TIDMCCT
RNS Number : 6689V
Character Group PLC
15 December 2021
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR. Upon the
publication of this announcement via the Regulatory Information
Service, this inside information is now considered to be in the
public domain.
LONDON : Wednesday, 15 December 2021
THE CHARACTER GROUP PLC
("Character," "Group" or "Company")
Designers, developers and international distributor of toys,
games and giftware
PRELIMINARY UNAUDITED RESULTS FOR THE YEARED 31 AUGUST 2021
KEY PERFORMANCE INDICATORS 12 months 12 months
ended ended
31 August 31 August
2021 2020
-----------
Revenue GBP140.0m GBP108.9m
Underlying Operating profit GBP 11.2 GBP5.4m
m
Underlying pre-tax profit * GBP 11.1 GBP5.0m
m
EBITDA GBP14.0m GBP8.2m
Statutory profit before tax GBP15.3m GBP3.9m
Basic earnings per share before highlighted
items * 40.92 p 18.12p
Diluted earnings per share before highlighted
items * 40.37p 18.08p
Basic earnings per share after highlighted
items 56.86 p 14.76p
Diluted earnings per share after highlighted
items 56.09p 14.73p
Dividends per share for the year 15.0 p 5.0p
Net assets GBP 44.9 GBP34.0m
m
Net cash GBP 35.9 GBP19.1m
m
----------------------------------------------- ----------- -----------
*Excludes:
Mark to market profit (loss) adjustments GBP2.1m GBP(2.0m)
on FX derivative positions Profit on GBP2.0m -
sale of property - GBP0.9m
Gain on buy back on loan
----------
"The buoyant demand for the Group's products has been sustained
throughout the year and has continued to rise in recent months
despite the global supply-side and logistics challenges, which have
been relentless for many businesses."
"Moving into 2022, our line-up of merchandise not only continues
to feature some of the most sought-after toy products but will be
further bolstered by the launch of a number of exciting new
concepts, additions and brand extensions that the Group will unveil
at the London Toy Fair in January 2022 and through to Spring of
next year."
"Both domestic and international demand for our products remains
strong and the reception received so far by the new introductions
planned for our ranges in the coming months has been a very
pleasing endorsement of our team's designs, plans and
execution."
"The Board believes that margins will be under pressure due to
high freight rates and increased materials and labour costs,
however, it is satisfied that the Group remains on target to meet
current market expectations ."
ENQUIRIES:
The Character Group plc
Jon Diver, Joint Managing Director
Kiran Shah, Joint Managing Director & Group Finance Director
Office: +44 (0) 208 329 3377
Mobile: +44 (0) 7956 278522 (KS)
Mobile: +44 (0) 7831 802219 (JD)
Email: info@charactergroup.plc.uk
FTSE sector : leisure:
FTSE AIM All-share: symbol: CCT.L
Market cap : GBP 125 m Product ranges can be viewed at www.character-online.com .
Panmure Gordon
(Nominated Adviser and Joint Broker)
Atholl Tweedie, Investment Banking
Charles Leigh-Pemberton, 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
Note:
A copy of this statement can also be found at www.thecharacter.com
THE CHARACTER GROUP PLC
Designers, developers and international distributor of toys,
games and giftware
PRELIMINARY UNAUDITED RESULTS FOR THE YEARED 31 AUGUST 2021
INTRODUCTION
The buoyant demand for the Group's products has been sustained
throughout the year and has continued to rise in recent months
despite the global supply-side and logistics challenges, which have
been relentless for many businesses.
Against this backdrop, we acknowledge the loyalty and dedication
of all our staff in the UK, Europe and the Far East. They have been
tested once again and, exhibiting the superhero qualities that many
of our toys products depict, came through for the business and
delivered a very creditable performance.
The turnover increased by 29% to GBP140.0m (2020: GBP108.9m) and
underlying operating profit more than doubled to GBP11.2m (2020:
GBP5.4m).
