15th Feb 2006 11:17
Character Group PLC15 February 2006 Issued on behalf of The Character Group plcDate: Wednesday, 15 February 2006 IMMEDIATE RELEASE The Character Group plc ("The Group" or "the Company") Result of Extraordinary General Meeting ("EGM") and Trading Update The Directors of The Character Group plc are pleased to announce that, at theEGM held today (15 February 2006), shareholders approved the sale of the digitalproducts division of World Wide Licenses Limited ("WWL") and related assets toFlextronics Sales and Marketing (A-P) Limited ("Flextronics"). The total sale price consists of goodwill of US$16 million and the value ofstocks and assets less certain liabilities to be assumed by Flextronics thatwill be determined at the completion of the sale, which is expected to takeplace on Friday 17 February 2006. Ian Fenn, the Company's Senior Independent Non-Executive Director and Chairmanof the Meeting, informed shareholders in attendance that: "Given the quick succession of the EGM today and the AGM next week, the Boardfelt it appropriate to update shareholders on trading at today's meeting. "As previously reported, this financial year has started strongly for the Group,with sales in the four months to December 2005 up by 60%, on a like-for-likebasis. Whilst this rate of increase may not continue throughout the year, we areconfident that revenues in our Toys, Games and Gifts businesses, on alike-for-like basis for the financial year ending August 2006 and the calendaryear ending December 2006, will both provide solid growth over the previouscorresponding periods. "Our Toys, Games and Gifts businesses have recently completed marketing at showsboth in the UK and internationally and we are delighted to report that we arealready experiencing a very solid start to our spring sales, with volumes atretail being very positive. This, together with the reception from the UK retailtrade and our international distributors to our 2006 ranges, underpins ouroptimism for a solid trading performance to come. "Within our Toys business, we would expect that the outstanding product rangesfor boys will be our robotic products, "Dr Who", "Biker Mice from Mars", "Gr8Kit Tattoo" (now sold in many overseas territories including the USA) and"Superman", and for girls; "Disney Princess" and "Witch". We are also seeingsales continue to increase in our "Gr8 Gear range" which is now in its thirdyear. "In addition, as well as developing our pre-school range which currentlyincludes "Peppa Pig", we have recently secured a European licence for "ScoobyDoo" to add to our strong UK sales. "We have seen significant improvements from within our Games and Giftsbusinesses and by the end of the financial year we expect to deliver asignificant increase in turnover through a lower, more focused number ofproducts. Notable inclusions in the consolidated range include "Sudoku", a newgame "Red Light Green Light" and another new game "Speed Stacks" (www.SpeedStacks.com), which will be launched in May 2006 and, we believe, couldbe the craze of the year. "Within our Gifts business, "Little Britain" products have started the year wellwhist the recent introduction of "Trolls" to our solid product offering isalready showing very encouraging results at retail. "Although we expect to continue to operate in a very competitive tradingenvironment, the business has made substantial progress both operationally andin terms of sales. Overall, we are delighted with the Group's portfolio ofproducts and we look forward to achieving further successful trading and growth. "I would also like to take this opportunity to confirm that the Board is mindfulof its ultimate goal of increasing shareholder value. As part of this process,the Group will consider, at an appropriate time or times, making marketpurchases of its own shares, either for cancellation or into treasury, up to amaximum of 25% of the issued share capital of the Group." Earlier today the Group informed the London Stock Exchange that it has receivedapproaches which may or may not lead to an offer or offers being made for theCompany. Shareholders should note that discussions are at a very preliminarystage and the level and form of any eventual consideration is presently unclear.A further announcement will be made as soon as is practicable. Enquiries: Kiran Shah, Group Finance Director Fiona Tooley, DirectorRichard King, Executive Chairman Citigate Dewe RogersonThe Character Group plc Tel: +44 (0) 207 282 8000Today Tel: +44 (0)207 282 8000 or +44 (0)121 455 8370Thereafter Tel: +44 (0)20 8949 5898 Mobile: +44 (0)7785 703523 (FMT)Mobile: +44 (0) 7836 250150 (RK)www.thecharacter.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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