24
27/3/202516:02A stock on a eps of one?13,502
15/9/201710:55CHARACTER GROUP CHARTS ONLY44
09/6/201617:10character group2
05/11/201014:42Character-Robosapien a Big Seller ?1,549

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The Character (CCT) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2025-05-22 14:33:26237.003173.47O
2025-05-22 14:31:23246.0024.92O
2025-05-22 14:31:23246.00200492.00O
2025-05-22 14:31:23246.0037.38O
2025-05-22 14:31:23246.00512.30O

The Character (CCT) Top Chat Posts

Top Posts
Posted at 22/5/2025 09:20 by The Character Daily Update
The Character Group Plc is listed in the Toys,hobby Gds & Supply-whsl sector of the London Stock Exchange with ticker CCT. The last closing price for The Character was 244p.
The Character currently has 18,681,023 shares in issue. The market capitalisation of The Character is £44,834,455.
The Character has a price to earnings ratio (PE ratio) of 9.05.
This morning CCT shares opened at 240p
Posted at 25/4/2025 19:31 by mrmyth
Yes, there have been tariffs for a very long time, but these were very selective tariffs in terms of sectors and industries and did not exactly impact the company's profitability. There is this saying: “If it is not broken, do not fix it.” I assume the management was probably waiting to see who would win the elections and what tariffs exactly would be implemented before they proceeded. I hope that since the start of the year, the management has started working on diversifying its supply chain. I would be extremely disappointed and confused if they had not. Will email them on Monday to check. I discovered Character Group two weeks ago when I accidentally read this article about small U.K. companies hit by the tariffs. Initially, I was surprised by the small amount the share price fell since the tariffs were announced, and then I was surprised by the market value compared to the fundamentals of the company. One reason for there not to be lots of volatility in the share price is that the company is owned mainly by the founders, they would never sell, and the rest is retail investors, the market cap is too small to attract institutional though hoping some larger value investors will take notice eventually. Even among retail investors might not be popular or overlooked. Eventually, the price should reflect the true value, and even if it does not, an over 7% dividend yield is quite good, and the large share buybacks will only increase the value and subsequent dividends per share. This company is an example of a business If you could buy it, would you like to own it forever, and it is mainly due to the price in relation to the cash flow you would receive each year.
Posted at 25/4/2025 09:55 by mrmyth
Hi theisland, my answer will be a bit long, but I am trying to express my reasoning as best as possible. Do not get me wrong, I am not saying they will be able to move the supply chain in a week, not even a quarter, or even two, but by the end of the year is possible. Also, some of their contracts might force them to purchase the already ordered quantity. In terms of country, I gave India and Vietnam as examples. It might also be Sri Lanka. These countries, at the moment, are even lower-cost producers than China. China has excellent infrastructure when it comes to assembly lines for high technology, however, the same manufacturing facilities for wholesale toys can be found in other low-cost producing countries as well. The reason why I said it will be simple for the company to replace or add suppliers is because the company does not own and lease any manufacturing facilities, it uses third party manufacturers of toys, that is why when you go to toy stores you might see Peppa Pig manufactured by Character Group or Hasbro but in essence is manufactured by a third party toy factory in a low cost country a bit like how clothes are produced. For instance, some of the M&S and Primark clothes are made in the same facility in Bangladesh, but the quality is different. So, all they need to do is find a toy manufacturer in a low-cost country, and I believe that India is more than capable of doing that, due to the simplicity of the product, but also Vietnam, as well as Sri Lanka. For instance, Apple is shifting the production of all US iPhones to India to avoid tariffs. Whilst I completely understand your worries, I had the same before I understood more about the simplicity of the business model. In addition, if you look at page 8 of the Annual Report 2024 under Suppliers, you will see that the company has already started looking for manufacturing capacity in other Asian countries. Who knows, they might even use Japan. The point is that the company's management has been the owners since 1991, and this business is personal to them. The business model of outsourcing allows them to find new suppliers for the toys. In essence, Character Group Plc acts as a distributor/middleman between the company, the licensor, the manufacturers, and the large retail stores. So, whilst there might be some headwinds in the short term, in the mid-term to long-term, these tariffs will not impact them significantly enough to destroy the value of the business.

