TIDMCCT
RNS Number : 4810D
Character Group PLC
27 April 2017
THURSDAY 27 APRIL 2017
The Character Group plc
Designers, developers and international distributor of toys,
games and giftware
HALF YEARLY FINANCIAL REPORT
for the six months ended 28 February 2017
"Profitable, cash generative with a strong balance sheet; a set
of solid results in challenging market conditions and against the
backdrop of significant growth in the comparative period. Character
remains the UK's leading independent toy company."
KEY PERFORMANCE INDICATORS
CONTINUING OPERATIONS Half-year Half-year Full-year
ended ended ended
February February August
2017 2016 Change 2016
----------------------------- ---------- ---------- ------- ----------
Revenue GBP61.5m GBP65.2m -5.7% GBP121.0m
Underlying operating -17.2% GBP12.7m
profit* GBP7.2m GBP8.7m
Operating profit GBP6.6m GBP8.8m -25.0% GBP13.3m
Underlying pre-tax profit* GBP7.1m GBP8.6m -17.4% GBP12.5m
Pre-tax profit GBP6.5m GBP8.7m -25.3% GBP13.1m
Underlying basic earnings
per share* 27.86p 32.43p -14.1% 47.63p
Underlying diluted earnings
per share* 27.07p 30.69p -11.8% 45.16p
Basic earnings per share 25.18p 32.85p -23.3% 50.30p
Diluted earnings per
share 24.47p 31.09p -21.3% 48.54p
Proposed dividend per
share 9.0p 7.0p +28.6% 8.0p
Underlying EBITDA* GBP8.5m GBP10.4m -18.3% GBP15.1m
EBITDA GBP7.9m GBP10.5m -24.8% GBP15.7m
Net cash GBP18.6m GBP14.5m +27.9% GBP6.9m
Net assets GBP25.2m GBP21.4m +17.8% GBP22.9m
----------------------------- ---------- ---------- ------- ----------
* Excludes mark to market
(loss)/profit adjustments
on FX derivative positions GBP(0.6)m GBP0.1m GBP0.6m
------------------------------ ---------- -------- --------
Ø Core group of products continues to have brand strength in depth - Top 3 brands are Peppa
Pig,
Little Live Pets and Teletubbies
Ø Recently launched Stretch range becomes one of our top brands
Ø Gross profit level holding well despite increased purchasing costs due to weakness of sterling
Ø Strong balance sheet and highly cash generative model with net cash at bank of GBP18.6m at
HY 17
Ø Proposed dividend of 9.0p up 28.6% on comparative period
Ø Major range extensions currently in development for Peppa, Little Live Pets, Teletubbies,
Stretch, Mashems and Minecraft
Ø We remain on target to achieve current market expectations for the full financial year to
31 August 2017
FTSE sector: leisure: FTSE AIM All-share: symbol: CCT.L:
Market cap: GBP101m
Copies of this statement can be viewed at www.thecharacter.com.
Product ranges can be viewed at www.character-online.co.uk.
ENQUIRIES
The Character Group plc
Jon Diver, Joint Managing Director
Kiran Shah, Joint Managing Director
Mark Dowding, Group Finance Director
Office: +44 (0) 208 329 3377
Mobile: +44 (0) 7831 802219 (JD)
Mobile: +44 (0) 7956 278522 (KS)
Mobile: +44(0)7967185269 (MD)
Email: info@charactergroup.plc.uk
Panmure Gordon
(Nominated Adviser and Joint Broker)
Andrew Godber, Investment Banking
Tom Salvesen, Corporate Broking
Tel: +44 (0) 20 7886 2500
Allenby Capital Limited
(Joint Broker)
Nick Athanas
Katrina Perez
Tel: +44 (0) 20 3328 5656
TooleyStreet Communications Limited
(Investor and media relations)
Fiona Tooley
Tel: +44 (0) 7785 703523
Email: fiona@tooleystreet.com
The Character Group plc
(the "Company" or "Group" or "Character")
Designers, developers and international distributor of toys,
games and giftware
HALF YEARLY FINANCIAL REPORT
for the six months ended 28 February 2017
INTRODUCTION
The Board is pleased to report that the Group continues to
deliver consistently solid financial results. In a period where a
number of macro-economic factors, particularly the weakness of
sterling have worked against us and considering the backdrop of an
exceptional period of growth experienced in the comparative period
last year, our core brands have continued to perform well.
