The Character Group PLC reported a 15% increase in profit before tax and highlighted items to £2.4 million for the six months ended 28 February 2026, despite a 9% decline in revenue to £48.3 million due to US tariffs. Key highlights include
**Financial Performance**
Profit before tax and highlighted items rose to £2.4 million (HY 2025: £2.1 million).
Gross profit margin improved to 31.7% (HY 2025: 29.3%).
Underlying earnings per share increased by 29% to 11.06p.
Interim dividend raised by 33% to 4p per share.
**Operational Strengths**
Strong balance sheet with no long-term debt and cash equivalents of £13.7 million.
Cost management measures expected to benefit the second half and beyond.
Surplus property letting will reduce overheads and strengthen liquidity.
**Product Portfolio**
New and existing products received positive responses at the London Toy Fair.
Key brands like Goo Jit Zu, Sticki Rolls, and Peppa Pig continue to perform well.
New launches include MagMiMi and Mushykinz, with early sales promising.
**Outlook**
Full-year results expected to significantly exceed market expectations.
Flat turnover forecast for FY 2026, but improved margins and cost management should drive profitability.
Potential sale of surplus property could further enhance financial position.
Overall, The Character Group demonstrated resilience in a challenging market, with strategic initiatives positioning it for continued growth.
| Financial Metric | Six months ended 28 Feb 2026 | Six months ended 28 Feb 2025 | 12 months ended 31 Aug 2025 | Year-on-Year Change (2026 vs 2025) |
|---|---|---|---|---|
| Revenue (£m) | 48.3 | 53.0 | 100.5 | -9% |
| Profit before tax (£m) | 2.4 | 2.1 | 1.2 | +14% |
| Gross Profit Margin (%) | 31.7 | 29.3 | 26.2 | +2.4% |
| Underlying Earnings per share (pence) | 11.06 | 8.59 | 5.59 | +29% |
| EBITDA (£m) | 4.2 | 3.7 | 3.9 | +14% |
| Cash and cash equivalents (£m) | 13.7 | 16.0 | 12.6 | -14% |
| Net assets (£m) | 33.4 | 38.7 | 33.1 | -14% |
| Dividend per share (pence) | 4.0 | 3.0 | 6.0 | +33% |
| Debt (Long-term) | 0 | 0 | 0 | No Change |