The Character Group (CCT) H2 2025 earnings summary

Executive summary

• Revenue declined to £100.5m for the year ended 31 August 2025, down from £123.4m year-over-year, mainly due to US tariffs and global economic uncertainty.

• Statutory loss before tax was £1.8m after highlighted items, compared to a profit of £5.7m in the prior year.

• Gross profit margin remained stable at 26.2% (FY 2024: 26.5%), with gross profit at £26.4m.

• The group maintained profitability before highlighted items and ended the year with net cash of £12.6m.

• A final dividend of 3.0p per share is recommended, bringing the total for the year to 6.0p per share.

Financial highlights

• Operating profit before highlighted items was £1.1m, down from £6.5m year-over-year.

• EBITDA before highlighted items was £3.9m, compared to £10.1m in the previous year.

• Basic earnings per share before highlighted items were 5.59p (FY 2024: 29.76p); after highlighted items, a loss of 6.74p per share.

• Net assets at year-end were £33.1m, down from £38.6m.

• Cash generated from operations was £7.0m, with inventories reduced by £3.8m to £16.3m.

Outlook and guidance

• Sales leading up to Christmas 2025 were slow, with continued challenging market conditions expected in H1 FY26.

• New product launches and enhancements are anticipated to improve performance in H2 FY26.

• FY26 profit before tax and highlighted items is expected to more than double, with overall turnover likely to remain flat.

• The group maintains a strong balance sheet, cash reserves, and unutilised finance facilities.