The balance sheet continues to strengthen and the repeating
success of our cash generation model leads us to report a net cash
balance of GBP18.6m at the 2017 HY balance sheet date. The Board's
continued confidence gained from these results and the current
outlook for the business enable it to declare an increased interim
dividend of 9.0 pence per share, up 28.6% on last year.
As previously communicated we have instigated several specific
measures to improve operational efficiency to mitigate the adverse
effect of increased stock purchase costs arising as a result of the
weakness of sterling. We are pleased to say that good progress has
been made on these initiatives and material cost savings are now
coming through, this gives us confidence on our ability to meet
current market forecasts.
OUR BRANDS
Our Top performing brands in the period were Peppa Pig, Little
Live Pets, Teletubbies, Mashems, Minecraft, Scooby Doo, Stretch and
Fireman Sam. This core group of products continues to have brand
strength and depth. Peppa is consistently our top performing brand;
Little Live Pets and Teletubbies complete our Top 3. The recently
launched Stretch range has importantly already established itself
as one of our top brands in the UK and internationally.
Our continued market leading position in the UK ensures that we
remain the partner of choice for many of the leading brand owners
and we remain confident in our ability to further expand our
presence both domestically and internationally in the years to
come.
PERFORMANCE ON CONTINUING OPERATIONS
Revenue in the period was GBP61.5m, against GBP65.2m in the
comparable 2016 period (year ended 31 August 2016 GBP121m).
Geographically our revenue split in the period remained consistent
with the comparable 2016 period and was United Kingdom 76% (2016:
76%), Rest of the World (including USA) 24% (2016: 24%). As we
highlighted at the time of our Annual General Meeting in January
2017 our sales levels leading up to the 2016 Christmas period were
marginally down compared to what was an exceptional comparative
period in 2016. The Group adopted a cautious approach to purchasing
stocks in the lead up to the Christmas 2016 period and, although
the Group's sales in the period could have been marginally higher
were it not for this caution, we believe that this was a prudent
approach in the circumstances. Sales in the United States were down
compared to HY 2016, which was a contributing factor to the
reduction in revenue overall for the period, but the effect on
gross profit was minimal, given that the margin on US sales is
generally lower than on sales to other territories.
A significant proportion of the Group's purchases are made in US
dollars. The business 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 charge
against profit of GBP0.6m being reported. This compares to an
additional profit of GBP0.1m shown in the corresponding period in
2016 and an additional profit of GBP0.6m reported in the year to 31
August 2016. These mark to market adjustments are non-cash items
calculated by reference to unpredictable and sometimes volatile
currency spot rates at the various balance sheet dates. To
highlight profitability on a normal basis these adjustments have
been added back to arrive at the "underlying" profit measures
presented in this report.
Underlying gross profit margin in the period being reported
amounted to 32.2%, compared to 33.9% in the same 2016 period, (a
reduction of 1.7%) and 31.1% for the August 2016 financial year.
Underlying margins have been impacted by the weakness of sterling;
in the case of UK domestic sales (which currently make up the
majority of our business) purchase costs have increased whilst the
profits from our US dollar based business make a positive impact
when translated into our reporting currency sterling.
The Group is reporting an underlying profit before tax in the
period under review of GBP7.1m, down 17.4% on the comparative
period (HY2016: GBP8.6m), whilst the full year ended 31 August 2016
was GBP12.5m. Underlying earnings before interest, tax,
depreciation and amortisation (EBITDA) were GBP8.5m, down 18.3% on
the comparative period (2016: GBP10.4m) and GBP15.1m for the full
year to August 2016.
Underlying basic earnings per share amounted to 27.86 pence, a
decrease of 14.19% (HY2016: 32.43p; FY2016: 47.63p. Underlying
diluted earnings per share, on the same basis, were 27.07 pence
(HY2016: 30.69p: FY2016: 45.16p).
The Key Performance Indicators table shown at the front of this
report provides the foregoing data on an underlying basis and by
reference to Generally Accepted Accounting Practice, as adopted
consistently by the Group.
