The Character Group (CCT) H2 2024 earnings summary

Executive summary

• Delivered profit before tax and highlighted items of £6.6m, up from £5.2m year-over-year, in line with upgraded market expectations despite challenging trading conditions.

• Revenue increased slightly to £123.4m from £122.6m year-over-year, with gross profit maintained at £32.8m.

• Operational cost efficiencies and improved cash generation resulted in year-end net cash of £13.2m, up from £9.6m.

• Final dividend of 11.0p per share recommended, total annual dividend maintained at 19.0p per share.

• Share buyback programme completed (£2.0m), with further buybacks initiated post year-end.

Financial highlights

• Operating profit before highlighted items: £6.5m (FY23: £5.3m).

• EBITDA before highlighted items: £10.1m (FY23: £8.9m).

• Statutory profit before tax: £5.7m (FY23: £4.7m).

• Basic EPS before highlighted items: 29.76p (FY23: 20.15p); after highlighted items: 25.96p (FY23: 18.08p).

• Net assets: £38.6m (FY23: £39.4m).

• Cash generated from operations: £14.9m (FY23: £136k).

Outlook and guidance

• Board expects sales and profit before tax and highlighted items for FY25 to remain at similar levels to FY24.

• Challenging macroeconomic and consumer conditions persist, but market share remains resilient domestically; international growth anticipated in Q4 FY25.

• Strong cash position and continued dividend and share buyback policies.