Trading update

THE CHARACTER GROUP PLC

("Character," the "Company" or the "Group")

Designers, developers, and international distributor of toys, games, and giftware

Trading Update

London: Friday, 16 January 2026: The Character Group (AIM: CCT) will be holding its Annual General Meeting today at 11.00am.

Ahead of this, the Company provides the following trading update:

As reported last month when we announced our annual results for the year ended 31 August 2025, trading conditions across all the Group's markets remain challenging. Sales on a like-for-like basis in the four months leading up to Christmas 2025 were c.11% below the same period in 2024. Whilst the first half sales to 28 February 2026 will be lower than the comparable half last year, sales in the second half of the current year are projected to improve and result in the Group's revenue for the year as a whole to be in line with last year's full year outcome. Despite the anticipated flat turnover for the 2026 financial year, due to the mix and enhancements within our product portfolio, Group profits (before tax and highlighted items) are projected to more than double.

Our UK, Scandinavian and international sales teams are looking forward to the upcoming international Toy Fairs in London next week and Nuremberg the following week where we shall be showcasing our broad range of products including launching several new additions and brand extensions.

Character continues to enjoy a strong balance sheet, a healthy net cash position and substantial unutilised working capital facilities.

The Company also announces the completion of its share buyback programme announced on 29 October 2024 (and extended and increased as announced on 30 May 2025), pursuant to which Panmure Liberum purchased a total of 1,126,549 Ordinary Shares on behalf of the Company for total consideration (including associated dealing costs) of £2,964,105.

The Company is scheduled to publish its half-year report for the six months ending February 2026 during May 2026.