FINANCIAL POSITION, WORKING CAPITAL & CASH FLOW
The Group's capital base strengthened considerably in the period
with net assets at 28 February 2017 of GBP25.2m an increase of 10%
on the position shown at the end of the 2016 financial year of
GBP22.9m.
Inventories at 28 February 2017 were GBP6.2m (HY2016: GBP5.2m:
FY2016 GBP10.3m); the increased book value of stock is in large
part due to the increased US dollar cost of purchase. Our stock
position is lean and made up predominantly of recent purchases;
slow moving inventory is minimal.
During the period the Group generated cash from operations of
GBP16.4m (HY2016 GBP14.8m: FY 2016 GBP10.8m).
The Group has no long-term debt. Interest charges on the use of
working capital facilities during the period were GBP0.1m (HY2016:
GBP0.1m: FY 2016 GBP0.2m).
After making dividend payments and share buy-backs (see below),
at the end of the first-half period, the Group had net cash on the
balance sheet of GBP18.6m (2016: GBP14.5m) an increase of 27.8% on
the position at the end of the comparative period.
SHARE BUY-BACK PROGRAMME
In the period under review, the Company acquired a total of
292,402 ordinary shares in the Company at an aggregate cost of
GBP1.3m (excluding dealing costs), with the average cost being
GBP4.475 per ordinary share (HY2016: 213,936 ordinary shares at an
aggregate cost of GBP1m and an average cost of GBP4.70 per ordinary
share). There have been no further buy-backs since 28 February
2017. The Company has an unutilised authority to buy-back up to a
further 3,214,700 ordinary shares. It remains part of the Group's
overall strategy to continue to repurchase the Company's own shares
when appropriate under its current share buy-back programme and, as
previously indicated, the Directors could also be prepared to
participate in any future share buy-back programme the Company
proposes.
Total Voting Rights (TVR)
As at today's date, the Company has 21,218,352 ordinary shares
in issue. The Company holds 3,269,456 ordinary shares in treasury,
representing approximately 15.41 per cent of the share capital
excluding these treasury shares, which do not carry voting or
dividend rights. The figure of 21,218,352 may be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest, or
change to their interest, in the Company under the Disclosure and
Transparency Rules.
DIVID
We remain focused on delivering a progressive dividend policy.
Given our ongoing progress, the Board is declaring an interim
dividend of 9.0 pence per share, an increase of 28.6% (2016: 7.0p).
This interim dividend, which is covered 2.8 times by earnings, will
be paid on 28 July 2017 to shareholders on the Register as at the
close of business on 7 July 2017. The shares will be marked
ex-dividend on 6 July 2017.
OUR PEOPLE
The business employs 194 people across its locations in the UK
and Asia. The Board once again takes this opportunity to thank
every one of its colleagues around the business for their
continuous hard work, dedication and loyalty, which underpins both
the high-level customer relationships and the Group's overall
performance
OUTLOOK
Our strategic focus remains: "to seek out and develop exciting
products which meet domestic and international market demand". Our
portfolio continues to be derived from, both our own-developed
in-house ranges, including those produced 'under licence', and
others sourced through exclusive distribution agreements. We
continue to have great strength and depth across our brands and a
wide range of long term customers and suppliers; potential
concentration risk is well diversified.
A number of new products are currently in development for launch
this calendar year across our core ranges - Peppa, Little Live
Pets, Teletubbies, Stretch, Mashems and Minecraft. In particular,
there are a number of exciting developments on the "Stretch" range,
which we believe will create a strong level of sales later this
calendar year and beyond. Once again, the positive customer
feedback we have received in relation to these iterations within
existing brands and on other new products to be distributed in the
near future provide the Board with great confidence in its view
that the Group will continue to achieve consistently good results
for the remainder of this financial year and beyond.
The second half has started in line with budget and the Board
remains of the view that the Group is on target to achieve current
market expectations for the full financial year to 31 August
2017.