The Group has continued to be cash generative, delivering
GBP27.3m of cash from operations (2020: GBP19.6m) and finishing the
year with a net cash balance of GBP35.9m (2020: GBP19.1m).
The Board presents the Group's results for the year ended 31
August 2021:
OPERATIONAL PERFORMANCE
Group revenue in the year ended 31 August 2021 was GBP 140.0m ,
against a turnover of GBP 108.9 m in the comparable 2020 period. Of
particular note was the continued growth in sales of the Group's
products in the USA.
The gross profit margin for the Group was 28.9 % (FY 2020:
27.7%) and, on an absolute basis, the gross profit was GBP40.4 m
compared to GBP30.2m for the previous year.
A considerable proportion of the Group's purchases are made in
US dollars; the Group 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 notional
profit of GBP2.1m. This compares to a corresponding notional loss
of GBP2.0m reported in the year to 31 August 2020. These "mark to
market" adjustments are non-cash items calculated by reference to
unpredictable and sometimes volatile currency spot rates at the
relevant balance sheet dates. To present the results on a "normal"
basis, these mark to market profit adjustments on FX derivative
positions are excluded but shown separately as "highlighted items"
to demonstrate the "underlying" profitability.
During the year, the Group also made a pre-tax gain of GBP2.0m
on the sale of one of its freehold properties (Vernon Mill), which
is shown as a highlighted item.
The Group is reporting a profit before tax in the year under
review, after the highlighted items, of GBP 15.3 m (FY 2020: GBP
3.9 m). Underlying earnings before interest, tax, depreciation,
amortisation and gain on property disposal (EBITDA) were GBP 14.0 m
(FY 2020: GBP 8.2 m).
Underlying basic earnings per share before highlighted items
amounted to 40.92 p (FY 2020: 18.12 p). Underlying diluted earnings
per share, on the same basis, were 40.37p, (FY 2020: 18.08 p).
Basic earnings per share after highlighted items were 56.86p (FY
2020: 14.76 p). Diluted earnings per share, on the same basis, were
56.09p, (FY 2020: 14.73p).
FINANCIAL POSITION, WORKING CAPITAL & CASH FLOW
The Group's net assets as at 31 August 2021 totalled GBP 44.9 m
(FY 2020: GBP 34.0 m) and, notwithstanding the payment of total
dividends of GBP 1.9m , the capital base of the Company has been
strengthened considerably from last year's level.
Inventories were c.GBP 3.9 m lower at the end of the financial
period at GBP 10.9 m (FY 2020 GBP 14.7 m), reflecting the delay in
shipments from the Far East due to the logistical challenges which
all importers have faced.
During the financial year, the Group generated cash from
operations of GBP 27.3 m (FY 2020: GBP 19.6 m). Interest charges on
short-term use of working capital facilities during the year
amounted to GBP 0.1 m (FY 2020: GBP 0.34 m).
At the end of the financial year, after making payments for
dividends, the Group had a net cash position of GBP35.9m, compared
to GBP19.1m at the end of the 2020 comparative period.
DIVID
The Board remains committed to a progressive dividend policy as
we believe this reflects our confidence in the Company's ability to
grow profits and generate and develop further sustainable cash
flow.
The Board will be recommending to shareholders a final dividend
of 9.0p (2020 H2: 3.0 p per share) , an increase of 200 % when
compared to the final dividend last year. Together with the interim
dividend of 6 .0 p per share paid in July 2021, this will, if
approved by shareholders, bring the total dividend for the year to
15.0p per share (FY 2020: 5.0 p). The 2021 total dividend is
covered approximately 2.7 times by underlying annual earnings
(2020: 3.6 times).
Subject to approval by shareholders at the Annual General
Meeting at 11am on Friday, 21 January 2022, the following timetable
will apply for this dividend :
Event Date
Ex-dividend date 13 January 2022
----------------
Record date 14 January 2022
----------------
Payment date 28 January 2022
----------------
OUR PRODUCT PORTFOLIO
Our portfolio of products has performed extremely well
throughout the year, living up to the Board's expectations, and is
selling through well in the lead up to Christmas 2021.
