The Character Group (AIM:CCT) shares were up strongly on Tuesday, up 13.8% to 280.0p, after first-half results showed profit before tax and highlighted items of £2.4m and the group said full-year results are expected to be significantly ahead of market expectations.
In the six months to 28 February the Group reported profit before tax and highlighted items of £2.4m, up 15% on the six months to 28 February 2025, even as revenue fell 9% to £48.3m largely because of US tariffs.
Earnings (EBITDA) rose to £4.2m (HY 2025: £3.7m), gross profit margin improved to 31.7% from 29.3% in HY 2025 and underlying basic earnings per share before highlighted items increased 29% to 11.06p. The reported mark-to-market loss on FX derivative positions was £0.1m in the half (HY 2025: profit £1.1m), a non-cash highlighted item that the Group excludes when presenting underlying results.
Net assets were £33.4m, the Group generated £4.7m of cash from operations, held £13.7m of cash and cash equivalents at period end, and has no long-term debt with over £40m of unutilised headroom on bank and other facilities.
The Board declared an interim dividend of 4.0p per share, up 33% from 3.0p a year earlier and covered about 2.76 times by underlying EPS, while a £3m share buyback programme has so far purchased 226,900 shares for £549,797.
The Group's property investment subsidiary has let the surplus Infinity House warehouse from 7 April at an annual rent of £773,000 and holds an option to sell the site for £9.8m in cash before the end of the current financial year.
Management said it expects the benefits of cost-management measures and the Infinity House transaction to continue to support performance in the second half and beyond.