27 April 2017
The Character Group plc
Consolidated Income Statement
six months ended 28 February 2017
Notes six months six months 12 months
ended ended ended
28 February 29 February 31 August
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ------ -------------- -------------- -----------
Revenue 61,542 65,245 120,967
Cost of sales (42,298) (43,035) (82,694)
-------------------------------------- ------ -------------- -------------- -----------
Gross profit 19,244 22,210 38,273
Net operating expenses
Selling and distribution
costs (4,535) (4,440) (7,128)
Administration expenses (8,280) (9,178) (18,447)
Other operating income 206 250 602
-------------------------------------- ------ -------------- -------------- -----------
Operating profit 6,635 8,842 13,300
Finance income 14 14 47
Finance costs (139) (121) (215)
-------------------------------------- ------ -------------- -------------- -----------
Profit before income taxation 6,510 8,735 13,132
Taxation (1,170) (1,683) (2,345)
-------------------------------------- ------ -------------- -------------- -----------
Profit for the period attributable
to equity holders of the
parent 5,340 7,052 10,787
-------------------------------------- ------ -------------- -------------- -----------
Earnings per share (pence) 4
Basic earnings per share 25.18p 32.85p 50.30p
Diluted earnings per share 24.47p 31.09p 48.54p
Dividend per share (pence) 3 8.0p 6.0p 13.00p
-------------------------------------- ------ -------------- -------------- -----------
EBITDA
(earnings before interest,
tax, depreciation and amortisation) 7,873 10,471 15,689
-------------------------------------- ------ -------------- -------------- -----------
Consolidated Statement of Comprehensive Income
six months six months 12 months
ended ended ended
28 February 29 February 31 August
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------- --- ------------- -------------- ------------
Profit for the period after
tax 5,340 7,052 10,787
------------------------------------------ ------------- -------------- ------------
Items that will not be reclassified
subsequently to profit and
loss
Current tax credit relating
to exercised share options - - 421
Deferred tax credit relating
to share options 77 30 (414)
------------------------------------------ ------------- -------------- ------------
77 30 7
----------------------------------------- ------------- -------------- ------------
Items that may be reclassified
subsequently to profit and
loss
Net exchange differences on
translation of foreign operations (224) (129) (676)
------------------------------------------ ------------- -------------- ------------
Total comprehensive income for
the period attributable to the
equity holders of the parent 5,193 6,953 10,118
------------------------------------------ ------------- -------------- ------------
The Character Group plc
Consolidated Balance Sheet
at 28 February 2017
28 February 29 February 31 August
2017 2016
(unaudited) (unaudited) 2016
GBP'000 GBP'000 (audited)
GBP'000
---------------------------------- --- ------------- ------------- -----------
Non-current assets
Intangible assets - product
development 729 682 1,117
Investment property 1,813 1,878 1,845
Property, plant and equipment 3,317 3,450 3,357
Deferred tax assets 462 559 474
--------------------------------------- ------------- ------------- -----------
6,321 6,569 6,793
-------------------------------------- ------------- ------------- -----------
Current assets
Inventories 6,205 5,153 10,303
Trade and other receivables 5,754 8,302 25,082
Current income tax receivable - - 7
Derivative financial instruments 104 118 533
Cash and cash equivalents 21,709 16,331 28,560
--------------------------------------- ------------- ------------- -----------
33,772 29,904 64,485
-------------------------------------- ------------- ------------- -----------
Current liabilities
Short term borrowings (3,132) (1,790) (21,647)
Trade and other payables (9,921) (12,279) (25,418)
Income tax payable (1,577) (723) (1,106)
Derivative financial instruments (228) (156) (89)
--------------------------------------- ------------- ------------- -----------
(14,858) (14,948) (48,260)
-------------------------------------- ------------- ------------- -----------
Net current assets 18,914 14,956 16,225
--------------------------------------- ------------- ------------- -----------
Non - current liabilities
Deferred tax (22) (136) (99)
--------------------------------------- ------------- ------------- -----------
Net assets 25,213 21,389 22,919
--------------------------------------- ------------- ------------- -----------
Equity
Called up share capital 1,224 1,235 1,235
Shares held in treasury (2,743) (2,743) (2,743)
Capital redemption reserve 1,732 1,714 1,717
Share based payment reserve 2,854 2,705 2,778
Share premium account 15,483 15,428 15,450
Merger reserve 651 651 651
Translation reserve 1,293 1,578 1,274
Profit and loss account 4,719 821 2,557