Products from the Group's portfolio featured in the Toy
Retailers Association's prestigious "DreamToys" list announced in
early November 2021, which reflects the most sought-after toy
categories in the UK for Christmas 2021. Although the supply chain
issues that have plagued importers throughout the year have
thwarted us from realising the portfolio's full sales potential,
the careful and skilfully managed operation of the business has
enabled optimum sales to be realised.
Moving into 2022, our line-up of merchandise not only continues
to feature some of the most sought-after toy products but will be
further bolstered by the launch of a number of exciting new
concepts, additions, and brand extensions that the Group will
unveil at the London Toy Fair in January 2022 and through to Spring
of next year.
In July 2021, the Group acquired the business and assets of the
Chill Factor branded range of drink chilling bottles and slushy
makers for a cash consideration of USD 1.31m. The first quarter of
the new calendar year will witness the Group's full relaunch of its
Chill Factor branded range, including products produced under a
new
licence signed by the Group for the Coca Cola and Fanta brands .
The Group has maintained its focus on further developing its
own, in-house originated brands and reducing reliance on capturing
distribution rights in its home territories for third-party
products. We continue to work on developing our pipeline of new
projects, some as far ahead as two years before an introduction to
our range, and these feed into our portfolio at predetermined
stages in the annual toy selling cycle and renew and enlarge our
offering. The growth potential of these projects is considerable,
initially from sales following release in our domestic markets and
then to the subsequent development of sales in international
markets. This change of mix, favouring in-house developed products
to distribution of third-party products, has been gradual but is
gathering pace. This has drawn on the depth and range of skills
that we have developed and our successes in strategic planning and
implementation of new brand and product launches in our domestic
and international markets. The Board considers that this approach
will continue to mitigate the impact of retirements from our
product portfolio as licence agreements expire and are not renewed
and product distribution agreements come to an end .
Our full current portfolio of products and brands can be viewed
at www.character-online.com .
PROXY
In the year under review, the Group's Scandinavian subsidiaries,
which trade under the "Proxy" name in Denmark, Sweden and Norway,
saw strong demand for their top brands, although they were not
immune from the supply chain issues that affected the Group
generally. The mix of its domestic distribution business and
significant FOB business from the Far East combined to produce a
near break-even position for Proxy for the year as a whole.
This result was achieved following senior management changes
made in the early part of the year and through the determined and
exceptional efforts of all members of the Proxy team and the Board
offers its thanks and appreciation to each of them.
SHARE BUY-BACK PROGRAMME
During FY 2021, the Company effected no buybacks of ordinary
shares in the Company. I t remains part of the Group's overall
strategy to continue to repurchase the Company's own shares, when
considered appropriate. However, certain provisions of the UK
Market Abuse Regulation have frustrated this objective in recent
years.
The Company currently has authority to buy-back up to 3,200,000
ordinary shares but this has not been utilised since it was granted
at the Annual General Meeting ("AGM") in January 2021 and this
authority will expire at the 2022 AGM.
The Board believes that it is in the Company's and all
investors' interests to provide shareholders who wish to realise
part or all their investment in the Company with an opportunity to
access liquidity that is not otherwise available in the market and
to return excess capital to shareholders. Accordingly, t he Board
will be seeking to renew its authority to buy back up to 3,200,000
ordinary shares (constituting approximately 15% of the total voting
rights in the Company) at the forthcoming 2022 AGM.
Subject to the authority being renewed at the 2022 AGM in
January 2022, the Company will be proceeding with the tender offer
proposed earlier in the year and full details of the size, pricing
and exact timing of the offer will be announced following the AGM
.
TOTAL VOTING RIGHTS
As at today's date, the Company has 23,608,501 ordinary shares
in issue, excluding shares held in treasury. The Company holds
2,226,220 ordinary shares in treasury, representing approximately
10.4 per cent. of the issued share capital (excluding these
treasury shares), which do not carry voting or dividend rights.
