haracter Group, which sells toys from brands including Peppa Pig, Doctor Who and Disney, has warned that the current financial turmoil will hit its profits this year.
With the run-up to Christmas looming, the company said that current “macro-economic headwinds”, including sterling weakness and the cost of living crisis, would dent consumer confidence, affecting its sales.
“Against this economic environment and although only one complete month into the 2023 financial year, the board considers that the trading performance for the current financial year is unlikely to match the expected outcome for the year ended 31 August 2022,” it said.
Despite this, it said that it currently continues to trade profitably, has a strong balance sheet, and is debt-free with enough cash to invest in the business, enabling it to continue to pay dividends.
The company is due to publish its figures for the last financial year in December.
The company has imported and sold toys for major brands since 1991. Its most popular line is Goo Jit Zu, a range of squashy action heroes.
Ahead of publishing its full-year results in December, the company said sales momentum had continued despite continuing high freight rates and the increasing strength of the US dollar.
As a result, its profits for the last financial year will be broadly in line with market expectations, it said.