--------------------------------------- ------------- ------------- -----------
Total equity 25,213 21,389 22,919
--------------------------------------- ------------- ------------- -----------
The Character Group plc
Consolidated Statement of Cash Flows
six months ended 28 February 2017
six months six months 12 months
ended
28 February ended ended
2017
(unaudited) 29 February 31 August
2016
GBP'000 (unaudited) 2016
GBP'000 (audited)
GBP'000
----------------------------------------- ------------- -------------- -------------
Cash flow from operating activities
Profit before taxation for the
period 6,510 8,735 13,132
----------------------------------------- ------------- -------------- -------------
Adjustments for:
Depreciation of property, plant
and equipment 204 224 441
Depreciation of investment property 33 33 65
Amortisation of intangible assets 1,001 1,372 1,925
(Profit) on disposal of property,
plant and equipment - - (1)
Interest expense 125 107 168
Financial instruments fair value
adjustments 568 (91) (573)
Share based payments 76 74 147
Decrease/(increase) in inventories 4,098 3,812 (1,338)
Decrease/(increase) in trade and
other receivables 19,328 7,233 (9,547)
(Decrease)/increase in trade and
other creditors (15,497) (6,736) 6,403
----------------------------------------- ------------- -------------- -------------
Cash generated from operations 16,446 14,763 10,822
----------------------------------------- ------------- -------------- -------------
Interest paid (125) (107) (168)
Income tax paid (623) (2,219) (2,419)
----------------------------------------- ------------- -------------- -------------
Net cash inflow from operating
activities 15,698 12,437 8,235
----------------------------------------- ------------- -------------- -------------
Cash flows from investing activities
Payments for intangible assets (613) (1,217) (2,205)
Payments for property, plant and
equipment (160) (128) (247)
Proceeds from disposal of property,
plant and equipment - 13 14
Net cash outflow from investing
activities (773) (1,332) (2,438)
----------------------------------------- ------------- -------------- -------------
Cash flows from financing activities
Proceeds from issue of share capital 37 1,417 1,442
Purchase of own shares for cancellation (1,315) (1,011) (1,244)
Dividends paid (1,697) (1,285) (2,785)
----------------------------------------- ------------- -------------- -------------
Net cash used in financing activities (2,975) (879) (2,587)
----------------------------------------- ------------- -------------- -------------
Net increase in cash and cash
equivalents 11,950 10,226 3,210
Cash, cash equivalents and borrowings
at the beginning of the period 6,913 4,535 4,535
Effects of exchange rate movements (286) (220) (832)
----------------------------------------- ------------- -------------- -------------
Cash, cash equivalents and borrowings
at the end of the period 18,577 14,541 6,913
----------------------------------------- ------------- -------------- -------------
Cash, cash equivalents and borrowings
consist of:
Cash, cash equivalents 21,709 16,331 28,560
Short term borrowings (3,132) (1,790) (21,647)
--------------------------------------- -------- -------- ---------
Cash, cash equivalents and borrowings
at the end of the period 18,577 14,541 6,913
--------------------------------------- -------- -------- ---------
The Character Group plc
Consolidated statement of changes in equity
Called Investment Treasury Capital Share Share Translation Profit
up in shares redemption premium Merger based reserve and
share own reserve account reserve payment loss Total
capital shares GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 account GBP'000
GBP'000 GBP'000 GBP'000
------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ----------
Balance
as at
1 September
2015
(unaudited) 1,244 - (3,373) 1,704 14,642 651 2,631 1,374 (3,632) 15,241
------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ----------
Profit for
the period - - - - - - - - 7,052 7,052
Exchange
differences
on translation
of foreign
operations - - - - - - - 204 (333) (129)
Deferred
tax credit
relating
to share
options - - - - - - - - 30 30
Total
comprehensive
income/(expense)
for the
period - - - - - - - 204 6,749 6,953
------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ----------
Transactions
with owners
Dividend
paid - - - - - - - - (1,285) (1,285)
Share based
payment - - - - - - 74 - - 74
Shares issued 1 - 630 - 786 - - - - 1,417
Shares cancelled (10) - - 10 - - - - (1,011) (1,011)
------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ----------
Six months
ended
29 February
2016 1,235 - (2,743) 1,714 15,428 651 2,705 1,578 821 21,389
------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ----------
Balance as
at
1 September
2015
(audited) 1,244 - (3,373) 1,704 14,642 651 2,631 1,374 (3,632) 15,241
--------------------- ------ -------- ------ ------- ---- ------ ------ -------- --------