Therefore, the total number of voting rights in the Company is
21,382,281 . This figure of 21,382,281 may be used by shareholders
as the denominator for the calculations by which they may determine
if they are required to notify their interest, or change to their
notified interest, in the Company under the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules.
OUR PEOPLE
The Group employs a total of 209 people across its locations in
the UK, Scandinavia and Asia (FY 2020: 209).
Regular readers of this report will be aware of the high esteem
in which the workforce throughout the Group is held by the Board.
Just when it was thought that there were no challenges that had not
been thrown at our teams that they had not already encountered and
overcome, a new and potentially paralysing fragility was exposed in
the global supply chain on which our business is dependent. The
communications and seamless synchronicity between, and the agile
reactions of, those teams to the testing logistical challenges that
they faced in the year under review armed them with the ability to
deliver what the Board considers to have been a terrific outcome
for the Group in the circumstances.
Our reported results have been achieved through the determined
and exceptional efforts of all of our teams across the world and
the Board offers its thanks and appreciation to each of them.
THE BOARD
The composition of and the succession planning for the Board,
particularly the non-executive directors, has been a matter of
careful focus for the Directors over the past year. The Board
agreed early in the year to look to appoint two new non-executive
directors to the Board. Independence, diversity and experience have
all been significant selection criteria in the process.
The Company welcomed the appointment of Carmel Warren to the
Board as an independent, non-executive director in April and,
subsequently Carmel has been appointed to all of the Board's
committees and to the Chair of the Audit Committee. As a
consequence, the composition of each of those committees is, in the
Board's view, is now made up of wholly independent, non-executive
directors. In addition, David Harris has stepped down as the Chair
of the Remuneration Committee and Clive Crouch has been appointed
as his successor.
Richard King has stepped down as a member of the Audit
Committee, the Remuneration Committee and the Nominations
Committee. The Board wishes to acknowledge and thank him for his
commitment and service on these Committees over the years and also
for his continued leadership and support as its Chairman. Richard
remains a member and Chair of the Corporate Governance and Risk
Management Committee, as the role of the Chair is pivotal to the
articulation and implementation of good corporate governance within
the Company and it is appropriate that the Board's Chairman also
chairs this Committee.
The search for another non-executive director continues and the
Board is determined to complete this search and appoint as soon as
practicable in early 2022.
OUTLOOK
Both domestic and international demand for our products remains
strong and the reception received so far by the new introductions
planned for our ranges in the coming months has been a very
pleasing endorsement of our team's designs, plans and
execution.
Whilst it is not possible to predict when the global logistics
issues will be fully resolved, the Group is well placed to satisfy
anticipated demand in its markets.
The Board believes that margins will be under pressure due to
high freight rates and increased materials and labour costs,
however, it is satisfied that the Group remains on target to meet
current market expectations .
The Board looks forward to further updating shareholders on the
outcome of the 2021 Christmas trading period and prospects at the
time of the forthcoming AGM on 21 January 2022.