Also, a bit of speculative thought: the management/owners own about 45% of the company so with this depressed share price they have no incentive for the share price to increase because with the share buybacks and payment packages in essence they are just performing management buyout of the company, which can benefit shareholders a lot in the long-run.
Posted at 24/4/2025 17:11 by theisland
Hi MrMyth,
Thanks for you insights, I have a position in Character and I think too it’s completely mispriced… A subject I would like to gain some more knowledge, given the times we are living, is tariffs. As far as I understand Character source almost its entire products from China (correct me if I’m wrong). I think you have dismissed this risk too easily in you short write-up on the previous posts: is it that easy to transfer all the supply chain from China to Vietnam/India? China took 40 years to optimize itself for becoming the factory of the world. What’s the level of infrastructure in India? The quality of the workforce? I mean, it’s not like clicking a button and puff you are in India and Vietnam in one week… how long will it take? What’s the cost? I am concerned about it and I think saying “it can easily avoid U.S tariffs by switching from China to either India or Vietnam” is such a simplistic conclusion… Have you seen the last trading update? They say tariffs will impact the second half and they seem to be happy with just being overall barely profitable for the entire year, or at least that’s my impression from the tone of the trading update (even if I realize the tone is in the eyes of the beholder). I didn’t read anything about plans to move the supply chain to India or Vietnam etc… So, my question is, do you have a more nuanced view on the matter in you longer analysis? If yes I would appreciate if you can share it.
Thanks.
Posted at 11/4/2025 07:53 by mister md
Think I may have had a lucky escape here - sold this week at 257p, just under breakeven for me (though in profit if include dividends). The price had been relatively stable and needed to sell something to take advantage of the carnage elsewhere. Maybe share price will over-react today given USA is indeed only 20% of sales. Interesting times.
Posted at 11/4/2025 07:32 by spob
Maybe CCT can do a deal with other toy makers, to get toys into the US without paying a 145% tariff. Lol
Posted at 11/4/2025 07:23 by spob
.
Only 20% of their sales go to the US

So not a disaster


Everything in the US will be going up in price due to China 145% tariffs

So I don't see a problem with CCT raising prices to cover the 10% UK tax
Posted at 13/3/2025 09:51 by spob
.
CCT is in an extremely favourable financial position.

There is no need for the CCT directors to stab their small shareholders in the back.


For anyone holding Hornby shares in an ISA. They are now forced sellers at a much lower price than before the announcement. Disgusting behaviour by Hornby directors imho. The moral thing to do would be to offer to buy out small shareholders at the market price before the announcement.
Posted at 12/3/2025 06:34 by spob
.

From the Henry Spain Q4 report (published this month)




Benjamin Graham said of the market:

“Mr. Market is very obliging indeed. Every day he tells you what he thinks your interest is worth and furthermore offers either to buy you out or to sell you an additonal interest on that basis. Sometmes his idea of value appears plausible and justfied by business developments and the prospects as you know them.

Often, on the other hand, Mr. Market lets his enthusiasm or his fears run away with him, and the value he proposed seems to you a little short of silly.

“If you are a prudent investor or a sensible businessman, will you let Mr. Market’s daily communicaton determine your view of a $1,000 interest in the enterprise? Only in case you agree with him, or in case you want to trade with him.

“You may be happy to sell out to him when he quotes you a ridiculously high price and equally happy to buy from him when his price is low. But the rest of the time you will be wise to form your own ideas of the value of your holdings, based on full reports from the company about its operations and financial position.”

We are living in a time when Mr. Market has let his “fears run away with him”. We can see this in the prices of companies with good futures ahead of them when we think about reasonably feasible economic scenarios, ones with cheap shares relative to current earnings, and certainly cheap relative to future earnings.


Take The Character Group.

Mr. Market values this company at £48m. It has not made a loss for 15 years, and profits after tax average £8.5m over the last ten years. There is no debt and at least £13m of surplus cash.

On top of that it is currently marketing a surplus property at around £12.5m. Thus, at some point in the near future it could choose to give over £25m back to shareholders, so effectively shareholders are paying £48m - £25m = £23m for a company that has demonstrated average profits of £8.5m.

If it can merely achieve the same profits as the 10-year average in future we will be delighted.

Given its strong position in toy markets around the world we expect it to grow its current level of £5m after-tax profits rapidly when the recovery comes. Their new toy ranges have been very well received by retailers.

Character’s managers are highly respected and trusted by both customers and suppliers, a reputation built up over 30 years.

While we are waiting for Mr. Market’s optimism to arrive, we can enjoy the 7% dividend yield and regular share-buyback programmes (they are simply generating more cash than they can use).
Posted at 16/1/2025 09:10 by mister md
Who is the seller here, given that the share price continues to drop despite the daily buybacks ?

e.g yesterday's one was at 270p but I get a buy price quote of 258p today ...
Posted at 19/7/2024 15:21 by brucie5
A bit of a sleepy board. Just picked this up for an income folio. If you're happy with the 6% + dividend the metrics on Stocko look good: over 97 with three positive value screens including two Dremans (low p/cf & PE.

