The Character Group (CCT) H1 2026 earnings summary

Executive summary

• Profit before tax and highlighted items rose 15% to £2.4m for the six months ended 28 February 2026, despite a 9% drop in revenue due to US tariffs.

• Gross profit margin improved to 31.7% from 29.3% year-over-year.

• Underlying basic earnings per share before highlighted items increased 29% to 11.06p.

• Interim dividend raised by 33% to 4.0p per share.

• Full-year results are expected to be significantly ahead of current market expectations.

Financial highlights

• Revenue for HY26 was £48.3m, down from £53.0m in HY25.

• EBITDA increased to £4.2m from £3.7m year-over-year.

• Net assets at 28 February 2026 were £33.4m, compared to £38.7m in HY25.

• Cash and cash equivalents stood at £13.7m, with no long-term debt.

• Cash generated from operations was £4.7m, down from £6.7m in HY25.

Outlook and guidance

• Turnover for FY26 is expected to be flat, but gross margin improvements and cost management are anticipated to continue.

• Profit before tax and highlighted items for FY26 is forecast to be significantly above current market expectations, contingent on Q4 trading.

• Inventory is projected to be largely clean at year-end, reducing the need for significant provisions.

• The benefit of cost management and property letting/sale is expected to further strengthen liquidity.