E
GROUP INCOME STATEMENT-UNAUDITED
for the year ended 31 August 2021
--------------------------------------------------------------------------------------------------------------------
12 months 12 months
ended ended
31 August 12 months 12 months 31 August 12 months 12 months
2021 ended ended 2020 ended ended
Result 31 August 31 August Result 31 August 31 August
before 2021 2021 before 2020 2020
*highlighted *highlighted Statutory *highlighted *highlighted Statutory
items items Result items items Result
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
Revenue 1 139,997 - 139,997 108,867 - 108,867
Cost of sales (99,553) - (99,553) (78,704) - (78,704)
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
Gross profit 40,444 - 40,444 30,163 - 30,163
Other income 332 - 332 501 - 501
Selling and
distribution
expenses (8,248) - (8,248) (7,355) - (7,355)
Administrative
expenses (21,301) - (21,301) (17,949) - (17,949)
Profit on sale of
property - 2,016 2,016 - - -
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
Operating profit 2 11,227 2,016 13,243 5,360 - 5,360
Finance income 36 - 36 47 - 47
Finance costs (113) - (113) (388) - (388)
Changes in fair
value
of financial
instruments - 2,128 2,128 - (1,980) (1,980)
Gain on buy back
on loan - - - - 886 886
Profit before tax 11,150 4,144 15,294 5,019 (1,094) 3,925
Income tax (2,353) (737) (3,090) (1,312) 376 (936)
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
Profit for the
period 8,797 3,407 12,204 3,707 (718) 2,989
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
Attributable to:
Owners of the
parent 12,156 3,154
Non-controlling
interest 48 (165)
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
Profit for the
period 12,204 2,989
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
Earnings per
share before
highlighted items
(pence)
Basic earnings
per share 3 40.92p 18.12p
Diluted earnings
per share 3 40.37p 18.08p
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
Earnings per
share after
highlighted items
(pence)
Basic earnings
per share 3 56.86p 14.76p
Diluted earnings
per share 3 56.09p 14.73p
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
Dividend per
share (pence) 4 9.00p 15.00p
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
EBITDA
(earnings before
interest,
tax,
depreciation,
amortisation
and gain on
property
disposal) 14,036 8,158
------------------ ----- -------------- -------------- ----------- -------------- --------------- -----------
GROUP STATEMENT OF COMPREHENSIVE INCOME - UNAUDITED
for the year ended 31 August 2021
--------------------------------------------------------------------------------
Total Total
2021 2020
GBP000's GBP000's
------------------------------------------------------ ---------- ----------
Profit for the year after tax 12,204 2,989
-------------------------------------------------------- ---------- ----------
Items that may be reclassified subsequently to
profit and loss
Exchange differences on translation of foreign
operations - (5)
Income tax on exchange differences 7 (93)
------------------------------------------------------- ---------- ----------
Other comprehensive income/(expense) for the year,
net of income tax 7 (98)
------------------------------------------------------- ---------- ----------
Total comprehensive income for the year 12,211 2,891
-------------------------------------------------------- ---------- ----------
Total comprehensive income for the year attributable
to:
Equity holders of the parent 12,163 3,056
Non-controlling interest 48 (165)
-------------------------------------------------------- ---------- ----------
12,211 2,891
------------------------------------------------------ ---------- ----------
GROUP BALANCE SHEET - UNAUDITED
as at 31 August 2021
------------------------------------------------------------------------
2021 2020
GBP000's GBP000's
---------------------------------------------- ---------- ----------
Non - current assets
Intangible assets 1,806 891
Investment property 1,519 1,584
Property, plant and equipment 8,230 3,226
Right of use assets 1,454 2,069
Deferred tax assets 243 704
------------------------------------------------ ---------- ----------
13,252 8,474
---------------------------------------------- ---------- ----------
Current assets
Inventories 10,893 14,736
Trade and other receivables 26,019 23,013
Current income tax receivable 766 244
Derivative financial instruments 75 75
Cash and cash equivalents 35,920 22,292
----------------------------------------------- ---------- ----------
73,673 60,360
---------------------------------------------- ---------- ----------
Current liabilities
Short-term borrowings - (3,168)
Trade and other payables (38,390) (26,432)
Lease Liabilities (557) (550)
Income tax (1,610) (777)
Derivative financial instruments (165) (2,293)
(40,722) (33,220)
---------------------------------------------- ---------- ----------
Net current assets 32,951 27,140
