23rd Mar 2007 07:00
Character Group PLC23 March 2007 Issued by Charles Stanley Securities, London Date: 23 March 2007 Immediate Release The Character Group plc Trading Update The Character Group plc ("the Group") issues the following update ahead ofpublication of the Group's Interim Results for the six months ended 28 February2007, which are scheduled to be announced on Tuesday 24 April 2007. Current Trading As shareholders will be aware, the high street retailers have been reportingvery mixed trading conditions, however, this is not being reflected in theGroup's performance, which continues to strengthen. Demand at retail for the Group's products at Christmas, particularly the DoctorWho products (including the award winning Cyberman Voice Changer Helmet), wasvery strong and the New Year has started well with a successful Toy Fair inLondon, resulting in increased exposure and brand support by our major tradingpartners. This is expected to continue throughout the calendar year. To date, Group sales and profitability in the continuing business aresubstantially ahead of the same period last year. As a result and taking accountof the on-going strong demand for our continuing lines (such as the Doctor Whoproducts range) and our new introductions (such as Dragonfly, Bindees, and Movinand Groovin Flowers), the Directors now expect that the Group will alsosubstantially exceed current market expectations for the financial year. Matters relating to the Discontinued Digital Products business Following the sale by the Company's subsidiary World Wide Licenses Limited("WWL") of the Group's digital business in February 2006, two principal mattersremain unresolved. Petters Consumer Electronics, LLC ("Petters"), a customer of WWL, has disputedoutstanding amounts due to WWL, totalling approximately US $1.6 million.Proceedings have now been issued and served upon Petters seeking payment of thefull amount. continued... -2- Flextronics Sales & Marketing (A-P) Limited has failed to pay WWL approximatelyUS$1.8m, which was due to be paid on or before 22 February 2007. Advice iscurrently being sought by WWL from its legal advisers regarding its position andit is WWL's intention vigorously to pursue payment of this debt. The background to both of these matters appears to arise out of allegations madeagainst Polaroid Corporation of patent infringement in relation to certain ofthe digital products produced by WWL. Whilst Polaroid has intimated that it mayhave a claim against WWL in respect of these allegations, no detail regardingthose claims has been provided to WWL and it has not been possible to make afull assessment of them to date. The above matters are not believed to have any material effect on the on-goingbusiness of the Group, which continues to go from strength to strength. Enquiries:Richard King, Chairman Fiona Tooley, Director Richard ThompsonKiran Shah, Group Finance Director & Joint Katie Dale, Senior Account Manager Philip DaviesMDThe Character Group plc Citigate Dewe Rogerson Charles Stanley SecuritiesTel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370 Tel: +44 (0) 20 7149 6000Mobile: +44 (0) 7836 250150 (RK)Mobile: +44 (0) 7956 278522 (KS) Notes to Editors: The Character Group plc designs, develops and distributes toys, games andgiftware, principally to the UK although it has an increasing exposure tointernational markets. Revenues are generated from a mix of product ranges, with over 70% designed anddeveloped in-house, either under the Group's own brand or under licence, withthe balance being derived from third party distribution. Notable product linesare Doctor Who, Scooby Doo, Biker Mice from Mars, Peppa Pig, GR8 Gear,Robosapien, Roboraptor and Robopet. For a more comprehensive view of theproduct portfolio, please refer to www.characteronline.com. www.thecharacter.com CCT.L: Sector: Media, AIM This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Character