The Character Group (CCT) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 28 February 2025 was £53.0m, down 8% year-over-year from £57.6m, reflecting challenging trading conditions, especially around Christmas.

• Pre-tax profit before highlighted items remained stable at £2.1m, matching the prior year period.

• Gross margin improved to 29.3% from 27.2% year-over-year, despite lower sales.

• Net cash balances increased to £16.0m, with no long-term debt and strong operational cash generation.

• The Group remains profitable and maintains a robust balance sheet, despite global trade uncertainties.

Financial highlights

• Revenue: £53.0m (down from £57.6m year-over-year); FY 2024: £123.4m.

• Pre-tax profit before highlighted items: £2.1m (flat year-over-year); FY 2024: £6.6m.

• EBITDA: £3.7m (flat year-over-year); FY 2024: £10.1m.

• Net profit after tax: £2.4m (up from £1.8m year-over-year).

• Cash and cash equivalents: £16.0m (up from £12.9m year-over-year).

Outlook and guidance

• Market guidance for FY 2025 has been withdrawn due to uncertainty from US-China tariffs and global trade policy volatility.

• Board expects profitability for the full year but cannot forecast short to medium-term trading.

• 90-day reduction in US-China tariffs offers hope, but the situation remains fluid.