24th Mar 2020 18:07
(Alliance News) - Toy, games, and gift maker Character Group PLC on Tuesday said it expects a significant drop in revenue due to Covid-19.
Supplies from the Far East have experienced "temporary" disruption, Character said, but they have mostly been restored.
However, demand, particularly in the UK, has been "deeply" impacted by the closure of all non-essential shops, though some online retailers are still seeing trade.
As a result, Character sees a significant drop in revenue in the second half of its year ending August compared to market expectations, which means profit will be hurt. However, no guidance can yet be given due to the uncertainty over how long the pandemic will last.
"The group has a strong balance sheet and is debt-free, with a substantial cash balance and considerable unutilised working capital facilities," said Character.
"The premises from which Character operates in the UK are freehold properties owned by the group and are, therefore, free from rent liabilities. In addition, the company has taken measures to reduce costs, wherever it can."
Shares finished 1.5% lower on Tuesday in London at a price of 192.00 pence each.
By George Collard; [email protected]
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