Profit for
the year
after tax - - - - - - - - 10,787 10,787
Exchange
differences
on translation
of foreign
operations - - - - - - - (100) (576) (676)
Deferred
tax credit
relating
to share
options - - - - - - - - (414) (414)
Current tax
credit relating
to exercised
share options - - - - - - - - 421 421
--------------------- ------ -------- ------ ------- ---- ------ ------ -------- --------
Total comprehensive
income /(expense)
for the year - - - - - - - (100) 10,218 10,118
--------------------- ------ -------- ------ ------- ---- ------ ------ -------- --------
Transactions
with owners
Share based
payment - - - - - - 147 - - 147
Dividends - - - - - -- - - (2,785) (2,785)
Shares issued 4 - 630 - 808 - - - - 1,442
Shares cancelled (13) - - 13 - - - - (1,244) (1,244)
--------------------- ------ -------- ------ ------- ---- ------ ------ -------- --------
Year ended
31 August
2016 1,235 - (2,743) 1,717 15,450 651 2,778 1,274 2,557 22,919
--------------------- ------ -------- ------ ------- ---- ------ ------ -------- --------
Balance as at
1 September 2016
(unaudited) 1,235 - (2,743) 1,717 15,450 651 2,778 1,274 2,557 22,919
------------------------ ------ -------- ------ ------- ---- ------ ------ -------- --------
Profit for the
period - - - - - - - - 5,340 5,340
Exchange differences
on translation
of foreign operations - - - - - - - 19 (243) (224)
Deferred tax
credit relating
to share options - - - - - - - - 77 77
------------------------ ------ -------- ------ ------- ---- ------ ------ -------- --------
Total comprehensive
income/(expense)
for the period - - - - - - - 19 5,174 5,193
------------------------ ------ -------- ------ ------- ---- ------ ------ -------- --------
Transactions
with owners
Dividend paid - - - - - - - - (1,697) (1,697)
Share based payment - - - - - - 76 - - 76
Shares issued 4 - - - 33 - - - - 37
Shares cancelled (15) - - 15 - - - - (1,315) (1,315)
------------------------ ------ -------- ------ ------- ---- ------ ------ -------- --------
Six months ended
28 February 2017 1,224 - (2,743) 1,732 15,483 651 2,854 1,293 4,719 25,213
------------------------ ------ -------- ------ ------- ---- ------ ------ -------- --------
The Character Group plc
Notes to the Financial Statements
1. Basis of Preparation
-------- --------------------------------------------------------
The financial information set out in this Half Yearly
Financial Report has been prepared under International
Financial Reporting Standards (IFRS) as adopted by the
European Union and in accordance with the accounting
policies which will be adopted in presenting the Group's
Annual Report and Financial Statements for the year ending
31 August 2017. These are consistent with the accounting
policies used in the financial statements for the year
ended 31 August 2016 as described in those annual financial
statements.
As permitted, this Half Yearly Financial Report has been
prepared in accordance with the AIM rules and not in
accordance with IAS 34 'Interim Financial Reporting'.
The consolidated financial statements are prepared under
the historical cost convention, as modified by the revaluation
of certain financial instruments and share based payments
at fair value.
These Half Yearly Financial Statements and the financial
information for the six months ended 28 February 2017
do not constitute full statutory accounts within the
meaning of section 434 of the Companies Act 2006 and
are unaudited. These unaudited Half Yearly Financial
statements were approved by the Board of Directors on
27 April 2017.
The information for the year ended 31 August 2016 is
based on the consolidated financial statements for that
year on which the Group's auditor's report was unqualified
and did not contain a statement under section 498 (2)
or (3) of the Companies Act 2006.
------------------------------------------------------------------
2. Going concern
The Directors consider that the Group has adequate resources
to continue operating for the foreseeable future and
therefore continue to adopt the going concern basis in
preparing the financial statements.
---------------------------------------------------------------
3. Dividends
------------------------------
six months six months 12 months
ended ended ended
28 February 29 February 31 August
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------- -------------
On equity shares:
Final dividend paid for
the year ended 31 August
2016
* 8.00 pence (2015: 6.00p) per share 1,697 1,285 1,285
* Interim - - 1,500
---------------------------------------------------- ------------- ------------- -----------
1,697 1,285 2,785
---------------------------------------------------- ------------- ------------- -----------
4. Earnings per share
------------------ ----------------------------------------------------------
Basic earnings per share is calculated by dividing the
earnings attributable to ordinary shareholders by the
weighted average number of ordinary shares during the
period.
