The Character Group (CCT) Trading update summary

Trading performance

• Sales in July and August were strong, leading to a robust finish for FY26.

• UK and Scandinavian divisions saw higher sales, offsetting lower international sales, especially in the USA.

• Full-year sales are expected to be broadly similar to the prior year, reversing the first-half decline.

• Gross profit margin improvement from H126 was maintained in the second half.

• Profit before tax and highlighted items for FY26 is expected to exceed market expectations by about 20%.

Financial position and capital management

• Sale of the Middleton warehouse in July 2026 generated £9.8m, boosting cash reserves to over £20.0m.

• The Board is reviewing capital requirements and considering returning excess cash to shareholders.

• Market capitalization stands at £54m.

Outlook and upcoming events

• Trading remains positive ahead of the Christmas 2026 season, with strong product sales and maintained margins.

• The Board is optimistic for the year ahead, supported by a robust balance sheet and healthy cash position.

• Audited 2026 annual report and accounts will be published in December 2026, with further updates to follow.