PE Ratio (ttm)
10.8
PEG Ratio (ttm)
0.24
EPS Growth (ttm)
42.1%
Dividend Yield (ttm)
6.27%

This was Paul Scott's last write up in May: He notes generous divis and strong balance sheet, which I like. But I also like the chart, which looks primed for recovery. Surprised there isn't more interest?
-------------------------------------------------------------------------------------------------------------------------------

Character (LON:CCT)
276p (pre-market) £52m - H1 Results - Paul - GREEN

Designers, developers and international distributor of toys, games and giftware
I’ve followed this toys company for many years, and my preconception is that shares usually look cheap or very cheap, but it has a rather erratic track record, and disappoints with profit warnings every now and then. It’s been a generous dividend payer in the past, and is doing buybacks too. There might have been question marks over management remuneration too, I vaguely recall.

H1 results are much improved on last year -

Revenue flat at £57.6m

Adj PBT (profit before tax) up 320% to £2.1m (from a low base last year)

Adjs are only small, and actually reduce profit this H1 by £154k.

Adj diluted EPS up huge % from almost nothing last year, to 8.7p this H1.

H1 dividend held at 8.0p, almost all of earnings, and uncovered by earnings LY.

Outlook - positive news here -

"The Group has a strong portfolio of products, underpinned by a strong balance sheet, and has a net cash position with substantial unutilised working capital facilities in place. On the back of our first half-year's performance and these signs of the Group's robust health, we anticipate profit before tax and highlighted items in respect of the full year to 31 August 2024 will exceed current market expectations. The Board is comfortable that the Group is on course to meet its targets."
Balance sheet - looks healthy to me. Inventories have reduced by £6m to £11.7m, with the benefit flowing half through to increased cash of £13.4m, and reduced trade creditors. Working capital looks very comfortable, with £25m net current assets. Put another way, the cash pile of £13.4m almost completely covers what they owe suppliers (£13.8m). There are no significant longer-term liabilities. So my verdict is that CCT is in rude financial health, meaning that there’s no solvency or dilution risk, and it has ample dividend-paying capacity, as it demonstrated last year with divis still paid despite not being covered by earnings. It’s not fashionable at the moment (where everyone seems to chase high ROCE), but I like the safety that a strong balance sheet provides investors with.

Cashflow statement - all looks fine to me, no issues. Note that share options charge is very low at £55k in H1, and £204k in FY 8/2023, certainly not excessive.

Broker update - thanks to Allenby for crunching the numbers this morning. It increases FY 8/2024 PBT by 10% to £6.6m. In EPS terms that is: OLD: 23.3p, NEW: 26.1p.

CCH shares historically have tended to only attract a high single digit PER. Is that fair though? I think a PER of about 12x seems fair here, so that gives me a share price target of 313p. That’s a bit above the current price, so there’s likely to be some upside here. A 10% rise in forecast earnings usually flows straight through to a 10% rise in share price on the day, so I imagine (I haven’t looked yet, as it’s funt o guess!!) we might end today c.300p, which would certainly not be a stretched valuation, especially when you take into account the very strong balance sheet, and generous divis, plus it has authority to do substantial buybacks - which I approve of where a share is cheap on fundamentals, and is not a diversion to cover up excessive management share options (as we saw recently at Trainline for example).
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The Character share price data is direct from the London Stock Exchange

The Character Frequently Asked Questions (FAQ)

What is the current The Character share price?
The current share price of The Character is 240.00p
How many The Character shares are in issue?
The Character has 18,681,023 shares in issue
What is the market cap of The Character?
The market capitalisation of The Character is GBP 45.58M
What is the 1 year trading range for The Character share price?
The Character has traded in the range of 228.00p to 340.00p during the past year
What is the PE ratio of The Character?
The price to earnings ratio of The Character is 9.05
What is the cash to sales ratio of The Character?
The cash to sales ratio of The Character is 0.36
What is the reporting currency for The Character?
The Character reports financial results in GBP
What is the latest annual turnover for The Character?
The latest annual turnover of The Character is GBP 123.42M
What is the latest annual profit for The Character?
The latest annual profit of The Character is GBP 4.95M
What is the registered address of The Character?
The registered address for The Character is CITYPOINT, 16TH FLOOR, ONE ROPEMAKER STREET, LONDON, EC2Y 9AW
What is the The Character website address?
The website address for The Character is www.thecharacter.com
Which industry sector does The Character operate in?
The Character operates in the TOYS,HOBBY GDS & SUPPLY-WHSL sector

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