Diluted earnings per share is calculated by adjusting
the weighted average number of ordinary shares in issue
on the assumption of conversion of all dilutive potential
ordinary shares. The Group has only one category of dilutive
potential ordinary shares, being share options granted
where the exercise price is less than average price of
the company's ordinary shares during this period. The
calculations are based on the following:
six months six months 12 months
ended ended ended
28 February 29 February 31 August
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP000's GBP000's GBP000's
------------------- ------------ ------------- ------------- -------------
Profit attributable to
equity shareholders of
the parent 5,340 7,052 10,787
--------------------------------- ------------- ------------- -------------
Weighted average number of shares
In issue during the year
- basic 21,205,059 21,467,202 21,445,576
Dilutive potential ordinary
shares 619,240 1,213,847 775,967
--------------------------------- ------------- ------------- -------------
Weighted average number
of ordinary for diluted
earnings per share 21,824,299 22,681,049 22,221,543
--------------------------------- ------------- ------------- -------------
Basic earnings per share
(pence) 25.18 32.85 50.30
---------------------------- ------ ------ ------
Diluted earnings per share
(pence) 24.47 31.09 48.54
---------------------------- ------ ------ ------
5. Electronic Communications
--- --------------------------------------------------------------------
The Half Yearly Financial Report for the six months
ended 28 February 2017 will shortly be available for
viewing and download on the Group's website, www.thecharacter.com.
--- --------------------------------------------------------------------
Independent Review Report to The Character Group plc
----------------------------------------------------------------
Introduction
We have been engaged by the Company to review the condensed
set of financial statements in the Half Yearly Financial
Report for the six months ended 28 February 2017, which
comprises the Consolidated Income Statement, the Consolidated
Statement of Comprehensive Income, the Consolidated Balance
Sheet, the Consolidated Statement of Cash Flows, the
Consolidated Statement of Changes in Equity and related
notes 1 to 4. We have read the other information contained
in the Half Yearly Financial Report which comprises the
Board's letter and considered whether it contains any
apparent misstatements or material inconsistencies with
the information in the condensed set of financial statements.
This report is made solely to the Company in accordance
with guidance contained in ISRE 2410 (UK and Ireland)
"Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the
Auditing Practices Board. Our review work has been undertaken
so that we might state to the company those matters we
are required to state to them in a review report and
for no other purposes. To the fullest extent permitted
by law, we do not accept or assume responsibility to
anyone other than the Company, for our work, for this
report, or for the conclusions we have formed.
Directors' responsibilities
The Half Yearly Financial Report is the responsibility
of, and has been approved by, the Directors. The Directors
are responsible for preparing the Half Yearly Financial
Report in accordance with the AIM rules of the London
Stock Exchange which requires that the accounting policies
and presentation applied to the financial information
in the Half Yearly Financial Report are consistent with
those which will be adopted in the annual accounts having
regard to the accounting standards applicable for such
accounts.
As disclosed in Note 1, the annual financial statements
of the Group are prepared in accordance with IFRSs as
adopted by the European Union. The condensed set of financial
statements included in this Half Yearly Financial Report
has been prepared in accordance with the AIM rules of
the London Stock Exchange.
Our Responsibility
Our responsibility is to express to the Company a conclusion
on the condensed set of financial statements in the Half
Yearly Financial Report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410,
"Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the
Auditing Practices Board for use in the United Kingdom.
A review of interim financial information consists of
making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical
and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently
does not enable us to obtain assurance that we would
become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express
an audit opinion.
Review conclusion
Based on our review, nothing has come to our attention
that causes us to believe that the condensed set of financial
statements in the Half Yearly Report for the six months
ended 28 February 2017 is not prepared, in all material
respects, in accordance with the AIM rules of the London
Stock Exchange.
MHA MacIntyre Hudson
Statutory Auditors and
Chartered Accountants
New Bridge Street House
30-34 New Bridge Street
London, EC4V 6BJ
27 April 2017
================================================================
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUAWCUPMPPQ
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