------------------------------------------------ ---------- ----------
Non-current liabilities
Deferred tax (405) (21)
Lease liabilities (946) (1,547)
------------------------------------------------ ---------- ----------
(1,351) (1,568)
---------------------------------------------- ---------- ----------
Net assets 44,852 34,046
------------------------------------------------ ---------- ----------
Equity
Called up share capital 1,181 1,181
Shares held in treasury (1,870) (1,870)
Capital redemption reserve 1,776 1,776
Share-based payment reserve 3,749 3,369
Share premium account 17,324 17,324
Merger reserve 651 651
Translation reserve 767 727
Profit and loss account 21,274 11,231
------------------------------------------------ ---------- ----------
Attributable to equity holders of the parent 44,852 34,389
------------------------------------------------ ---------- ----------
Non-controlling interest - (343)
------------------------------------------------ ---------- ----------
Total equity 44,852 34,046
------------------------------------------------ ---------- ----------
GROUP CASH FLOW STATEMENT - UNAUDITED
for the year ended 31 August 2021
2021 2020
GBP000's GBP000's
-------------------------------------------------------- ------------------------------ -----------------------
Cash flow from operating activities
Profit before taxation for the year after highlighted
items 15,294 3,925
--------------------------------------------------------- ------------------------------ -----------------------
Adjustments for:
Depreciation of property, plant and equipment 567 544
Depreciation of investment property 65 65
Depreciation of right of use assets 556 412
Amortisation of intangible assets 1,621 1,783
Gain on buyback of loan - (886)
Write off plant and equipment 132 -
(Profit) on disposal of property, plant and equipment (2,028) (9)
Net interest expense 77 341
Financial instruments fair value adjustments (2,128) 1,980
Share-based payments 380 189
Decrease in inventories 3,853 1,669
(Increase) / Decrease in trade and other receivables (3,006) 11,960
Increase / (Decrease) in trade and other creditors 11,957 (2,334)
--------------------------------------------------------- ------------------------------ -----------------------
Cash generated from operations 27,340 19,639
--------------------------------------------------------- ------------------------------ -----------------------
Finance income 36 47
Finance expense (113) (388)
Income tax paid (1,788) (1,728)
--------------------------------------------------------- ------------------------------ -----------------------
Net cash inflow from operating activities 25,475 17,570
--------------------------------------------------------- ------------------------------ -----------------------
Cash flows from investing activities
Purchase of business (945) -
Payments for intangible assets (1,615) (1,771)
Payments for property, plant and equipment (7,128) (528)
Proceeds from disposal of property, plant and equipment 3,458 12
Net cash outflow from investing activities (6,230) (2,287)
--------------------------------------------------------- ------------------------------ -----------------------
Cash flows from financing activities
Reduction of borrowings - 1,408
Buyback of loan - (521)
Payment of lease liabilities (606) (378)
Proceeds from issue of share capital - 205
Purchase of own shares for cancellation - (163)
Dividends paid (1,924) (3,207)
Net cash used in financing activities (2,530) (2,656)
--------------------------------------------------------- ------------------------------ -----------------------
Net increase / (decrease) in cash and cash equivalents 16,715 12,627
Cash, cash equivalents and borrowings at the beginning
of the year 19,124 6,504
Effects of exchange rate movements 81 (7)
--------------------------------------------------------- ------------------------------ -----------------------
Cash, cash equivalents and borrowings at the end
of the year 35,920 19,124
--------------------------------------------------------- ------------------------------ -----------------------
Cash, cash equivalents and borrowings consist of:
Cash and cash equivalents 35,920 22,292
Total borrowings - (3,168)
-------------------------------------------------- ------ -------
Cash, cash equivalents and borrowings at the end
of the year 35,920 19,124
-------------------------------------------------- ------ -------
GROUP STATEMENT OF CHANGES IN EQUITY - UNAUDITED
for the year ended 31 August 2021
--------------------------------------------------------------------------------------------------------------------------------------------------
Shares Profit
Called held Capital Share Share-based and Non-controlling
up share in redemption premium Merger payment Translation loss interest
capital treasury reserve account reserve reserve reserve account GBP000's Total
GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's
