Character Group FY outcome impacted by logistics challenges and heightened costs

Toymaker Character Group said on Wednesday that its full-year outcome had been affected by global logistics challenges and higher raw material and labour costs.

Character stated the global logistical challenges, coupled with the pressure on the costs of production in China due to higher raw material and labour costs, has had an impact on profitability.

The AIM-listed firm said the immediate outlook for an early improvement in supply chain efficiency to ensure timely fulfilment was "currently unclear".

However, Character said it expects the firm's underlying pre-tax profit for the year ended 31 August to decrease by no more than 10% of market expectations following the re-opening of the bricks and mortar retail sector as a result of the easing and, subsequently, the lifting of Covid-19 restrictions in many of its markets.

"Against the backdrop of challenges noted above the group has finished its financial year in a strong position, with a robust balance sheet, a sizeable cash balance, and with substantial unutilised working capital facilities," Character said. "Overall, the group is in great shape to address the opportunities and challenges that lie ahead."

As of 1040 BST, Character shares had slumped 17.49% to 571.40p.