Toy group bounces back after the collapse of Woolies

TOY supplier Character Group, which has its distribution hub in Oldham, returned to profit in the second half of this year after it was hit hard by the closure of Woolworths.

The company, based at the Leesbrook Mill, Lees, posted a loss of £2.17 million for the year to August 31, compared with a £5.14 million profit last year, on turnover, down 16.6 per cent at £68.6 million.

The company had successes with a number of products including Peppa Pig, H M Armed Forces, Postman Pat, Scooby Doo and hot-seller Go Go Hamsters which this week got a clean bill of health following a safety scare.

Character Group reports that its market share increased to 5 per cent by the end of October and further gains are expected. Chairman Richard King said: “We have had to face the drastic changes to the marketplace following the closure of Woolworths, which affected not only our Christmas 2008 sales but had an even greater impact on our spring 2009 business following this closure.

“As a business, we had to consolidate and regroup. While our focus was to deliver a portfolio that met both the new market aspirations and consumer demand, we had to continue to deliver service and support to both our customers and suppliers, who were all being squeezed by the more difficult conditions

“Against this backdrop and the tough environment continuing, we traded profitably during the second half of the year.

“It remains difficult to know exactly how the toy market will fare in the sales leading up to Christmas.

“There are some very positive signs that our strategy of focusing on our own brands has been the correct approach and that there will be a general shortage of stock in the market place by Christmas with many of our products featuring in this shortage.”

The final dividend is 1p, the first payout since a 2.2p interim dividend in 2008.