----------------- --------- --------- ----------- --------- --------- ------------ ------------- --------- ----------------- ----------
The Group
At 1 September
2019 1,183 (1,912) 1,774 17,161 651 3,180 1,223 11,293 (416) 34,137
------------------ --------- --------- ----------- --------- --------- ------------ ------------- --------- ----------------- ----------
Profit/(loss) for
the year after
tax 3,154 (165) 2,989
================== ========= ========= =========== ========= ========= ============ ============= ========= ================= ==========
Other comprehensive (expense)/income
Net exchange
differences
on translation
of
foreign
operations - - - - - - (496) 398 - (98)
Total other comprehensive expense (496) 398 - (98)
----------------------------------------------------------------------------------------- ------------- --------- ----------------- ----------
Total comprehensive income for the year (496) 3,552 (165) 2,891
----------------------------------------------------------------------------------------- ------------- --------- ----------------- ----------
Transactions with owners, recorded directly in equity
Change in
non-controlling
interest - - - - - - - (238) 238 -
Share-based
payment - - - - - 189 - - - 189
Deferred tax
debit
relating to
share
options - - - - - - - (6) - (6)
Dividends - - - - - - - (3,207) - (3,207)
Shares issued - 42 - 163 - - - - - 205
Shares cancelled (2) - 2 - - - - (163) - (163)
------------------ --------- --------- ----------- --------- --------- ------------ ------------- --------- ----------------- ----------
At 31 August 2020 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
================== ========= ========= =========== ========= ========= ============ ============= ========= ================= ==========
Other comprehensive (expense)/income
Net exchange
differences
on translation
of
foreign
operations - - - - - - 40 (28) (5) 7
Total other comprehensive expense 40 (28) (5) 7
----------------------------------------------------------------------------------------- ------------- --------- ----------------- ----------
Total comprehensive income for the year 40 12,128 43 12,211
----------------------------------------------------------------------------------------- ------------- --------- ----------------- ----------
Transactions with owners, recorded directly in equity
Change in
non-controlling
interest - - - - - - - (300) 300 -
Share-based
payment - - - - - 380 - - - 380
Deferred tax
credit
relating to
share
options - - - - - - - 139 - 139
Dividends - - - - - - - (1,924) - (1,924)
Shares issued - - - - - - - - - -
Shares cancelled - - - - - - - - - -
At 31 August 2021 1,181 (1,870) 1,776 17,324 651 3,749 767 21,274 - 44,852
------------------ --------- --------- ----------- --------- --------- ------------ ------------- --------- ----------------- ----------
NOTES TO THE UNAUDITED PRELIMINARY STATEMENT
1. GEOGRAPHICAL DESTINATION OF REVENUE
==== ===============================================================================
12 months 12 months
ended ended
31 August 31 August
2021 2020
GBP000's GBP000's
----------------------------------------------------------- ----------- -----------
United Kingdom 79,509 69,078
Rest of the world 60,488 39,789
----------------------------------------------------------- ----------- -----------
Total Group 139,997 108,867
----------------------------------------------------------- ----------- -----------
2. EXPENSES BY NATURE - GROUP
===== ===================================================================================
12 months 12 months
ended ended
31 August 31 August
2021 2020
GBP000's GBP000's
---------------------------------------------------------------- ----------- -----------
Operating profit is stated after charging/(crediting):
Cost of inventories recognised as an expense (included
in cost of sales) 88,729 71,281
================================================================ =========== ===========
Product development costs incurred 1,736 1,863
Product development costs capitalised (1,615) (1,771)
Amortisation of capitalised product development costs 1,619 1,783
================================================================ =========== ===========
Product development costs expensed to cost of sales 1,740 1,875
================================================================ =========== ===========
(Credit)/debit financial instruments fair value adjustments (2,218) 1,980
Inventories (credit) (1,022) (97)
Exchange losses 130 119
Staff costs 13,958 10,542
Depreciation of tangible fixed assets
- owned assets 567 544
Depreciation of investment property 65 65
(Profit) on disposal of property, plant and equipment (2,028) (9)
Depreciation - right of use assets 556 412
Operating leases - land and buildings - 233
Auditor's remuneration 141 141
---------------------------------------------------------------- ----------- -----------
3. EARNINGS PER SHARE - GROUP
======= ==================================================== =========================
The earnings used in the calculation of basic and diluted earnings per share
are as follows:
----------------------------------------------------------------------------------------
12 months 12 months
ended ended
31 August 31 August
2021 2020
GBP GBP
------------------------------------------------------------- ------------ -----------
Profit attributable to equity shareholders of the parent 12,156,000 3,154,000
------------------------------------------------------------- ------------ -----------
Financial instruments fair value adjustments net of
tax (1,724,000) 1,604,000
------------------------------------------------------------- ------------ -----------
Gain on buyback of loan - (886,000)
------------------------------------------------------------- ------------ -----------
Gain on sale of property net of tax (1,683,000) -
------------------------------------------------------------- ------------ -----------
Profit for adjusted earnings per share 8,749,000 3,872,000
------------------------------------------------------------- ------------ -----------
Weighted average number of ordinary shares in issue
during the year - basic 21,379,781 21,367,710
Weighted average number of dilutive potential ordinary
shares 291,974 50,590
------------------------------------------------------------- ------------ -----------
Weighted average number of ordinary shares for diluted
earnings per share 21,671,755 21,418,300
------------------------------------------------------------- ------------ -----------
Earnings per share before highlighted items
Basic earnings per share (pence) 40.92p 18.12p
------------------------------------------------------------- ------------ -----------
Diluted earnings per share (pence) 40.37p 18.08p
------------------------------------------------------------- ------------ -----------
Earnings per share after highlighted items
Basic earnings per share (pence) 56.86p 14.76p
------------------------------------------------------------- ------------ -----------
Diluted earnings per share (pence) 56.09p 14.73p
------------------------------------------------------------- ------------ -----------
4. DIVIDEND - GROUP
===== ===============================================================================
12 months 12 months
ended ended
31 August 31 August
2021 2020
GBP000's GBP000's
------------------------------------------------------------ ----------- -----------
On equity shares:
Final dividend paid for the year ended 31 August 2020
3.00 pence (2019: 13.00 pence) per share 642 2,777
Interim dividend paid for the year ended 31 August 2021
6.00 pence (2020: 2.00 pence) per share 1,282 430
------------------------------------------------------------ ----------- -----------
9.00 pence (2020: 15.00 pence) per share 1,924 3,207
------------------------------------------------------------ ----------- -----------
The Directors recommend a final dividend of 9.00 pence per share
(2020: 3.00 pence) amounting to GBP1,924,000 (2020:
GBP642,000).
If approved by shareholders, the final dividend will be paid on
28 January 2022 to shareholders on the register on 14 January 2022
.
5. ANNUAL REPORT AND ACCOUNTS
========= =============================================================================
The financial information set out in the announcement does not constitute
the Company's statutory accounts for the years ended 31 August 2021 and 2020.
The financial information for the year ended 31 August 2020 is derived from
the statutory accounts for that year which have been delivered to the Registrar
of Companies. The auditors reported on those accounts: their report was unqualified,
did not draw attention to any matters by way of emphasis and did not contain
a statement under s498(2) or (3) of the Companies Act 2006. The audit of
the statutory accounts for the year ended 31 August 2021 is not yet complete.
These accounts will be finalised on the basis of the financial information
presented by the Directors in this preliminary announcement and will be delivered
to the Registrar of Companies following the Company's Annual General Meeting.
6. ANNUAL GENERAL MEETING
========= =================================================================
The Annual General Meeting will be held at 2(nd) Floor,86-88 Coombe Road,
New Malden, Surrey KT3 4QS on Friday, 21 January 2022 at 11.00am.
7. ELECTRONIC COMMUNICATIONS
======== ==================================================================
The full Financial Statements for the year ended 31 August 2021, together
with a Circular letter incorporating the Notice of Meeting convening the
Company's 2022 Annual General Meeting, will be available for viewing and
download on the Group's website, www.character.com by 23 December 2021.
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END
FR EADALFDNFFAA
(END) Dow Jones Newswires
December 15, 2021 02:00 ET (07:00 GMT)
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